Each country is unique in many ways that can impact the feasibility and performance of your business in a positive or negative way. For example an idea that is feasible in a highly developed country may be either impossible or difficult to do in a less developed one. These are some of the determining factors you will need to take into account before you can start any business:
- Its physical features
- Its climate
- Distance from the sea coast
- Population: demographics, literacy, education, skills, culture, religion, work ethics, material standard of living
- Political system, governance, and political stability
- Level of economic development, infrastructure, employment, rate of urbanization
- Banking, finance, credit
- Other businesses and how well they are performing
Climate
A country’s climate determines the products and services people use and the type of homes in which they live. In countries such as northern Europe, north America and Asia, which are cold or cool for a greater part of the year, people need heavy, warm clothes and footwear to protect them against the cold, which can be snowing and freezing for most of the year. Their homes should also be well heated during the cold season. Accordingly, in those countries, there are many businesses which sell winter clothes and those which install and maintain different types of heating systems.
The contrary is true in warmer climate countries. In those countries, people generally wear lighter clothes and shorts instead of long pants. Instead of heating systems, homes need air conditioning.
Distance from the sea coast affects transportation/freight costs for incoming and outgoing goods. The longer the distance, the higher those costs of imports and exports. It’s even worse if the country is land-locked and goods have to pass through other countries before reaching their final destination. The transit countries will add their own handling charges and taxes.