Starting a business now may sound like a difficult challenge for entrepreneurs. The COVID-19 pandemic and various travel restrictions cause the downfall of the world’s economy. Although not all nations may experience a gratifying decrease in their economic performance, most do. For instance, when referring to the World Bank data, almost all countries experience a decline in their economic performance during the pandemic. Or at least, a decline in the expected economic growth.
These changes in the business environment is most likely a tall hurdle for entrepreneurs who thinks of starting a business now. Despite the improvement in the COVID-19 infections, the threat of new virus strains looms from the sidelines. Thus, entrepreneurs are dependant on government regulation to keep the local economy ecosystem running. However, even with tight border control, keeping the country free of infections proves to be a hurdle.
To create a positive boost to the local economy, the government introduced a regulation that aids foreign investment in Indonesia. With this new regulation, all permits and documents processing is done through an online platform. That way, foreign investors can enjoy transparent and faster processing. The introduction of this regulation is suggested to have played a part in the increase of foreign investments in Indonesia during the 2020 and 2021 periods.
Starting a Business Now
Starting a business now can be a good strategy for entrepreneurs looking to penetrate the Indonesian market. Depending on the goods and services, the current situation can be a lucrative time for new businesses. Currently, most entrepreneurs choose to stay on the defence, while on the other hand, plenty of micro-businesses close down. The lack of players in the market provides a chance for new players to enter.
Furthermore, new businesses can utilise the benefits from technology growth. A decade ago, companies must rent a physical office place to establish their business. Today, companies have a much economical option that comes in the form of virtual offices and serviced offices. With a virtual office, companies only pay a fee of less than a thousand dollars for a year of business address rent with complete office facilities. The virtual office is a popular choice for entrepreneurs who are starting a business now. For companies looking for a trustable virtual office provider, MESO Serviced and Virtual Office is the perfect choice.
If the company decides to have a physical office but needs to consider its budget, a serviced office is a perfect choice. At MESO Serviced and Virtual Office, the office suites are fully serviced and furnished, giving convenience to companies renting the room. Furthermore, there are also supporting facilities to ensure the facilities are ready to use. Those facilities are receptionists, daily cleaners, and a floor manager. Renting a serviced office at MESO APL Tower also gives companies 24/7 access to their office suites.
Current Market Challenges
The undeniable condition of the weak market interest poses a challenge for entrepreneurs. The weakening of this consumer behaviour is largely due to the pandemic. As mentioned before, the pandemic has forced a lot of companies to downsize or close their operations. This means that more people are losing jobs. Others must take a pay cut to maintain the company afloat.
In addition, despite the general increase in investments, most retail companies do not benefit from foreign investment. This is due to foreign personnels’ inability to gain access to the country. The border prohibition poses a problem for companies who are planning to do market research. Plus, the buying behaviour of each nation may vary depending on the environment. Therefore for foreign investors, it is imperative to observe the market before starting a business now.
Another challenge that entrepreneurs may face is the rocketing price of logistics fees. Companies that operate in the export and import industries are the ones that are at a loss during these border restrictions. The application of border restrictions is to reduce the risks of COVID-19 spread. Thus, the number of shipping decreases and the price skyrockets. The expensive shipping costs and the infrequent shipping schedule force companies to sell their goods at a costly rate.