HomeOur IndustryVision 2024Turning macro uncertainty into a growth opportunity

Turning macro uncertainty into a growth opportunity

As 2023 unfolds, the UK finds itself navigating an uncertain macroeconomic landscape. Inflation remains stubbornly high with further interest rate hikes expected. This comes on top of lingering effects from the pandemic, as well as evolving trends such as digital disruption.

Yet, for businesses willing to cast their nets beyond familiar shores, the current climate presents a unique opportunity: the potential for significant value in international growth. In my experience, few growth opportunities are as exciting or rewarding as breaking into a new market. But how do you grasp these opportunities, whilst navigating the risks?

International expansion enables companies to tap into broader markets and new customer bases, providing a cushion against periods of domestic economic uncertainty. A business can mitigate risks through a portfolio effect whereby weakly performing markets are offset by strong ones, generating smoother overall performance. Accessing a diverse talent pool also fosters innovative thinking and efficient delivery.

However, with all its alure, international expansion is not without its hurdles - grappling with regulations, synchronising across time zones, managing logistics, bridging language gaps, and adjusting to FX shifts, to name a few. Such ventures demand significant time and resources.

One common oversight I’ve noticed is that companies often neglect the nuances of conducting business in different global territories. This could be anything from the size of coffee customers prefer, to the protocols for executing successful M&A and even the customs for greeting potential new partners. Having experienced professionals on the ground, who genuinely grasp the intricacies of business in a specific country or region, is invaluable.

At Bridgepoint, we are uniquely positioned to support companies on their internationalisation journeys, leveraging our global network and deep track record. I am looking forward to partnering with more management teams to drive their overseas growth.

Authored by Matt Legg
Partner, Bridgepoint Development Capital, and member of the BVCA Vision 2023 judging advisory panel

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