Polish companies are looking more and more boldly at foreign markets, seeking opportunities for growth and building a global position. Beata Drzazga – founder of Betamed SA and several foreign companies, business mentor, talks about how to gain competitive advantage in multiple markets simultaneously in a world of dynamic economic changes.

What barriers most often stop Polish entrepreneurs from entering foreign markets, Are Polish companies still afraid to compete with international giants?

Barriers, which prevent Polish entrepreneurs from expanding abroad, are complex and stem from both practical and psychological constraints. One of the biggest challenges is regulatory issues. International markets require compliance with a variety of regulations, tax, customs or related to product certification. Another obstacle is the high cost of expansion, the lack of employees or the problem of moving Polish employees abroad. For many companies, especially smaller ones, navigating such a complex environment is difficult. Another obstacle is the high cost of expansion. Entering a new market involves building a distribution network or conducting market research. Poland lacks readily available sources of financing for such activities, resulting in many entrepreneurs preferring to remain in the local market.

However, the most difficult to overcome is the mental barrier. Still present is the so-called. ” small playercomplex ” – the belief that Polish companies cannot compete with global leaders. This thinking, shaped by years of Poland’ s economic marginalization, causes, that entrepreneurs often avoid taking risks and limit their ambitions to operating in the local market.

Nevertheless, the situation is gradually changing. The younger generation of entrepreneurs, raised in the realities of globalization, is looking at foreign expansion more boldly. These entrepreneurs speak foreign languages, understand new technologies and are more likely to see their companies as equal players in the international market. For them, entering foreign markets is not a risky ambition, but a natural step in business development.

To what extent does the young generation of entrepreneurs in Poland differ in their attitude to risk and openness to foreign markets?

The most important difference is due to the fact that the young generation of Polish entrepreneurs grew up in an era of open economy, when globalization and digital technologies were becoming an everyday reality. As a result, their outlook on foreign expansion is much more pragmatic – they see it as an opportunity, rather than a threat. They do not see foreign markets as ” unreachable” or ” overwhelming.”

The young generation is also characterized by a greater tolerance for risk. With access to modern analytical and marketing tools, are able to more accurately assess the potential of new markets and plan activities more effectively. In addition, being raised in the Internet era has allowed them to better understand the specifics of international trade and communication, which makes them less likely to fear language or cultural barriers.This change positively affects the dynamics of expansion. Entrepreneurs of the younger generation are more willing to try to enter foreign markets even in the early stages of their business development. They often use modern e-commerce business models That allow them to operate globally without having a physical presence in foreign markets. As a result, we are seeing an increase in the number of Polish companies that are successful on an international scale, especially in industries such as IT, fashion, design or green technology. But we also see a trend , that young generations after studying abroad, like to return to Poland and here they want to act.

There is a lot of talk about regulatory or psychological barriers. However, let’s talk about something much more important. Building a sustainable competitive advantage in many markets at the same time is not at all that easy. And without it, international development is very difficult for an entrepreneur.

While entering one foreign market may require adjusting products, processes or marketing strategy, operating simultaneously in many different markets involves the need for a flexible, yet consistent business model. Without this, international development becomes fragmented and difficult to sustain. The most important problem in building a competitive advantage in many markets is the diversity of customer requirements and expectations in different regions. That’s why it’s important to hire employees from a particular country,who are already familiar with the regulations, the region and their own country in general.Each market is governed by its own laws – cultural differences, consumer preferences, regulations or the level of maturity of the sector force entrepreneurs to react dynamically and adapt their actions.

Adapting products, services and strategies to the specifics of individual markets, is very important to gain the trust of local customers and stand out from the competition. On the other hand, excessive differentiation of operations can lead to operational chaos and increased costs, which reduces efficiency. Companies successfully operating in the global market have found an effective way to balance these approaches, standardizing the basic elements of their offerings, but at the same time adapting selected aspects to local markets.

The importance of human resources should also not be overlooked. Building a competitive advantage in many markets requires a team of people, who understand the specifics of local markets, but can also think globally. Competencies such as language skills, negotiating skills and the ability to work in a multicultural environment are crucial to the successful implementation of an international strategy.

However, the basis for sustainable competitive advantage is innovation. Companies that can create products or services that are unique on a global scale build natural barriers to entry for competitors. Technological innovations, a novel business model or a unique approach to customer service can become the element that allows a company to successfully compete in different markets simultaneously.

What industries will have the greatest potential for international expansion in the coming years?

Entrepreneurs should focus on global trends: Digitization, Green Transformation, Sustainability and Innovation and Cyber Security.

The IT industry and the software sector remain among the fastest growing in the world. Digital transformation in almost every industry, from finance to industry, is generating a huge demand for technology solutions. Polish companies are already known for their high-quality services, especially in the field of software development, cyber security or cloud technologies. The growing popularity of artificial intelligence or process automation solutions creates huge opportunities for Polish entrepreneurs, especially as the global market continues to grow, and barriers to entry for technology companies are relatively low.

Green technologies and renewable energy have equally important potential. The drive to decarbonize economies, especially in Europe and North America, means that investment in renewable energy sources, resource-saving technologies and circular economy solutions will only accelerate. Polish companies, especially those related to the production of components for photovoltaics, energy storage technologies or recycling equipment, have the opportunity to become significant players in the global market. In addition, global regulations supporting green initiatives, such as the EU climate policy, offer companies new opportunities for financing and market entry.

The biotechnologysector, especially in the area of medicine and pharmaceuticals, also shows tremendous growth potential. Aging populations and the need for innovative therapeutic solutions create space for companies specializing in research and development. Polish biotechnology, supported by a solid scientific base and rapidly growing start-ups, has a chance to compete in the global market, especially in niches such as molecular diagnostics, gene therapies or new immunotherapy solutions.

Is it possible to achieve success today without operating on foreign markets?

In today’s economic reality, it is increasingly difficult to achieve sustainable success without operating in foreign markets. Globalization, digitalization and intense competition have changed the rules of the game – companies that limit themselves exclusively to the domestic market, expose themselves to stagnation and greater risk of dependence on local economic conditions.

Operating in diversified markets gives a company a key advantage – diversification of risk. The economies of individual countries are susceptible to economic fluctuations, regulatory changes or local crises. A company operating in multiple markets can offset the effects of a slowdown in one of them, by basing its revenues on regions with higher growth rates.The diversification of markets is also conducive to building a more flexible and scalable strategy. Operating in an international environment forces companies to better manage resources, optimization of processes and greater innovation, which ultimately translates into competitiveness.

Moreover, presence in foreign markets builds prestige and brand recognition. Global reach gives access to new customers, business partners and investors, which strengthens the company’s negotiating position and opens up opportunities for further growth. Such action also allows to achieve economies of scale – greater volume of production and sales lowers unit costs, which enables a more aggressive price battle.

Interviewed by Mateusz Banaszak
Source: Business Magazine