When companies decide to expand internationally, one of their first concerns is usually international banking and how they'll manage finances overseas. Foreign markets can be tricky to navigate without an experienced partner, and sometimes entrepreneurs lack the knowledge to effectively understand them on their own. However, there's another rapidly appearing concern for enterprises looking to break into European markets - sustainable energy use.
Green is a priority in Europe, but is it cost effective for business?
For years, European governments have pressed sustainable energy use by subsidizing green technologies, funding growth in the sector and encouraging homes and businesses to focus on solar energy installation. Not only do they believe this will help cut the fossil fuel use they think leads to global warming and pollution, they also believe this will allow them to become more energy independent and less reliant on other countries for oil.
While the green initiatives were well received for years, some business owners are now hesitant to invest and use these technologies. According to USA Today, debt challenges, austerity measures and rapidly increasing costs are making it more expensive and difficult for companies to make sustainable technology a priority in their business plans. The source reported German consumers are paying 11 percent more for electricity than they did last year.
Because of rising European energy costs, some business owners may debate whether they should implement the use of solar, wind or geothermal energy in expansion plans. While the initial idea may seem intriguing and cost effective, it could potentially wind up being more expensive for some firms in the long run if expenses continue to rise.
Expanding the right way
In their quest to get the right expansion advice, have the right foreign banking options and determine how and if they should seek funding for the installation of green technologies overseas, some business owners may run into difficulties. While they may believe they can best get this advice from the country's biggest financial institutions, they could do better to work with a small or mid-sized local bank. Smaller financial bodies can help business owners receive the personalized advice, better cash management ideas and custom solutions and lending options they seek and ensure their overseas expansion plans are successful, cost effective and fall in line with any foreign requirements.