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Start-Up Companies’ Issues in Global Expansion Essay


Achieving success in a particular business area today is the task that many entrepreneurs seek to solve. However, on the way to growth and recognition in the market, many start-up companies face some challenges that significantly inhibit the development process and force the management to find solutions to these problems. For a new enterprise to become known in the market, it is essential to overcome several difficulties; otherwise, good profit and client interest will be unattainable. In the process of work, start-up companies deal with several problems, and certain leadership, team, and individual skills can help in solving complex issues and deserving recognition at the local and, later on, at the international market.

Challenges for Start-Up Companies to Expand Globally

The conditions for success are determined by different factors, and the task of start-up companies is to find the best approaches for their business development so that the invested funds and forces could not be wasted. According to Moroni, Arruda, and Araujo (2015), the challenge of novice companies is to remain creative not only in the sphere of production and sales but also in management mechanisms, competently monitoring current activities. It means that when starting work in the market, and ineffective leadership policy can be developed, which is fraught with unnecessary costs and the lack of competent control.

Also, problems can arise with the search for a client base. As Kohler (2016) claims, if insufficient attention is paid to attracting potential partners and customers, there is a risk of production loss and the lack of market interest. Certainly, start-up companies find it difficult to develop an effective marketing strategy that allows them to attract maximum attention to their products. Consequently, it inevitably leads to the fact that the company does not have an opportunity to fully develop, and the prospects for entering the global market are completely overlapped by the lack of demand.

Another difficulty is the problem with the choice of work direction. According to Moroni et al. (2015), market analysis and the search for potentially profitable areas of activity are the keys to success, and their ignoring significantly increases the risk of a particular company’s failure. If insufficient measures are taken to assess the current needs of customers, a start-up company will not be able to withstand competition from other large corporations and will have to stop working.

Needed Skills to Overcome the Challenges

To overcome the described challenges, it is necessary to develop several effective strategies aimed at fulfilling several goals and objectives. For example, Davila, Foster, and Jia (2015) offer the leaders of novice companies to adhere to the policy of strategic management and plan any steps. It will require the help of subordinates who can fulfill the task by forming a cohesive team and having a common and formulated goal. Individuals may be appointed responsible for monitoring specific aspects of work, for example, compliance with plan conditions.

To attract customers, managers of start-up companies should pay attention to modern advertising methods. Along with observing the quality of products, some marketing innovations can be used, for example, promoting in social networks to increase consumer interest (Sequeira, Wang, & Peyrefitte, 2016). Analyst groups can track customer activity and make concerning further steps. Individuals can be responsible for establishing contacts with foreign partners to attract customers from abroad.

Also, the management should carefully analyze “extremely profitable niche markets” to identify potentially profitable production (Moroni et al., 2015, p. 2199). If an analytical department team is well versed in current trends, the risk of bankruptcy will be minimal. Individual employees may be involved in studying the activities of competitors and analyzing the least developed areas of production and sales to successfully introduce their company’s brand.

Personal Example of a Leadership Role

Some time ago, I was able to take a leadership role when our team faced with insufficiently high consumer demand. I decided to analyze the reasons for low sales and surveyed customers to find out their desires and needs. This measure was quite effective because, based on the results of the survey, we managed to reorganize production and achieve an increase in the number of clients. Looking back, I can conclude that I would have slightly changed the survey system by first selecting the main target groups and improving the questionnaires, focusing on factors such factors as age, gender, etc. However, the intervention was useful, and relevant experience was obtained.


Thus, certain leadership, team, and individual skills can help solve some of the difficulties faced by start-up companies and be useful for gaining success in the process of development. Personal leadership experience is a good example to use it in the Marketplace simulation, for example, by developing special strategies for polling the population and searching for key factors affecting customer demand. Adherence to market needs and strategic planning can be effective mechanisms to globally expand and to be recognized among competitors.


Davila, A., Foster, G., & Jia, N. (2015). The valuation of management control systems in start-up companies: International field-based evidence. European Accounting Review, 24(2), 207-239.

Kohler, T. (2016). Corporate accelerators: Building bridges between corporations and startups. Business Horizons, 59(3), 347-357.

Moroni, I., Arruda, A., & Araujo, K. (2015). The design and technological innovation: How to understand the growth of startups companies in a competitive business environment. Procedia Manufacturing, 3, 2199-2204.

Sequeira, J. M., Wang, Z., & Peyrefitte, J. (2016). Challenges to new venture creation and paths to venture success: Stories from Japanese and Chinese women entrepreneurs. The Journal of Business Diversity, 16(1), 42-59.

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"Start-Up Companies' Issues in Global Expansion." IvyPanda, 3 Sept. 2020, ivypanda.com/essays/start-up-companies-issues-in-global-expansion/.

1. IvyPanda. "Start-Up Companies' Issues in Global Expansion." September 3, 2020. https://ivypanda.com/essays/start-up-companies-issues-in-global-expansion/.


IvyPanda. "Start-Up Companies' Issues in Global Expansion." September 3, 2020. https://ivypanda.com/essays/start-up-companies-issues-in-global-expansion/.


IvyPanda. 2020. "Start-Up Companies' Issues in Global Expansion." September 3, 2020. https://ivypanda.com/essays/start-up-companies-issues-in-global-expansion/.


IvyPanda. (2020) 'Start-Up Companies' Issues in Global Expansion'. 3 September.

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