REPORT ON

THE PROBLEM’S OF
SETTING UP A BUSINESS
IN ANOTHER COUNTRY.

By : Mehul Ganatra
Section-A, PGPBM-2010-2012
The country I belong to is India & the country
that I chose to setup my business was Slovenia.

PROBLEMS FACED WERE:

Language Problem: Slovene is the formal Slovenia

language, officially the state language. The
uniqueness of Slovene language has attracted many
foreigners to learn the language but as I tried to
interact with the local native’s of Slovenia I found out
that people were not that familiar with English too.
Hungarian and Italian were the other languages
spoken in cosmopolitan regions of Slovenia apart
from the official Slovenia language.

Weather & Climate Problem: The weather in

Slovenia varies from season to season. There are also
three climatic influences that meet in the country
and the type of climatic situations in India is very
 different which became a major problem for me to
set up my business. The average temperature stays
around 10°C throughout the year in Slovenia.

Food Habit: Though some countries shy away from

eating horse, it’s commonly consumed in many
European, South American and Asian nations,
including Slovenia, where horse meat is readily
available from supermarkets and restaurants. People
are usually found having non – vegetarian food like
sea food, chicken, beef and being a pure vegetarian I
had to face a lot of problems regarding food.

Financial Problem: In the late 2000s economic crisis,

Slovenian economy suffered a severe setback. In
2009, the Slovenian GDP per capita shrunk by
-7.33 %, which was the biggest fall in the European
Union because of which I had to face problems while
setting up my business and was unsure of the profits
I would make in that country as well as Slovenia has a
relatively small public debt and stable public finance
which made me think about setting up a business
here.
Social Problem: In Slovenia important social
problems and issues include the country's transition
to a free market economy, an aging population (the
average age for men is thirty-five, for women, thirty-
eight), creating jobs for an educated population, and
coping with the increasing number of migrant
workers and refugees where as India is an
emerging economy and it has witnessed
unprecedented levels of economic expansion.

 Different corporate culture: People of Slovenia are

very formal to each other when interacting to each
other is concerned whereas in India this has never
been a problem. This made it very difficult for me to
connect and communicate with my probable
customer’s.

Getting Raw Materials: This was one of the major

problems I faced in Slovenia as it was very hard to
find a trustable dealer who would provide me with
the raw material I needed for my business on a
 regular basis. The transport fares for delivering of
goods were unimaginable whereas, in India this was
never a problem. Getting raw materials and get it
delivered was simple and easy and cost effective.

Promotional Problem: Promotion of my business

was very hard as my ways of promoting was very
different to the ways they are adapted to. I usually
failed in making them understand what my business
was all about and the reason behind such promotion.
India was relatively easy in such situations as people
were usually risk takers.

By this we can analyze the expenses in India are much

lower in comparison to that of Slovenia. Therefore, it was
very tough to launch a business successfully and to
survive there without a good initial capital won’t be
possible.