exporting_america2.htm

In Part I of this series, I discussed how the adversity created by the exporting of American jobs overseas creates opportunity for entrepreneurs inside the United States. Many Americans are finally realizing that job security is a thing of the past, never to return, and starting one's own business may be the best, the only, solution for many.

We are now going to turn our focus overseas…where the jobs have gone. The day finally arrived for me, on March 19th, 2004, when my job became officially eliminated (replaced) by my former employer's outsourcing practices. I will give the company—actually my former supervisor—the credit where it was due: I was informed in advance, and the actual layoff was quiet, personal, and done with as much dignity as such a thing can be accomplished. Now I focus on the opportunity, for the adversity has touched my heart, and my goal has changed to helping others in similar situations. I also focus on the new market opening wide for entrepreneurs internationally, as I explore here in this report.

The top three new markets are India, China, and Singapore. I do not include Mexico in this list, although to date, Mexico has "imported" the most jobs from the United States. Mexico, however, is an economically repressed, politically unstable, and very porous country, thereby making entrepreneurial opportunity somewhat riskier and more difficult. Access to and within India will probably turn out to be the best and easiest for entrepreneurs, with Singapore and then China rounding out the top three. There are special considerations for China because of the country's political choices and trends, and it is a more volatile environment in the short term than either India or Singapore. Here are some current figures and trends that show where and why the opportunity will rise:

Where the Jobs (and Money) Are

INDIA

Since the year 2000, India has developed a "super-infrastructure" of education and companies that specialize in the iImportation of commerce (jobs) from the United States. Their education costs far less than a similar education costs in the United States.

The wage for an average high-tech job in the United States (depending on specialty) ranges anywhere between $40,000 and $150,000 annually. The wage for the same jobs in India range from $2,500 or less to $9,375 to $18,750. (Wages in India are 1/8 to 1/16 of what they are in the United States for the exact same work.)

India has imported nearly 1.8 million jobs from the United States since the year 2001. The per year average is currently 450,000 jobs and is projected to exponentially increase to 698,000 jobs per year by 2025 in the tech sector alone. That will mean that service, technical, financial, and other customer service (call center) industries in the United States can expect to lose jobs to India at the rate of nearly 60,000 per month.

India will have over 32 million new, high-paying (by their country's standards) jobs by mid-century. This presents an enormous opportunity to enter the Indian Market as an entrepreneur.

Power in numbers—India is now the second most populous nation on earth and is expected to exceed China's No.1 spot within the next 20 years. India does not have specific population controls in place like China's "one child" policy.
CHINA & SINGAPORE

China and Singapore are emerging markets for entrepreneurs. The production of new and maintenance of current jobs in both countries are fantastically strong.

While exact and accurate figures are hard to find (there is a different number with every story and economic impact study), it appears that China will create nearly one billion opportunities for entrepreneurs by mid-century.

China's economic reforms have increased the ability of its people to access the Internet and buy goods and services from other countries. The reforms have also given them the chance to start home-based businesses. The Chinese government appears to be weakening its restrictions on "home-based businesses," and the trend will more than likely continue as the country comes under more pressure from the World Trade Organization, United Nations, and other countries to open markets and opportunities to their people. The "Red Curtain" is lifting, and fast.

China's government is very aware of how important the Internet is to the success of their nation's economic and social development (with social controls from central government, however).

Power in Numbers—China is the most populous nation on earth with approximately 1.3 billion citizens. Singapore's population growth is steady.
Exponential Opportunity

Many in the Network Marketing industry know that "exponential" is one of the best words in their vocabulary when it comes to their business and growth. For all other home-based entrepreneurs, exponential has a new meaning. Opportunities are exploding around the world, and as they do, your business can grow as fast as you…creating "exponential growth" and greater opportunity.

So what types of opportunities are going to be the best in India, China, and Singapore? The answer to that question isn't as easy to answer. From the research completed, nearly any conceivable home business that is either located outside the United States or has the ability to reach outside the United States can benefit from this importation of jobs outsourced or created by U.S. Corporations. The Internet is the key to this growth, and it also comes with its "perils" as it relates to China. At the time of writing, I've yet to find anything that is "not allowed" (with the exception of pornography) for a business model in any of these countries. Network marketing appears to have the greatest potential simply because it is a rapid growth industry, especially when one is an "InterNetwork marketer"—one who does their network marketing exclusively through the Internet.

Getting in on the game, so to speak, is entirely up to you, the entrepreneur. I can't tell you how or when or who when it comes to your business plan; I can only make suggestions based on the research and available information on growth for entrepreneurs in non-U.S. markets. The best thing is to have a business plan.

Plan for your growth!

If you are thinking about stepping outside of the United States, or are an International Entrepreneur, build into your business plan how you want to grow your business in these emerging markets. The "Sources" section of this article has some good places to begin looking. Look for international networking groups in your area of specialty. Get in contact with someone you may know or find someone through your research in the nation to which you plan to expand and work with them to find out more in-depth and timely information. Make sure you are well aware of the risks associated with growth to another country. You must be aware of all of your local laws, as well as the laws of the nation in question that relate to your business' products and/or services.

With that being said, we also have to take a look at "Caveats" to develop your business in some of these countries. Beware (or "be aware" if you prefer)…

Caveats

CHINA
I touched on China earlier in regards to Internet growth and governmental controls. Here are some of the facts (some are nearly two years old due to the simple lack of public Internet information on the inner workings of the Chinese Government).

74% of the Chinese population is concentrated in rural areas, away from the conveniences of Internet access, population centers, and higher paying jobs. There are approximately 800 million full-time rural employees, with an additional 100 million working seasonally. Good news: more and more people, on the scale of millions per year, are moving to urban areas in China to seek better opportunities.

Internet Usage and Availability: As of November of 2002, there were 54.35 million Internet users with 20.56 million computers actually connected to the Internet. This does not necessarily reflect how many computers exist in China. This accounts for a mere 4% of the Chinese population. The Chinese government is actively pushing for more Chinese language databases, information services, and software to develop the nation's Internet usage. As mentioned earlier, the Central Chinese Government will have absolute control over a majority of this development.

The minister of Information Industry, Wu Jichuan, was quoted as saying in 2002, "The Chinese government will establish rules and regulations for the Internet and related businesses, ensuring the whole sector develops in a sustainable and healthy way." He also mentioned that there are "moral hazards" related to the spread of the Internet that the government must deal with.

INDIA
India appears to be the most "wide-open" nation of those benefiting from the exporting of American jobs. In research for this article, I was unable to find any large reason that might inhibit growth in India for the home-based entrepreneur. India has more English-speaking individuals then any nation on earth. India also claims that Internet users in their country have an understanding that is as developed as any other "advanced nation" in the world. According to their studies, Internet users are more affluent and use the Internet mainly for communication. Those who use the Internet for longer amounts of time use it mainly for information search. This could bode well for an effectively advertised Website for your business and opportunity.

The Asia Pacific Network Information Centre states that research shows that Internet usage in India is growing at the rate of 20% annually, which means an additional 8,000 to 10,0000 new Internet users every month for the next two years (which is as far into the future as their study indicated).

MEXICO
Mexico has the lowest Internet usage and lowest availability of users in any of the nations mentioned. This is due foremost to the lack of information infrastructure in the country. Although development continues, there is very little solid information on accurate numbers of Internet users, their affluence, knowledge, and numbers. It appears that non-Mexican entrepreneurs may have trouble "breaking into the market" unless they travel frequently to the nation and can do a majority of their business through non-electronic means.

All told, the opportunities created by the controversial practices of U.S. Corporations are large in number and only limited by one's imagination. As we develop a true world economic structure and free trade agreements continue to develop and spread so will the opportunities—despite what it may be doing to someone's job in the U.S. Everything I've read on the subject leads me to believe, wholeheartedly, that we entrepreneurs are in the best position possible for the future and that anyone who relies on job security in the U.S. should be taking a look at diversifying and joining us…the "Greatest Entrepreneurs in the World."

In summary: Embrace the future and run with it!

SOURCES

Asia Pacific Network Information Centre, The (APNIC). "India Experiences 20% Internet Growth." 2003. http://apnic.net/

International Labour Organization (United Nations). "China Labour Market & Income Insecurity." November, 2003. http://www.ilo.org/

Leonhardt, David. "Chief Executives' Survey Fuels Hopes on Hiring." The New York
Times, March 4, 2004.

McGinn, Daniel. "Help Not Wanted." Newsweek, Inc. on MSNBC.com, Inc.,
March 1, 2004.

Overby, Stephanie. "Inside Outsourcing in India." CIO Magazine, CXO Media, Inc.,
June 1, 2003.

People's Daily (China). "Internet Business Faces Wonderful Opportunity in China: Minister." November 26, 2002. http://english.peopledaily.com.cn/200211/26/eng20021126_107459.shtml

Poon, Leon. "The People's Republic of China." Chaos@UMD Website, University of Maryland. http://www-chaos.umd.edu/history

SIFY.com. "Internet Usage in India." July 31, 2003. http://sify.com/sifyimagine/fullstory.php?id=13213758&vsv=37

Daniel L. Dashnier is a home-based entrepreneur, freelance writer, and owner of Dashnier Enterprises, offering technical writing services and cooperative marketing tools in Madison, Wisconsin (GreatestNetworker@charter.net). He is currently a staff writer for IAHBE.