Coronavirus recovery: Opportunities abound for small businesses in Asia
- With a business culture fired by technology and innovation, small companies and start-ups will be central to growth in Asia in the coming years
- Covid-19 has changed the world and our way of life, but opportunities in this region are there for small and medium-size firms looking to grow
Asia has long been a world leader in regional integration, exploring remarkable and ever-adapting networks in trade, investment and innovation. Despite great diversity in people and cultures, it has positioned itself as a closely-knit economy focused on international business opportunities.
These long-standing “inside Asia” relationships will give this region the edge in 2020 as businesses evolve to meet the huge challenges from Covid-19. That’s especially so for up-and-coming small businesses.
The value of intra-Asia trade is high compared to other regional blocs. Intra-Asia exports account for 60 per cent of regional exports, second only to intra-European Union exports of 68 per cent.
While the economic impact of the pandemic will curtail growth in Asian economies this year, China and Southeast Asia will remain key players in intra-Asia trade because of the expected rebound in these markets by 2021, especially as Chinese demand for goods resumes.
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Second, China and India will keep growing in 2020. Through transforming trade and selling more goods locally, Asian economies can fare better than those across the world. In the current global slowdown, emerging Asia is expected to be the only region with a positive growth rate in 2020.