Targeting specific markets, understanding what consumer needs have to be met and developing relevant solutions are what many tech companies do daily. However, there are issues on the horizon that are presenting some challenges, particularly to smaller firms. When looking at global events, one might not readily see the implications for small technology-based businesses, but make no mistake about it, they exist.
For instance, the tension between the US and China—two of the biggest tech hubs in the world—has led to numerous tech companies experiencing difficulty, especially in terms of pinpointing which investors to approach as well as exactly where to distribute their goods/services. If a business has Chinese investors, for example, this could lead to issues when it comes to a company being able to sell to the US.
And the problems extend beyond just this core Chinese/America dispute. We need only look at a country such as Israel which relies on ties with both nations. Tech companies there may find themselves in a position where they are forced to choose an alliance. The point is, many firms depend on global sharing and yet the tension between the US and China is making this more and more of an issue. To the point where some small tech firms in certain countries are moving toward an isolationist position.
There are also challenges in Europe where the UK's decision to leave the European Union has also stirred up some seemingly unanswerable questions for tech companies.
It will be interesting to see how the tech world continues to respond to the global political discord that has marked the past few years. Many are going to have to get creative and unfortunately, there may be some that don't weather the storm. Those who can come up with the right solutions facing today's consumers, however, do still stand to make strong gains.
At First Union Lending, we make it our priority to help small tech firms get the funding they need so that they can make it through more turbulent periods. Call today to see how we can help you!