By EWN • 13 June 2022 • 18:13
European businesses are affected by what has been coined the European single market. The single market has been developed since the beginning of the EU and this has continued to become the digital single market. The European single market is described by academics as, “the establishment, within the EU, of one territory without any internal borders or other regulatory obstacles to the free movement of goods and services”. The EU digital single market is heavily regulated to allow for trade to function in the online space. There are however certain obstacles to this trade which include, “intellectual property rules, different rules for licensing of content [and] geo-blocking”. Businesses in the EU need to operate with a strong awareness of the regulations which affect their business. They also need to be aware of the effect of the single market on the business itself.
The US offers a number of benefits for European businesses including more favorable taxation on businesses and individuals as well as a business environment which is subject to less regulation. The US also offers a massive market of its own with a wealthy and sizable population. Additionally, the US is appealing because of its centrality and influence in the global market.
Incorporating in the US may be intimidating but it offers a large and stable economy and there are many types of business entities available to select from. The most common business entities are limited liability companies or LLC and S Corporations. Both of these types of business offer limited liability asset protection to their owners or shareholders. This assists with mitigating the risk associated with starting a business or expanding one.
Whether a business is an LLC or an S corporation it will need a registered agent. This is an individual or company which received important documents from the state in which the business is incorporated. This is a legal requirement and one that can be performed for a small fee by many US businesses. A registered agent service is often recommended, as the registered agent is required to have a non PO Box address in the state of incorporation.
The European Commission has recently introduced two new acts which attempt to increase the safety and transparency of the online space. The first of these acts is the Digital Services Act which mainly introduces legislation for companies which are online platforms or intermediaries. This includes app stores, social media sites, and ecommerce platforms. However, this is not an exhaustive list of the businesses which are affected by the act.
The Digital Markets Act is the second act introduced by the European Commission and this act primarily affects online platforms which are gatekeepers of content. Gatekeeper platforms have systemic roles in their own markets, and tend to function as a bottleneck between businesses and consumers. This bottleneck affects the distribution of essential services for the consumer. Some online platforms will have obligations under both acts but this depends on the nature of the business.
Global warming forces businesses to consider their environmental impact and how they can minimise this as much as possible. Consumers are increasingly interested in purchasing goods and services which are sustainable. This incentivises businesses to create sustainable products to deliver to their customers as well as lessening the impact of global warming.
Digital marketing has never been more relevant for businesses than it is in 2022. Businesses need to have an active online presence to draw in new customers and market effectively to their existing customers. This is particularly true of youthful demographics as they tend to only consume media using online platforms. One of the biggest avenues for digital marketing is social media.
While the online realm has come with a lot of benefits for businesses it has also come with potential security drawbacks. This includes risk of data breaches and other forms of malicious cyber activity. It is important to be one step ahead of bad actors and maintain strong cyber security systems to avoid becoming a target for a data breach.
While the pandemic opened the door for hybrid work, post-pandemic conditions have demonstrated its benefit even in a post-covid setting. These benefits include lower overheads as office space is no longer a necessity. Many employees also prefer working from home because of the flexibility which this option provides.
Incorporating AI into a business may seem daunting but there are a virtually limitless number of applications for AI in any type of business. AI systems can perform data analytics for businesses which saves an enormous amount of time and costs. Using AI and other technologies effectively can also boost productivity and profitability of a business.
There are many new business ideas for European businesses in 2022. Some of these ideas consider the US as a location for expansion for European businesses given the business-friendly climate of the nation and its states. Other ideas consider incorporating technology and modern marketing strategies into the business to improve outcomes. European businesses should also stay up to date with new legislation covering business in the online space as this affects their businesses directly.
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