Growth Opportunities
Regional competition and workforce availability drive business growth in complex markets
Key Growth Drivers Across Regions
Our analysis shows that jurisdictions identify regional competitiveness and workforce availability as major drivers of growth. Being competitive regionally allows jurisdictions to stand out and become more attractive to foreign investors through various factors including ease of business setup, reduced regulatory complexity, transparent regulations, and access to natural resources.
Regional Growth Drivers Comparison
| Region | Primary Growth Driver | Secondary Growth Driver |
|---|---|---|
| South America | Regional Competition | Workforce Availability |
| APAC | Stable Economic Outlook | Technology Advancement |
| North America | Regulatory Stability | Innovation Ecosystem |
| EMEA | Mixed (varies by country) | Workforce Skill Level |
Complexity Correlation
Interestingly, growth drivers vary significantly when analyzed by complexity rankings:
Top 10 Most Complex Jurisdictions
Find growth primarily through competitive advantages relative to neighboring jurisdictions
Bottom 10 Least Complex Jurisdictions
Find growth primarily through economic and regulatory stability
Technology Driving Growth Across Sectors
Although jurisdictions identified diverse factors impacting growth, IT and technology consistently topped the rankings as most influential growth drivers. Technology offers multiple pathways to growth, from manufacturing expertise to increased productivity and workforce optimization.
Manufacturing Technology
Countries with technological manufacturing expertise can increase market share through production capabilities
Productivity Enhancement
Using technology to boost efficiency and productivity across operations and supply chains
Workforce Optimization
Automating back-office, entry-level, and part-time jobs to focus on higher-value tasks
Regional Variations in Growth Sectors
While technology leads overall, different regions show distinct patterns in their growth sectors:
- North America: Tourism ranks particularly high (33%) compared to other regions
- APAC: Financial services and advanced manufacturing show stronger contributions
- EMEA: More diversified across sectors including renewable energy and logistics
- South America: Natural resources and agricultural technology remain important alongside digital innovation
"Multiple jurisdictions, including New Zealand and Hong Kong, SAR, are seeing companies automating back-office, entry level and part-time jobs using generative AI to keep workforce numbers low and focus on higher value tasks."
— GBCI 2024 Report
Workforce Adaptability: A Key Competitive Factor
The ability to quickly adapt staffing levels to meet changing demand is divided across jurisdictions. One-third of jurisdictions report being able to adapt staffing levels quickly (34%), while a similar proportion (32%) indicate slower adaptability.
This adaptability is largely dependent on two key dynamics:
- Local labor laws — jurisdictions with stricter employment regulations face more challenges
- Regional talent availability — areas with talent shortages struggle to scale workforces quickly
Regional Workforce Adaptability
Percentage of jurisdictions in each region that can adapt staffing levels quickly (except EMEA, which shows percentage reporting slow adaptability)
"The Belgian labour market is extraordinarily candidate-driven, and talent is the new gold. So there is currently a war for talent, meaning a very challenging labour market for employers."
"Argentina has high inflation, which generates a rotation in the work teams of all companies. Labour unions are also very involved and generate an increasing labour cost - in some cases even above business performance."
Opportunities in Talent Attraction and Retention
Despite the barriers in hiring staff, TMF Group experts highlight several areas of opportunity in attracting and retaining talent:
Specialized Expertise
Many jurisdictions offer highly skilled and educated workforces with specific expertise in IT, engineering, finance and technology
Linguistic Capabilities
Multilingual skills of local workforces present significant opportunities for global business operations
Remote Work Integration
Hybrid and remote work policies enable access to talent pools across broader geographic areas
ESG Legislation and Business Preparedness
In the majority of jurisdictions, companies are required to abide by at least one form of ESG legislation. Consumer protection and human rights regulations are the most common, with large proportions of jurisdictions requiring both compliance and reporting.
Only two jurisdictions—Curacao and Venezuela—do not require companies to abide by any ESG legislation or report on related activities. Higher proportions of jurisdictions in EMEA (95%) and North America (93%) require compliance with human rights legislation compared to the global average (88%).
Environmental legislation is becoming increasingly significant, with over half of all jurisdictions now requiring reporting on greenhouse gas emissions, sustainability practices, and waste reduction initiatives. This continues an upward trend from 2023, as governments worldwide make concerted efforts to hold businesses accountable for their environmental impact.
ESG Legislation Requirements
Regional ESG Variations
EMEA and North America
- Strong consumer protection enforcement
- High human rights compliance (95% and 93% respectively)
- Leading in sustainability reporting requirements
- Progressive greenhouse gas emissions regulation
South America
- 40% not required to report on sustainability legislation
- 40% not required to comply with human rights regulations
- Political instability making ESG legislation difficult to sustain
- Varied enforcement across countries within the region
Business Preparedness for ESG Requirements
There is a significant split among jurisdictions regarding preparedness for new or unexpected ESG legislation. While 41% expressed general preparedness, a third still feel pressure around compliance with these requirements.
The most challenging aspects of ESG compliance include:
- Adhering to global sustainability standards (28% overall, 46% in APAC)
- Cross-industry ESG reporting (26% overall, 62% in APAC)
- Gathering and validating ESG data
- Keeping pace with rapidly evolving regulations
Preparation for ESG Legislation
Given that reporting requirements for ESG are likely to increase, companies will continue to feel pressure as the level of reporting becomes more in-depth beyond simple compliance.
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