Start-up companies across the U.S. are driving demand for international professional employer services, according to Stipenda, a company that supports professional employer organizations (PEOs) across the United States with their global employment capabilities.
Since launching, around half of PEOs – organizations that provide businesses with support around activities like payroll and compensation – to whom Stipenda has spoken are seeking support for their start-up clients overseas.
Stipenda provides the global capabilities currently not offered by domestic PEOs and sees this demand from young businesses as evidence of growing international ambition among US start-ups.
“Historically, start-ups have been keen to cement their position within their domestic market before looking at overseas opportunities,” said Solomon Williams, CEO, Stipenda. “That pattern is clearly changing as businesses look, at an early stage, to exploit opportunities internationally. The demand we’ve seen for support is clear evidence of the trend.”
Stipenda sees the increasing international focus of U.S. start-ups as driven by several factors including: rapid economic growth in overseas markets; increased domestic over-crowding in certain key start-up sectors; awareness of the risk of imitators overseas capturing market share; improved support for small businesses looking to expand internationally.
“For e-commerce start-ups in particular, there’s a growing awareness that to head off potential competition they need to capture international markets sooner rather than later,” continued Williams. “Being online, by definition, gives them scope to do that in part but there’s always a need for people on the ground. It’s in that regard that solutions we offer are in demand.”
High profile U.S. internet start-ups that have expanded their global footprint from a young age include companies such as Airbnb, a property rental website, Fab.com, a designer homewares site, and Code academy, a programming education website. All have looked towards early European expansion and specifically cited a fear of ‘copycats’ as a rationale behind that move.
Launched in 2013, Stipenda offers a global solution for professional employer organizations (PEOs). Through its international operations it has over a decade of experience in providing international employment solutions. Its services include payroll, tax management, immigration, benefit management and HR. Stipenda offers seamlessly integrated solutions for PEOs looking to support clients across Europe, Asia, Africa and Australia. Stipenda is headquartered in Boston. For more information, please visit www.stipenda.com.