The transformation of the global landscape sees a shift to emerging economies thanks to increasing internet usage, continued economic progression and increased business activity. As a result, developing countries are providing the next big growth opportunities.
Emerging markets simply refers to BRICS countries
The term covers so many more markets that just Brazil, Russia, India, China and South Africa. Many more countries are seeing an economic transformation, including the Philippines, Indonesia, Nigeria and Ethiopia (or ‘the PINEs’). Fuelled by a growing middle class and strong economic performance, as well as advances in technology, improved healthcare and education, these countries are experiencing their own business boom.
Only big businesses can succeed in emerging markets
It’s easy to assume that only large, well-known companies can survive the move into emerging markets. This is not the case. Smaller businesses have the opportunity to become part of a developing economy, to provide consumers with new services on a more personal level and to work with local companies to expand alongside the country’s economic infrastructure.
Internet penetration is too low for online growth
Internet penetration in developing countries is increasing every day, with the smartphone adoption rate growing nearly twice as fast in emerging markets as it is in more established markets (KPCB). In Bangladesh more than 31.9% of the population has access. This present major opportunities for online businesses as more of the population get connected.
Emerging markets are just too risky
There are always risks to consider when investing in a new market. However, developing countries provide exciting, new investment opportunities. For example this Business Insider articles predicts the emerging markets are ‘primed for a huge comeback’.
It’s all hype
These increasingly buoyant economies are creating great potential for businesses. As underdeveloped countries become more developed economies, businesses have reason to be extremely enthusiastic. Whilst there are challenges that must be taken into account when strategizing a move into an emerging market, vast opportunities are being created – as long as strongly researched decisions are made and realistic strategies are in place.