The term “emerging market” was coined in the 1980s by the International Finance Corporation (IFC), a member of the World Bank Group. The IFC used the term to describe countries with low to middle per capita income that were seeking to modernize their economies and become more integrated into the global economy. While there are many opportunities for businesses in these markets, Here are some of the main opportunities of doing business in emerging market economies:
Opportunities:
Growing consumer markets: Emerging market economies often have large and rapidly growing consumer markets. As incomes rise, consumers in these markets are increasingly able to afford products and services that were previously out of reach.
Low labour costs: Many emerging market economies have low labour costs, which can be attractive to businesses looking to reduce their costs and increase their competitiveness.
Access to natural resources: Many emerging market economies are rich in natural resources, which can be an asset for businesses in industries such as mining, energy, and agriculture.
Strategic location: Emerging market economies are often strategically located, providing access to key markets and transportation routes.
Innovation: Emerging market economies are often characterized by a culture of innovation, as businesses and entrepreneurs seek to overcome challenges and take advantage of opportunities in these dynamic markets.
Local partnerships: Partnering with local businesses and entrepreneurs can help companies navigate local regulations, cultural differences, and business practices.
Government incentives: Governments in many emerging market economies offer incentives to attract foreign investment, such as tax breaks, subsidies, and special economic zones. Summary : Today, emerging market economies are home to some of the world’s fastest growing and most dynamic businesses and are attracting increasing attention from investors and multinational corporations seeking new opportunities for growth and expansion.
