What new horizons might developing economies see globally, and what opportunities might knock for them in 2018? Our company has re-positioned with a focus on EMEA and with specific emphasis on the Republic of Macedonia (FYROM). What is to be found for the business world in these developing economies, and why view them as important?
3 Reasons to Consider Focusing on Business in Undeveloped Economies
First of all, current economic output is not always concurrent with economic potential. In Macedonia, for instance, you can find a high-potential workforce encircled by a general lack of opportunity (comparatively). When a company or industry-effort is able to REMOVE EXISTING BOUNDARIES (through importation of "outsourced" work, export of internal resources, establishment of efficiency systems, or development of economic ports beyond the seas... such as through the internet), then potential can be better realized.
Developing economies can be located in globally-strategic geographic locations. Furthermore, these economies' geopolitical locations can actually be a factor in the lack of development. As geopolitical forces are at work on a grand scale, economies can suffer on a more micro scale. War, boundary-changes, and political alignments often stunt growth. Consider though, that although geographic and geopolitical factors may stunt growth, economic development may actually steer and impact geopolitical variables positively. If companies view industry as a way to STEER GEOPOLITICS for the better, then developing economies become, not only a source of potential income, but also an opportunity for social responsibility (and for increasing global stability). Business often responds to geopolitics. Can it help steer it through development and jobs?
Finally, developing economies may present an opportunity to DEVELOP SYSTEMS FOR RESOURCE MOBILIZATION. Because of instability, lack of economic maturity, or a number of other factors, businesses within developing nations can exist in isolation. When systems are developed, then income potential is multiplied. For instance, a web-development service in a developing nation may have talent but without the project management systems to maximize output. Or consider a resort town that has beauty and potential but without the transport systems in place to serve it adequately. The list of examples could go on, but the principle is that, when a resource is already in place (such as skilled developers or a beautiful town) there is often opportunity to implement systems that utilize those resources for the benefit of both business and people.
Developing nations / economies can be like old territories that were undervalued. Remember the Louisiana purchase in the US? How about the purchase of that vast land we call Alaska? When we overlook potential, we can miss out big-time.
In order to find value in developing nations, you may have to... well... find it! Could it be that businesses that possess the ability to see opportunity within the chaos of developing economies also possess a form of sustainable competitive advantage?