Scaling in Emerging Markets & Global Growth

Emerging markets will power global growth over the next 20 years. By 2025, overall global consumption is forecast to reach $62 trillion, twice its 2013 level, and fully half of this increase will come from the emerging world. In 2010, the “consuming class”—people with disposable incomes of more than $10 a day had 2.4 billion members, just over a third of the world’s population. By 2025, that will rise to more than half and taking population growth into account; there will be an extra 1.8 billion consumers, the vast majority living in emerging regions.

For manufacturers, the story is even more compelling. The estimate is that emerging markets will be the destination for 65 percent of the world’s manufactured goods by 2025. Consumption starts with the basics, and the purchase of capital-intensive goods (such as cars, building products, and machinery) is driving the shift. By 2013, emerging markets already accounted for 59 percent of total demand for building materials, 57 percent for iron and steel, and 47 percent for machinery. Growing your company is hard enough, however, building it in developing economies has a high potential for innovation: this is where the entrepreneurs come in. The entrepreneurs that scale capitalize on the potential for growth, diversifying the progress and operating as an extended arm of the government to drive industry-specific innovation. This yields a robust positive relationship between entrepreneurship and innovation in such emerging economies.

Due to the small starting sizes of the start-ups, radical, innovative changes are more affordable, feasible and appealing; the entrepreneurs want to pursue opportunities with high-risk innovation to win the competitive lottery: the high growth opportunities. Therefore, the start-ups with innovative technological products always, with some exceptions, lead the most successful team of start-ups in a country. With its hit-or-miss nature, technological start-ups, once on the right side of innovation, quickly become a high-impact company: (1) creating new industries; (2) increasing efficiency in the sectors using their technology; (3) adding momentum to the economy due to their high growth nature. With years of experience in accessing global markets, iDesignproject can help you grow, innovate, and help mentor you through the process of connecting you to global markets. And we do this by helping your startup or company innovate and grow in these emerging markets.