- Posted March 2, 2013 by
Future of Emerging Markets: Business, Innovation, Entrepreneurship and Finance
The research paper I presented at International Conference on Management Reaserch in December 2011 at Superior University, Lahore, Pakistan
Ever accelerating pace of globalization has opened a window of opportunity for innovative entrepreneurs to jump from spring board of their locally retained markets into promise lands of globally acclaimed high ranking business heavens.The other name of these business heavens is Emerging Markets. It is now a known fact that the growth advantage in emerging markets, if other things remain the same, is expected to translate into 62% of global growth. Multinationals expect about 70 percent of the world‘s growth over the next few years to come from emerging markets, with 40 percent emanating from just two countries: China and India. In addition to growth rate advantage, expanding middleclass consumer base, impressive Doing Business regulatory reforms, more than half of $55 billion of global middle-class spending will come fromAsia Pacific.
Global financial and economic crisis has necessitated the emphasis on business regulatory reforms. Through its indicators World Bank and IFC‘s co-publication Doing Business Index 2011 has tracked changes to business regulation around the world,recording more than 1,500 important improvements since 2004.
―Long-term success,‖ according to Deloitte‘s report Innovation in Emerging Markets - strategies for achieving commercial success, ―will take far more than simply making minor adjustments to existing products, lowering prices, or replicating existing sales channels. Instead, a new set of competencies and organizational structures will be required togenerate a continuing stream of innovative products and services tailored to the needs of consumers and industrial
buyers in emerging markets.
Referring to challenges ahead ILO / International Institute for Labor Studies in one of their Studies on Growth with Equity titled Making Recovery Sustainable – Lessons from Country Innovations maintain that
unemployment and inefficient income inequalities are the principal factors explaining social unrest. ―The issue, according to them,―deserves urgent attention.
How these unemployment and income inequalities can be addressed? For that the global business entrepreneurs and financial institutions have to address a Cycle of Nine Social and Economic Evils by creating a powerful independent apolitical Entrepreneurial Platform for developing a genuine Global Natural and Human Resource Vision and Index as a take-off base for a Global Entrepreneurial Initiative with a Five-Point Agenda. Why do I want the entrepreneurs and
financial sector to focus their attention on the first two rings, illiteracy / ignorance and unemployment, of the cycle of social and economic evils? Is there room for any doubt that the first casualty of social unrest is always economic activity? The truly genuine social unrest that is invisible at present, if not addressed before it is visible, can and will surely turn all growth projections upside down.