5 Myths on Operating a Business in an Emerging Country
The developing countries, like Thailand, Vietnam, Pakistan, and Burma are still rising, but that does not make them the potential markets for many types of business. These developing countries are providing many online and offline businesses opportunity to emerge and grow. Though, there are many mistruths about operating businesses in those countries. Here are the mistruths:
- The Emerging Countries are just the BRICS
BRICS are Brazil, Russia, India, China, and South Africa. To clarify, not just those five countries that are considered as emerging countries. Thailand, Philippines, Indonesia, Pakistan, and many more are also emerging countries. Basically, emerging markets are those that have a strong growth of middle class, economic performance, high technology, good healthcare and education. As a result, these countries are experiencing business boom.
- Only big businesses are successful in emerging countries
Which is not true at all! Many small businesses have made their way to the top, especially in the SME country like Thailand. To give you some example of a small and successful business, we will use a coffee shop business as example. Coffee shop business is very popular in Thailand, we do see Starbucks in almost every shopping malls in Thailand. However, the local brand called Coffee Beans by DAO, which is a lot smaller than Starbucks, is very successful.
- Internet penetration is too low for online growth
This is totally untrue! In Thailand, a lot of people change their smartphones more often than in other developed countries. As a result, internet is used by the Thais on their smartphones more and more every day. Due to this smartphone trend in Thailand, many internet businesses want to operate in Thailand, for example HotelQuickly and Lamudi. Many international internet websites that are operating in Thailand, for instance, Zalora and Craigslist. The internet usage is widely used in most of the developing countries. Even in Laos, 4G internet was available before those developed markets.
- Emerging markets are very uncertain
Uncertainty is in every market, not just the emerging markets! In fact, these emerging markets do provide more investment and growth opportunities. For instance, a joint report done by Land Institute and PwC, “Emerging trends in Real Estate Asia Pacific 2014,” has shown that Manila city is ranked in the top five cities in Asia Pacific region for real estate investment.
- It is all hype
These gradually buoyant economies are offering a high level of opportunity for businesses, either big, medium, or small. Today, the underdeveloped countries become more developed in terms of economies, therefore, businesses have motive to be enthusiastic.