Small and medium-sized enterprises (SMEs) in developing and emerging countries have a significant potential for growth as the economies in these countries continue to expand. These businesses play a vital role in driving economic development, creating jobs and promoting innovation. In this article, I want to talk about how you can accelerate your business growth by tapping into your home country’s potential.
Demographic trends
Demographics play a crucial role in the growth potential of SMEs in developing and emerging countries. As the population grows, so does the potential for consumption and demand for goods and services. Additionally, the youth population in many of these countries is increasing, which can lead to a larger workforce and more potential customers.
As a result, SMEs that are able to tap into the demographic trends in their countries will be better positioned to grow and succeed.
For example, in most African countres, the population is going to keep growing. By 2050, the total population of the African continent is expected to reach 2.5 billion. This creates a huge market for goods and services as new customers enter the market. It is important for SMEs in this region to identify the needs of the new customers and adapt their marketing strategies so as to increase their customer base and grow their businesses.
Increasing affluence
Increasing affluence is another important factor that can drive the growth of SMEs in developing and emerging countries. And it is a factor that you can easily tap into to accelerate your business growth.
As incomes rise, so does the ability of consumers to purchase more goods and services. This can lead to an increase in demand for higher-quality products and services, which can be an opportunity for SMEs to differentiate themselves from their competitors.
One way to do this is by offering higher-quality products and services, and by targeting specific segments of the population, such as the growing middle class.
Additionally, as consumers become more affluent, they are also more likely to start investing their money. This could be by investing in businesses or by investing the stock market. More investments by customers can create up new opportunities for SMEs that are looking for funding.
The rising middle class in developing countries is a key driver of economic growth and represents a huge market for SMEs. For example, in China, the middle class is expected to grow to 600 million by 2022, which represents a huge market opportunity for SMEs in the country but also in the region.
At the same time, by 2030, the largest consumer markets in Africa will include Egypt, Nigeria, and South Africa. Other lucrative opportunities will abound in Kenya, Ghana, Ethiopia, Angola, Algeria, Morocco, Tanzania, and Tunisia. Small and medium-sized businesses in these countries should prepare to take advantage of these opportunities.
Internet penetration
Internet penetration is also a key driver of SME growth in developing and emerging countries. As more and more people gain access to the internet, SMEs will be able to reach a wider customer base and expand operations beyond their local markets.
Additionally, the internet provides SMEs with access to new technologies and tools that can help them become more efficient and competitive.
For example, SMEs can use e-commerce platforms to reach a global customer base. Many SMEs are already making use of platforms like Wish and Alibaba to sell their products to customers around the world. These businesses can use digital marketing tools to increase their visibility and reach.
Internet penetration also enables SMEs to access the latest technologies, such as automation and artificial intelligence, which can help them streamline operations and increase productivity.
Urbanisation
Urbanisation is another trend that can drive the growth of SMEs in developing and emerging countries. As more people move to urban areas, there is an increased demand for goods and services, which can create new opportunities for SMEs.
Examples include a higher demand for housing, supermarkets and markets, restaurants, bakeries, entertainment, hospitals and clinics, and schooling.
But increased urbanisation also brings challenges, including traffic congestion, waste management, and maintaining hygiene. Businesses that study the market and trends and that can offer solutions to some of these challenges, will be well positioned to take advantage and use this to boost their operations.
Urbanisation can lead to an increase in the number of businesses operating in a given area, which can increase competition and drive innovation. In addition, it creates an environment for SMEs to tap into new opportunities such as increased access to capital, infrastructure and skilled labour.
Cross-border trade
As developing and emerging countries continue to integrate into the global economy, more opportunities will arise for SMEs to access new markets and customers. The establishment of free trade zones creates large regional markets that these SMEs can tap into.
For example, SMEs in these areas can access new markets through trade agreements and free trade zones. These agreements can provide SMEs with access to new customers, technologies, and supply chains, which can help them become more competitive and increase their chances of success.
Cross-border trade can also lead to increased competition. On the one hand, this can create challenges for businesses that do not know how to distinguish themselves from competitors. But on the other hand, increased competition can also become a driver for innovation and improve the overall quality of goods and services that are available on the market.
Finally, SMEs can also tap into cross-border trade opportunities by establishing partnerships with businesses in other countries to expand their customer base and access new markets. Business partnerships are a proven way to accelerate your business growth.
Technology and digitalisation
Brick-and-mortar SMEs in developing and emerging countries can position themselves for business growth by embracing technology and digitalisation.
One way to do this is by creating an online presence through a website or social media platforms. To date, up to 40% of small and medium businesses still does not have a website or updated social media presence. As our world becomes more and more digital, this puts them at a disadvantage because younger generations are doing more and more online.
Having an online presence allows SMEs to reach a wider customer base and expand their operations beyond their local markets. Additionally, they can also use digital tools such as e-commerce and mobile payments to increase the convenience and accessibility of their products and services to customers.
Blockchain
Blockchain technology has the potential to revolutionise the way SMEs in developing and emerging countries operate.
Blockchain is a decentralised, digital ledger that can be used to record transactions across a network of computers. It is secure, transparent and tamper-proof. This makes it an ideal technology for SMEs to use in their operations.
For example, blockchain can be used to improve supply chain management, which can help SMEs become more efficient and competitive. It can also be used to create new financial services and products, such as digital currencies and smart contracts. This can open up new opportunities for SMEs.
Conclusion
In conclusion, SMEs in developing and emerging countries have significant potential for growth as the economies in their home countries continue to expand. As a business owner, you can accelerate your business growth by tapping into the various developments that make up your home country’s potential. If you do this well, you can position your business for success and play a vital role in driving economic development in your home country.
