Harnessing the Unbridled Growth of Emerging Markets

An evolving world requires a shifted approach. Successful companies need to adapt to changes, react to the transformation, shift their business models, and consider the impact of emerging markets in the pace of their growth.

Emerging markets stand out mainly because of four major characteristics:

1. Regional economic powerhouses with large populations, large resource bases, and large markets.
2. Transitional societies are undertaking domestic economic and political reforms.
3. The world's fastest-growing economies, contributing to a great deal of the world's explosive growth.
4. Critical participants in the world's major political, economic, and social affairs.

Why Business Leaders Are Taking Notice

Emerging markets are changing traditional views of development and in turn impacting the world of business. In order to mitigate risk, established business leaders looking to operate or transact in these new markets need to be aware of some pervasive issues:

1. In an effort to create sustainable development, these markets continue to face issues that stem from basic challenges associated with any business. A market economy requires these countries to redefine the role of the government in the development process.
2. Another challenge for these countries is controlling corruption, which damages the business environment and obstructs the development process.
3. One of the most pressing tasks is to undertake structural reforms with their financial, legal system, and political systems, so as to encourage a stable and balanced economy that is relatively free of political conflict and interference.

Emerging markets are and will be key players in future economic growth, and are a hot topic of conversation amongst executives worldwide. They have a huge untapped potential and if they can maintain political stability and succeed, their future is promising.