Reprint: R1009E
The popular take on entrepreneurs in the developing world is that they are few in number and run only microbusinesses. But in a two-year study of entrepreneurship in emerging markets, Habiby and Coyle, of AllWorld Network, uncovered hundreds of high-potential ventures poised for significant growth. Many were in surprising markets like South Africa, Saudi Arabia, and Jordan—economies dominated by top-down government policy, large business groups, and social elites.
The ventures AllWorld encountered were far from microenterprises. They included companies like Bayt.com, the leading job search site in the Middle East, which attracts 4.5 million job seekers; and Airblue, of Pakistan, the world’s first totally paperless airline. They generate large numbers of jobs, create industries, and open new markets.
When it comes to educational and employment backgrounds, the entrepreneurs running these companies look just like their Western counterparts. But notable differences do exist: The company builders that AllWorld identified in emerging markets launch 25% more businesses; they have higher success rates; and the vast majority are serial entrepreneurs.
These ventures represent new channels for growth for multinationals and investors. For developing nations, they could be the path to progress and prosperity. To realize their potential, however, these firms need global customers, talent, and capital, and that means getting on the global radar screen.
The story of entrepreneurship in the twentieth century was about individuals who got access to sophisticated capital in a few advanced markets and created massive economies of scale. That’s how AT&T, Home Depot, and Microsoft swiftly made their way onto the Fortune 500. But in the twenty-first century, a very different story is unfolding.
