Ways for SMBs to Enter Emerging Markets Faster

By Kevin Gilroy

Growing companies often look to developing markets for new opportunities; however, finding the right time to enter these markets can be a difficult balance. Recent research from Oxford Economics, sponsored by SAP, suggests that less than one-quarter of U.S. small and medium enterprises (SMEs) will be operating solely in the U.S. in three years. While SMEs are expanding their presence at a rapid rate in new markets, BRIC countries (Brazil, Russia, India, and China) are becoming old news: the acronym has been amended by many economists with “S” for South Africa, and lately, “I” for Indonesia. Other countries like Turkey and South Korea are ripe for entry even though they were hardly considered just a few years ago.

Companies must act more quickly on opportunities in emerging markets than in the past. For example, a recent survey by Accenture found that 80 percent of executives say they are focused primarily on high-growth markets in emerging economies, and 73 percent believe their companies must speed up efforts to build market share in these countries – lest they miss out on a crucial window.

Companies need to act quickly, but be mindful of rushing. Besides timing, companies should also keep in mind partnering, hiring, and flexibility in both technology infrastructure and business processes to avoid making mistakes in global expansion. Here are five things SMEs looking to expand should consider:

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