In a Slow Economy, Emerging Markets Offer Big Opportunities for Small Businesses

Because economic growth in the U.S. will likely be relatively subdued for a while, U.S. small businesses should consider taking advantage of peppier emerging economies, such as those in India, China, Brazil, Indonesia, Turkey and Chile to increase sales. Because these and other emerging countries are making significant investments in infrastructure, healthcare and education - the ingredients that enable and facilitate economic growth - their pep is expected to continue.
This will translate into growth of middle class in those countries, and that, in turn, means growth of markets for U.S. businesses, says Kathleen Brush, Ph.D., author of Leadership=Motivation=Innovation+Productivity: Get Ready for the Latest Global Challenges. Those increasing numbers of folks moving into the middle class will have "all the attendant needs and desires of people that have increasing income," she says. An expanding middle class will drive demand for everything to fill a home, stomachs and leisure time. And "the products and services that emerging economies currently need and those that they will need or want are variations on a theme of the products and services that the U.S. already produces," she says.
American businesses that can meet those current and future market needs should explore how they can market their goods in such countries. Companies that address infrastructure development, from roads and airports to efficient energy production, or that produce healthcare equipment and supplies, or products and services that facilitate education, may find opportunities waiting for them.
Often products will need to be customized to meet local preferences, but. These opportunities, however, are just the tip of the iceberg. An expanding middle class will drive demand for everything to fill a home, stomachs and leisure time.
Brush says that, "before embarking on any initiative to sell products/services overseas, it's essential to do one's homework, because doing business in any country will be different from the U.S., from regulations and enforcement to social norms, customs and politics. Often, products will need to be customized to meet local preferences. This, though, may not be too challenging for small businesses, because the best option for entering a new market is usually using a local partner. Local knowledge is one reason. The need for known relationships and local representation are others.
Finding a trustworthy partner doesn't need to be difficult, Brush says. The U.S. government happens to be very interested in increasing exports because that fuels job creation and narrows the trade deficit. The government offers excellent services to help U.S. businesses export. The U.S. Commercial Service produces free comprehensive Commercial Guides that can help a small business find the best country opportunities for its products. The Commerce Department offers the Gold Key service, a low-cost, really simple way to identify qualified local partners.
If companies do decide to take advantage of these emerging-country opportunities, they need to keep in mind that the U.S. is hardly a microcosm of the world. Patience and an open mind are needed to have an enjoyable and rewarding experience.
Kathleen Brush is a global business consultant. Her Ph.D. is in management and international studies. She has been conducting business internationally since 1988. She has written numerous articles and three books on international management, strategy, and marketing, and she has taught international business and leadership at the university level. Her Web site is http://www.kathleenbrush.com.