Small markets tend to offer fantastic opportunities for growth thanks to unique advantages such as lower costs, less competition, and supportive local communities. In this article, we’ll discuss some of the top small markets for emerging businesses and highlight some of their economic and business indicators and benefits.
Top small markets
Vietnam
Vietnam is quickly growing into a manufacturing and technology hub. With a 7% GDP growth rate and a youthful, tech-savvy population, Vietnam offers many significant business opportunities. The government is known to be pro-business and is highly likely to invest in further infrastructure to enhance its attractiveness as a small emerging market.
Colombia
Colombia has emerged as a critical player in Latin America. With a diverse economy and a GDP growth rate of 7.3%, the country offers a strategic location, skilled workforce, and government incentives for foreign investment, particularly in sectors like tech, tourism, and agriculture.
Poland
Poland is a standout market in Eastern Europe, known for its robust economy and abundance of tech specialists. Poland offers a highly skilled workforce with a GDP growth rate of 5.3% and a robust educational system that produces talented workers. The country’s location within the EU and supportive business environment make it an attractive destination for startups.
Benefits of these emerging markets
Here are some of the most significant benefits of small markets:
Lower operating costs
One of the most significant benefits of these small markets is the lower cost of operating a business. Real estate, utilities, and wages are generally more affordable than larger, more established markets, allowing startups to stretch their budgets further.
Untapped consumer bases
Small markets often have untapped consumer bases, providing emerging businesses with more significant opportunities to establish a foothold in the country. The increasing purchasing power in these regions can lead to quicker growth and easier customer acquisition.
Government support
These markets frequently offer robust support from local governments keen to attract new businesses. Incentives such as tax breaks, grants, and simplified regulations can reduce entry barriers and remove operational hurdles.
Developing workforce
The growing and developing workforces in these markets present a significant advantage. With a focus on education and skill development, these countries produce a pool of talented and motivated workers ready to contribute.
Case studies and examples
VNG Corporation in Vietnam
VNG Corp also recognized as VinaGame (VNG), is a Vietnamese tech company founded in 2004 that specializes in online gaming and social networking. The country’s supportive business environment and growing tech talent pool helped the company grow into one of Vietnam’s leading tech giants, and it’s known as the first tech unicorn in Vietnam.
Rappi in Colombia
Rappi is a delivery and e-commerce platform that found its niche in Colombia. Benefiting from the country’s growing middle class and urbanization, Rappi has expanded rapidly across Latin America, becoming a key player in the region’s digital economy.
Conclusion
Small markets offer emerging businesses a range of advantages, from lower operating costs to strong government support. By leveraging these markets’ unique benefits, emerging businesses can achieve significant growth and success.
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