Emerging Markets- Statistics

Goals

To determine the impact of innovation and entrepreneurship on emerging markets like GDP, job creation, and other economic inidcators. Also to determing statistics on the number of startups, growth rates, and investments going into startups. Finally, to look at the challenges startups face in emerging markets along with the challenges investors face in emerging markets.

Early Findings

Impact of Innovation & Entreprenuership on Emerging Markets

  • According to a new McKinsey report, Fintech services could open up $2.1 trillion in credit to individuals and MSMEs -- micro, small, and medium enterprises. That same report provides estimates of the “GDP boost” potential of digital finance to each economy: China ($1.1 trillion), India ($700 billion), Brazil ($152 billion), Mexico ($90 billion), Nigeria ($88 billion) and Ethiopia ($15 billion).
  • There have been gains of fintech adoption across Africa, Asia, Latin America and the Middle East:
  • A $3.7 trillion boost to GDP by 2025.
  • Creation of 95 million new jobs.
  • Inclusion of 1.6 billion more people in the financial system.
  • New deposits of $4.2 trillion.
  • Emerging markets have begun to drive global innovation. More and more, companies are discovering that emerging markets allow them to innovate at a lower cost, but with the potential to disrupt the status quo. It is important for companies to keep in mind that if they hope to fuel innovation in emerging markets they need to be aware of the potential pitfalls other businesses have faced, such as pricing product or service offerings competitively and positioning their offering correctly in order to attract their audience.

Startups In Emerging Markets

  • Andela, an African startup, is seeking to train 100,000 software developers across its continent in the next decade. Since opening its doors in Lagos, Nigeria, in 2014, the company has matched candidates with companies such as IBM and Microsoft. Its Series C offering also raised a total of $41 million from notable investors including the Omidyar Network, Spark Capital and the Chan Zuckerberg Initiative. Zuckerberg himself visited Andela’s office in 2016.
  • Africa’s tech ecosystem is huge, yet it barely scratches the surface when compared with those of China, India, Brazil and other emerging markets. In 2006, India and China accounted for only 2 percent of global-deal value. More than a decade later, the two biggest emerging markets now account for nearly 25 percent, with India and China firmly on the list of the top 20 startup ecosystems in the world.
  • Venture investments in Latin America also are increasing, with transactions up 46 percent year-over-year -- the equivalent of $218 million deployed across 104 transactions in the first half of 2016.

Notable Research of Interest


Proposed next steps:

You need to be the project owner to select a next step.
We propose further research to determine what the challenges startups are facing in emerging markets along with the challenges that investors face, as this information was abundant during this hour of research.
Alternatively, we could focus on the future of investing in emerging markets, specifically, looking at current success and failure rates and locating predictions for the industry.