Entrepreneurial Mindset: Challenges, Opportunities, & Strategies in Emerging Markets

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Talking Points
Entrepreneurial Mindset: Challenges, Opportunities, & Strategies in

Emerging Markets
 I am thankful to the organizers for inviting me as Guest of Honour for the 8 th
International Conference on Management Research on very important theme
“Entrepreneurial Mindset: Challenges, Opportunities & Strategies in Emerging
Market“ jointly organized by Superior University, Pakistan and UCSI Malaysia.
 Entrepreneurship, an emerging field, is a growth engine of modern-day
economies whereas entrepreneurial mindset is its pre-requisite. In the wake
of dynamic global changes, instilling entrepreneurial mindset and promoting
this field is the need of the hour.
 The term Emerging Markets refers to the countries which are in the process
of rapid growth and industrialization. Pakistan is such an emerging market
which direly needs entrepreneurial mindset.
 In the present economic scenario, no country can afford to slow down the
pace of its economic growth. The growth of economy business cycle must be
in motion, products and services must be purchased. Now the one who can
understand the market better will win the race and also contribute to
country’s economic growth.
 Entrepreneurs are the one who not only help in meeting their goal but by this
way they cater the several needs of society knowingly and unknowingly with
their excellent enterprising skills. With the increase of entrepreneurship
activities all over the world, there is a generation of productive and
meaningful employment and these employment opportunities are
significantly necessary for the emerging economies as they are going to be the
hub of business activities.
 Industrial development is based on the entrepreneurial competencies of the
people. The prosperity of a country is related to its overall development and
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when we say overall development we talked about the number of production

units that are prevailing in that economy. An economy is known as an
emerging economy or an emerging market when it is seen through the
entrepreneurial nature of the economy.
 Entrepreneurship plays a significant role in economic growth, innovation, and
alleviating poverty. They may affect economic growth in various ways. They
may introduce important innovations by entering markets with new products
or production processes. They may boost efficiency by mounting competition.
They may enhance our knowledge of what is technically viable and what
consumers prefer by introducing variations of existing products and services
in the market. The resulting learning process speeds up the discovery of the
dominant design for product-market combinations. Knowledge spillovers
play an important role in this process.
 The researchers have investigated the four major challenges/barriers to
entrepreneurship in emerging markets. These include lack of financial capital,
low levels of demand for new products and services, inefficient
administrative systems, and underdeveloped physical infrastructures.
o First, emerging economies tend to exhibit rudimentary and
sometimes barely functioning financial markets. Often linked to more
general problems of high depreciation and inflation rates, this causes
difficulties in securing capital for business creation. Consequently,
entrepreneurs often have no choice but to rely on personal savings or
informal lending through their social networks in order to fund their
ventures
o Second, emerging markets tend to exhibit relatively low levels of
demand for new products and services. Because subsistence incomes
prevail in emerging markets, potential customers are less likely to
risk spending the small amounts of available cash on new products
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and services whose functionality has not yet been confirmed by

widespread adoption.
o Third, legal and administrative systems are often marked by slow
procedures, corruption, and a lack of property rights enforcement,
which make processes associated with the creation and operation of a
new business time-consuming and unnecessarily costly. Often,
therefore, in order to save costs and time, entrepreneurs hesitate to
register their new businesses, which, in turn, exclude them from
property rights protection and other legal safety nets, as fragmented
as they may.
o Finally, infrastructures are frequently inadequate for business
creation in emerging markets, impeding access to suppliers,
consumer markets, and market information. Entrepreneurs in
emerging markets may, therefore, incur additional costs in order to
reach suppliers as well as customers. One frequently used strategy is
to rely on personal networks to access market information and
suppliers and to disseminate products or services through family and
friends.
 However besides, these challenges, there is a number of opportunities for
entrepreneurship in emerging markets. These include growing numbers of

educated middle-class consumers, higher demand for personal products,
private education & healthcare, demand for infrastructure and other products
& services from developed economies, and great potential for joint ventures
and acquisitions.
o By adopting certain strategies, we could encourage entrepreneurial
mindset and ventures in these emerging market. These strategies could
include;
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o Understanding cultural differences, demographics and language

barriers that are essential to doing business.
o Conducting field visits to interact with end users to understand the
diversity of needs across sections of society, identify your target
customer segment and adapt your service/product design to meet
these needs.
o Gaining insight into how investors, businesses and channel partners
think and how to approach them.
o Spending face-to-face time with industry experts to validate your
offering, business model and position your business to prospective
customers, partners, investors, and channels.
o Exploring opportunities to reflect with other entrepreneurs and
exchange ideas, share experiences and build your network.
 In the end, I would like to thank again the organizers of this conference. This
is such a wonderful platform to discuss this emerging theme. I hope it would
equip us with a deep insight to understand the entrepreneurship, its hurdle,
prospects, and strategies.

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Entrepreneurial Mindset: Challenges, Opportunities, & Strategies in

when we say overall development we talked about the number of production

and services whose functionality has not yet been confirmed by

entrepreneurship in emerging markets. These include growing numbers of

o Understanding cultural differences, demographics and language

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