Is there a market potential in developing countries?
Developing countries represent a challenging and often risky business environment. The foundations for private sector growth and the pillars of entrepreneurship are often inadequate, deterring both domestic and foreign investment. The challenges often relate to the macro environment, the physical and social infrastructure, the rule of law, fair competition, and access to financing, skills, and knowledge. Nonetheless, the populations of developing countries represent enormous untapped business opportunities. Approximately 4 billion people make up the “bottom of the economic pyramid”, i.e. more than two thirds of the world’s population earns US$ 1,500 or less per year. 82 million of the net 83 million people added to the planet every year are from developing countries. Supplying these consumers with affordable and adequate products and services has the potential to entail robust commercial development. The GSB mechanism fills the gap between the challenges and the opportunities.
