Improving Business with Young World Entrepreneurs

The Internet has empowered a global generation of young people to create new kinds of companies and new ways of doing business. It’s also creating stronger ties between developed and emerging economies, and a whole new set of challenges for businesses of all sizes. This combination of technology, globalization, and entrepreneurial energy is especially powerful in parts of the world where the population is concentrated in the younger demographics or what I call the “Young World.”

What does this mean for small businesses? It means there will be new competition; but it also means new partners to help reach new markets, fresh ideas and approaches to inspire innovation, and motivated and talented young people to fill gaps in aging organization.

Here are some strategies for engaging the rising potential of the youthful emerging markets, such as India, South Africa, Brazil, Philippines, Nigeria, Mexico, Indonesia, and Vietnam to help lift your business above the competition.

Look for Reciprocal Opportunities in Outsourcing

For the past 10 to 15 years, “outsourcing” has meant companies in developed economies sending work overseas to low-cost labor markets. But now many outsourcers in places like India, Latin America, Southeast Asia, and even Africa are climbing the value chain to offer more innovative products and complex services, and are seeking larger opportunities in North America and Europe. They need partners with market knowledge and complementary resources, and can offer much in return. They can also help your business navigate the complexities of their home markets to extend your global reach to the next one or two billion customers.

For example, the technology outsourcing and software testing firms in India and elsewhere who sometimes solicit business from American technology companies are rapidly growing in capabilities. Instead of just providing low-cost services, they are capable of participating in product design, project management, high-level programming, and other complementary capabilities that greatly increase our capacity to tackle bigger, more complex projects at competitive cost.

Where to Find Young World Talent

Even in the wake of the recession, some companies are having trouble finding the right people with the right skills and work ethic to drive their business to the next level. This skills shortage especially affects technical areas such as engineering, telecommunications and healthcare.

In the Young World, those demographics are upside down. India’s universities alone produce more than 650,000 engineering graduates per year. Latin America and parts of Africa are increasing their skills bases through increased investment and the spread of networks for e-learning. As work becomes more distributed and services like Skype and Google Apps enable easy international collaboration, these skilled young workers can add value to your business without leaving their home countries or even their homes. There are a growing number of companies, applications, and purpose-built networks to help connect your business with highly-skilled people looking for everything from short term gigs to fulltime employment.

Capitalize on Young World Innovation

Many of the most intriguing ideas and business models are being pioneered by entrepreneurs working at the frontiers of the global economy, where markets and infrastructure are poorly developed. Consequently, their products and services tend to be produced with a degree of ingenuity and efficiency ideally suited to today’s demands for sustainability.

Also, young world entrepreneurs are starting from scratch, leapfrogging over decades of old technology and old practices to create business models optimized for today’s digital culture and connected world. The best of these businesses are recognized in growing number of innovation awards and business plan contests sponsored by universities, governments, Chambers of Commerce, private companies such as Ernst and Young, or institutions like the Young Americas Business Trust, which spotlights innovative businesses in Latin America with the annual TICAmericas competition. Many companies

validated by placing high in these contests are actively seeking partners in developed economies to license or market their offerings, often with the backing of venture capitalists and other institutional support to mitigate the risk. Small businesses in the U.S. can grow their own businesses through these partnerships.

The great ideas emerging at the edges of the Young World can inspire your business with better ways to serve customers, or suggest opportunities for partnership and engagement with the next generation of global innovators. These are just some steps today’s companies can use to prepare for a new world of business where established organizations and insurgents from the rising Young World compete – and collaborate – on a much more equal footing than ever before. From the vantage point of today’s turbulent economy, it is tempting to view the rise of a disruptive new generation or a disruptive new global force as a threat to established interests. In reality, it is an opportunity for engagement, and a chance to invigorate old ways of thinking with fresh approaches and a kind of hardscrabble resourcefulness that too many businesses today have forgotten.