Charles Darwin’s Natural Selection theory transformed our lives; the breathtaking advancement in human genome today can be attributed to his original philosophy about the living species.
However, does this also apply to Business in general?
Well, the answer is an oxymoron. Natural Selection works in the initial and growing up years for an enterprise but once it hits a certain benchmark of growth the natural selection efficiency starts to wither and ultimately somewhere becomes responsible for its eventual and gradual demise.
If you observe the topography of the world’s first 10,000 companies you would see that majority of them defied natural selection at critical growth junctures and over the years have become champion chameleons adapting and more so welcoming the diversity which comes expanding business horizons globally.
In the 1980s, global business was essentially an exclusive club of the 20 richest countries. This changed as command economies collapsed throughout the world.
Early 90’s saw breaking down barriers of trade and restrictive economies and twenty years later, emerging market countries received about 40% of the $1.5 trillion FDI worldwide.
India will be the most populated country by 2030. Can we also dominate the world of modern Business?
Indian Enterprises to witness unprecedented growth in next 15 years than in all of human history
The last two decades has transformed India:
India’s per capita income is up from $300 in 1991 to an estimated $1,700 today. This has not only directly raised incomes and employment but yielded a revenue bonanza that has financed huge increases in social spending, anti-poverty programs and infrastructure.
India’s fast growth has not been based on using cheap labor for labor-intensive exports, the development path taken by other Asian tigers including China.
India’s booming exports are brain-intensive, not labor-intensive. This is a totally new development model unmatched by any other developing country. It means India is well positioned to march up the value ladder.
India is best known for its computer software exports, but this sector accounts for no more than 2 percent of GDP.
Other services exports (legal, engineering, and medical services, R&D) have risen fast and exceeded $10 billion in 2010–11.
Exports of autos and engineering goods have soared, reflecting new skills in design and manufacturing. India remains an economy driven mainly by domestic demand, although the export share has risen substantially.
India has become the world leader in frugal engineering, a concept that did not exist a decade ago. Frugal engineering is the capacity to design and produce goods that are not just 10–15 percent cheaper than in Western countries but 50–90 percent cheaper yet quality driven.
Economic liberalization has facilitated the rise to new first generation entrepreneurs.
Around the country wherever we look the power of burgeoning middle class and entrepreneurship has brought tremendous success. Though we stand today at a much better juncture than in 1990s we still have a long way to go due to our size and diversity.
Our ability to adapt and change has made us agile. Today India feature in 85% of world’s top 500 companies growth plans and approx 50% in top 5000 companies from across the world. Our size and composition make us most attractive even after the challenges faced due to read tape, policy paralysis etc.
2014-2030 – Taking position at the other side of the table: The real leaders of today’s world.
What sets America apart from every other country in the world is its capacity to innovate and execute. Historically, Japan is second to US, both these nations have dominated the world since the industrial age. However, last two decades have changed the landscape of economics. Countries like China and South Korea are competing traditional players in almost all sectors.
India however, finds itself in a unique position. Our extraordinary success in the service sector export has opened inestimable windows to the expand our horizons from not just domestic consumption but to serve and acquire coming up 1 billion middle class consumers located in 70+ emerging and developing economies.
India should be a torchbearer especially when it comes to service sector globally. Service sector is our sweet spot when it comes to export and this is where we have a chance against china.
We have to integrate the volatility of today’s world in our business growth goals to be able to create a substantial impact in world’s economy in next two decades.
Telecom, Information Technology, Education, Financial, B2B, Health, real estate, Training, Travel and Tourism, alternative energy, agriculture, retail, construction, Automobile, transport, logistics are some of the priority sector who should pro-actively look for acquiring new markets.
Indian companies are competing against the global players across sectors.
We as a business-building nation need to intensify our effort to increase our share in the $ 57 trillion new investments expected to happen across the world by 2030 according to a Mckinsey report.
By 2025 50% of topline revenue of fortune 500 companies will come from emerging markets. Are Indian enterprises ready?
Primarily the approach towards global business expansion is fragmented from Indian Enterprises; dependent on either purely from commodity / export or inbound interest. However, a leadership role especially in services demands that we look at offshore markets from value creation point of view.
Global business depends on local populace and needs greater engagement both at grassroots as well as management level.
You also have to remember that the primary difference between service and manufacturing is becoming fairly transparent. The revenue chain is not just about the physical content of the product anymore.
The world is becoming flatter as a result of globalization. The exclusive western influence on global economy is already shifting and will shift drastically in next 15 years. We ‘ The East’ are no more the next big thing, we have arrived and we are the big thing.
India with its enormous entrepreneurial talent needs to push its boundaries for future world domination.
The opportunity and also challenge for us lies in creating an ecosystem that promotes and incentivizes Indian businesses for approaching and expanding business in Global markets. In this both government and enterprise role is crucial.
Ultimately, Top line growth, fresh market access and organizational development are mutually reinforcing. Growth and market access encourage greater investments both from short and long-term perspective.
According to wfs.org prediction 50% of today’s global fortune 500 companies will disappear by 2030. The more we grasp today’s world dynamics the more we understand this as a fact more than fiction.
- *world economic Situation and prospect 2014 – United Nations
- *CATO Institute: 20 Years of Economic reforms in India
- * McKinsey Global Institute — the consulting firm’s in-house think tank
[author ]About Author:Venus is the founder and president of Factor Global Consulting, a leading Global Business Expansion Firm www.factorglobalconsulting.com. She can be reached at: [email protected][/author]