Colombia, Indonesia, Vietnam, Egypt, Turkey and South Africa are the new emerging economies to watch, according to a report by the UK government (UK Trade & Investment) on a survey of global executives.
Outside of the BRIC countries (Brazil, Russia, India, China), countries forecast to grow by more than 200% over the next 20 years are the now so-called CIVETS--all well-represented during Global Entrepreneurship Week:
- Colombia (278%) -- GEW host: Endeavor Colombia
- Indonesia (448%) -- GEW host: Ciputra Foundation
- Vietnam (446%) -- GEW host: Idocean
- Egypt (486%) -- GEW host: Middle East Council for Small Business & Entrepreneurship
- Turkey (309%) -- GEW host: Endeavor Turkey
- South Africa (319%) -- GEW host: Endeavor South Africa, JA South Africa, Center for Entrepreneurship at Wits Business School
These predictions by UKTI's Economist Intelligence Unit expect the BRICs’ economies to be 25% bigger than the G7’s and the CIVETS are forecast to account for up to 20% of the G7 total. The overriding conclusion is that today’s emerging markets are becoming tomorrow’s main markets.
71% of corporate respondents agree that emerging markets beyond the BRICs offer opportunities too big to ignore. The number one investment target is still China (20%), closely followed by Vietnam (19%), overcoming India (18%). These are followed by Indonesia (15%), Brazil (14%) and South Africa (13%). This presents opportunities for local companies in emerging markets for partnerships and joint ventures, which are executives’ preferred way of entry to new markets.
Further, emerging markets are not only for big businesses – aided by the internet and low-cost telecommunications, entrepreneurs are coming in on the act too. Over the next two years, one in three SMEs plan to expand into one new emerging market and are far more likely than larger companies to expand into at least one new developed market (51%, compared to 34% of large firms).
All hail the CIVETS!