Profitable Business Opportunities in Developing Countries

Profitable Business Opportunities in Developing Countries

Business opportunities in developing countries are sometimes more than in other countries. Generally, many people think that developing countries have fewer business opportunities. Besides, they believe that starting a new business is harder there. However, it’s not true all the time.

Most of the third world countries have a lot of natural resources. Also, there are a lot of business opportunities to explore. In these countries, markets are yet to get saturated; therefore, exploring new business opportunities is easier sometimes.

In general, we consider those nations which are in the process of growing to their full potential as developing countries. The economy is the main criterion through which we consider a country as a developing country. A developing economy means that there are a lot of business opportunities in different areas such as raising the standard of living, health, providing essential services like education, road, and transport. Because of these business opportunities, these nations require lots of investment in providing services that people need.

Due to different business opportunities in developing countries, they are the favorite place for startups to grow themselves.

If you are interested in expanding your business or opening a startup in countries like India, Turkey, Fiji, Iran, South Africa, Peru, and Russian Federation, then in this article, you can find some new business opportunities in developing countries.

Top 5 Business Opportunities in Developing Countries

1. Cosmetic, Beauty, and Styling Business:

In many third world countries, people pay a lot of money to have a luxurious life. One of the aspects of luxurious life for women in these countries is using cosmetic brands. In addition to the cosmetics, you can also invest in a beauty parlor, spas, and other such beauty-enhancing stores. Also, many men are now interested in styling beards, hair trimming in various styles, and facials. So, do not forget this profitable business at all.

For example, a beauty product brand in Africa; Africology, from making about $400 per weekend, now makes nearly $1 million every month. This brand has a lot of customers now from local and international markets and exports its products to some countries like France, Germany, UK, Belgium, and the United States.

According to the results of research that has been done by market research firm Euromonitor International, the cosmetic and beauty industry in the Middle East and Africa was estimated at about $20.4 billion in 2011. Of this figure, South Africa alone shared $3.9 billion, and after it, Nigeria and Kenya are ranked second and third, respectively. According to this research, Kenya’s market is more than $260 million. These amounts can prove the high potential of business opportunities related to beauty in this particular area.

In comparison with African nations, the Asian market in beauty was estimated at $114 billion in 2011. The latest results also show that the outlook for personal care products, cosmetics, and beauty markets in Africa and the Middle East is very positive and bright in the following years. The reason is that cosmetic and beauty products have become a fundamental and daily need in developing countries.

The leading cosmetics, beauty, and personal care product categories that entrepreneurs can focus on in developing countries such as the mentioned African and some Asian nations are haircare products, skincare, makeup, and personal care and toiletries, as well as fragrances products. By investing in these products, you can achieve success in the future.

2. Travel and Tourism Business Opportunities in Developing Countries:

Third world countries are famous for travel destinations because of their natural resources. Ecotourism, adventure tourism, and medical tourism are among the most popular segments. So, a travel-related business could be one of the profitable opportunities in developing countries.

According to the latest results from the visa assistance firm, India has created 172 jobs for every 100 tourists recently. And surprisingly, Bangladesh has created 944 jobs for every 100 visitors in their country. In comparison with these third world nations, the figure for Germany, the UK, and Australia is 8, 5, and 6 jobs per 100 tourists respectively. These results can prove the high potential of travel and tourism opportunities in developing countries.

Based on the visa assistance firm results, almost all of the top 10 countries that have seen the most significant percentage increase in tourism jobs between 2013 and 2018 are among developing countries. For example, the Republic of Congo has an 89% increase, Georgia and Azerbaijan have 79%, and Oman and Qatar have seen 71% and 70% increase, respectively.

Besides, the number of tourist arrivals for Nigeria in 2016 is about 5,265,000, which is considerable. This figure is 1,026,000 for Bangladesh in 2017, while in the same year, it is approximately 15,543,000 visitors for India. Therefore, it seems that we can consider this category as one of the profitable business opportunities in developing countries.

3. Real Estate Business Opportunities

As we mentioned, there are excellent opportunities in agriculture and farming in these nations, because most of the lands are usually covered with forest yet, and the countries have remained as an agricultural country. However, when they start converting to a developed country, agricultural and forest lands will change, and governments will build infrastructures, rail, road, residential apartments, special economic zones, and so on.

Although the lands are quite cheap to buy now, they suddenly become costly. Therefore, it seems one of the best opportunities to earn money is the real estate business. You can purchase cheap lands at those places that seem the government has started new development work such as the installation of a factory or business house. Also, it needs money, but after it, you can build an apartment, home, or office space and sell or rent it.

In previous years, those people who have done this business in third world countries are now billionaires. Also, you will have governmental help and supports in this valuable business.

4. Restaurants and Food Services

What is your opinion about the franchise of KFC or McDonald’s? People in developing countries like other nations have an interest in food and styling and eating it in restaurants.

The growth of popular food brands such as McDonald’s, KFC, Dominoes, and many others in developing countries has shown that how people are eager to taste new foods in their daily lives. A standard restaurant in a city that offers tasty food and excellent service at a reasonable price will undoubtedly be profitable.

5. Information Technology Business Opportunities in Developing Countries

There is a big market in both computer-related products and IT services in third world countries. Selling computers and accessories, or computer assembling are some of the most profitable product-related businesses that you can invest in them. Moreover, you can count on different service-based companies such as antivirus selling, computer training institute, or computer repairing.

Also, if you live in a developing country, and you want to have foreign exchange earnings, affiliate marketing is one of your best business opportunities. With affiliate marketing, by selling the products of international companies to third parties, you can get a commission from them.

If you are interested in figuring out how you should start affiliate marketing, you can read our article, All You Need to Know about Affiliate Marketing, for more details.

Furthermore, e-commerce business opportunities in developing countries are among the highly profitable businesses in these nations. Like the IT business opportunities that we mentioned, third world countries are the emerging markets for e-commerce too. You can concentrate on selling your products through e-commerce services, which help you with attaining maximum profit.

Problems that Businesses in Developing Countries Typically Face:

Although establishing a startup and a business in third world nations is sometimes easier than developed countries, you may have some difficulties that require your consideration. Before starting your business in these countries, you should carefully analyze and check the market and product potential. Before any investment, you have to study the traditional culture of the people of the country that you want to invest in and also about the government and the related laws of the country for establishing a new business.

Some of the critical problems you may have in starting a business in developing countries are as follow:

  • Hiring the Right People: in developing countries, you may have more problems and difficulties in finding skilled workers and employees due to the lack of knowledge and lower quality of education. In such countries, usually, there is a wide gap between universities and the knowledge that they teach to students, and the industry and what they expect from their employees. So you will probably have this problem when you want to initiate your business, and at first, you may need to spend time and cost on teaching essential skills to your employees.
  • The Dominance of the Government: in such nations, the government has a significant dominance on businesses. They are not very democratic countries usually, and because of this, the government wants to control most of the companies. Therefore, you may have some problems with the government for starting your business.
  • Weak Economy and Inflation: some of these countries, such as Iran and Venezuela, have a weak economy with a high rate of inflation. The money value of them is among the lowest in the world. This issue will lead to more difficulties for you to plan a considerable business strategy. Due to inflation, you cannot consider a stable economic situation to achieve success in your business.

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