BUSINESS IN DEVELOPING COUNTRIES: HOW DO START-UPS IN DEVELOPING COUNTRIES COMPARE IN PROFITABILITY TO THOSE IN DEVELOPED COUNTRIES?

This research paper discusses the challenges that businesses face when starting operations in developing countries, including inadequate infrastructure, limited access to capital, institutional voids, corruption, and regulatory barriers. Despite these challenges, some businesses have emerged successful in developing countries such as Alibaba, a Chinese multinational company specializing in e-commerce, retail, internet, and technology. The success of businesses in emerging markets is due to their ability to find their way through the market, gain resources, find local partners with years of experience, and develop mechanisms for raising capital and developing talent. This paper explores how businesses can overcome these challenges and develop strategies for success in developing countries.