Emerging economies make up more than 80 percent of the world population but generate less than 10 percent of the global GDP. In such conditions, advanced economies question the management in the emerging ones. Indeed, there is a gap in supervising between rich and poor countries; it occurs due to the specifics of doing business in each of them. In the emerging economies, people have a different demand and fewer opportunities for running a business at hand. They do not require corporate management as we know it; people seek effective practices to make small enterprises produce enough revenue to

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Management in developing countries essay sample

Management in developing countries essay sample

 

Emerging economies make up more than 80 percent of the world population but generate less than 10 percent of the global GDP. In such conditions, advanced economies question the management in the emerging ones. Indeed, there is a gap in supervising between rich and poor countries; it occurs due to the specifics of doing business in each of them. In the emerging economies, people have a different demand and fewer opportunities for running a business at hand. They do not require corporate management as we know it; people seek effective practices to make small enterprises produce enough revenue to pay a few employees they contain.

 

Management is not a sophisticated activity available only to the chosen people but a set of practices that allow entrepreneurs to do business and get revenue. Here belong planning, organizing, staffing, leading, and controlling. In brief, entrepreneurs make up their goals, develop the plan to achieve it, hire people who will help to do business, control these people, and measure the progress done over the period of time.

 

In the developed countries, planning happens from above as subordinates accept the decisions of their superiors. In collectivist societies, people prefer working with their peers of the same background, for example, with the family members. A family business is very common here as it allows to make a bigger input and share the revenue. In such an “enterprise” the leader (usually the father) knows what is best and coordinates efforts of other members. In the developing societies, people still depend on fatalism and delegate some part of control to the outer circumstances.

 

Scarce resources and geographical specifics of the emerging economies make their businesses quite different from the Western ones. What is unacceptable in an advanced economy (for example, child labor) is a must in a poor society. That is why we can hardly compare practices of the emerging economies to those of the countries more advanced in their needs and resources.

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