The amount of wealth created in the world is growing on an exponential rate ever since the beginning of human history, and the pace at which the world’s wealth doubles gets faster and faster. And yet, all of this wealth isn’t shared equally among every country of the world, leaving the developing countries far behind. Thankfully, with the blockchain, things are prone to change, as it will allow a higher freedom of actions to entrepreneurs in places such as Africa.
Launching a company on an emerging market
Developing countries are called such because they’re lagging far away behind developed countries like Europeans ones, and many reasons could explain this lag. One of them is probably the slowness of its administrative processes, as a simple formality like creating a company takes up to several months, when it takes just a few days or even less in Occident. Not only the administrative steps are slow, they’re also very expensive; in some African countries such as Nigeria, it can cost you up to $20000 if you want to create a company.
In comparison, the Canada government will only ask you for $200, and everything will be settled within 24 hours. It thus appear that if it’s easy to start a career as an entrepreneur in Occident, it clearly isn’t in some countries. Once your company in such countries is created, the war isn’t over, as you have to deal with various and time consuming administrative steps on a daily basis, in order to manage the foresaid company. Making payments or receiving them to/from your customers or partners also take a lot of time, since banking institutions often take days before validating any transaction.
Why is it counter-productive on various levels?
Developing countries actually have a lot to put on the international market table, such as non-expensive labor force, since the cost of life in their borders isn’t as high as in Occidental countries. Also, these countries count several young people with good will and good ideas, and they only wait for an occasion to exploit such ideas and push their nation’s economy forward. And yet, none of this potential is fully exploited, because of the lagging administrative machine. At this point, launching a company would be nothing less than a waste of time and money for entrepreneurs.
We can also mention the slowness of the It is important for a market to be fluid, because economic partners won’t always wait after you every time a transaction has to be validated. Both of administrative steps and banking transactions are a heavy weight which entrepreneurs in emerging countries have to carry. Although, it could be otherwise, if a few changes were to be made, and for example, a capital market system in which the cryptocurrencies would be put on the front of the scene would ease the life of entrepreneurs in these places.
Digitalize administration and capital markets
It would be interesting to implement administrative processes to a blockchain. All required information could be verified within a few hours or even less, and all you’d need would be going on the internet, upload the required files and wait for confirmation. Some places like the Republic of Georgia already made similar experience, and it resulted in a jump to the top 10 rank of countries where it’s easy to launch and manage a business.
Cryptocurrencies could also be a game changer, since they don’t depend on banking institutions. You can send or receive secured payments anytime you want with virtual assets such as Bitcoin. In the future, it will be more commonly used on the markets, and such a new capital market would be an opportunity for emerging countries’ entrepreneurs to be competitive on the international scene.