Market in Developing Economies Today for Bigger Future Gains!

It always surprised me just how many investors focus on immediate returns and immediate profit potential, neglecting to think about a more long-term strategy, especially when there are so many alternatives to consider. One such direction that many tend to overlook is the budding potential of developing economies. With active urbanization, growing middle-class populations, and improving digital infrastructure, they provide the right foundation for gradual but continuous growth. 

This is especially relevant for the micro-earning phenomenon, which is common for such economies. Now in addition to marketing, I also have an economics background, which helps me have a broader perspective on the topic. That is why, despite the fact that I understand why most investors wish for an idealized user persona from a developed country, with a steady, high-value income, I also know that what they don’t take into account is the diversity of financial operations required in the developing economies. With small incremental earnings through platforms like freelance gigs, micro-lending, or app-based tasks, people in these economies are constantly seeking to improve their financial stability. Though seemingly insignificant on their own, the fact that these sorts of transactions are very common makes the cumulative impact transformative over time—for both individuals and businesses.

While the formats may vary - completing basic tasks with even minimal rewards including filling out surveys, playing games, or performing small-scale freelance work - the motivation is still the same - it creates constant, even if smaller-scale boosts in economic activity. 

As such, this niche offers plenty of opportunities for businesses seeking to attract large and loyal audiences. By offering small but regular rewards, companies can build up a consistent user base that will stick around for much longer than unmotivated users with plenty of alternatives from the more developed countries. Inevitably, it’s a win-win scenario, with businesses creating a long-term user base with untapped potential and individuals benefiting from new financial opportunities that could improve both their personal situation and their market. 

An example of this would be the M-Pesa project in Kenya. A mobile payment platform launched in 2007, M-Pesa allowed the completion of online transactions without the need for traditional banking systems. By facilitating microtransactions, enabling small businesses to thrive, and creating a secure channel for savings and credit, M-Pesa changed the situation for many low-income individuals, helping more than 194,000 households out of poverty. With more than 17 million registered M-PESA accounts in Kenya alone, M-Pesa quickly became the dominant force on the market, becoming a go-to app for most Kenyans.

So when thinking about your potential audience and the mutual benefits you might have, consider how a developing economy would help have bigger gains in the future - financial or otherwise.