How to Plan a Startup Initiative in Developing Countries 

Building a business in a 3rd world country has it’s appeal, learn how to plan a startup initiative in developing countries.

Plan a Startup Initiative in Developing Countries 

Photo by Nejc Soklič on Unsplash

Third-world countries have a booming sector for jobs and opportunities. Starting a business in such a place could yield handsome returns if done right.

Take it as a negative or positive but restrictions are minimal here. Bribe culture exists but the government is ever helping. Businesses are often given exemptions. They are held high and appreciated by the nation. 

We will help you uncover certain facts and information for your next venture. Upsides, downsides, and more!


Developing countries often have tax benefits which are great for startups. The business won’t have to worry much about survival aspects. Outflows of cash will be limited when it comes to taxes. It’s also easier to approve documents and such. 

Friendly policies help in operating a business. Economic policies which are designed to instigate demand are helpful. These measures by the government are crucial for a business. 

As many people will be looking for jobs, finding workers won’t be an issue. Wages will also be low. These make costs taken by employees affordable. 

Setting up factories will also be cheap. Because of the lower exchange rate, foreign investors will find it appealing. Electricity costs are minimal and land is cheap. 

Seeing a foreign investor, the management of the state will be happy to assist. Their need for FDIs could be used to exploit bargaining power. 

Creative ideas

Newer and greater technology could be a breakthrough in the country. Existing competitors may still be using archaic methods. Putting in place the latest technologies, the business could have an advantage

It may be easier to penetrate a market here compared to the developed world. The use of robotics and machinery in manufacturing will be great. Stuff like robotic welding arm and such accelerate the business. In terms of cost and innovation, the startup will be ahead. 

3-D printing, mold injection methods, and such will also be helpful. These measures will ensure that the business stays cost-effective. 

Utilizing economies of scale will also be easier. Cost benefits and large-scale production means EOS. These cost reductions are all thanks to the concept of economies of scale. 

The lack of education in the country could be alarming. But worry not! This can be used as an advantage. How so? By training the workforce! But this will work two ways. First by making your business productive. Second, by leaving your competitors behind. If they fail to train as well that is. 

A motivated workforce can also work out as an advantage. By making your people devoted to working, you can expect great results. 

Using money alone may not be it. Pairing monetary benefits with psychological ones are better. 

Customer base

Most of the demographics will be young people. The business could amend its strategies to cater just that. Making products for the biggest part of the population will ensure the most sales. 

Customer standards will usually be low since existing brands won’t be as developed. The business could work on improving customer experience

Innovative and smart packaging solutions can do just that. Using pouch bags and funky themes will make the product stand out. So are you interested? Well, we’ve got you covered. You can outsource just that! Our recommended producer Logos pack has multiple ranges of pouches and more. 

But can you find them in any developing country? Yes of course! India, one of the fastest-growing countries, has many opportunities. You can find stand-up pouch manufacturers in Sivakasi using our link.


Let’s talk about the dark side of third-world countries as well. These parts of the world harbor many problems. These include anything from political instability to crime rates. 

Law and order situations could be seen as being slow and lengthy. High crime rates indicate increased costs on safety and security. This isn’t ideal as this means lesser profit margins. More costs! 

Bribe culture can mean that even for your lawful purposes, you’ll need to pay extra money. This can eat up your business very quickly. The simplest tasks may require some sort of corrupt procedure. 

Conservative states may even impose restrictions because of religion and such. E.g alcohol permits in pure Muslim states. 

Interruptions in utilities like electricity etc can mean slowed production processes. The business can lose out on major orders. Load shedding for electricity is notorious in such parts of the world.

An illiterate population means skilled labor may be hard to find. Training costs for available labor can reach the moon!


The situation for developing countries has been stereotyped a lot. Sometimes the truth is far from what is said. Most developing countries have grown out of such a phase. Issues which were stated a little while ago, are improving. The law and order situation has become quite better. Minimal care is required of any business. Load shedding and power shortages have resolved to a major extent. 

It just isn’t the same anymore. The upsides outweigh the downside by a significant margin. Doing business in such booming economies is a norm. You should be hopping on board before it’s too late! As projected from notable sources, India (a developing country) is going to be the next China. So what’re you waiting for? Get busy!