Flattening world - What are you doing?

Last month I spent a week vacationing at the remote island of Utila in the Caribbean. With a population of just 2,000 people, the island has only a handful of automobiles - we rented a golf cart to get around - and the ferry ride to the port of La Ceiba is infrequent and expensive. But I am not writing this post to talk about Utila's white sandy beaches or what a great place it is for snorkeling and diving. In fact, what struck me the most about the island was the large number of foreign entrepreneurs - they run over half of the businesses, in many cases without even speaking the local language.

So when I read a United Nations report that has found that nearly 200 million people now live outside their country of origin, I realized that Utila provides an excellent case study of how flat the world is becoming and how entrepreneurs are taking advantage of the opportunities. According to the report, the number of people who have left their birthplace is up 25% since 1990. According to the Migration Policy Institute, the foreign-born population of the United States grew by 57 percent between 1990 and 2000, representing 12 percent of the population. And as many of you already know, many business models today allow you to "work" in a foreign country without ever leaving your country.

Implications of mobility

If we take the example of Utila, we can clearly see the advantages of mobility of people - and more specifically, entrepreneurs and capital. The foreign entrepreneurs have brought international-standard entertainment, dining and lodging options for tourists to Utila. They have also influenced public policy by pushing for investment in infrastructure for telecom and energy. In other words, the island is thriving because of investment from overseas.

How are you responding to a flat world?

If you need some thoughts on how to get started, I recommend that you attend two sessions at TiECON 2006. The first one is "Global Sourcing in a Flat World" and the second is "Emerging Trends: Cross Border Investing." If you want the venture capitalist perspective, you may also want to attend the session entitled "Can VC's Innovate in a Flat World?"

Related reading: How to approach investing in India?

How to innovate in a flat world?

How to exploit the Indian capital market?

Investment opportunities in India

Consumer market in India

Innovative business models for India

- By Jay Dwivedi