Mobile technology has been rapidly adopted in the developing world, which creates unique opportunities for entrepreneurs.

1. The Impact of Mobile
Technology on
Business in the
Developing World
DR. EHSAN BAYAT

2. The Impact of Mobile Technology on
Business in the Developing World
 When working in the developing world, entrepreneurs face a number of
challenges. One of the biggest issues is the lack of infrastructure in these
countries. However, entrepreneurs need to recognize that infrastructure in
these nations may look different from what they are used to—and this is
especially true when it comes to cellular phones.
 As of 2017, more than 98 percent of the developing world had adopted
the use of mobile phones, which provide Internet access and allow them to
make payments, among other benefits. Entrepreneurs looking to break
into these markets should understand the importance of mobile phone
adoption and recognize the incredible opportunities in providing people
with access to cellular technology and using that technology to create a
business.

3. Examples of Successful Mobile-Based
Businesses in Developing Countries
 In the poorest countries in the world, mobile-based services like ridesharing
and money transfers have become widely available. In some markets, people
have better access to mobile payments than clean water or electricity. Because
of this, entrepreneurs may want to start thinking of cell phones as a unique
sort of infrastructure that can be leveraged to launch and grow businesses.
 Already, a number of large names have jumped on this opportunity. For
example, Aeon Financial Service in Japan launched a mobile payment service in
Cambodia that’s intended for use by both small and large retailers. Similarly,
the English company WorldRemit provides money transfers to more than 140
destinations around the world at the touch of a button using mobile
technology. Meanwhile, M-Pesa in Kenya is a mobile payment service that
handled 6 billion transactions in 2016, and another Kenyan company called
BitPesa is using blockchain-based payments.

4. Examples of Successful Mobile-Based
Businesses in Developing Countries
 Not all of the companies that leverage mobile technology deal with
payments. In Myanmar, Oway provides ride-hailing services, as well as
travel arrangements. Another app available in Tanzania and Burkina Faso
called Esoko provides information to farmers on the upcoming weather
and current crop prices. Jumia Foods delivers meals to mobile customers in
11 African countries and has become a household name in multiple major
cities.
 Critically, many companies offer products that are focused on the unique,
local culture. For example, an app in Ethiopia converts the local calendar
into the Gregorian one. There’s an overwhelming number of other
opportunities for entrepreneurs willing to seek them out and take a
chance.

5. The Incredible Growth of Mobile
Adoption in the Developing World
 A United Nations organization called the International Telecommunication
Union tracks the development of mobile technology around the world. The
organization reported that the 47 least developed countries in the world
represent 13 percent of the global population. Between 2010 and 2017,
mobile subscriptions in these countries more than doubled.
 High-speed mobile Internet is now available in more than 32 of these
lowest-income countries, and more people will have access in the coming
years. Senegal, for example, has made it a goal to extend 4G Internet to at
least 90 percent of its population by the year 2025. Entrepreneurs can play
a key role in driving this access or create companies that meet the needs
of mobile-empowered populations.

6. The Incredible Growth of Mobile
Adoption in the Developing World
 This picture is markedly different than it was when cellular phones were
first introduced. At that time, mobile users were typically middle- and
upper-income individuals living in the larger cities of developing countries.
However, telecom operators once owned by governments became
privatized, and foreign investments help drive down prices while extending
the reach of mobile technologies.
 Now, even people in rural areas of low-income countries increasingly
depend on this technology for their livelihoods. In a number of countries,
including Cambodia, Lesotho, Mali, Gambia, and East Timor, mobile
subscriptions actually outnumber the national population. In Gambia, there
are more than 130 subscriptions per 100 people, which is higher than the
rate in developed countries like Japan.

7. Opportunities for the Future
Development of Mobile Technology
 Despite these gains, mobile phone users in the developing world still face many hurdles.
While cellular access in developing regions has increased dramatically, it still presents an
enormous expense for lower-income individuals. Across Africa, the median phone owner
spends more than 13 percent of their monthly income on mobile service. Furthermore,
researchers have noted a significant gender gap when it comes to cellular phone ownership,
even in countries with massive mobile adoption. In Ghana, Kenya, and Nigeria, phone
ownership among men is 12 percent higher than it is among women.
 In addition, there are questions regarding education and numeracy. In Mali and Uganda,
about 75 percent of third-graders are not literate, which creates barriers to cell phone
adoption and prevents people from getting the full benefits of the technology. These issues
represent unique ways for entrepreneurs to get involved with the market.
 Overall, the massive adoption of mobile technology in the developing world makes it easier to
start and grow a business in these markets. Cellular phones solve many of the problems with
payments and even represent incredible potential when it comes to app development. These
apps could help address the development challenges that these countries face, while also
potentially providing a significant return on investment.