Entrepreneurship in Emerging Markets: Comparing Guatemala and Panama

This report assesses the viability of expanding a burger bar business into either Guatemala City or Panama City, comparing the two emerging markets. It analyzes factors such as population growth, consumer demand, government support, GDP growth, and the level of competition. The analysis concludes that Guatemala presents a more favorable environment for the business due to a growing consumer base, government incentives for foreign investment, a positive economic climate, and lower competition compared to Panama. The report emphasizes the importance of considering consumer preferences and the potential for premium pricing in Guatemala, highlighting the opportunity for high revenue generation. The report uses several research papers to back up the analysis.

Running Head: ENTREPRENEURSHIP IN EMERGING MARKETS 1
Entrepreneurship in Emerging Markets
Names
Institution

ENTREPRENEURSHIP IN EMERGING MARKETS 2
Entrepreneurship in Emerging Markets
According to Frederic (2013), analyzing factors that affect business performance before
making the decision to expand to a foreign market is always fundamental. For Andoni Goicochea
to make proper decision concerning whether to expand to Ciudada de panama or Guatemala
City, he should have sufficient information concerning the opportunities presented by the two
regions.
Comparing the two countries, Guatemala presents more opportunities than Panama
because the country has a fast growing population with high demand for burger bar and other fast
food products. Christopher (2013) affirms that high demand is a great opportunity for business
growth because it makes products to keep moving. Over the years, the culture of consuming
burger bar in this country has been emerging, with most people especially the youth viewing
burger bars as important commodity that should be used for various reasons.
Although both countries are stable democracies, Guatemala is more suitable for this
business because its government provides direct support to foreign investors (Frederic, 2013).
This implies that because this is a foreign business that attempts to expand to this market, the
chances of experiencing negative government influence are minimal.
Comparing the two countries, Guatemala has a GDP growth rate that is more favorable
than that of panama. According to Thi (2010), positive economic condition plays a key role in
business growth because it determines the level of consumer spending and also the cost of
products. This means that expanding this business to Guatemala will provide more chances of
success than in panama because consumers in this country will have a lot of disposable income
which will make them to purchase burger bars from time to time.

ENTREPRENEURSHIP IN EMERGING MARKETS 3
The other factor that makes it suitable to expand this business to Guatemala is that in this
country, competition is considerably low as compared to Panama. According to Nelson (2011),
in Panama, there are many small, medium and big businesses dealing with similar product. In
contrast, Guatemala does not have as many businesses dealing with this product as Panama and
therefore means there are opportunities to explore. Although some well established firms dealing
with similar product exist in Guatemala, the rate of population growth in this country makes
them insufficient to meet the demand and therefore there is need for more businesses to be
established. Being a new venture in a foreign country, this business may take long to thrive in
Panama because firms have already grabbed their market shares and royal customers. This
implies that Andoni should think of expanding this business to Guatemala because with the
growing demand for this product, there is a possibility that he will realize great success.
Considering the business model, this business will realize high revenues in Guatemala
than in panama because Guatemalans like getting value for their money. Because the business
concentrates on high quality product, consumers in this country will be willing to purchase
burger bars from this firm because they relate quality to prices (Frederic, 2013). There is a
possibility that introducing this model in Guatemala will make the business to sell its products at
premium prices and realize high purchase rate because one of the characteristics of Guatemalans
is that they are always willing to spend high for quality products.

ENTREPRENEURSHIP IN EMERGING MARKETS 4
References
Christopher, C. J. (2016). Entrepreneurial Strategies for Emerging Markets. Journal of Business
Strategies, 33(1), 154-168.
Frederic, S. (2013). Local and Systemic Entrepreneurship: Solving the Puzzle of
Entrepreneurship and Economic Development. Entrepreneurship: Theory and Practice,
37(2), 145-165.
Nelson, T. P. (2011). Entrepreneurship in Emerging Markets: Strategies for New Venture
Creation in Uncertain Institutional Contexts. Management International Review, 51(1),
56-78.
Thi, P. K. (2010). Closing Doors and Opening Windows: Opportunities for Entrepreneurship in
an Emerging Asian Country for a Seasoned Woman Professional. International Journal
of Entrepreneurship, 14(51), 56-85.