Today's flatter, interconnected world offers unprecedented opportunities for entrepreneurs and other small businesses. Now even the smallest of start-ups, in the least-developed markets, can have the whole world as its marketplace.

IBM is dedicated to helping entrepreneurs around the world compete in today's global economy—and nowhere is the notion of "global entrepreneurship" more compelling than in the world's emerging economies. Also known as "growth markets," these developing regions represent 85 percent of the world's population and comprise 60 percent of the world's IT growth.

As part of its international growth strategy, IBM is tapping into the enormous business opportunities and fast-growing consumer populations in emerging markets. By collaborating with Business Partners, independent software vendors (ISVs) and venture capitalists, IBM is able to break into these new markets early on, provide local entrepreneurs with the building blocks for success—and help them thrive.

IBM's business in some of the earliest emerging markets—specifically Brazil, Russia, India and China—collectively grew 26 percent last year. These so-called BRIC countries are part of IBM's growth markets organization of more than 100 countries. In 2007, revenue in each of 50 of those countries, including Mexico, Egypt and Vietnam, grew more than 10 percent and collectively grew more than 20 percent. With a focus on the next tier of emerging markets, including Latin America, Eastern Europe and Sub-Saharan Africa, there's vast new opportunity for growth—and for IBM to empower global entrepreneurs.

IBM's Business Partners fuel entrepreneurship

IBM's Business Partners deliver the reach and relationships IBM needs to break into emerging markets and connect with entrepreneurs. Local partners are the face of IBM and the trusted advisors to the small businesses that dominate these economies—and they play a vital role generating demand and driving sales of IBM solutions.

Tallard Technologies, an international distributor of state of the art computing and telecommunications solutions, has been an IBM Business Partner for nine years. A subsidiary of Brazil-based Itautec Group, Tallard and IBM work together in six Latin American countries (including Mexico, Argentina, Venezuela, Chile and Ecuador), which represent more than 90 percent of this emerging market, said Humberto Gonzalez, Tallard's President and CEO.

As a result of standardized business solutions, open architecture and increased communication, local solution providers across Latin America have recognized the opportunity that lies beyond their borders. IBM and Tallard constantly seek out such entrepreneurs to assist them in marketing their offerings abroad.

Recently, for instance, Tallard and IBM helped a medium-sized system integrator in Venezuela expand to Mexico, where the firm has used Tallard resources to help close several important projects migrating Sun servers to IBM Power systems.

"Most importantly, Tallard and IBM provide start-ups with market intelligence and initial demand generation in order to accelerate revenue and reduce start-up losses," Gonzalez said.

Software developers: the entrepreneurs' entrepreneurs

Independent software vendors (ISVs) provide a key route to market for IBM in emerging economies—and a great opportunity for IBM to vigorously support entrepreneurs.

De Meyer Konchev (Pty), Ltd. (DMK), a software development company based in Johannesburg South Africa, works closely with IBM to succeed at home and fulfill its global ambitions. The 21-person firm, which had a former life as a successful SAP implementation company, began marketing its own retail-specific enterprise resource planning (ERP) solution in January 2007—and already has a global expansion strategy in place.

To date, IBM has connected DMK with three IBM Business Partners with retail expertise in Canada—and initial discussions with retailers, via these partners, has garnered significant interest in the DMK ERP Retail Solution. DMK plans to enter the U.S. market after establishing a foothold in Canada, and also has Asia in its sights.

"Frankly, without IBM, we would not be able to consider a global approach so early in our corporate cycle," said Jaco Claassens, DMK managing director.

Within South Africa, IBM has brought DMK directly in touch with its target market and provides infrastructure, technical support, facilities for training and meetings and other resources crucial to success. Teaming with IBM enables DMK to compete on equal footing with its main competitors—global giants like SAP, Microsoft and Oracle.

"We believe that we have a great solution that we can grow into the first choice retail solution anywhere in the world," Claassens said. Much of that growth will come from teaming with IBM, driven by the credibility that such a partnership provides, he said.

Capital for new ventures, new technology

In China, perhaps the greatest emerging market, IBM's Venture Capital Group works closely with Gobi Partners, a Shanghai-based venture capital firm that invests in the IT sector, especially digital media start-ups. IBM, in fact, is a longtime investor in Gobi, which has funded over 20 start-ups in China since its inception in 2002.

"IBM was our first, big strategic limited partner—basically an anchor investor for the Gobi Fund," said Thomas Tsao, a partner at Gobi Partners. In large part, Gobi serves as a filter for IBM in the immense Chinese market, weeding through countless new technology ideas and business opportunities. When Gobi determines a good investment, IBM can get in on the ground floor.

Digital Media Group (DMG) provides a prime example of how, working intimately with a venture capital firm like Gobi, IBM empowers entrepreneurs and grows with them. In 2004, Gobi invested in the start-up—then a small, Shanghai-based company that offered a passenger information system. Today, DMG operates a network of TV screens inside subway stations and cars across nine cities in China, reaching over 13 million passengers a day. DMG has over 200 employees, doubled its revenue in the past year, and is looking to expand globally.

IBM has stood alongside DMG from the very start—when Gobi called in IBM experts to conduct due diligence on DMG's innovative technology. IBM liked what it saw, helped brainstorm next steps—and today customized IBM servers underlie and control the entire DMG network.

DMG's affiliation with IBM and use of IBM technology was the stamp of approval that won the company its initial contract with the transportation authorities in China—and has helped it win contracts in other Chinese cities since, Tsao said.

"Now we're in discussions with IBM to bundle our solution and work with IBM's transportation group to take it to other emerging markets—where subways are going to be such an important part of the solution to reduce air pollution and traffic congestion," Tsao said.

A focus on entrepreneurs

IBM is engaged in other work to support small and start-up businesses. For example, the company has teamed with the International Financial Corporation (IFC), the private sector arm of the World Bank, to launch new resources and a Spanish lanuguage version of a free, Small Business Toolkit specifically for underserved small businesses in the U.S. including women, Black, Hispanic, Native American, and Asian entrepreneurs. In Brazil, IBM, Banco Real and the IFC also launched the toolkit for Brazilian entreprenuers. The Toolkits, already available in 30 different sites and 16 languages provide small-business owners in emerging markets with highly developed business information, tools, and training services usually reserved for Fortune 1000 companies.

In addition, IBM is launching the Global Entrepreneurs Exchange—an online exchange to support small business owners around the world with peer-to-peer advice and mentoring, a support network, social media and better access to capital, knowledge and expertise. Specifically designed for the new global entrepreneur and for the many regional planning and governmental authorities focused on helping them, the Global Entrepreneurs Exchange will provide:

• Peer-to-peer advice and access to expert mentors, without the constraints of geography or funding;
• A support network for governmental and non-governmental agencies responsible for economic development, as well as small global entrepreneurs themselves;
• Innovative social media for collaboration, with global community forums, a business directory, user surveys, website building and cell-phone access and notification

IBM knows that entrepreneurs are the engines of job creation and growth, which makes them the most critical player in recharging the global economy. In today's challenging, tumultuous times, support for entrepreneurs is more crucial than ever.

"I believe IBM is committed to nurturing innovation via entrepreneurs because it's thinking about the global community at large—which shows IBM's corporate responsibility," said Thomas Tsao, of Gobi Partners. "Entrepreneurship is good on so many levels—and the fact that IBM wants to help it flourish in so many markets is really unleashing and empowering entrepreneurs all over the world, and this is creating great, positive change."