The second major report from GALI, written in collaboration with Deloitte, compares acceleration in emerging markets versus high-income countries. Examining data from more than 2,400 early stage ventures that applied to 43 programs, it finds more similarities between emerging market and high-income country entrepreneurs and accelerator programs than commonly believed.
Despite the numerous difficulties of running a startup in emerging market countries, accelerated ventures are often able to grow at similar rates to their counterparts in the United States and Canada. The average effects of acceleration on equity and debt raised were nearly identical in high-income countries and emerging markets, and emerging market ventures were just as likely to report rapid growth.
The report then tests commonly held beliefs about what might be holding entrepreneurs back in emerging markets and finds that many of these beliefs are not backed up by data. The report finds that:
For accelerators, investors, and other supporters of entrepreneurs in emerging markets, the report indicates a few areas for action: