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A new study by the Clayton Christensen Institute, a nonprofit, nonpartisan think tank based in Boston and Silicon Valley, United States, and dedicated to improving the world through disruptive innovation, identifies how emerging market entrepreneurs can create successful businesses that will also benefit society.

In the executive summary of “Making your own luck in emerging economies: Six innovative strategies for creating new markets” report, published on April 8, 2020, successful entrepreneurs employ common strategies identified as reducing the barriers to consumption, employing breakthrough technology, and developing a new value network. The others are integrating internally, integrating externally, and managing government relations.

“It’s a widely acknowledged truth that innovation plays a pivotal role in shaping the economic fabric of nations,” the authors of the report – Efosa Ojomo, a senior research fellow and Lincoln Wilcox, a research associate, both at the Christensen Institute – wrote. “In particular, market-creating innovations – which create new markets by democratizing access to previously exclusive products – have been a vital force for generating prosperity in wealthy countries and are integral for building a prosperous future for today’s emerging economies.”

The researchers said that in order to create new markets for people who have traditionally been unable to purchase commercial products due to barriers like cost and access, organizations not only need to develop a product that meets their customers’ needs, they must also develop a way to get it to them. According to the authors, this process involves creating jobs and building infrastructure that wouldn’t be necessary if the organization were targeting existing markets. As a result, lasting prosperity follows for the organizations creating new markets and the regions and societies where they operate.

The authors said that as important as market creation is for economies, and indeed organizations, the phenomenon still remains, in large part, a mystery. They said successful attempts are often attributed to the luck and timing of the entrepreneur. Consequently, starting new ventures, particularly in emerging markets where many market-creating opportunities lie, appears inordinately risky, causing would-be entrepreneurs and investors to shy away from creating new and impactful businesses.

“To demystify the process of building market-creating innovations, we studied 100 market-creating organizations that we have identified as ‘successful’ – meaning their efforts have focused on creating sustainable new markets that serve ignored populations of consumers,” wrote the authors, adding that the study spanned history, industry, and the globe with the organizations profiled including global powerhouses such as Ford with its Model T car and Sony with its Walkman; as well as modern-day pioneers that show immense promise.

The authors said the encouraging findings of this research reveal that market-creating organizations have far more control over their destiny than many previously imagined. By using the strategies outlined in this research as guideposts, innovators can, to a large degree, make their own luck. In doing so, they stand to not only generate significant wealth for themselves, but also trigger shared prosperity in nations where many live in poverty.