As historically less developed countries begin industrializing, their citizens are taking the opportunity to start exciting new businesses, and global investors are taking notice. U.S. investors are looking into African, Asian and South American start-up companies to invest in. While the motivation behind this investment may be profit-oriented, it also creates an interconnected world that is economically dependant on each other.

Why Countries are Investing in Global Start-Ups

1. Support from Global Governments: One big reason why global entrepreneurship has taken off is governments worldwide are supporting it. In 2017, the U.S. and India jointly hosted the Global Entrepreneurship Summit, which brings together entrepreneurs from around the world to connect with prospective investors. On top of that, governments worldwide are putting resources into building up their entrepreneurial communities. The six-month program, Start-Up Chile, offers its students $35,000 and a one-year visa to move to Chile and grow their business.  
2. Great Locations: As the entrepreneurial spirit spreads in a country, like-minded people flock at epicenters of design. For example, Santiago, Chile has been dubbed “Chillecon Valley” due to its high number of tech start-ups. Similarly, Buenos Aires has an electric entrepreneurial community that creates competition and cooperation between different companies. This spirit (and the great weather) attracts entrepreneurs to relocate from around the world.
3. Highly Skilled at Low Costs: As an investment opportunity, global entrepreneurs offer considerable value for their cost. Due to the relatively low cost of living in less developed countries, entrepreneurial cities are an attractive place for skilled people to move to. Some experts estimate that highly skilled tech workers in Argentina can be hired for 25-35 percent of the cost of their U.S. counterparts.

How Investing Supports Peace Worldwide

1. An Interconnected World: By creating business ties between countries, peace becomes an economic necessity. Some economists believe the best way to achieve global peace is to create a world that is so economically dependent on one another that conflict would be mutually destructive. While total economic dependence may not come anytime soon, on a smaller scale the theory works the same way.
2. Global Entrepreneurship Helps People Globally: Global Entrepreneurship greatly improves the quality of life for participants. Not only do successful small business owners help themselves, but they also contribute to the local economy by employing local workers. Therefore, by helping people start businesses worldwide, developed countries can help eliminate global poverty one start-up at a time.
3. Increased Stability: Evidence suggests that one of the main causes of political unrest is not religion or culture, but rather the economy. As people are unable to find well-paying jobs, they search for alternative vehicles to express their unrest. In this way, global entrepreneurship is an asset to national security. Providing people with resources and support to help themselves is cost-effective and works to eliminate causes of civil unrest rather than covering up symptoms.

The U.S. government is supporting global entrepreneurship by co-hosting the Global Entrepreneurship Summit with India. Meanwhile, people are investing in start-ups worldwide to get a jump-start on the next big company. Through both of these actions, global entrepreneurship is getting the push it needs to improve economic conditions and create world peace.  

– Jonathon Ayers
Photo: Flickr