Micro-Multinationals of the Future
The Rise of the Micro-Multinationals and the Mega Trends of a Socio-Economic Groundswell.
“ From their first day on the job, micro-multinationals can access international markets — Once the exclusive domain of corporate giants. ”
— Mettler and Williams
Internet made it possible.
Micro-multinationals have both an exceptional know-how and the ability to distribute worldwide.
What enables them to go global from day 1 is the smart use of web tools.
=> Start Focus & Think Wide.
It is well-known that Small and Medium-size Enterprise (SMEs) have a vital role for creating added value and jobs in most of economic systems.
In Europe and in the United States, 99% and 97% respectively, of all the companies are SMEs.
If they are the engine of the economies, the phenomenon is stronger when coming to Micro-Multinationals.
It is proven, thanks to a McKinsey report, that the most French SME’s use web technologies, the quicker is their growth, the higher is their revenues and the stronger is there profitability.
But a Micro-Multinational is radically different of a typical SME only using ordinary web tools to develop its business worldwide.
A Micro-Multinational is NOT a Smaller version of a large Company.
A Micro-Multinational is an Organization implementing a Scalable, Repeatable and Profitable Business Model on a Global scale.
“A multinational small business operates across geographic borders in their operations, marketing, sales and/or distribution — and they don’t wait to grow up.” (Council on Competitiveness’ Definition).
Yesterday, a company needed to be a large business with strong resources in order to develop its activities worldwide. Nowadays, it can go global directly from its launch; using useful management softwares and sub-contracting required services, which are now spreading on the market at affordable costs.
There is a fast increasing number of companies of three persons that scales there business worldwide from day 1.
These entrepreneurs are very adaptive and responsive to adapt their business to various market demands and specific local policies.
Successful micro-multinationals are working with many freelancers on a project per project basis on which they have a formidable expertise.
The productivity reached by these groups is the biggest strength; there can be more power at home with a computer than within a large corporation.
The six key pillars that most of Micro-Multinationals do have in common are:
- Creation of strong and powerful online presence.
- Implementation of customer centric approach.
- Development of stable globally-scalable services.
- Staff deployed globally and/or very mobile.
- Investment in useful technologies.
- Management of the legal, tax and business environment.
> The best micro-multinationals, like most of microfinance institutions, will be the ones focusing on social responsibility.
The founding principles of micro-multinationals are the realization of the “Knowledge Economy” and create synergies with the fast growing “Makers” movements.
“The great opportunity in the new Maker Movement is the ability to be both small and global.
High-tech and low-cost” Makers — Chris Anderson
It is interesting to note that Chris Anderson, in his book “Makers”, explains three main facts that are relevant to have a larger view on these companies:
- Makers utilize digital tools to create new products and 3D Printers to realize prototypes.
- Thanks to open source and creative commons, they put in common their ideas and know-how, acquiring a huge collective knowledge.
- They have the ability to go beyond the concept to create their companies with fast go to market.
These main characteristics of the Makers’ movement create breeding ground for the rise of Micro-Multinationals.
It even corroborates the “new work order” that analysts like Ann Mettler describes as working “more creatively, more autonomously but also more collaboratively with people from all walks of life.”
These Megatrends are shaping a near future in which there will tend to be less big companies.
We will see large concentrated organizations working with a lot micro-multinationals.
“Never doubt that a small group of thoughtful, committed people can change the world. Indeed, it is the only thing that ever has.”
— Margaret Mead.
It has never been so true.
And this is only the beginning of a socio-economic groundswell.
Nicolas Le Coz
