Course Title: Structure of Emerging Economies and Startup Potential
Course Code: BUS 113
Trimester: Trimester 2 (Jan 5, 2026 – March 20, 2026)
Contact Hours: 4 hours/week (total 36 hours of instruction over 9 weeks)
1. Course Overview & Philosophy
While developed markets focus on incremental innovation, emerging economies offer the "Technological Vanguard" the chance to build foundational infrastructure. BUS 113 explores the unique structural characteristics, institutional gaps, and leapfrogging opportunities present in developing markets. This course is designed for students who want to understand the "why" behind the success of giants like M-Pesa, Flutterwave, and Grab.
At SIU, we don't view emerging markets through the lens of scarcity, but through the lens of startup potential. We emphasize the discipline required to navigate complex regulatory environments, the willpower to build in high-uncertainty contexts, and the fulfillment of solving problems that impact millions. This course provides the macroeconomic context necessary to turn local challenges into scalable global ventures.
2. Course Learning Objectives (CLOs)
Upon successful completion of this course, students will be able to:
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Analyze the structural differences between developed and emerging economies (e.g., informal sectors, infrastructure gaps).
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Identify "Institutional Voids" and transform them into viable business opportunities for startups.
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Evaluate the concept of "Technological Leapfrogging" and its application in fintech, energy, and agritech.
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Assess the impact of currency volatility, inflation, and political risk on startup operations and valuation.
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Map the startup ecosystems of key emerging hubs (Lagos, Nairobi, Cairo, Jakarta, São Paulo).
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Formulate localized business models that account for low-trust environments and fragmented supply chains.
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Adhere to the SIU standards of Discipline by maintaining high ethical standards in markets where governance may be weak.
3. Pedagogical Approach & Active Learning
This course will employ an active learning approach to foster deep understanding and practical application.
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The "Void" Hunter Lab: Weekly exercises where students identify a specific failure in local infrastructure (e.g., waste management or identity verification) and draft a startup solution.
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Macro-Stress Simulations: Real-time drills where students must adjust their startup's financial and operational strategy in response to a simulated currency devaluation or regulatory shift.
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Ecosystem Deep-Dives: Comparative analysis of successful African unicorns vs. their counterparts in other emerging markets.
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The Localization Challenge: Taking a successful Western business model (e.g., Amazon or Uber) and completely re-architecting it to survive the structural constraints of an emerging economy.
4. Grading & Assessment Breakdown
Assessment will be rigorous, reflecting the importance of discipline in mathematical precision and problem-solving, and contributing to overall fulfillment in mastering foundational knowledge.
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Punctuality & Participation: 10% (Attendance and active engagement in debates regarding emerging market policy and startup case studies.)
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Assignments, Labs & Projects: 20% (Includes weekly "Void" reports, ecosystem mapping presentations, and the "Market Entry" project.)
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Mid-Term Exam: 30% (Covers macroeconomic fundamentals, institutional theory, and leapfrogging concepts.)
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Final Exam: 40% (Comprehensive exam focusing on risk management, localized business modeling, and a final "Market Potential" thesis.)
Grading Scale:
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A+: 95-100%
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A: 90-94%
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A-: 85-89%
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B+: 80-84%
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B: 75-79%
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B-: 70-74%
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C+: 65-69%
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C: 60-64%
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F: Below 60%
5. Course Schedule & Topics (9 Weeks of Instruction)
Each 4-hour class session will include theoretical exposition, worked examples, and significant time for student practice and Q&A.
Week 1 (Jan 5-9): Defining the Emerging Market Context
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Topics: Characteristics of emerging vs. frontier markets; The role of the informal economy; Demographic dividends.
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Activities: Analyzing the "Informal GDP" of local markets and its implications for digital payment adoption.
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Project Focus: The Market Profile – Selecting an emerging economy and mapping its core economic indicators.
Week 2 (Jan 12-16): Institutional Voids as Opportunity
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Topics: What are Institutional Voids? (Lack of specialized intermediaries, weak contract enforcement); Turning gaps into markets.
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Activities: Identifying the "middlemen" missing in local supply chains.
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Project Focus: The Void Report – Identifying one specific institutional failure and a tech-driven solution.
Week 3 (Jan 19-23): Technological Leapfrogging
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Topics: Skipping the desktop for mobile; Skipping the grid for solar; Mobile money vs. traditional banking.
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Activities: Case study: How M-Pesa skipped the credit card era in East Africa.
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Project Focus: Leapfrog Strategy – Proposing a technology that allows a sector to bypass traditional infrastructure.
Week 4 (Jan 26-30): Logistics, Infrastructure & The "Last Mile"
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Topics: Fragmented supply chains; Cold chain challenges; The cost of moving physical goods in emerging hubs.
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Activities: Mapping the journey of a physical product from a port to a rural customer.
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Project Focus: The Last Mile Plan – Designing a logistics strategy for an e-commerce startup in a low-infrastructure zone.
Week 5 (Feb 2-6): Macro-Risks: Currency, Inflation & Regulation
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Topics: Managing FX risk; Hyperinflation survival for startups; Navigating "gray" regulatory areas.
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Activities: Simulation: Re-pricing a software subscription service during a 20% currency slide.
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Project Focus: Risk Mitigation Framework – Creating a financial safety net for a startup operating in a volatile currency environment.
Week 6 (Feb 9-13): MID-TERM EXAMINATIONS
Week 7 (Feb 16-20): Trust, Identity & Social Capital
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Topics: Building trust in low-trust societies; Social commerce; Community-based business models.
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Activities: Analyzing how "referral" and "community" drive growth for startups like Pinduoduo or Copia.
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Project Focus: The Trust Protocol – Building a feature that creates verifiable trust between strangers in a marketplace.
Week 8 (Feb 23-27): Comparative Ecosystems: Africa vs. The World
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Topics: The "Big Four" in Africa (Nigeria, Kenya, Egypt, SA) vs. SE Asia (Vietnam, Indonesia).
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Activities: Group debate: Which emerging region offers the best ROI for a fintech startup in 2026?
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Project Focus: Ecosystem Analysis – A comparative report on how different governments support startup growth.
Week 9 (Mar 2-6): Localizing for Scale
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Topics: Regional trade blocs (AfCFTA); Language barriers; Cross-border expansion in emerging markets.
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Activities: Designing a market entry strategy for a Nigerian startup moving into the Francophone market.
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Project Focus: The Expansion Roadmap – A strategic plan for taking a local solution to three other emerging markets.
Week 10 (Mar 9-13): Final Synthesis & Review
Week 11 (Mar 16-20): FINAL EXAMINATIONS
6. Required Resources
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Textbook: Winning in Emerging Markets by Tarun Khanna and Krishna Palepu.
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Reading: Selected reports from Partech Africa, Briter Bridges, and the World Bank.
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Online Resources: SIU LMS for startup case studies and real-time economic data trackers.
7. Academic Integrity & Professionalism
All students are expected to uphold SIU's Academic Integrity Policy. Professionalism in this course involves a deep respect for the complexities of different cultures and economies. Students are expected to approach the study of emerging markets with the discipline of a researcher and the willpower of a founder, avoiding stereotypes and focusing on data-driven potential.