Asset-driven strategies: Financial strength

A major challenge for emerging market CEOs in today’s global economic environment is securing the necessary financial capital to develop, prosper and grow their businesses. Yet, there is some room for optimism. Most emerging-market CEOs look to internally generated cash flow, with debt markets a distant second as a source of capital. This suggests that the largest and most successful of companies based in emerging markets are not at a disadvantage with regard to their access to capital.
  • Of the 14 CEOs interviewed in depth for the report, none said that access to capital was a barrier to growth, citing their company's strong credit ratings and a continued influx of foreign capital.

  • Equity markets, divestiture of existing assets and accessing private equity and venture capital are of marginal significance as capital-raising techniques in emerging markets.
 Highlight: The Milken Institute's Capital Access Index 2007 placed only three emerging markets—Israel Malaysia and Estonia—in the top 20, and only one African country, South Africa, in the top half of 122 economies surveyed for ease of access to finance.
Videos: CEO insights on emerging markets
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