Working With Data In Latin America: Challenges And Strategies
The collection of qualitative and quantitative market data provides critical insights around the globe. Governments, investors, and citizens benefit from the continuous supply of this forward-thinking information. According to ESOMAR and BDO, the global market research industry grew 6% in 2017, reaching a value of $76 billion. Around the world, quantitative research generated 81% of all spending, while qualitative research accounted for 14%, a 1% decline from the previous year. The remaining 5% of industry spending was seen across other research methods.
Companies operating in the market research industry offer an essential service to those that rely on accurate data. The enterprises that use this information are often looking to generate helpful insights such as market competition, size, and consumer behavior, amongst other metrics.
While this process is reliable in developed economies, data collection in emerging regions like Latin America presents unique challenges. It’s important to analyze the obstacles associated with data collection in emerging economies, and what companies can do to overcome them.
Emerging Market Data Challenges
As venture capital continues to flood Latin America, a growing number of companies will need reliable, accurate market data. According to the Latin American Private Equity & Venture Capital Association (LAVCA), venture capital funding in the region nearly doubled in 2018. Reaching a record $1.98 billion, last year’s numbers dwarf the $1.14 billion of capital investment seen in 2017. With this trend forecast to continue, it will become increasingly critical to overcoming existing data collection hurdles.
And while these hurdles are many, some remain more problematic than others. Typically, external influences, such as government and corporate interests are hardest to overcome when collecting emerging market data.
Photo courtesy of Kevin Keith.