The term micro-multinational has been around for quite some time. However, the term is more relevant now than ever before. New companies do their innovation in the US or in the UK while they develop their products either in India or China. They then sell their products in global markets while raising capital from anywhere in the world. Such a company would be considered as micr-multinational.

Micro-multinationals operate and behave like any other major multinational, probably much more successfully because their size allows them to be more agile and adoptive while increasing their business environment. One can order a taxi via Uber in Bangalore through their servers anywhere the world. Innovated in the US and funded by capital from investors in the US. Companies are moving from around the world to Silicon Valley and getting bought buy larger tech companies.

Not only is this trend going to accelerate with new companies, but old companies will also follow this trend because of following reasons :

1. Penetration of the Internet – With more than a billion people using tools like Google or Facebook, consuming the latest Apple produce in a week w(hich used to take year), watching steaming videos simultaneously anywhere in the world and reacting ┬áto it via chat, talk or texting free of charge with anyone in the world, this is creating a new digital world for us to live in.

2. We will live 200% lives (100% physical and 100% digital) – We will be designing products and services for the physical world that we know and simaltaniously also for the digital world which is emerging at a rapid rate.

3. World is shrinking – Not only are we connected through communication tools but air travel has become faster and connections to get deeper into the country via airports is shrinking the distances. Today, one can go around the world and conduct business successfully within a few days. For years, the aviation industry had focused on size of the aircraft. Now with long distance non-stop flights, speed will become the focus.

4. Global payments – As internet and mobile payments mature, companies will be able to do business direct with clients anywhere in the world. This is a very important development to do cross border transactions.

5. Global business is becoming a chess board – Increasingly, it is not going to be a choice on whether to become a micro-multinational or not. If a local business does not apply global context to their business, someone will come into your backyard. A taxi driver in Bangalore would not have thought that they would compete with a taxi ordering company from USA !!

We are entering a world of micro-multinationals and the term will become a new normal in the next ten years.