Global Capital Flow Creates Opportunities

Financial executives are at the table when it comes to charting the strategy of a business. But they often tend to limit themselves to analyzing the financial viability of others' suggestions rather than offering innovative strategic approaches of their own. Capital flowing around the world is creating both unexpected business opportunities and threats. A new concept -- the Entrepreneurial Ecosystem (EE) -- helps explain why capital flows to some countries and not to others. EE consists of several factors, ranging from financial markets and corporate governance patterns to human capital resources and intellectual property regimes. Here are four examples: 1. pursuing global expansion, 2. investing in growing industries, 3. managing mature businesses, and 4. hiring managers and coordinating global operations. Financial executives have an important role to play in helping companies make the right moves. Moreover, they can build the networks globally that will build help boost the odds succeeding in a world where the flow of capital is rising in importance.