EMERGING INDUSTRY

Group of companies in a line of business created around a new product or idea within the early phases of development. Normally, it comprises of a few firms and frequently concentrated around a new technology. Hindrances to entry in emerging industries can be less due to limited competition. However, it may be harder to secure funding to enlarge the company. Aside from that, marketing expenses are high because the product or service for sale is often not proven, and firms in this industry must persuade both investors and consumers the given product or service being sold is valuable. Although considered a high-risk investment strategy, it can also bring high rewards.