Today the world is globalized.; The globalized or open economy is one that has liberalized trade and capital movement (Thorbecke et al 2003, p.154). Thorbecke et al also noted that openness through trade, foreign direct investment and the financial market increase the flow of goods and capital across national borders (ibid. p.156). As a result, most countries participate in international trade as their economies are open to competition with others. Those most affected by this competition are the emerging industries. Emerging or nascent industry is a shade of industries in their early stage of development/growth (Tribe 2000, p.31). Emerging industries can be divided into two groups; : the absolute emergent is a new industry that does not exist elsewhere, is usually technologically intensive and is predominant in developed countries (Castel-Branco 2002, p.46); and related emerging industries are often new in the countries of origin, usually developing countries, but in other countries, such as the industrialized world, they are already mature or developed (Castel-Branco 2002, p.48). The terms Definitions of developing, underdeveloped or less developed economy are used to describe countries that are economically backward and in need of improvements in living conditions (Sen 1988 p.11). The essay will analyze the challenges of emerging businesses in a context of globalization and an underdeveloped world. Due to the narrow scope, the essay will discuss only three challenges, namely technological capacity, reputation of industries and availability of capital for investment. First, issues related to technological capacity will be discussed. Second, it will examine the role of the reputation of emerging industries domestically and internationally...... of enterprises to provide greater credibility and the ability of countries to create a good environment develop these industries through better infrastructure. The solution to these problems is state intervention by selecting some potential nascent industries to protect. This intervention is necessary because the market alone cannot cope with these problems. This must be done taking into account first and foremost the internal market so that it can encourage openness to foreign trade (UNIDO 1997, p.27). Therefore, the government must formulate policies to protect new industries to guide them in the right direction to compete in the international market, otherwise the industries alone cannot reach this stage of maturity. This means that infant industries in developing countries may die before reaching maturity.