TAIPEI - Taiwan is ranked the best place to start a business in Asia, ranking No. 8 out of 130 countries in the world, based on the recently released 2015 Global Entrepreneurship Index (GEI).
Taiwan has ranked among the top ten countries on the GEI for four consecutive years since the study started in 2011 under the leadership of the US-based non-profit organisation the Global Entrepreneurship and Development Institute (GEDI).
The top ten countries for entrepreneurial spirit in 2015 in order along with their GEI score are the United States (85), Canada (82), Australia (78), United Kingdom (73), Sweden (72), Denmark (71), Iceland (70), Taiwan (69), Switzerland (69) and Singapore (68).
Taiwan's GEI score of 69 is at a historic high. Among the 16 pillars that make up the index, Taiwan receives a full score for "risk capital,""product innovation" and "high growth."
It is indicative of the nation's wide availability of risk finance, particularly equity rather than debt, and Taiwan's potential to generate new products. The high growth indicator measures the percentage of businesses that intend to employ at least ten people and plan to grow more than 50 per cent in five years.
Taiwan's Not as Strong in Competitiveness
Taiwan has received a high score in another three pillars: "human capital," which measures the prevalence of high-quality human capital, "opportunity startup," a measure of start-ups by people who are motivated by opportunity but face regulatory constraints, and "process innovation," which refers to the ability to apply and/or create new technology.
Taiwan ranks lower on "competition,""startup skills" and "internationalization." It means that products made in Taiwan are not as competitive when compared to those produced by other nations. Also, fewer people in Taiwan believe they possess the necessary skills to be successful as an entrepreneur. In addition, Taiwan does not have a very big advantage when it comes to exports.
According to the GEDI's report, Taiwan has a GDP per capita of US$34,817 (S$44,466) and has a relatively high ranking in terms of business and economic advantages. It is ranked 16th out of 189 nations in the Doing Business Index, 14th out of 144 nations in the Global Competitiveness Index, and 17th out of 178 nations in the Economic Freedom Index.
According to the report, the Asia-Pacific region offers some of the greatest potential for economic growth, as it contains emerging economies China and India.
Outperforming in the Region
Korea and Japan, two of the leading economies in the region, do not rank at the top of the index (5th and 6th in Asia-Pacific, 28th and 33rd globally, respectively) It signals that the bulk of these countries' innovative energy is channeled through large, world-leading corporations, the report said.