Asia needs more entrepreneurs because start ups create jobs, foster innovation, build infrastructure and strengthen the economy. But the region is facing a deficit of entrepreneurs. This is a problem, because companies run by entrepreneurs are responsible for much of the economic growth in the region.
To understand why this is the case, it’s important to recognize that entrepreneurs are a special breed of businessperson who create economic value. Entrepreneurs are not simply people who run businesses; instead, they are visionaries who see opportunities that others miss, and then find ways to exploit them.
Entrepreneurs create not just new companies, but also new industries. And they’re responsible for much of the innovation that drives Asian economies forward.
Asia needs more entrepreneurs who are willing to take risks and strike out on their own. In fact, a survey of executives in Asia found that the region has 22% fewer start-ups per capita than other regions. That’s because there are many barriers that prevent people from launching businesses.
For instance, many countries in the region are upgrading their legal systems to make it easier for entrepreneurs to register their companies and obtain financing. The World Bank’s Doing Business index rates countries on how easy it is to start a new business. In the past decade, Asian countries have made significant progress on this front but there is still too much red tape.
But even if more entrepreneurs start businesses in Asia, they still face many challenges.
The two most problematic factors for doing business in Asia are the ability of the country to enforce contracts and protect investors. For example, in Indonesia, it takes an average of 35 days to register a new business. That’s longer than anywhere else in the world. It also takes an average of 7.2 months to resolve a commercial dispute there. That also one of the longest times in the world.
Asia has a long way to go before it can compete with Silicon Valley as a start-up center. But there are reasons to be optimistic that things will improve.
For example, India has made great strides in improving its business climate. In doing so, it has become more attractive to investors from other parts of the world.
These investors are finding that despite India’s many problems, it is the only place in the world where you can do business in every language. And it is a good place to start a business if you have an idea for a software application.
That’s because India has more than 500 million people who are literate and able to operate a computer. That makes India a land of opportunity for entrepreneurs who want to create an Internet-based business.
The country needs more of these businesses. It is trying to move up the value chain, out of low-skilled work and into high technology. But to do that, it needs to be able to attract people with ideas and the talent to realize those ideas.
Given its size and economic problems, India will be a long time evolving into a Silicon Valley-type center for start-ups. But it’s on the right track.