The Global Entrepreneurship and Development Institue in Washington, DC has come up with their Global Entrepreneurship Index (GEI) report for this year. The GEI measures entrepreneurship across the world and gives it a number that enables us to understand if it is getting stronger or weaker from year to year. In comparison, the world today is operating at better than 50 percent of its productive entrepreneurship capacity, which has been rising slowly over the years.
How is the world economy currently faring? Are we sailing on stormy seas, or does the clear evening sky indicate a calm sail ahead? To help answer this, the table below presents the ten most entrepreneurial countries in the 2015 data for the GEI and compares them to the 2014 rankings.
Singapore and Taiwan increased their level of productive entrepreneurship. Taiwan, with its historically high score of 69, is in eighth place (2015), while Singapore ranks tenth, also making the GEI top ten for the first time. In sum, the top-performing entrepreneurial ecosystems in the world are the four largest English-speaking countries.
The top ten countries for 2016 show a pattern similar to last year’s—high-income, mostly European nations. Because the scores in the highest range are so close, small changes in score from one year to the next can produce a relatively large shift in ranks among the top ten. For this reason, we present confidence intervals for the top ten in the next table.
Taiwan, the highest Asian country, is in 6th place, and Singapore is 11th, which virtually ties it with France among the top ten countries.
The striking feature in this region is its diversity in terms of economic and entrepreneurship development. On the one hand, the region contains some of the world’s leading entrepreneurial economies such as Australia (3rd globally), Taiwan (6th), and Singapore (11th). On the other hand, the region also contains global laggards such as Myanmar (117th), Indonesia (103th), Pakistan (109th), and Bangladesh (125th). Interestingly, Korea and Japan do not rank at the top (4th and 5th in the region and 27th and 30th globally).
This signals that the bulk of the innovative energy in these two countries is channeled through large, world-leading corporations. Even though both economies exhibit strong supply chains that include an important number of small- and medium-sized businesses, many of these (relative to the countries’ innovative potential) content themselves with servicing local supply chains instead of seeking rapid global growth.
- The 2015 Global Entrepreneurship Index
- The 2016 Global Entrepreneurship Index