Studies reveal that the great strides made in the global business environment are primarily caused by a stronger entrepreneurial climate in developing regions. In Singapore, for instance, there has been a growth in new businesses in the last several years. This is thanks to the financing programs established by the government and local business communities for university students who wish to launch a business after graduation. With these programs in place, young entrepreneurs dive into the business scene with more confidence.
Japan, on the other hand, is benefitting from the contributions of the elderly population of the country. More and more new and old enterprises are tapping into the experience and skills of senior citizens who do not want to retire. This shows labor market flexibility, which is one of the vital factors behind a healthy entrepreneurial environment.
What Are The Other Factors Boosting the Entrepreneurial Climate?
According to a report from Legatum, the following are the factors behind the thriving business scene around the globe:
1. Affordable Registration
In Oman, it has become much easier to start a business due to the removal of minimum capital payment for registration. This makes budgeting less burdensome for entrepreneurs who are working with small capital. It allows them to focus their finances more on the quality of their products and services.
2. Business Infrastructure
The improvement of a country’s highways, the provision of affordable utilities (especially in isolated locations), Internet service, stable communication lines, and other developments are known to open business opportunities. For instance, in South Africa, the reduction of energy costs has impacted the way SMEs operate. Business owners learned that they could keep the lights on for much longer and extend their hours of operation and generate more income.
In India, on the other hand, the provision of affordable solar energy in remote, small towns inspired new business ventures.
3. Access to Credit
There is a growing number of governments and members of the business sector that have been working to make financing a new enterprise notably easier.
As mentioned earlier, Singapore offers a flexible financing program to help fresh out of university entrepreneurs to launch their ideas. Not only that, but Singapore has also created a business infrastructure to go with its effective financing programs. The famous Design Orchard Mall was built specifically to encourage local designers to get into the retail scene.
Pakistan is another nation benefitting from easy access to credit. Legatum’s 2017 Prosperity Ranking shows the country’s booming business environment. Unfortunately, Pakistan was not able to sustain the improvement; it fell four places on the pillar of Business Environment in Legatum’s 2018 Prosperity Index, which illustrates how improving the business environment requires continuous effort.
4. Labor Market Flexibility
European countries, Germany, the Netherlands, and Norway are showing the world how human energy is vital to entrepreneurial success. These nations have eased regulations on hiring and firing employees and focused more on skills development and establishing new processes where certain experiences and levels of expertise can prove beneficial.
In Asia, Japan is the leader in labor market flexibility for enterprises. Not only are new and old companies hiring the elderly, but they recruit foreigners and even people with disabilities as well. The Philippines is following suit; some urban locations hold job fairs specifically for people with disabilities.
5. Investor Protections
Strong intellectual property protection is essential in helping entrepreneurs succeed. There is a stricter implementation of penalties for those who imitate patented designs or plagiarize the unique work of others. In South Korea, for example, some ethics committees monitor TV storylines, music themes, fashion, and other artistic work.
Over the years, plagiarized work has been brought out in the open to show support for the original creators of everything from retail items to webtoons. Because of this, creators can worry less about the emergence of cheap imitations of their work when they offer their products to the public.
A Prime Moment for Entrepreneurs
Although there are still a lot of developments to anticipate, it appears that the current global entrepreneurial environment is at its prime. Aside from the factors discussed above that support the thriving business climate, there is a collection of other variables that contribute as well.
First, there is a revival of the idea that it is better to be your own boss. Families in Asia, specifically, are huge proponents of this idea.
Second, this is an era of creativity. With advanced technology, new needs arise, and ingenious individuals can capitalize on these to start a solution-based business.
And lastly, values are evolving, and so far, it has created new markets and demands that entrepreneurs can target.
Indeed, the world is in business.