Making the Philippines an archipelago for entrepreneurs

THE environment for starting and growing a new business. It ranks as only the 76th best ecosystem for entrepreneurs globally and to the Global Entrepreneurship Index.

Its population, on the other hand, is one of the world’s most entrepreneurial — the country has the 10th most entrepreneurs per head globally and nearly 60% of Filipinos plan to open their own business in the coming three than in my home country Sweden — the home to the largest number of unicorns (or private startups with a valuation of at least $1 billion) per capita in the world -- and the United States, the country most associated with entrepreneurs.

A high rate of entrepreneurship, however, is typical for many developing economies as there is high unemployment and few well- paying jobs, so citizens turn to entrepreneurship to earn their livelihoods. This can be seen in countries such as Uganda, the world’s most entrepreneurial nation, and in neighboring countries such as Thailand and Vietnam. Considering the high interest in entrepreneurship, what can be done to create a better ecosystem for small businesses and further encourage their contribution to the economy?

Research suggests that the answer lies in helping entrepreneurs move from founding easy-to-replicate businesses for self-employment to the type of innovative, highly- productive and fast-growing ventures that result in real economic growth. On one hand, they need the right culture that celebrates the importance of entrepreneurs and accepts failure, and on the other hand institutions that will support them such as a well-educated workforce, access strong legal framework.

Whereas the United States is the epitome of entrepreneurial culture and Sweden has access to very strong institutions (universal

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