UAE and India ranked among the leading countries for business, yet Western economies dominate a crucial aspect.
According to the latest annual Global Entrepreneurship Monitor survey, the United Arab Emirates (UAE) has secured the top spot as the best location globally to initiate a new business for the third consecutive year. This achievement is attributed to the UAE’s government’s significant investment in cutting-edge technology, aiming to diversify its economy beyond oil.
In the Global Entrepreneurship Monitor rankings, four out of the top five countries are situated in West Asia or Asia, with India ranking second, Saudi Arabia third, and Qatar fifth. The only exception is Lithuania, which holds the fourth position. This trend reflects a noticeable shift towards the east in the quality of entrepreneurship ecosystems over the past five years, paralleling a similar eastward movement in the world’s economic center of gravity.
The UAE has shown consistent progress, ascending from fifth place in 2019 to the top position. Similarly, Saudi Arabia has climbed from 17th to third place, and India has risen from sixth to second, overcoming a pandemic-induced setback.
This shift towards Eastern countries can be attributed to increased government support for business creation, a greater emphasis on entrepreneurship education, and evolving cultural attitudes toward business activity.
Initiatives such as Projects of the 50 in the UAE, offering priority visas for entrepreneurs and top students, coupled with a focus on adopting leading technologies, have contributed to its entrepreneurial success. Similarly, Saudi Arabia’s Vision 2030 prioritizes entrepreneurship, supported by initiatives like the Monsha’at agency promoting startups and fast-growing ventures.
In India, efforts like the Atal Tinkering Lab initiative and popular television shows like Shark Tank have fostered an environment conducive to innovation and entrepreneurship.
However, western economies have witnessed a decline in performance over the same period, with countries like Switzerland, the Netherlands, Norway, and the US losing ground. This weakening is possibly attributed to factors such as inflation surges and higher interest rates post-pandemic.
Despite this, western economies still maintain an advantage in certain aspects, particularly in business services. Over 30% of entrepreneurs in countries like Switzerland, France, Norway, and Germany are engaged in business services, which typically offer higher margins and scalability potential.
Conversely, entrepreneurial activity in leading eastern nations primarily focuses on consumer services like retail, hospitality, and personal services. This emphasizes the need for greater support and impetus toward promoting business services in these regions to foster higher-margin ventures with scalability potential.
Moreover, entrepreneurship education remains an area requiring attention globally, with many economies rating it as the weakest condition. Investing in entrepreneurship education is crucial for nurturing essential skills like creativity, innovation, and a growth mindset, essential for navigating a rapidly evolving landscape of disruptive technologies.
