According to the Global Index of Digital Startup Systems, released on September 22 as part of the Asian Development Outlook 2022 Update, Singapore has the world's best digital environment and support system for entrepreneurs. The United States ranks second, while Sweden ranks third among 113 economies on the list.
The index measures the quality of the environment for digital entrepreneurs, by looking at the level of digitalization in eight areas, including culture, institutions, market conditions, infrastructure, human capital, knowledge, finance, and networking.
In Asia, Indonesia ranks 71st, India ranks 75th, and the Philippines ranks 79th.
As it is shown, 17 of the 21 developing Asian economies included are ranked toward the bottom, underscoring the need for these economies to nurture digital entrepreneurship.
Digitization presents huge growth opportunities for businesses in Asia and the Pacific. It is the innovation engine that is key to economies striving for high incomes. Although Asia's environment for digital start-ups has made significant strides over the past few years, there is still much room for improvement.
"Digital entrepreneurship helped economies stay afloat during the COVID-19 pandemic, and it can become a major engine of growth and innovation in the post-pandemic world," ADB Chief Economist Albert Park said.
"For this to happen, there needs to be a supportive environment enabled by conducive policies and incentives," he added.