Taiwan Surprises the World: Why It’s Now the #2 Startup Hub You Can’t Ignore!

Taipei, Feb. 28 (CNA) — In a significant recognition of its entrepreneurial landscape, Taiwan has secured the second spot in the latest Global Entrepreneurship Monitor's (GEM) National Entrepreneurial Context Index (NECI). The 2025-2026 global report, released on Friday, evaluated the startup business environment across 53 economies, with Taiwan's NECI score climbing from 6.3 in 2024 to 6.5 in 2025.

Trailing only the United Arab Emirates, which achieved a score of 7.0, Taiwan's second-place ranking underscores its strong position in fostering a robust entrepreneurial ecosystem. The GEM report highlights that these consistently high NECI scores reflect Taiwan's well-developed infrastructure, substantial government support, and a cultural framework that encourages entrepreneurship.

In the broader rankings, Saudi Arabia came in third, followed by Lithuania and India. Notably, other major Asian economies featured, with South Korea ranking eighth and Japan at 17th. The United States placed 20th, while Germany came in at 24th.

The Small and Medium Enterprise and Startup Administration (SMESA), under Taiwan's Ministry of Economic Affairs, remarked that this achievement emphasizes the world-class nature of the local startup business environment. The agency noted that Taiwan stands out as one of only four economies globally to receive an "Excellent" score in two critical areas: prioritization of sustainability among new and growing businesses, which improved from 6.9 to 7.1, and entrepreneurial awareness of the need to develop and implement AI solutions, rising from 7.9 to 8.0. The other economies sharing this excellence are the UAE, Norway, and Sweden.

These advances in the subindexes suggest that Taiwan's enterprises are taking the lead in integrating AI applications and sustainable practices into their business models. Moreover, the characteristics of Taiwan's startup sector are noteworthy; individuals aged 35-64 account for over two-thirds of startup founders. This demographic profile indicates a stable and mature sector, with founders often possessing substantial industrial and technological expertise before launching their own ventures. Such experience is expected to enhance the survival rate and long-term growth potential of these businesses.

The GEM report highlights the resilience of Taiwan's startup ecosystem amidst global supply chain restructuring and rising geopolitical tensions. The SMESA affirmed that the government continues to facilitate enterprise funding, optimize legal frameworks, and improve the investment environment while reinforcing international cooperation and building stronger ties with global markets.

This positive recognition not only solidifies Taiwan's reputation as a favorable hub for startups but also reflects an encouraging trend in its entrepreneurial landscape. As Taiwanese startups increasingly embrace AI and sustainability, the implications for economic growth and innovation in the region are profound. The government's proactive measures and support will likely play a crucial role in maintaining this momentum, positioning Taiwan as a leader in the global entrepreneurial arena.