Although there's no strict blueprint for creating a successful startup, all entrepreneurs aim to innovate and meet the public's demand, while making a profit. This is true in all capitalist countries across the globe, even if they have vastly different economies and business environments. Coupofy explores the entrepreneurial race in a new infographic, revealing some pretty surprising facts about startups around the world.
Of course, the term startup usually conjures images of techies in Silicon Valley working on the next big app, and when we think of the business world we imagine the towering skyscrapers of New York. It is true that the United States is home to the largest number of new businesses every year, currently sitting at 4.8 million, but other countries are not that far behind. India, for example, recorded 2 million startups in 2015. Fellow BRICS nation Brazil is also becoming a startup hub with 584,000 in the same timeframe.
One of the most interesting figures, however, is the number of entrepreneurs per capita, otherwise known as the percentage of a country's population that are new business owners. When we look to Asia and business we might think of Japan as a tech hub and China as a manufacturing juggernaut. These both may be true but per capita they are not very entrepreneurial. On the other hand countries, you might overlook such as Vietnam or Thailand are full of people starting their own businesses. A random but nonetheless interesting comparison is Nigeria, which has double the amount of startups of Germany - the so-called economic capital of the Eurozone.
Even more surprising is that per capita the United States is way down in the 40s for its number of entrepreneurs. This is a country that arguably popularized the term.
So who's at the top? It's none other than East African nation Uganda that has the largest number of new businesses per person. It's closely followed by many developing nations.
But why are developing nations so entrepreneurial? At the top of the article, we called it a race, which is essentially what a capitalist economy creates. In the beginning, when there is little wealth, the infrastructure is poor and economies are localized, there is a level playing field. You can open up a local market stall selling hand made clothes and serve the community well. There's no giant brand or department store chain to muscle you out of the market. Locals own the stores, grow and cook the food, and provide the services. Some of these may eventually expand into something more akin to Walmart or McDonalds, but, for now, its a truly free market.
The US isn't the most entrepreneurial country in the world, but it is still the most successful because of the financial impact it has. WhatsApp being sold to Facebook for $19 million is an American-only phenomenon. When a startup finds success in the US tech industry, it has uber success. Speaking of Uber, it's currently valued at $51 billion!
In an attempt to replicate some of this success and kickstart their own startup economies, governments from around the world are beginning to offer perks to entrepreneurs. Israel is fostering a startup hub in Tel Aviv and has created a $450 million fund to aid new businesses. If you start a business in Chile you could get access to a $40,000 equity-free grant. There are numerous other examples, not least the rise in "startup visas" and programs that are even enticing foreigners to bring their ideas over with them.