Policy makers can create the right environment for businesses in Asia and the Pacific to grow, especially as digital entrepreneurship can become an engine of growth in the post-pandemic world, according to a report by the Asian Development Bank.
The Asian Development Outlook 2022 presented new analysis providing strong empirical evidence that a conducive digital and institutional environment –notably high-speed broadband network and strong rule of law– “positively and significantly affects productive entrepreneurs who innovate, export, and create many jobs.”
The report said evidence also indicates that entrepreneurship tends to be more vibrant in less corrupt economies.
For the region as a whole, it said the weakest Global Index of Digital Entrepreneurship Systems (GIDES) pillar is culture and informal institutions. The newly developed GIDES measures the quality of an economy’s environment for digital entrepreneurs.
“One way to strengthen the pillar is to improve public perceptions of entrepreneurship, notably through education. Where the local entrepreneurial ecosystem is underdeveloped, policy makers can help kick start mentoring, networking, and collaboration among entrepreneurs by, for example, helping to form start-up associations,” the ADB report said.
Further, the report underscored the need to significantly improve the entrepreneurial climate through such indirect and low-cost interventions.
It said the central role of developing Asia’s policy makers in fostering a more entrepreneurial and economically dynamic region is to create a conducive environment for entrepreneurial activity.
“Entrepreneurship is an inherently individual pursuit because it is ultimately a personal decision to start and run your own business, rather than work for a company or the government,” the report added. “Dynamic entrepreneurs can help sustain economic growth in Asia.”