Taiwan ranks No. 2 in global startup business environment: GEM

Taipei, Feb. 28 (CNA) Taiwan is ranked No. 2 in the latest Global Entrepreneurship Monitor's (GEM) National Entrepreneurial Context Index (NECI), which assesses the startup business environment in different countries.

In its 2025-2026 global report released Friday, the GEM, the only global research organization that collects data directly from entrepreneurs, said Taiwan's score in the NECI rose from 6.3 in 2024 to 6.5 in 2025, making it second highest among the 53 participating economies.

In the rankings, Taiwan trailed the United Arab Emirates, which scored 7.0 in the latest NECI, which evaluates the strength of entrepreneurial framework conditions across participating economies.

"This places it (Taiwan) second out of 53 GEM economies globally, improving on its already strong position from the previous year," the report showed. "These consistently high NECI scores reflect Taiwan's robust infrastructure, government support and strong cultural norms supporting entrepreneurship."

According to the GEM, Saudi Arabia came in third, followed by Lithuania and India. Among other major Asian economies, South Korea ranked eighth and Japan 17th. In addition, the United States secured the 20th position and Germany No. 24.

In a statement, the Small and Medium Enterprise and Startup Administration (SMESA) under the Ministry of Economic Affairs said the second place highlights the fact that the entire local startup business environment is world-class.

Citing the GEM report, the SMESA said Taiwan is one of only four economies in the world to secure an "Excellent" in two factors -- new and growing business prioritization of sustainability (with the score rising from 6.9 to 7.1) and entrepreneurial awareness of the need to develop and implement AI solutions (with the score rising from 7.9 to 8.0). The three others are the UAE, Norway and Sweden.

The improvements in the two subindexes indicate that Taiwan's enterprises have taken the lead in AI applications and sustainability, the SMESA said.

Based on the structure of the local startup sector, individuals aged 35-64 accounted for more than two-thirds of startup owners, indicating the sector is steady and mature, the SMESA added.

These owners established a sound industrial and technology foundation before starting their own businesses, and their experiences are expected to raise the survival rate and boost the long-term growth potential of their businesses, it said.

Amid the restructuring of global supply chains and escalating geopolitical unease, the No. 2 status in the latest NECI shows Taiwan has a resilient startup business ecosystem, the SMESA said.

The government continues to help enterprises seek more funding, while optimizing the local legal mechanism and investment environment, strengthening international cooperation and building closer ties with global markets, the agency said.