Taiwan is ranked second 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 on Friday, the GEM, which collects data directly from entrepreneurs, said Taiwan’s score in the NECI rose from 6.3 in 2024 to 6.5 in last year, making it second highest among the 53 participating economies.
In the rankings, Taiwan trailed the United Arab Emirates (UAE), which scored 7.0 in the latest listing, which evaluates the strength of entrepreneurial framework conditions across participating economies.
Photo: AP
“This places [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. The US was 20th and Germany was 24th.
In a statement, the Ministry of Economic Affairs’ Small and Medium Enterprise and Startup Administration (SMESA) said the ranking highlights the fact that the 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 categories — new and growing business prioritization of sustainability and entrepreneurial awareness of the need to develop and implement AI solutions. The others are the UAE, Norway and Sweden.
The improvements in the two subindices indicate that Taiwan’s enterprises understand the need for 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 second place ranking 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 local legal mechanisms and the investment environment, strengthening international cooperation and building closer ties with global markets, the agency said.
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