Why is launching a startup in Asia gaining incredible popularity? Quite simply, Asia is becoming home to some of the world’s most daring, innovative, and technologically valuable projects. Business owners are fascinated by Asian cities, and the reason for this trend is simple. A strong economy, relatively low cost of doing business, a highly educated population, and a developed business environment help to attract the attention of investors and venture capitalists.
Asia is one of the fastest-growing and developing regions in the world, with 49 countries with a total population of 4.5 billion people. At the same time, half of the world’s transactions in the e-commerce sector are in China (for example, on the Day of the Bachelor, the total amount of transactions was $ 39.6 billion).
Asia leads in the number of millionaires, with a growing middle class in the region. Over the next five years, 88% of the new middle class will be from the Asia-Pacific region (in particular, Indonesia and Vietnam), whose average age will not exceed 30 years.
High level of mobile phone use. Asia has moved from desktop computers directly to mobile phones. So, in China, 8 out of 10 transactions are made using mobile phones, therefore, to attract Asian buyers, it is necessary to provide either a mobile application or adapt the site for mobile devices.
Active investment in the region. As the expert noted, recently the volume of investments in the Asia-Pacific region amounted to $ 35 billion.
The rapid growth of e-commerce is due to the development of online commerce, online tourism, and online media.
Solving the problems of ecosystem services. In particular, due to startups, numerous logistical problems in the region were solved.
Active use of digital financial services (including online and offline payments). This was achieved thanks to numerous startups that provided access to financial services to residents of the region without a bank account. Nevertheless, the expert noted that despite the high level of use of digital financial services, Southeast Asia is still actively using cash to pay for goods and services.
Startup in Asia
There are several reasons why many entrepreneurs are interested in starting a business in Asia. Asia is known not only for an abundance of incredibly diverse talent but also for the rapid growth of technology and e-commerce. Some Asian countries have fast-growing economies. Together, this provides tremendous opportunities for aspiring entrepreneurs who want to take their first steps in business and succeed.
However, not every country is equally suited to launch a startup. Which country do you think is the best place to take your first step?
Based on the latest research, we bring you the top three Asian countries to launch a startup.
You’ve probably heard a lot about the economic success of Singapore. This country ranks second in the ranking of ease of doing business. Singapore is a wealthy country with $ 52,962 of gross domestic product (GDP) per capita.
With a low unemployment rate (2.15%) and good internet accessibility (81%), it comes as no surprise that Singapore tops our list of countries to launch a startup in Asia. Even though living in Singapore is expensive, low taxes and tax breaks for start-up businesses and not only continue to attract foreign entrepreneurs and global corporations to set up a company/branch here.
Singapore has not only the highest level of education of the population in Asia but also a large selection of specialists with higher education (42.9%) and secondary (79.4%). Because a highly skilled workforce is essential to a successful business, this makes Singapore is a great place for startups to grow their businesses.
Hong Kong is ranked # 3 for ease of doing business and starting a business. Business in Hong Kong has good government support, as well as the ability to obtain funding. This city-state is very economically developed. GDP per capita is – $ 43,741, the low unemployment rate – is 3.7%, and the second-highest cost of living among all countries in the world. Additionally, Hong Kong has relatively low tax rates (16.5%)
Since Hong Kong has the third-largest skilled labor force (tertiary education – 21.7%, secondary education – 78.4%), this city can help you successfully launch and grow your startup in Asia.
Japan is known for its highly advanced technology: over 93% of the population has access to the Internet. This country is a great option for launching a tech startup. In Japan, 86% of the population has secondary education and 30% has higher education.
However, starting a startup in Japan is expensive because it has high corporate tax rates (23.4%), and many employees who work in Japan expect high salaries – even at a startup company.