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Taiwan ranks second in global startup environment: report
Taiwan ranked second among 53 economies in the Global Entrepreneurship Monitor’s 2025-2026 National Entrepreneurial Context Index, with its NECI score rising from 6.3 in 2024 to 6.5 in 2025.
The United Arab Emirates topped the NECI, with a 7.0 score, while Saudi Arabia ranked third.
GEM, which collects data directly from entrepreneurs, said Taiwan’s high NECI scores reflect robust infrastructure, government support, and cultural norms favoring entrepreneurship.
Citing GEM, the Small and Medium Enterprise and Startup Administration (SMESA) said Taiwan was one of four economies to secure an “Excellent” rating in both sustainability prioritization and entrepreneurial awareness of the need to develop and implement AI solutions.
Its subindex scores rose from 6.9 to 7.1 and from 7.9 to 8.0. The other economies were the UAE, Norway, and Sweden.
SMESA also said individuals aged 35 to 64 made up over two-thirds of startup owners, and 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.
🔗 Source: Focus Taiwan
🧠 Food for thought
Implications, context, and why it matters.
Taiwan’s high ranking comes from government programs and record investment
- Taiwan’s early-stage investment reached a record US$2.79 billion in 2023, despite the global downturn 1.
- Targeted government efforts helped drive that momentum.
- National Development Fund’s Startup Business Angel Investment Program has backed 241 startups since late 2018 2.
- Reforms to the Taiwan Innovation Board aim to cut the path from founding to listing from about 15 years to 5 to 10 years 3.
The startup boom is a national plan to diversify beyond semiconductors
- The startup push supports a plan to build the “next-generation magic mountain range that protects the nation” beyond semiconductors 3.
- In 2023, energy startups raised US$1.07 billion while health and biotech brought in US$564 million 1.
- These investments also expand cross-border tech relationships.
- A US$50 million framework links Maryland’s TEDCO with Taiwan’s APAC Investment and Innovation Development Association Taiwan (TAIIDA) plus SangFroid International Capital 4. It targets up to US$50 million in joint deals and sets up an International Startup Exchange Center focused on AI, deep tech, and biotechnology 4.
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