The Key Drivers That Push the Tech Startup Ecosystem in Singapore
As of 2015, there are more than 1000 tech startups in Singapore. Further, it ranked 17th on the Global Startup Ecosystem Index. This tells us a lot about how attractive Singapore is for tech entrepreneurs. And with the many national initiatives made to lure tech talents and entrepreneurs, we could expect a boom in the tech startup ecosystem in Singapore.
According to a PWC study, tech startups would contribute approximately 2% to Singapore’s GDP by 2035. This means that the tech startup ecosystem in Singapore will level with the GDP contribution of the tourism sector. The study projects the significance of tech startups in the economy and labor productivity of Singapore.
What factors influence the tech startup ecosystem in Singapore to reach this kind of height? Here are the key drivers that will steer this ecosystem to its peak.
Talents and Skills
It is the talent that primarily drives the tech industry in Singapore. In the past decades, tech talent is one of the bottlenecks that hindered the growth of tech startups in Singapore. As such, the state implemented various actions to increase tech talents in Singapore.
Tech companies have two choices- to hire local or foreign talents. But as of now, the number of tech talents in Singapore’s education system is not enough and their capacity is limited to compete with global talents. Acknowledging this limitation, local startups are tapping foreign talent, outsourcing, and offshoring for growth.
Funding for the tech startup ecosystem in Singapore has served a crucial role especially in the seed stage of developing the industry. The creation of many news startups through national funding kickstarted the forward movement of the tech industry in Singapore.
Overall, the funding for the startup economy in Singapore is sufficient. This funding is comparable and fairs well with other mature ecosystems in Silicon Valley and London. Further, local entrepreneurs are satisfied with the financial support they receive. The national funding to support local tech startups already contributed to the successful launch of several local startups.
With Singapore’s small domestic market, startups are restricted to grow into billion-dollar companies if they operate solely in the local market. As such, local enterprises are encouraged to go grow regionally or globally. With Singapore’s favorable location, local tech startups can easily grab the opportunities available in southeast Asia and Asia.
Moreover, Singapore’s local market still serves as a solid environment for startup tech enterprises. Many successes have been witnessed within the local tech startup ecosystem that will inspire other budding startups.
The main moving factor that pushes the tech startup ecosystem in Singapore is the ease of doing business. With it, the Singapore market becomes very attractive to many tech talents and entrepreneurs. Further, the state’s free trade agreements provide Singapore tech startups the accessibility to international opportunities.
At present, the government is continually taking initiatives on different avenues to promote tech entrepreneurship and growth in the tech startup ecosystem in Singapore. One of these initiatives is the creation of Tech.Pass, the new work pass Singapore. This visa allows foreign tech talents and entrepreneurs to make or bring their innovations to Singapore. With this, Singapore expects to attract more multinational tech companies and talents from around the globe.
Be Part of the Tech Startup Ecosystem in Singapore
Are you looking for reasons to launch a tech startup in Singapore? Singapore is now considered a tech hub of Asia. That means that more and more multinational companies are already here, if not eyeing Singapore to expand their tech enterprise. It means that the demand for the tech industry is increasing, and you can take advantage of that.
Open your tech startup today with the help of our expert team in 3E Accounting Singapore. Contact us today so we can help you with your company online registration.