Taiwan ranks 2nd with good climate for entrepreneurs

Taiwan has climbed to second place globally in the Global Entrepreneurship Monitor’s (GEM) National Entrepreneurial Context Index (NECI), the 2025-2026 GEM report released on Friday shows. Taiwan’s NECI score rose from 6.3 in 2024 to 6.5 last year, ranking it second out of 53 participating economies and behind only the United Arab Emirates, which scored 7.0.

"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."

Regional and global comparisons

The GEM ranking places Taiwan ahead of several notable economies. Saudi Arabia finished third, followed by Lithuania and India. Among major Asian economies, South Korea ranked eighth and Japan 17th. The United States and Germany were placed 20th and 24th, respectively.

• UAE: 1st, score 7.0
• Taiwan: 2nd, score 6.5 (up from 6.3 in 2024)
• Saudi Arabia: 3rd
• Lithuania, India: followers in the top ranks
• South Korea: 8th; Japan: 17th; US: 20th; Germany: 24th

What the score reflects

In a statement, the Ministry of Economic Affairs’ Small and Medium Enterprise and Startup Administration (SMESA) said the ranking underscores that "the local startup business environment is world-class." Citing the GEM report, SMESA noted Taiwan is one of only four economies to secure an "Excellent" in two NECI categories — "new and growing business prioritization of sustainability and entrepreneurial awareness of the need to develop and implement AI solutions." The agency said the improvements in those subindices indicate Taiwanese enterprises are increasingly prioritizing sustainability and AI.

SMESA highlighted structural features of the island’s startup sector, noting that individuals aged 35–64 account for more than two‑thirds of startup owners. According to the agency, these founders typically "established a sound industrial and technology foundation before starting their own businesses," a dynamic SMESA said should raise survival rates and long‑term growth potential.

Policy response and outlook

SMESA framed the high NECI ranking as evidence of a resilient startup ecosystem amid global supply‑chain restructuring and rising geopolitical tensions. The agency said the government will continue to assist enterprises in seeking funding, optimize legal mechanisms and the investment environment, and strengthen international cooperation to build closer ties with global markets.

Analysts and policymakers will be watching whether Taiwan can convert its favorable entrepreneurial context into measurable gains in startup formation, funding flows and international expansion. The GEM placement provides an external validation of strengths cited by local authorities: robust infrastructure, cultural support for entrepreneurship, and an increasing focus on sustainability and AI — factors SMESA has singled out as central to improving survival and scaling prospects for Taiwanese startups.