Startup ecosystems need to be treated like a flower. They need the right climate, soil, and sunlight to bloom. If you try to plant a flower in the desert or in the snow it will die. Sure there are some flowers that can survive in these harsh conditions but they are VERY rare. However, if they are planted in the right garden then they can flourish.
So what we are seeing happening in Asia in 2017 and going on 2018, is that startups that become successful end up becoming the investors. Also, there is a large support from the government in the startup ecosystem. Think of it as a government turning a desert into a garden, it takes a lot of money to do it. Most countries in Asia have a department within the government that is focused solely on helping startups as well as create and nurture the ecosystem for startups to flourish.
Government Support for Entrepreneurship
In Japan you have JETRO, in Korea, you have KOTRA, in Malaysia, you have MDEC, everywhere in Asia you see the local government support. They are all trying to change their existing ecosystem into a more fertile ecosystem. The reason for this is to create jobs.
Entrepreneurship is the single greatest job creation engine in not only Asia but in the world. We are living at a time where a lot of people will start to use their jobs because of automation. Just look at the automotive industry where more and more robots are taking over human factory worker positions. Venture back companies will be the ones that will be creating the jobs in the near future. As more and more people get laid off, it will be the government’s role to find ways to stimulate jobs in their country.
Supporting the startup ecosystem in their country is the best way to offset the loss of jobs that will surely come from the advancement of technology.