Researcher offers pointers on shaping a ‘startup nation’

Thailand can become a more dynamic and attractive destination for startups by forging a more ambitious entrepreneurial mindset and streamlining the business environment, says startup ecosystem researcher StartupBlink.
Encouraging local talent to think globally and celebrating successful entrepreneurs will help build a vibrant ecosystem that can thrive in the future, Eli David Rokah, chief executive of StartupBlink, told the Bangkok Post.
“Startups play a crucial role in a country’s economic development. The countries that focus on economic growth are likely to invest significantly in creating a robust startup ecosystem,” said Mr David Rokah.
He said startups are the future of the economy. In countries where startups have thrived, a significant portion of the economy is now intertwined with the startups, leading to prosperous economic conditions and substantial tax revenues, as these companies often operate on a global scale.
Countries that effectively build a strong startup ecosystem tend to experience greater economic success, said Mr David Rokah.
He said Thailand’s startup ecosystem has stagnated since the pandemic — neither deteriorating nor progressing.
Thailand fell two places in the Global Startup Ecosystem Index 2024 to 54th out of 100 countries, covering 1,000 cities.
Thailand has three cities in the top 1,000 cities listed in the index and it is one of the best countries in Southeast Asia for setting up a startup.
Bangkok sits in 80th place in the ranking, while Phuket ranked 662nd, and Chiang Mai 685th in terms of cities ranked by startup ecosystem.
In Southeast Asia, Bangkok fell one place to fourth, behind Kuala Lumpur. Bangkok excels in the fintech and transport industries, ranking among the top 50 cities worldwide. Bangkok is ranked as the leading city in the region for the insuretech industry.
However, Bangkok is at risk of dropping out of the global top 80. Thailand is ranked 17th globally in terms of the total impact of global startup events on the ecosystem.
In 2023, startup fundraising in Thailand tallied US$1 billion from 23 deals, compared with $1.3 billion from 45 deals in 2022.
“Our startup ecosystem map for Thailand includes a sample of 325 tech companies. We have identified four unicorn startups that have passed $1-billion valuations,” said Mr David Rokah.
However, when examining countries like Singapore, it’s clear that its growth has been significant. Other nations, such as Malaysia and Indonesia, are also heavily investing in their startup ecosystems and experiencing growth as well, he noted.
“In this context, Thailand is relatively sleepy in terms of startups,” Mr David Rokah said.
He identifies two main challenges facing the entrepreneurial ecosystem in Thailand. The first is the mindset of entrepreneurs.
He said there is a prevailing issue with the ambition and mentality of Thai entrepreneurs. They tend to focus on local markets rather than thinking globally, unlike successful startups in places like Singapore and Israel, where a global mindset is more common. This lack of ambition and willingness to take risks is seen as a significant barrier to growth.
“I think that perhaps entrepreneurs here are not so ambitious, and are not thinking about global expansion,” said Mr David Rokah.
The other challenge is that the government’s role is still not active in the global scene compared to more proactive countries such as Singapore, Malaysia, Taiwan and South Korea.
The entrepreneurs that are aiming for a global reach are probably going to incorporate in the US, the UK, or in Singapore; they’re not going to incorporate in Thailand, he added.
Mr David Rokah recommends Thai policymakers develop a coherent strategy. The government could promote Thailand as a brand and should focus on strategy and marketing efforts to make Thailand become a “startup nation”.
“A significant challenge to the ecosystem is that local entrepreneurs aren’t ambitious enough compared to their counterparts in other countries. Ambition often stems from seeing big success stories and, unfortunately, we lack those high-profile successes like those seen in Singapore.”
Moreover, the government needs to be more proactive and aggressive in fostering startup growth through the creation of a business-friendly environment.
For instance, many entrepreneurs prefer to register their companies in Singapore due to its favourable tax rates, the ease of doing business, and minimal bureaucracy. This creates a missed opportunity for Thailand, which has the potential to attract foreign talent, including digital nomads and expats who could contribute significantly to the startup scene, Mr David Rokah said.
While Thailand’s initiatives such as the five-year visa scheme for digital nomads are positive, the focus should shift towards encouraging more people to register their companies in Thailand. That’s a true indicator of economic vitality.
To attract the talent, Thailand can implement substantial incentives such as low corporate tax rates in a similar way that other countries do such as Cyprus, Singapore and the United Arab Emirates.
Mr David Rokah said Thailand needs to focus on encouraging greater ambition among entrepreneurs, streamlining the incorporation process to make it more business-friendly, and actively promoting ecosystem development for a startup nation in the global scene.
Thailand’s startup ecosystem still remains in its early stages and needs to focus on areas such as software-as-a-service, which requires less investment and can lead to profitability at a faster pace, he said.