Academics and market watchers call for bolder policy design, and for moves to encourage an entrepreneurial spirit to start earlier
[SINGAPORE] The spirit of entrepreneurship and willingness to take risks appear to be taking root, even as the panel undertaking the Economic Strategy Review (ESR) says these qualities are what Singapore needs to thrive in the new global economic landscape.
Academics and market watchers who were reacting to a mid-term update by the ESR were in general agreement that these trends have become more apparent in the last two years, following the end of Covid-19.
Dr Tan Sian Wee, senior vice-president for innovation and enterprise at the National University of Singapore, said in an e-mail that more young talent and professionals are exploring start-ups, side ventures and roles in technology and innovation.
Professor Louis Phee, vice-president for innovation and entrepreneurship at the Nanyang Technological University (NTU) also noted that students are becoming increasingly interested in entrepreneurship, with many taking on minors in field.
“Students are increasingly competitive in hackathons and business-case competitions, in which they are performing strongly and winning at both local and international levels,” he added.
For example, a team from NTU topped the ESSEC x Decathlon Business Case Competition in June 2025, beating out the competition from across the Asia-Pacific.
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Among the ESR’s wide-ranging recommendations for the Singapore economy unveiled last week was the suggestion that Singapore go beyond attracting multinational corporations and nurture a new generation of enterprises and start-ups that dream big and take risks.
In an apparent sign of the embracing of risk, 78,146 new companies were set up in 2025 alone, going by data from the Accounting and Corporate Regulatory Authority (Acra).
The total number of live companies as at December 2025 was 623,015, up from 605,314 in the year before.
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NUS’ Dr Tan suggested however, that some of Singapore’s strengths in efficiency and predictability could limit experimentation and “learning by doing”. He added that the current systems serve Singapore well in operating smoothly, but leave little room to test, stumble and try again.
“We need to cultivate a stronger entrepreneurial mindset across the ecosystem, one that values risk and real-world experimentation,” he said.
He also noted a lack of boldness in pursuing long-horizon bets, especially those with high uncertainty. Research-led and deep-tech ventures – involving technology that is based on scientific breakthroughs that have yet to be commercialised – remain underrepresented in Singapore, compared to the US and Europe.
A 2024 report by SGInnovate, Singapore government-linked deep-tech investor, had fewer than 400 deep-tech startups in the advanced manufacturing, agrifood, sustainability and health and biomedical sciences sectors.
In comparison, the US has far more deep-tech startups: Data platform Tracxn counted some 26,300 there.
Singapore’s good job market may also act as a deterrent in that many would choose the easier path of stable employment. Prof Phee said parents and educators ought to also break away from conventional career expectations, especially in light of the rapid changes brought on by artificial intelligence.
“In this environment, there is a growing demand for innovators and problem-solvers who are willing to challenge existing norms and build new solutions,” he said.
Hurdles preventing SMEs from taking more risks
Ang Yuit, president of the Association of Small and Medium Enterprises (ASME), said that among company founders, the push to transform and be bolder clashes with practical considerations.
Some SMEs are being squeezed by diminishing market size and access and need to transform, but are held back by rising costs.
Kok Ping Soon, CEO of the Singapore Business Federation (SBF), called for more measures to be put in place to improve operating conditions to foster entrepreneurship.
“By easing cashflow pressures and enhancing access to talent, businesses gain the financial headroom and confidence needed to scale,” he added.
Policy makers can take a more imaginative way towards addressing these challenges.
Ang, in a reference to the Monetary Authority of Singapore’s Equity Development Programme and the S$5 billion boost for the local stock market, said: “If you look at the changes to make the Singapore Exchange more vibrant and to ensure there are funds flowing into mid-cap or small-cap firms – that, to me, is risk taking and not following the status quo.
“We need that kind of action from the policy side.”
Patrick Lim, CEO of the Action Community for Entrepreneurship (ACE), also homing in on startups, said there are founders who are keen to explore overseas expansion at an earlier phase of the development of their business.
Such startup founders have to deal with the choice between stability and growth, dealing with the uncertain economic and geopolitical climate, as well as having the right resources and capabilities.
“Ultimately, it also boils down to the survival and business case of the startups, which will trigger founders to make calculated steps in their growth plans,” said Lim.
Promoting entrepreneurship and risk-taking at an early age
Observers call for promoting entrepreneurship and risk taking in Singapore to start early.
Hackathons, competitions and projects, and programmes like the NUS Overseas Colleges, where students intern in a global startup for up to a year, are all examples of ways to encourage entrepreneurship.
“These experiences build resilience and judgment under uncertainty,” said NUS’ Dr Tan.
There is a need to nurture founders who are more willing to pursue more meaningful endeavours rather than safer incremental opportunities, he added.
“From a societal standpoint, we also need to recontextualise the perception of failure since it can be a hurdle to entrepreneurship,” said Lim from ACE.
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