Why is Singapore not yet a superstar in churning out startups?
7 comments
There is a very high risk averse mentality in SG that can be attributed to a few things, one of which is the gov't here. Think about this, you really can't even get a credit card (based on credit) until you begin to earn enough in salary. I think it's about S$3k or so a month before you quality to charge anything. This alone will deter many singaporeans from taking the plunge of starting something on their own.
I've been to a few events around the startup culture here and am disappointed in the quality of companies I see pitching. Both in terms of the team and idea.
There are a few things here trying to upstart a entrepreneurial culture: e27 has weekly/monthly events, SGentrepreneurs has other events to bring together like-minded ppl and discuss ideas/companies etc.
Quality developers here want $. As mentioned in other comments, its high risk averse here and everyone just wants to get paid. Housing can be pretty expensive. Coupled that with the fact that a Honda Civic will cost you about US $100k and you too value cash > risky possibility.
I've been to a few events around the startup culture here and am disappointed in the quality of companies I see pitching. Both in terms of the team and idea.
There are a few things here trying to upstart a entrepreneurial culture: e27 has weekly/monthly events, SGentrepreneurs has other events to bring together like-minded ppl and discuss ideas/companies etc.
Quality developers here want $. As mentioned in other comments, its high risk averse here and everyone just wants to get paid. Housing can be pretty expensive. Coupled that with the fact that a Honda Civic will cost you about US $100k and you too value cash > risky possibility.
Outsider perspective here:
The thing is, Singapore has done very well out of MNCs and government-backed large enterprises. Its comparative advantage over the rest of the world is in efficient implementation rather than innovation, and it achieves the former through values that are not conducive to innovation (central-planning, regulation, conformity). And it's a model that works so well for Singaporeans there's perhaps very little incentive to deviate from it either for entrepreneurs or investors. The country collectively went from "rags to riches" within the memories of the parents that most twentysomething Singaporeans live with, without a single Gates or Jobs to point to inspire individualism. Singapore's rich list is dominated by people who earned their fortunes through banking or smart property investments, and their highly-skilled job market is dominated by the finance sector, which pays very nicely.
At worst that can breed a sense of entitlement where not only is failure (the expectated outcome for any budding entrepreneur) inconceivable, but steady career progression is believed to be guaranteed simply by having the requisite qualities and turning up. A friend who headed up recruitment for an MNC noted how brazen young Singaporeans (by contrast to both immigrants to Singapore or job applicants in the Western world) were about stating that a percentage increase in salary was their prime/only motivation for wanting the job. Compare that with your average startup story where people are enthusiastic about working longer hours for less money for the challenge and the freedom - are these people as easy to find in Singapore?
Of course, that creates plenty of opportunities for those that do want to break out from the norm - it's a climate which is business-friendly, you can speak both the world's most important business languages fluently, the basic costs of living are cheap compared with much of the developed world, and if you've got the cash there's no shortage of smart, well-educated people to hire at lower rates than San Francisco.
The thing is, Singapore has done very well out of MNCs and government-backed large enterprises. Its comparative advantage over the rest of the world is in efficient implementation rather than innovation, and it achieves the former through values that are not conducive to innovation (central-planning, regulation, conformity). And it's a model that works so well for Singaporeans there's perhaps very little incentive to deviate from it either for entrepreneurs or investors. The country collectively went from "rags to riches" within the memories of the parents that most twentysomething Singaporeans live with, without a single Gates or Jobs to point to inspire individualism. Singapore's rich list is dominated by people who earned their fortunes through banking or smart property investments, and their highly-skilled job market is dominated by the finance sector, which pays very nicely.
At worst that can breed a sense of entitlement where not only is failure (the expectated outcome for any budding entrepreneur) inconceivable, but steady career progression is believed to be guaranteed simply by having the requisite qualities and turning up. A friend who headed up recruitment for an MNC noted how brazen young Singaporeans (by contrast to both immigrants to Singapore or job applicants in the Western world) were about stating that a percentage increase in salary was their prime/only motivation for wanting the job. Compare that with your average startup story where people are enthusiastic about working longer hours for less money for the challenge and the freedom - are these people as easy to find in Singapore?
Of course, that creates plenty of opportunities for those that do want to break out from the norm - it's a climate which is business-friendly, you can speak both the world's most important business languages fluently, the basic costs of living are cheap compared with much of the developed world, and if you've got the cash there's no shortage of smart, well-educated people to hire at lower rates than San Francisco.
Notahacker, i just realised you made an very good observation of Singapore: her being an excellent implementor but not an innovator.
I really do hope that the Singapore government's efforts to revive its education curriculum works out well. Previously (and rampant in the age group of today's 14-22 years old), students take pride in their ability to organise large conferences and overseas trips. All these demonstrate and place glory on the ability to implement projects. However, it forgoes the emphasis on the ability to create.
Creation is probably what Singapore is in desperate need to sustain its crazy economic growth it still experiences till this day.
Thanks for your reply!
I really do hope that the Singapore government's efforts to revive its education curriculum works out well. Previously (and rampant in the age group of today's 14-22 years old), students take pride in their ability to organise large conferences and overseas trips. All these demonstrate and place glory on the ability to implement projects. However, it forgoes the emphasis on the ability to create.
Creation is probably what Singapore is in desperate need to sustain its crazy economic growth it still experiences till this day.
Thanks for your reply!
True enough -
Although some would contend that the annual Malay wargames are proof against (1), you're right. After all, isn't the joke, "The Singapore military only needs to operate for up to 7 days. Why 7 days? That's how long it takes the UN to respond!"
Singaporean culture and upbringing often results in two things, in my - somewhat limited - perspective: - we're often raised by what we can do, not what we can't. Obedience is rather well taught. - kind of stemming from the former - Singaporeans tend to be a bit more risk averse. Helps when you're trying to stem risky behavior - like crime and drugs. On the flip side, you don't get quite as much entrepreneurship.
Of course, these are merely observations. Feel free to correct me.
I'm currently living in Cleveland, Forbes' #1 worst city to live in. While I, personally, have a startup, I grew up in Rhode Island. I got motivation for the startup (freshbag - www.thefreshbag.com) from the local incubator (launchhouse). It's incredible what a good incubator environment will do to build buzz!
If you have the passion - perhaps you can start an incubator in Singapore near SMU (there's the LKY competition - 'near' being a relative term of affiliation. Good luck with getting real estate space there if you tried!), some of the polytechnic institutes, or NUS (although the latter has more competition). What do you think about that?
That being said, incubators take years to fully form. And you're a cat-herder, never able to really control everyone. On the flip side, you'll encourage a lot of awesome ideas. All the potential...
Singaporean culture and upbringing often results in two things, in my - somewhat limited - perspective: - we're often raised by what we can do, not what we can't. Obedience is rather well taught. - kind of stemming from the former - Singaporeans tend to be a bit more risk averse. Helps when you're trying to stem risky behavior - like crime and drugs. On the flip side, you don't get quite as much entrepreneurship.
Of course, these are merely observations. Feel free to correct me.
I'm currently living in Cleveland, Forbes' #1 worst city to live in. While I, personally, have a startup, I grew up in Rhode Island. I got motivation for the startup (freshbag - www.thefreshbag.com) from the local incubator (launchhouse). It's incredible what a good incubator environment will do to build buzz!
If you have the passion - perhaps you can start an incubator in Singapore near SMU (there's the LKY competition - 'near' being a relative term of affiliation. Good luck with getting real estate space there if you tried!), some of the polytechnic institutes, or NUS (although the latter has more competition). What do you think about that?
That being said, incubators take years to fully form. And you're a cat-herder, never able to really control everyone. On the flip side, you'll encourage a lot of awesome ideas. All the potential...
that is true. we were taught to do well in school. I know that this phrase has been repeatedly used to describe our youths, but it holds a lot of weight. How many of us would have dared to risk scoring below 200 for our PSLE to explore building up a nice webpage, or a nice storefront for our Neopets shop? All these experiences are actually the start of programmers.
I am guilty of being caught up with the grade chase, having gone through a good secondary school followed by JC, and now Uni. I find it too late for me to realise this only now. But i am not disheartened. We need more superstart stories like the acquisition of Brandtology and Beeconomics to let the youths realise..it is never too late to start.
thanks for your recommendation on the incubator system! in fact, Singapore is starting to pick up in since last year. There is now a Singapore chapter for Startuproots. Perhaps we are on to something in the next 5 years :)
thanks for the reply!!! really appreciate it
I am guilty of being caught up with the grade chase, having gone through a good secondary school followed by JC, and now Uni. I find it too late for me to realise this only now. But i am not disheartened. We need more superstart stories like the acquisition of Brandtology and Beeconomics to let the youths realise..it is never too late to start.
thanks for your recommendation on the incubator system! in fact, Singapore is starting to pick up in since last year. There is now a Singapore chapter for Startuproots. Perhaps we are on to something in the next 5 years :)
thanks for the reply!!! really appreciate it
I think, in time, Singapore will produce superstar startups. Singaporeans are highly educated and skilled, deadly combination. The only thing stopping Singaporeans from choosing a startup path vs a MNC career is choice.
I'm a Singaporean entrepreneur living in Silicon Valley. I was raised and educated in Singapore. Most Singaporeans want 3 things: a private condo, a car (super expensive in sg) and a maid/housekeeper. And these are the things that stop one from taking risks because a startup salary (or lack thereof) will never be able to fund the above 3 things. There's nothing wrong wanting the above, I think they are like badge of honor in Asia, but they are definitely show stoppers from being an entrepreneur.
I had a high salary before my startup but I chose to walk away to work on something I'm passionate about (http://lovewithfood.com). I'm in my 30s, coding day and night and earn $0 salary. Most of my friends in Singapore think I'm nuts for leaving a very 'cushiony' lifestyle and I only have one question for them "Do you work to live, or do you live to work?"
I'm a Singaporean entrepreneur living in Silicon Valley. I was raised and educated in Singapore. Most Singaporeans want 3 things: a private condo, a car (super expensive in sg) and a maid/housekeeper. And these are the things that stop one from taking risks because a startup salary (or lack thereof) will never be able to fund the above 3 things. There's nothing wrong wanting the above, I think they are like badge of honor in Asia, but they are definitely show stoppers from being an entrepreneur.
I had a high salary before my startup but I chose to walk away to work on something I'm passionate about (http://lovewithfood.com). I'm in my 30s, coding day and night and earn $0 salary. Most of my friends in Singapore think I'm nuts for leaving a very 'cushiony' lifestyle and I only have one question for them "Do you work to live, or do you live to work?"
There are definitely grants & loans for startups to get started, but I often hiring is a major issue, shortage of quality programmers.
There's a lot of talent in Singapore. Brilliant minds. Quality programmers.
They just need to get introduced to the startup culture...
They just need to get introduced to the startup culture...
There is not enough drive in Singapore because of how comfortable life is. Most self made entrepreneurs did it either because of pure passion (an addiction) or because it was their only option (driven against a wall). I am basing my theory on the number of Entrepreneurs coming out of US, India and Israel.
perhaps its the ease of the paper chase + high personal expenditure (housing and car) that is the problematic combination.
As a budding entrepreneur, I then ask myself, why have I not yet started a business?
(1) Technology. It all goes back to our history during our founding years. Singapore, while known for its high-tech industries prevalant today, was not always of a high-tech nature. This is very unlike that of Israel, where children are being inculcated into the importance of education since a young age. I once knew of a entrepreneur who started learning coding at age 6. That would never happen in Singapore. It was in our history for kids to help their parents in F&B or trading businsses. Both of which did not require much technological know-how. Even at times of war, it was our government who went after the British to supply us with weapons. Singapore has also been far less experienced in warfare. Contrast this with Israel's need for their own innovation in warfare and aerospace.
(2) Marketplace. While we have just about 5 million citizens (talk about a small domestic country), we were fortunate to start off as a well-connected entrepot hub. There was almost little need to create our own technologies back in the 1960s. Trade was the door to all wealth. That explains why youths are drawn to enter the finance industry instead of engineering.
(3) Talent pool. Face it, even with the flood of early-stage funding given by the government, there is a lack of mentors who genuinely wish to grow startups. Singapore once had a close-knitted community spirit, similar to that of Israel's Kitbutz system. However, with the government's push for public housing, former village mates lost contact. This led to the downhill in our social fabric. Want help from a community? It is much harder to find like-minded youths with the entrepreneurial (coupled with engineering skills).
So..how are things in your city?