Philippines is the number 50ranked country in the world, when it comes to the number of superentrepreneurs in relation to a country’s overall population. This is the finding of the superentrepreneurs index, which looks at the location of the businesses of close to 2,500 individuals globally who have built up billion-dollar fortunes by creating new companies or growing small businesses into large successful ventures.
Klas Tikkanen, Chief Operating Officer at Nordic Capital explains “We find that there is a strong link between high-end entrepreneurship and job growth. Countries that have high levels of superentrepreneurs per capita also have lower unemployment. Higher levels of entrepreneurship are linked to lower unemployment amongst all social groups, with the broad middle class benefiting the most”.
If the rate of superentrepreneurs in the Philippines were to increase by 20 percent, this could lead to the creation of 9 000. These jobs that are created, directly or indirectly, by the superentrepreneurs are often high-value jobs, related to the production of advanced services or construction of high-tech components. They are crucial to the integration of the country into the global developed economy.
“High-end entrepreneurship is important for creating the jobs of the future, something that is needed throughout the world in a time when many traditional jobs become obsolete”, says Nima Sanandaji, president of European Centre for Entrepreneurship and Policy Reform (ECEPR), that has produced the study.
Internationally there is a strong link between unemployment and the share of superentrepreneurs. Each superentrepreneur more per million adult inhabitants, is linked to 0.9 percentage points lower unemployment in total – and 1.1 percentage points lower unemployment for the middle class.
“By focusing on the superentrepreneurs, we measure the tip of the iceberg”, explains Kristoffer Melinder, Managing Partner at Nordic Capital. “For jobs and the technologies of the future to grow, countries need to broadly foster entrepreneurship. This enables more entrepreneurs to reach the global top and become superentrepreneurs”.
Countries that have many superentrepreneurs per capita tend to have strong property rights, lower taxes on profits and capital gains, where it is easy to do business, and where pupils have good grades in the international school study PISA. It is a combination of knowledge and a favorable business climate, which is required to stimulate high-end entrepreneurship. The United States has the highest concentration of superentrepreneurs amongst the large countries, followed by Canada, Russia, and Oceania. China has the same concentration of superentrepreneurs as Europe. In Asia, except for China, South America, and Africa, the concentration of superentrepreneurs is currently much lower, while the potential for future growth is high.
The following countries have the highest concentration of high-performing entrepreneurs. The concentration is stated as entrepreneurs who have created at least one billion dollars per one million inhabitants aged 15-64 years.
Singapore (4.7)
Switzerland (4.1)
Cyprus (3.6)
USA (3.1)
Israel (2.6)
Sweden (2.0)
Ireland (1.9)
Australia (1.8)
United Kingdom (1.8)
Canada (1.7)
For more information, you can find the Superentrepreneurs Index here, or contact Nima Sanandaji at nima@sanandaji.se.