Why start-ups are the engine of economic prosperity

Lessons in entrepreneurship for South Africa from the world’s Top 10

- SANJITH HANNUMAN

AS SOUTH Africa emerges from its G20 Summit with infrastructure commitments, a critical question looms: will these resources translate into sustainable transformation, or simply build roads and power grids benefiting other nations’ innovators?

The answer hinges on whether South Africa recognises what successful economies know - startups are not peripheral to economic growth; they are its foundation. Startups fundamentally changed how nations build prosperity. Unlike traditional industries growing incrementally, startups create exponential value through innovation and scalability. They generate high-quality jobs, attract investment, and solve problems governments cannot. Global giants like Spotify, Microsoft, and Nvidia were all startups once. Their success credits not just founders but countries, policies and ecosystems that nurtured them.

According to the Global Startups Ecosystem Index 2025, ten countries distinguish themselves as startup powerhouses:

US (Score: 254.050, Growth: 18.2%) - America’s dominance is overwhelming. 267 of 577 globally well-funded startups (46.3%) emerged here. San Francisco alone hosts 53 new startups. The ecosystem thrives on robust venture capital, world-class universities, and risk-taking culture.

UK (Score: 70.743, Growth: 26.3%) - London's financial expertise, top universities, and government innovation support drive Britain’s fintech and health tech sectors.

Israel (Score: 62.167, Growth: 20.6%) - The “Startup Nation” earned its moniker through systematic innovation. Military technology service creates pipelines of skilled entrepreneurs in cybersecurity, agritech, and deep tech.

Singapore (Score: 54.682, Growth: 44.9%) - Singapore's 44.9% growth - highest among top nations - reflects strategic positioning as Asia's business gateway with exceptional digital infrastructure.