SPEECH BY MR LEE YI SHYAN, SENIOR MINISTER OF STATE FOR TRADE AND INDUSTRY AT THE OPENING CEREMONY OF THE WORLD ENTREPRENEURSHIP FORUM 2013, ON THURSDAY, 31 OCTOBER 2013 AT THE GRAND BALLROOM, GRAND COPTHORNE WATERFRONT HOTEL
Excellencies
Founding Members of the World Entrepreneurship Forum
Distinguished Guests
Ladies and Gentlemen
Good morning
Introduction
1. It gives me great pleasure to welcome all of you to the 6th World Entrepreneurship Forum. This is the second time the Forum is being held in Singapore. It is certainly our privilege to have more than 450 attendees from 45 countries here to exchange ideas and discuss plans for achieving the Forum’s goals of promoting entrepreneurship for the creation of wealth and social well-being.
Entrepreneurship Around the World
2. Professor Howard Stevenson of the Harvard Business School described entrepreneurship as “the pursuit of opportunity beyond the resources you currently control”. While many people think of entrepreneurship mainly in terms of economic returns, entrepreneurship in the broader sense is really about seeing and seizing opportunities to make things better. It is a powerful force not just for wealth creation, but also the betterment of society, and I am glad to see that the Forum has embraced both these aspects in its mission.
3. The economic case for entrepreneurship is clear. In developing economies, entrepreneurs are an important part of job creation, and therefore play a key role in alleviating poverty. For instance in Brazil, the promotion of entrepreneurship, alongside other government policies, has lifted millions of Brazilians out of poverty. In developed economies, entrepreneurs bring in new ideas and perspectives, and are important engines of economic renewal and growth. For instance, household names as Google, Amazon and Facebook grew from entrepreneurial start-ups.
4. Beyond stimulating economic growth, entrepreneurship can have wider social impact. Take the case of our keynote speaker this morning, Chief Almir Narayamoga Surui from Brazil’s Amazonian Surui Tribe. Chief Almir has had to defend his tribe’s ancestral land against illegal logging. Recognising that violent confrontation would not yield results, he found a way to achieve his goals by using the power of technology.
5. Partnering Google, Chief Almir and his tribe created an online “cultural map” of the Surui tribe with stories from the elders, together with a geographical map of their territory. The tribe also recorded information on illegal logging and settlers. This galvanised the relevant authorities into action and marks the first time an indigenous group has used technology to conserve their land as well as culture, serving as an example for other tribes. By preventing deforestation, the Surui tribe generated carbon credits which could eventually redirect resources to the tribe. Chief Almir’s initiative has been credited with single-handedly saving his tribe from extinction. To many, he is an inspirational role model of resourcefulness and creativity.
6. I understand that for this year’s Forum, delegates will gather to discuss three country-specific case studies for the first time. I am confident the collective insights of the delegates will prove useful for the respective countries as they navigate their challenges to build a vibrant entrepreneurship ecosystem. In this respect, I hope Singapore’s experience may be of interest to you.
Entrepreneurship in Singapore
7. Like many countries, Singapore recognises the importance of entrepreneurship and has identified entrepreneurship and innovation as key drivers of future growth. We formed the Action Community for Entrepreneurship, or ACE, in 2003 as a private-public movement to foster entrepreneurship in Singapore.
8. For the last 10 years, ACE has worked closely with government and partners to create a more entrepreneurial Singapore by facilitating networking and learning, building a pro-enterprise environment, and building an entrepreneurial culture.
9. ACE has always been a voice for simplicity and simplification for the government. ACE has been an advocate of mechanisms for ongoing review and streamlining of business regulations to reduce regulatory burden and compliance costs for small businesses and start-ups. The World Bank has just re-affirmed Singapore, for the 8th year running, as the World’s easiest place to do business. In 2009, when Dmitry Medvedev, the President of Russia at that time, visited Singapore, he wanted to try our e-government services to register a new company. He ended up with a new company under his name in two minutes, and was so impressed that he asked his officials to study our online registration systems.
10. ACE also looks at nurturing the next generation of entrepreneurs. This year, ACE piloted a programme for nine secondary and tertiary schools, which were “adopted” by dynamic business starters. This programme, called ACE Schools, is a novel approach where learning takes place through direct interaction between the students and entrepreneurs. There are also numerous opportunities for these students to showcase their winning ideas and products each year.
11. At the university level, all our three universities run their versions of incubators in addition to academic programmes on entrepreneurship. Nanyang Technological University conducts a full-time Masters programme in Entrepreneurship Studies. The Singapore Management University combines entrepreneurship studies with Information Systems at the undergraduate level. The National University of Singapore has been running an Overseas College programme to immerse their students in leading entrepreneurial hubs such as Silicon Valley and Tel Aviv.
12. After 10 years of seeding and concerted efforts, we have a much stronger entrepreneurship ecosystem today. There are some 30 incubators here which nurture promising start-ups. There is more private capital available from angel investors and venture capital firms. In addition, the government has put in place several programs to help start-ups, including funding for first-time entrepreneurs, and mentorship networks.
13. The number of start-ups has also grown. In 2005, we had 24,000 active start-ups employing 167,000 people. At the end of 2012, this had grown to 39,000 active start-ups employing about 300,000 people. More people are becoming entrepreneurs as well – Singapore’s total early-stage entrepreneurship rate in 2012 was 11.6%, an increase from 6.6% in 2011 and 4.9% in 2006[1].
14. One example of a successful Singapore startup is Biomax Technologies, which is one of 700 technology intensive start-ups formed each year in Singapore. Biomax has a biotechnology solution that can convert any organic waste into organic, odourless and pathogen-free fertiliser within 24 hours. Therefore, drastically reducing the time and space required for waste processing, and turning waste into a valuable product. This innovation coming has helped to address the global problem of waste disposal and its associated impact on the environment such as land pollution and health and safety risks. It has also led to commercial success. With support from SPRING, our enterprise development agency[2], the company has grown over a short period of time to achieve multimillion dollar revenues, with customers in 10 countries spanning 5 continents. It also went on to clinch the coveted Frost & Sullivan Asia Pacific Technology Innovation Award, and the OCBC Emerging Enterprise Award earlier this year.
Conclusion
15. To many individuals, entrepreneurship means empowerment, and realising their dreams. To Singapore, entrepreneurship means creativity and innovation in the society. It means adding an edge to a competitive economy. Yet, the theory and practices of entrepreneurship are always evolving in accordance with advances in technology and new inventions. By gathering top entrepreneurial minds at this Forum, we have a better chance to figure out the best ways to harness the power of entrepreneurship for a better and fairer society.
Thank you for being here. Thank you for being in Singapore.
[1] Global Entrepreneurship Monitor 2012 Singapore Report.
[2] SPRING SEEDS invested in Biomax in 2012.