

Why is Singapore not yet a superstar in churning out startups? - sharonpaul

I am perhaps a perfect example of why Singapore is not yet able to churn out many startups as other places such as Silicon Valley and Israel. No doubt these are the rare few superstar nations that are able to do so, but Singapore, with its small size, surely it's citizens are able to rely on each other and create jobs for themselves? Instead, much of our economy relies on foreign MNCs for our ricebowls.<p>As a budding entrepreneur, I then ask myself, why have I not yet started a business?<p>(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&#38;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.<p>(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.<p>(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).<p>So..how are things in your city?
======
caswabi
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.

------
notahacker
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.

~~~
sharonpaul
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!

------
freshbag
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...

~~~
sharonpaul
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

------
aihui
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?"

------
iworkforthem
There are definitely grants & loans for startups to get started, but I often
hiring is a major issue, shortage of quality programmers.

------
freshbag
There's a lot of talent in Singapore. Brilliant minds. Quality programmers.

They just need to get introduced to the startup culture...

------
venomoustoad
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.

~~~
sharonpaul
perhaps its the ease of the paper chase + high personal expenditure (housing
and car) that is the problematic combination.

