Singapore has consistently been rated as one of the world's most competitive economies. However, when it comes to entrepreneurship, it lags behind in global comparisons.

It is thus of little surprise that entrepreneurship is very much a buzzword in the past few years. The government promotes it, everybody talks about it, and there are plans to introduce it in schools.

In 2004, Singapore was ranked the second most competitive economy among 60 economies worldwide. Generally, Singapore's strengths in economic performance reflect largely the openness of the economy.

Some of the weaknesses are the relatively small size of the economy; relocation of services, production and research and development facilities to lower-cost countries; and the fact that entrepreneurship is not widespread in the economy.

By the measures of the Global Entrepreneurship Monitor (GEM), Singapore has made strides in entrepreneurship over the past few years, at enterprise and national levels.

In 2001, when Singapore was first included in the study, it ranked 19th out of 21 countries - with just two per cent of its adults engaged in start-ups and young firms.

The percentage has since grown to 5.4 percent, according to GEM's findings, which places Singapore 26th out of 40 countries on its Total Entrepreneurial Activity rankings.

Singapore emerges as an ‘average’ performer. Even at the firm level - where Singapore ranks a better 11th out of 40 - it is clear that local firms here are nowhere near as enterprising as the best in the world.

GEM considers as ‘entrepreneurial firms’ those that produce innovative changes in the market or add new jobs. According to its findings, such firms made up barely 19 per cent of all Singapore firms last year and accounted for nine percent of the workforce (Business Times, Singapore, Jan 29, 2004).

Singapore is hampered by several constraints related to its historical, governmental, societal, psychological, financial and educational features.