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GOVERNMENT SUPPORT for startups should focus on creating a positive regulatory environment for private investment, rather than trying to âdo it allâ by funding the sector itself, experts said at an Asian Development Bank (ADB) webinar.
Developing economies can help develop startups more effectively by paying more attention to improving governance rather than providing capital themselves, according to Nitin Pangarkar, an associate professor at National University of Singapore.
âThe mistake that many governments make is they try to do it all… They cannot replicate the incentives that these private providers of capital have,â Mr. Pangarkar said.
âSome of the governments in the region are trying too hard to provide the funding themselves. I think thatâs not the solution. The solution is to provide a conducive environment to attract providers of capital and let the market magic work its thing,â he added.