Building an Entrepreneurial Ecosystem in Bhutan

We are a young nation with over half our people under age 25, and many eager to innovate. Our development philosophy Gross National Happiness (GNH) emphasizes that economic growth be balanced with wellbeing, sustainability and social harmony. In practice this means we value fair, community‐focused business: environmental protection, cultural vibrancy and good governance are as important as profit. For example, Bhutanese cultural norms emphasize hospitality and “a strong sense of communal bond”. This tight-knit social fabric is important for the fact that our population is “not even eight hundred thousand people” can be a real asset for startups, as communities often rally behind local ventures that promise shared benefits.

At the same time, our small market and geographic isolation pose challenges. With fewer than 800,000 people, local demand is limited, and we often see inexpensive imports undercutting homegrown products. Our education and training systems have traditionally emphasized formal careers, so many aspiring entrepreneurs “lack the knowledge of business skills even though they have a business idea.” A 2015 government strategy report observed that entrepreneurs face “lack of access to information on setting up and operating a business,” “limited access to capital and funds,” “lack of adequate networks,” and “lack of mentoring support and training”. Indeed, many young founders say they simply don’t know where to find resources: there is no one-stop portal for startup advice in Bhutan. Perhaps most acute is finance: small loans and seed grants are scarce, making it hard for the first timers to launch or scale their ventures. These challenges do not mean we lack potential. Instead, they show us exactly where we need to improve and we can make those improvements by using the strengths we already have

Key Needs for Entrepreneurs

Our surveys and consultations show five critical needs for Bhutanese entrepreneurs. Addressing these will help turn ideas into viable businesses:

1. Practical learning and skills. Entrepreneurs want hands-on training in core business areas not just lectures. We need short, action-oriented courses and field visits on topics like business planning, marketing, finance, bookkeeping, customer engagement and digital tools. A recent impact study of our entrepreneurship training found that participants overwhelmingly requested longer courses, more practical sessions and field visits, plus follow-up support so they can “really learn by doing.” By giving first-time founders more on-the-ground practice, we boost their confidence and help them avoid common mistakes.
2. Stronger mentorship and guidance. Many young people have great ideas but no one to turn to for advice. We must connect them with experienced mentors – seasoned Bhutanese business owners or sector experts – who understand our local context. The 2015 entrepreneurship strategy explicitly noted the “lack of mentoring support and training” as a major gap. Creating formal mentorship programs, alumni networks and online communities will help rookies navigate challenges, stay motivated and learn from others’ experiences. Connecting with a mentor can make the difference between a startup failing in isolation and one that keeps going until it succeeds.
3. Better access to information. Many entrepreneurs simply don’t know what support is out there. We need a well-organized information system – for example a central web portal or mobile app – that lists all available programs, training courses, funding sources, export fairs and regulations. This matters especially because Bhutan’s digital and media infrastructure is still maturing. If we can improve outreach through social media, radio and local newspapers, more entrepreneurs will hear about incubators, government grants, business competitions and market opportunities. Knowing where to find help is often the first step to starting a business.
4. Easier access to finance. Appropriate financial products are crucial. Entrepreneurs need small, flexible loans, seed grants and smart credit lines. Fortunately, we are seeing progress. For example, in October 2025 the World Bank’s IFC committed a US$20 million investment through the Bank of Bhutan, explicitly to expand lending to micro and small enterprises. Under that deal at least 80% of the funds will go to small businesses (which make up about 95% of Bhutan’s registered firms), with a special focus on women-led and rural ventures. This kind of “last-mile” financing – long-term funds channeled to grassroots companies – helps fill the capital gap. At the same time, local institutions are innovating: for instance, Microfinance Bhutan offers small-business loans tailored to marginalized groups like women and rural entrepreneurs. Together, these steps are expanding the choices for startups to get the money they need.
5. Platforms for visibility. Entrepreneurs thrive when they can showcase their work and learn from others. We benefit greatly from regular events where we get to connect with potential markets. National fairs like the Made in Bhutan exhibition, district craft markets and agro-fairs give local artisans and food producers a chance to sell directly to consumers. Such platforms do more than boost sales. They raise confidence and awareness. Success stories spread by media (Business Bhutan, Bhutan Today, etc.) inspire others and attract support from investors or donors. Even peer networking through online groups or informal meetups facilitate entrepreneurs to share solutions and gain moral support. The more our ventures are in the public eye, the stronger the overall ecosystem becomes.