The country is seeking to transform its startup ecosystem into a major driver of economic growth, job creation and innovation through the launch of the National Entrepreneurship Strategy 2026 on June 20, an ambitious roadmap aimed at addressing longstanding barriers faced by entrepreneurs and strengthening the private sector’s contribution to the national economy.
Developed by the Ministry of Industry, Commerce and Employment (MoICE), the strategy outlines a comprehensive framework to help businesses move beyond survival and evolve into sustainable growth enterprises capable of generating employment, attracting investment and competing in regional and international markets.
The initiative comes at a crucial time for Bhutan’s economy. While the private sector is increasingly viewed as the engine of future growth, structural challenges continue to hinder entrepreneurship. According to data presented during the launch, 96 percent of businesses in Bhutan are sole proprietorships, while nearly 59 percent of business licenses remain inactive, highlighting the difficulties many enterprises face in scaling and sustaining operations.
Officials say the strategy seeks to address these challenges through six priority areas covering regulatory reform, access to finance, entrepreneurship culture, human capital development, business support services, market access, research and technology.
A central pillar of the strategy is the creation of a more business-friendly regulatory environment. Among its most significant targets is reducing the time required to obtain a business license to within three working days. Currently, entrepreneurs often face lengthy approval processes involving security clearances, project approvals and sector-specific permits before they can formally begin operations.
Access to finance, long identified as one of the biggest constraints facing startups, is another major focus area. The strategy proposes diversifying financing options by promoting angel investment networks, venture capital funding and alternative financing mechanisms alongside conventional bank lending.
For entrepreneurs, such reforms could be transformative. Pema Dorji, founder of a food-processing enterprise in Thimphu, said many promising businesses struggle to secure financing despite having viable business models. “Many young entrepreneurs have innovative ideas but cannot access funding because they lack collateral or an established credit history,” he said.
“If alternative financing options become available, it could unlock significant opportunities for innovation, business expansion and job creation.”
To cultivate a stronger entrepreneurial culture, entrepreneurship education programmes will be introduced in 90 percent of schools and colleges across the country. The initiative aims to equip young Bhutanese with practical business knowledge, innovation skills and problem-solving abilities while encouraging entrepreneurship as a viable career path.
In addition, business support centres will be strengthened to provide mentoring, incubation services, technical guidance and networking opportunities for startups during their early stages of development.
Another key objective is helping Bhutanese businesses expand beyond domestic markets. Through initiatives such as Brand Bhutan, the government hopes to strengthen the visibility and competitiveness of Bhutanese products and services internationally while helping local enterprises access regional and global value chains.
The strategy also encourages businesses to embrace emerging technologies, including Artificial Intelligence (AI), digital tools and research-driven innovation, to improve productivity, competitiveness and long-term sustainability. Officials believe technological adoption will be critical if Bhutanese enterprises are to thrive in an increasingly digital global economy.
The entrepreneurship agenda is also closely linked to broader national development challenges, particularly youth unemployment and outward migration. More than 20 percent of Bhutanese youth remain unemployed, while approximately nine percent of the population has migrated abroad in search of better economic opportunities.
Entrepreneurs say creating a stronger startup ecosystem could help reverse these trends. “Many young people leave because they do not see sufficient opportunities at home,” said Sangay Wangchuk, a technology entrepreneur based in Phuentsholing. “If startups can access financing, mentorship, technology and markets, entrepreneurship can become a realistic and attractive career option for talented Bhutanese.”
The strategy aligns with Bhutan’s broader economic transformation agenda, including the 21st Century Economic Roadmap and the 10X Vision 2050, both of which envision a substantially larger role for the private sector in driving economic growth. Officials noted that the long-term objective is for the private sector to contribute between 60 and 65 percent of the country’s Gross Domestic Product (GDP), making entrepreneurship a critical pillar of Bhutan’s future development.
Implementation of the strategy will be overseen by the Department of Entrepreneurship and Employment, while a newly established National Entrepreneurship Council will provide strategic guidance and monitor progress.
Tashi Namgyal, Thimphu
