While the nation’s young generation is brimming with talent, ambition, and higher education, for many, opportunity remains just out of reach. According to a recent report on Youth Entrepreneurship by the Ministry of Industry, Commerce and Employment (MoICE), thousands of young Bhutanese face unemployment or underemployment, trapped in a cycle that threatens both their personal growth and the country’s economic future.
This crisis falls under the global NEET challenge—youth who are Not in Education, Employment, or Training. Many young people in Bhutan are disconnected from both work and learning, leaving them frustrated and uncertain about their prospects. Despite years of education, the labor market is failing to meet their aspirations, creating a growing sense of economic disillusionment.
Traditionally, Bhutan’s economy has been agriculture-driven, but the country is shifting toward urban jobs in sectors like education, hospitality, and trade. For young people outside the public sector, this transition has been anything but smooth. Stable, formal employment remains limited, leaving many in temporary or low-paying roles. As a result, talented youth are increasingly looking abroad, migrating to countries like Australia, the United States, and the Middle East in search of better opportunities. This outflow of skilled labor threatens to deplete Bhutan’s human capital, creating a dangerous cycle of brain drain and lost potential.
The report highlights a crucial solution: youth entrepreneurship. Starting small businesses can offer a pathway out of unemployment, providing income, independence, and the chance to contribute meaningfully to Bhutan’s economy. Yet, youth entrepreneurship remains underdeveloped. Many young Bhutanese become entrepreneurs out of necessity rather than opportunity—they start businesses because they have no other option, not because they are pursuing growth or innovation.
Evidence shows that opportunity-driven entrepreneurs—those motivated by growth and independence—earn significantly more than necessity entrepreneurs. Between 2018 and 2022, women entrepreneurs in Bhutan saw their average monthly incomes nearly double, reaching Nu 33,849. Many women are moving into high-productivity sectors like manufacturing and services, demonstrating that entrepreneurship can be a powerful tool for economic empowerment and gender equality.
Despite this promise, young entrepreneurs face formidable hurdles. Starting small is easy; growing, scaling, and formalizing a business is far more challenging. Entrepreneurs aged 15 to 24 are particularly vulnerable to dropping out due to limited experience, restricted access to finance, and a lack of mentorship. Women entrepreneurs face additional barriers. Social norms, limited financial support, and weak networks often prevent them from expanding their businesses into high-value sectors, even though their productivity potential is among the highest in the country. Unlocking the potential of women-led ventures could have a transformative impact on Bhutan’s economy.
Experts estimate that helping youth transition from necessity-based ventures to opportunity-driven businesses could add Nu 2.785 billion annually to Bhutan’s economy, representing roughly 1.4% of GDP. In a small, open economy like Bhutan, this is a game-changing opportunity: productive entrepreneurship could absorb excess labor, reduce dependence on government jobs, and foster inclusive growth.
Currently, policies emphasize starting up businesses but fall short in providing support for growth and sustainability. Experts recommend a three-pronged approach to fully unleash youth entrepreneurship. First, Bhutan must build entrepreneurial skills and raise awareness among its young population. Many are eager to start businesses but lack the know-how and guidance to succeed.
Second, the focus must shift from launching startups to supporting existing businesses to scale and thrive. This includes ongoing mentorship, access to finance, and guidance to reach new markets, ensuring that young entrepreneurs can move beyond survival-level operations. Third, entrepreneurship should be integrated with broader economic policies aimed at strengthening the private sector, creating decent jobs, and promoting innovation.
Bhutan’s youth entrepreneurship is already happening, but it remains scattered, under-resourced, and largely opportunity-limited. With targeted, gender-sensitive, and stage-specific policies, the country could transform this latent potential into a powerhouse of inclusive and sustainable economic growth.
The stakes are high. If Bhutan fails to harness the creativity, education, and ambition of its young people, the nation risks continued brain drain, underutilized talent, and growing economic inequality. But if youth entrepreneurship is nurtured and supported, Bhutan could see a generation of innovators, job creators, and economic leaders emerge—propelling the country toward a future that is not only prosperous but resilient and self-reliant.
In short, youth entrepreneurship is not just a career choice; it is Bhutan’s key to solving its labor market challenges and igniting a new era of growth, innovation, and opportunity. The question is no longer whether the country can afford to invest in its young entrepreneurs—it is whether it can afford not to.
Sherab Dorji
From Thimphu
