Since 2017, research center StartupBlink has updated its Global Startup Ecosystem Index, which examines more than 1,000 cities and 100 countries and their environment for the creation of innovative companies.
Unsurprisingly, the 2023 Index confirms the undisputed reign of the United States, which is once again in first place globally. The United States continues to dominate the startup ecosystem with a significant lead, almost four times that of the United Kingdom in second place.
The gap between the top two has gradually narrowed in recent years, but remains relatively stable. The report attributes the narrowing gap to the UK's ability to attract talent from abroad, following BREXIT and its aftermath.
Just behind the UK, Israel occupies a solid third place in the rankings. Despite the challenges of judicial reform, the Jewish state maintains its position as a key player in the global start-up scene and remains a major power in the Middle East and Africa, largely eclipsing other regional competitors.
Africa and the Middle East: notable progress
In Africa and the Middle East, the startup landscape has seen positive growth, as evidenced by the increase in the number of cities representing the region. After Israel, the United Arab Emirates (UAE) is the second most important player in the region, but there is a significant gap between Israeli and UAE startups.
Promising African countries such as Senegal and Mauritius have made remarkable progress, mirroring the significant improvements seen globally. It is worth noting that Mauritius and Senegal have each moved up ten places in the rankings, demonstrating their growing entrepreneurial potential on the world stage. Uganda's return to the top 100, at 96th in the world, after a year's absence, is a positive indicator of the resilience and innovation of the East African region. However, South Africa's fall highlights the challenges still facing African startups, which are absent from the top 50.
In the city rankings, Lagos, Nigeria's economic capital and regional hub retains its status as the only African city in the global top 100. Israel, the United Arab Emirates and South Africa have more than one city in the regional top 20. Israel in particular has five in this ranking, including Tel Aviv and Haifa, demonstrating the depth of its start-up ecosystem.
Driving startup growth in Africa and the Middle East
The analysis of StartupBlink's Global Startup Ecosystem Index for 2023 highlights the significant progress made by Africa and the Middle East. Although challenges remain, the region's entrepreneurial spirit and innovation are driving positive change. However, the Index reports a significant 30% drop in global startup funding. Continued support, investment and collaboration remain essential to develop the burgeoning startups in these regions and pave the way for a vibrant and sustainable entrepreneurial future, the report concludes.
