What Asian Startups Are Doing Differently
Asian startups are building companies differently, and their approaches offer some interesting lessons for founders anywhere. While Silicon Valley
Asian startups are building companies differently, and their approaches offer some interesting lessons for founders anywhere. While Silicon Valley gets most of the attention, Asian startups have developed distinct strategies that work well in their markets and might be worth considering elsewhere.
The numbers show interesting trends: Asia hosts more unicorns than Europe, and many Asian startups have created business models that others are now studying. These companies are showing that there are different ways to build successful businesses.
Singapore: Building for Scale from Day One
Singapore’s approach is methodical rather than flashy. Asian startups in Singapore focus on getting the fundamentals right before they grow rapidly.
Take the IMDA Green Lane program. Before any Singaporean startup can claim they’re ready to scale, they get government certification proving their software actually works at enterprise level. It sounds bureaucratic, but it’s genius. When these companies pitch international clients, they already have credibility that Silicon Valley startups spend years trying to build.
The result? Asian startups from Singapore often achieve steady growth without the dramatic ups and downs that some other companies experience. They focus on partnerships and sustainable revenue rather than just user numbers.
“Startups cannot succeed on their own, and just by relying on the domestic market,” says Enterprise Singapore chairman Peter Ong. This mindset forces Singaporean founders to think globally from day one, but with local precision.
India: Making the Most of Limited Resources
Asian startups in India have gotten really good at building solutions with limited budgets through “jugaad” – essentially creative problem-solving with whatever resources you have available.
Consider Aravind Eye Hospital: they perform over 200,000 cataract surgeries annually at $25 per procedure. Compare that to the thousands Western hospitals charge for the same operation. They didn’t cut corners – they eliminated waste.
This jugaad philosophy has infected India’s entire startup ecosystem. Asian startups in India excel at creating modular solutions that adapt to different markets without complete rebuilds. They solve real problems for underserved populations instead of creating solutions hunting for problems.
This approach has influenced how many companies think about innovation. Instead of always seeking perfect solutions, jugaad encourages finding workable solutions that can be improved over time. Companies like GE have studied these methods when developing more affordable products for different markets.
China: Relationship-Centered Business Building
Chinese Asian startups place heavy emphasis on building strong business relationships, known as guanxi. This goes beyond typical networking to create deeper, more collaborative partnerships.
“Guanxi relationships are almost never established purely through formal meetings,” explains research on Chinese business practices. Instead, they happen over tea, dinner, and genuine relationship-building. It sounds time-consuming, but it creates business networks that are nearly impossible to disrupt.
Companies with strong business relationships often get better terms and faster responses from partners. They share resources and collaborate in ways that can help everyone involved. This relationship-first approach can create business networks that are resilient and mutually supportive.
The lesson? Stop treating relationships as a side activity. Make them your core business strategy.
Indonesia: Community as Business Model
Indonesian Asian startups discovered something Western companies are just learning: engaged communities beat expensive marketing every time. With internet economy growth of 49% annually since 2015, Indonesia proves that community-driven platforms can scale faster than traditional businesses.
The Indonesian government launched the “1,000 Digital Startup National Movement” in 2016, directly partnering with the startup community instead of just regulating it. This collaborative approach extends beyond customer relationships to include regulatory stakeholders as actual partners.
Indonesian Asian startups excel at turning users into stakeholders. They design platforms where community participation creates value, not just consumption. Users become customer support, content creators, and word-of-mouth marketers simultaneously.
The Asian Advantage: Resource Multiplication
What connects all these Asian startups strategies? They multiply resources instead of just accumulating them. While Western startups raise bigger rounds to scale faster, Asian founders scale smarter.
One consumer goods company sells detergent at both $0.50/kg and $2.50/kg – same basic product, different market tiers. This isn’t about cutting costs; it’s about maximizing market coverage with minimal resource expansion.
Asian startups validate markets before perfecting products. They leverage existing infrastructure instead of building from scratch. They train employees for multiple roles instead of hiring specialists for everything.
What This Means for Other Founders
These approaches aren’t necessarily better than other methods, but they offer different ways to think about building companies. For founders looking at different strategies, a few things stand out:
Relationship-first thinking: Treat every business interaction as a long-term partnership opportunity. Invest time upfront to save resources later.
Constraint-driven innovation: Embrace limitations as creativity triggers. Ask “how can we do this with 10x less?” before asking “how can we raise more money?”
Community as core function: Design products that encourage user participation. Make customers feel like stakeholders, not just consumers.
Institutional awareness: Study regulatory environments and cultural preferences before launching. Turn compliance into competitive advantage.
The Reality Check
Asian startups have developed strategies that work well for their specific situations and markets. As different types of challenges become more common globally, some of these approaches might be worth considering for founders everywhere.
The key isn’t about copying specific tactics, but understanding that successful companies can be built in many different ways. Asian startups have simply figured out some approaches that work well for their circumstances and might offer useful ideas for others facing similar challenges.
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