𝐁𝐡𝐮𝐭𝐚𝐧’𝐬 𝐏𝐚𝐭𝐡 𝐭𝐨 𝐔𝐒𝐃𝟏𝟎 𝐁𝐢𝐥𝐥𝐢𝐨𝐧 𝐆𝐃𝐏

…𝑳𝒆𝒔𝒔𝒐𝒏𝒔 𝒊𝒏 𝑰𝒏𝒏𝒐𝒗𝒂𝒕𝒊𝒐𝒏 𝒂𝒏𝒅 𝑬𝒏𝒕𝒓𝒆𝒑𝒓𝒆𝒏𝒆𝒖𝒓𝒔𝒉𝒊𝒑 𝒇𝒓𝒐𝒎 𝑮𝒍𝒐𝒃𝒂𝒍 𝑬𝒙𝒑𝒆𝒓𝒕𝒔

By Yeshey Lhadon

International business leaders, entrepreneurs, and experts gathered to discuss how Bhutan can unlock new business opportunities and foster economic growth at Dungkar Dzong in Paro during Bhutan Innovation Forum.

Titled “Identifying New Business Opportunities in Bhutan,” the session was moderated by Tenzin Yonten and featured a panel of distinguished speakers, including Christian Nicholas Stadil, co-founder and CEO of Glory; Anna Inyoung Kim, an expert in international development; Romain Liot, a digital marketing and e-commerce specialist; and Thai entrepreneur Sangsuk Pithayanukul. Together, they offered insights on how Bhutan can overcome its unique challenges and seize new opportunities in tourism, premium products, and digital transformation.

The discussion focused Bhutan’s small market size, its dependence on imports, and the challenges the country faces in fostering entrepreneurial ventures. However, the speakers were optimistic about Bhutan’s potential, highlighting the country’s unique strengths, such as its rich cultural heritage, pristine environment, and high literacy rate, as key drivers of future economic success.

The session opened with Christian Nicholas Stadil, who used Denmark as an example of how small countries can thrive economically by fostering a culture of innovation and entrepreneurship. Despite Denmark’s limited resources and small size, the country has managed to create an enabling environment for startups. Stadil emphasized that Bhutan could follow a similar path by simplifying business processes and creating support systems that enable entrepreneurs to flourish.

He pointed out that Denmark’s transformation began 15 years ago when the government prioritized entrepreneurship by offering free counselling, setting up startup accelerators, and creating a business-friendly regulatory framework. According to Stadil, Bhutan could adopt these strategies to create an ecosystem conducive to business growth.

Stadil also emphasized the importance of changing societal attitudes towards failure. He explained that in Bhutan, like in many Asian cultures, failure is often stigmatized, which discourages young people from taking risks and pursuing entrepreneurship. To address this, Stadil suggested the creation of a national television show similar to the popular “Dragon’s Den,” where aspiring entrepreneurs pitch their business ideas to investors. He argued that such a show would help normalize risk-taking, inspire a new generation of entrepreneurs, and make entrepreneurship more aspirational.

“Imagine a Bhutanese version of ‘Dragon’s Den.’ It would change the landscape and bring entrepreneurial ideas into the mainstream,” Stadil said, to the agreement of many in the audience.

Another key theme of the session was the potential for Bhutan to focus on producing high-quality niche products that cater to international markets. Anna Inyoung Kim, who has extensive experience working with small-scale farmers in Africa, suggested that Bhutan could draw lessons from Rwanda, where small farmers have successfully turned to producing premium coffee for export.

Kim argued that Bhutan’s pristine environment, strong cultural identity, and natural resources make it an ideal location for producing premium, high-value products. She pointed to Bhutan’s potential in areas such as high-quality coffee, wellness retreats, and mindfulness experiences, all of which are becoming increasingly popular in global markets.
“Bhutan can capitalize on its pristine environment and rich heritage to produce products and experiences that cater to niche markets globally,” Kim said. She emphasized that success in these sectors would depend on finding the right markets and building strong brand identities that emphasize Bhutan’s unique qualities.

Building on Kim’s point about premium products, Romain Liot highlighted the crucial role of branding in positioning Bhutanese goods in international markets. He argued that Bhutan should aim to create a strong brand identity that emphasizes its environmental sustainability, cultural uniqueness, and high-quality standards.
“Branding is everything when it comes to premium products,” Liot said. “With the right branding, Bhutan can become synonymous with high-quality, ethical, and sustainable products.”

Liot also emphasized the role that digital transformation can play in helping Bhutan overcome its geographical isolation and small market size. By embracing e-commerce and building digital infrastructure, Bhutanese businesses, particularly small and medium-sized enterprises, could access global markets and reach international customers.
“Digital transformation is essential for Bhutan’s growth,” Liot said. “Even the smallest businesses in Bhutan can go global with the right support from the government and access to e-commerce platforms.”

Sangsuk Pithayanukul, a Thai entrepreneur, brought attention to the significant potential for Bhutan to reduce its reliance on imports. Bhutan currently imports over a billion dollars’ worth of goods each year, but Pithayanukul argued that many of these products could be replaced with locally produced alternatives.

Pithayanukul cited his experience in Thailand, where he successfully built businesses that replaced imported goods with homegrown products. He encouraged Bhutanese entrepreneurs to explore industries where local production could not only substitute imports but also become an export opportunity.

“Bhutan has the potential to reduce its import dependency by developing local industries,” Pithayanukul said. “This would not only create jobs and stimulate local economic growth but also position Bhutan as a potential exporter in certain sectors.”

Throughout the discussion, the panellists proposed several actionable steps for Bhutan to capitalize on its strengths and unlock new business opportunities. National Entrepreneurship TV Show similar to “Dragon’s Den” was proposed as a way to promote entrepreneurship and shift societal attitudes towards risk-taking and failure.

The panelists urged the Bhutanese government to establish startup accelerators, co-working spaces, and a government-backed startup growth fund to support budding entrepreneurs and encourage innovation.

Tourism was identified as one of Bhutan’s most promising sectors. By focusing on premium wellness and mindfulness experiences, the country could attract more tourists and increase annual visitor numbers. The panel noted that Bhutan has the potential to grow its tourism sector from the current 16,000 annual visitors to over 500,000.

Bhutan can leverage its cultural and environmental strengths to develop premium products, such as high-quality coffee and wellness products, that cater to niche markets worldwide.

Government-backed incentives, including tax cuts and low-interest loans, were highlighted as essential to support entrepreneurs and help them compete on the global stage.

The need for digital infrastructure and support for e-commerce was stressed as critical for enabling Bhutanese businesses to access international markets.

While the panelists were optimistic about Bhutan’s potential, they acknowledged that significant challenges remain, particularly in terms of financing for startups and small businesses. Both Liot and Stadil discussed the need for innovative financing solutions, such as government-backed growth funds or no-interest loans, to help entrepreneurs access the capital they need to succeed.

Anna Kim also emphasized the importance of supportive government policies, such as tax incentives and low-interest loans, in fostering entrepreneurship. She noted that in countries like Korea, such measures have been instrumental in helping small businesses grow and succeed.

The session concluded with a shared sense of optimism about Bhutan’s future. The speakers reiterated the importance of fostering an entrepreneurial culture, embracing digital transformation, and building Bhutan’s brand as a premium destination for both products and experiences.

By capitalizing on its unique strengths such as its pristine environment, rich cultural heritage, and high literacy rate, Bhutan has the potential to unlock significant economic growth and reach its ambitious GDP target of $10 billion by 2034. With the right strategies in place, the country could emerge as a thriving hub for innovation and entrepreneurship in the region.