If you were asked to name the most entrepreneurial countries in the world, the US, UK and Germany might spring to mind; however, new analysis from Approved Index found Uganda to be the most entrepreneurial country with highest number of self-starters per person.

The analysis looked at the GEM Global report and measured entrepreneurship as the percentage of a country’s adult population who own or co-own a business that has paid salaries for more than 3 months and less than 42.

Uganda is an unexpected winner for the most entrepreneurial country in the world. A few decades ago the country was ruled by Idi Amin, a brutal dictator who left the Ugandan economy devastated. But it’s not only Uganda that makes an unanticipated appearance on the list.

In fact, the top 10 countries are all developing nations in Africa, Asia and South America rather than developed ones and there is a very good reason why.

Despite the romanticised view of rags to riches entrepreneurs starting out with nothing but a dream and making it big, the truth is that businesses around the world are started due to necessity rather than aspiration.

Developing nations have poorer economies, high unemployment and jobs are low paying, therefore entrepreneurship is not a dream, but rather a way to provide for the business owner and their family.

The types of businesses featuring on the list are generally very small and sell inexpensive goods and services, such as food stalls, small grocery stores and anything that provides a cheap and easy solution to a problem.

Necessity may be the reason developing nations take all positions in the top 10 most entrepreneurial countries, but why does Uganda have such a noticeably large lead? Uganda has an entrepreneurship rate of 28%, which is almost double that of Thailand in second place with 16%.

Uganda's capital Kampala, the country's economy grew by 5.6% in 2013 when most of Europe was standing still

There are a few reasons that have propelled this entrepreneurial  drive. Firstly, the aftermath of Amin’s regime together with rapid population growth (leaving a severely youth heavy nation) means that on average 50 people are chasing each job. With plummeting wages and high unemployment starting a business becomes one of the only viable options available.

This is not the only reason that gives Uganda an edge though. Recently laid fibre optic now connects it to the whole region and allows even remote villages to come online. Entrepreneurship is therefore becoming an attractive option for young college students who are able to bulk up their skills online.

A Technological revolution

Tech and coding are especially popular as it is understood that these are sought after assets which boost success. Uganda also has an active support system for entrepreneurs, from both the government and non-government institutions and incubators.

These organisations aim to encourage and train people around the country enabling them to become self-sufficient, thus boosting the economy. This shows that although necessity and survival may be the core drivers behind the title of most entrepreneurial country, the establishment of support and assistance can further improve it.

It was Anita Roddick who said: “Nobody talks of entrepreneurship as survival, but that’s exactly what it is and what nurtures creative thinking.” Sadly, desperation under tough circumstances seems to be a fierce fuel for creativity. Examples of the kind of innovative businesses that pop up with barely any resources can be seen across these countries.

One in particular that I saw in South Africa was an ID photo booth outside the traffic department. It was constructed of a white cardboard shed, and the owners only needed a camera, a printer and a pair of scissors to be up and running. People renewing their licenses who had forgotten ID photos could quickly get some from this makeshift vendor. It was smart.

What entrepreneurship does have in common in every continent, rich or poor, is an underlying desire to better one’s life. Whether the end goal is to be living a life of luxury or merely to provide food and shelter to family, the spirit and desire to better one’s life is at the heart of all entrepreneurs, although the stakes are significantly higher in the latter instance.

The Approved Index data highlights an interesting gap between our perception of what an entrepreneur is and what it is in reality. It may seem to many sitting in developed countries that it is a signal of aspirations, money and power, but to most it is a matter of life and death.

There is a lot to be learned from the approach taken by entrepreneurs in developing countries and the ability to spot opportunities and find creative solutions; you need only take a look.