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BUILDING PATHWAYS TO JOB CREATION JANUARY 2026 YOUTH ENTREPRENEURSHIPIN BHUTAN BUILDING PATHWAYS TO JOB CREATION JANUARY 2026 Creative Commons Attribution 3.0 IGO license (CC BY 3.0 IGO) © 2026 Asian Development Bank6 ADB Avenue, Mandaluyong City, 1550 Metro Manila, PhilippinesTel +63 2 8632 4444; Fax +63 2 8636 2444www.adb.org Some rights reserved. Published in 2026. ISBN 978-92-9277-576-6 (print); 978-92-9277-577-3 (PDF); 978-92-9277-578-0 (ebook)Publication Stock No. TCS250544-2DOI: http://dx.doi.org/10.22617/TCS250544-2 The views expressed in this publication are those of the authors and do not necessarily reflect the views and policiesof the Asian Development Bank (ADB) or its Board of Governors or the governments they represent. ADB does not guarantee the accuracy of the data included in this publication and accepts no responsibility for anyconsequence of their use. The mention of specific companies or products of manufacturers does not imply that theyare endorsed or recommended by ADB in preference to others of a similar nature that are not mentioned. By making any designation of or reference to a particular territory or geographic area in this document, ADB does notintend to make any judgments as to the legal or other status of any territory or area. This publication is available under the Creative Commons Attribution 3.0 IGO license (CC BY 3.0 IGO)https://creativecommons.org/licenses/by/3.0/igo/. By using the content of this publication, you agree to be boundby the terms of this license. For attribution, translations, adaptations, and permissions, please read the provisionsand terms of use at https://www.adb.org/terms-use#openaccess. This CC license does not apply to non-ADB copyright materials in this publication. If the material is attributedto another source, please contact the copyright owner or publisher of that source for permission to reproduce it.ADB cannot be held liable for any claims that arise as a result of your use of the material. Please contact pubsmarketing@adb.org if you have questions or comments with respect to content, or if you wishto obtain copyright permission for your intended use that does not fall within these terms, or for permission to usethe ADB logo. Corrigenda to ADB publications may be found at http://www.adb.org/publications/corrigenda. Note:In this publication, “$” refers to United States dollars and “Nu” refers to ngultrum.ADB recognizes “Korea” and “South Korea” as the Republic of Korea and “Turkey” as Türkiye. Cover design by Editha Creus. Abbreviations Currency Equivalents(as of 24 October 2025) Executive Summary viii 1Youth Labor Market Dynamics in Bhutan: Why Entrepreneurship Matters Now1Introduction1Key Facts2Conclusion6References7 2Empowering Youth Employment Through Entrepreneurship: A Strategic Framework9Introduction9Defining and Measuring Entrepreneurship10Key Principles for Entrepreneurship Policy11The Dynamics of an Entrepreneurial Ecosystem16A Framework to Guide National (Youth) Entrepreneurship Policy16Supporting Youth in Entrepreneurship Policy18References19 3Assessing Bhutan’s Entrepreneurship Ecosystem23Introduction23A Nascent Entrepreneurial Ecosystem: Key Strengths and Areas for Improvement24Assessment of Bhutan’s Youth Entrepreneurial Ecosystem25Future Directions for Youth Entrepreneurship in Bhutan47References48 4Strengthening Youth Entrepreneurship: Policy and Program Recommendations50Introduction50Guiding Principles for Youth Entrepreneurship Strategy51Policy Actions52ConclusionReferences58 Tables 1Ten Practices For A Youth-Friendly Entrepreneurial Ecosystem192Strengths and Weaknesses in Bhutan’s Entrepreneurship Ecosystem243Current Business Development Support324Mapping of Financial Actors Supporting Youth Entrepreneurs365Mapping of Human Capital Actors and Key Programs396Perceived Barriers to Finding Employment427Entrepreneurial Attitudes448Entrepreneurial Motivations459Entrepreneurial Intentions45 Figures 1Labor Market Indicators of Youths in Bhutan Compared to Regional Averages22Earnings of Opportunity and Necessity Entrepreneurs, 2018–202243Share of Entrepreuneurs at Different Business Development, 2018 and 202254Average Incidences of Decent Work Gaps Between Employees, by Age and Entrepreneurship Stage,2018–202265National Framework for (Youth) Entrepreneurship Policy176Ecosystem Actors by Category and Enterprise Stage277Administrative Constraints and Low Ecosystem Strength Impose Barriers to Bhutan’s Entrepreneurs288Awareness of Entrepreneurship Support Services339Access to Finance3710Human Capital in Bhutan and Neighboring Countries41 Boxes 1Defining Entrepreneurship32Definitions of Entrepreneurship113Policy Goals in Rwanda134Simplifying Labor Regulations in Argentina145Categorizing Young Entrepreneurs156Measuring Entrepreneurship Education in the Ecosystem417Enterprise Singapore: The Power of a Single Agency to Boost Entrepreneurship528Estonia’s E-Business Register: A Simplified Online Business Registr