BETTER to be the head of a chicken than the tail of an ox, as the Chinese saying goes.

And as many Taiwanese would tell you, nothing beats being your own boss, no matter how small the business.

Little wonder why Taiwan, where entrepreneurship is alive and thriving, is dubbed the 'boss' island.

A Taiwanese joke goes: If you throw a stone in the streets, you are likely to hit an entrepreneur.

There is some truth to it, judging by figures.

Taiwan has one of the highest concentrations of companies in the world. There are about 1.2 million registered in the island of 23 million, according to Taiwan's Ministry of Economic Affairs.

That works out to one for every 20 Taiwanese.

Of these companies, close to 98 per cent are privately-owned small and medium enterprises (SMEs).

And for Taiwanese who are not yet their own bosses, they could well be on their way to becoming one.

According to a survey by 1111 Job Bank, a major Taiwanese recruitment agency, about 85 per cent of respondents had already started businesses, or were thinking of doing so.

The survey, conducted this year, polled 1,174 Taiwanese aged between 20 and 49.

The figure has remained above 70 per cent for similar polls conducted by the agency in the past two years.

If you ask me, Taiwan's ubiquitous di tan, or roadside stalls, are a good - albeit nascent - example of the island's vibrant entrepreneurial culture.

Armed with suitcases packed with merchandise, these enterprising Taiwanese are ready to do business any time, anywhere.

Although these makeshift stalls are illegal, they offer a training ground for young budding entrepreneurs, such as Ms Kuo Yu-han, to hone their entrepreneurial skills.

If she is not attending classes, the architecture undergraduate is most likely selling scarves and handsewn pouches on the streets in Taipei's downtown shopping district.

The 23-year-old started her little business venture more than a year ago, with a startup capital of just NT$3,000 (S$134.40).

'This is a good way to experience what it is like to run a business. And the best thing is I don't need to fork out money to rent a shop,' she told The Sunday Times.

Mr Ryan Wu, vice-president of 1111 Job Bank, identified two groups of Taiwanese who are most likely to start a business.

'Either young people below 28 years old, or those aged above 40 who are making a mid-career switch.' he said.

What drives the strong entrepreneurial culture in Taiwan?

'To begin with, being your own boss is something to be proud of in Chinese societies,' said Professor Liu Chang-Yung of the National Sun Yat-sen University.

The phenomenon is further boosted by Taiwan's prevailing social conditions, including a respect for material wealth.

Moreover, resourceful Taiwanese are used to seeking out opportunities for themselves, not having the luxury of turning to the government for help.

'Taiwan has a turbulent political history, from the early days of colonial rule to the more recent regime change in 2000,' said Prof Liu who teaches at the department of business management.

The regime change he was referring to was the 2000 presidential race when the Democratic Progressive Party ended the Kuomintang's five-decade grip on power.

'People were left largely to fend for themselves and find ways to make a living,' the scholar told The Sunday Times.

'That in turn nurtured a spirit of risk-taking, a crucial ingredient for entrepreneurship.'

The appetite for risks perhaps explains why many Taiwanese are still raring to give entrepreneurship a shot, despite sobering statistics pointing to a high chance of failure.

According to official numbers, about 10 per cent of SMEs fail to survive more than a year. Some 40 per cent of such businesses fold up within five years.

Ms Lu Jing-ying, for one, was not afraid to take the plunge when she decided to set up an Internet business selling fresh milkfish, a staple in her hometown in southern Taiwan.

Not to mention that the 38-year-old housewife has not worked a single day since she got married 12 years ago.

After attending a brief entrepreneurship course organised by the government, she started her own business with about NT$100,000 of her savings.

'Many people laughed when I told them I was planning to sell fresh fish on the Internet. But I wasn't afraid of failure,' she said.

There are also others such as Mr Yao Pen-jun, 36, who gave up his job three years ago to venture into the pet grooming business.

'Besides the usual services, I wanted to offer special training, such as 'pet etiquette' courses. I believe there is a demand for such services,' said the pet lover, formerly a trainer at an insurance company.

The relatively low costs of starting a business in Taiwan have also encouraged budding entrepreneurs to give it a try.

For instance, one can purchase the rights to set up a franchise store for as little as NT$30,000.

Many also choose to invest in 'micro-enterprises' such a beverages and breakfast shops, which require less start-up capital than SMEs.

Some say Taiwan's economic downturn has somewhat dampened its entrepreneurial drive in recent years.

But others point out that it has given rise to a new breed of 'necessity entrepreneurs', who are pushed into starting their own businesses because of the lacklustre job market and low pay.

According to the survey by 1111 Job Bank, 'unsatisfactory pay' was cited by most respondents as the key reason for starting their own business.

The average income of Taiwanese has stayed stagnant or even declined over the past few years.

Recent official statistics showed that up to 77 per cent of Taiwanese companies did not increase their employees' pay last year - a trend which has persisted for the past five years.

'Some people may think: the economy is so bad. If I set up a small noodle stall, at least I won't starve to death,' said Mr Wu of 1111 Job Bank.

Fresh university graduates are especially hard hit.

Their average starting pay is about NT$26,000 a month - roughly the amount graduates were paid 10 years ago.

And even if they are willing to settle for less pay, they may not land a job.

In the first nine months of this year, the unemployment rate among Taiwanese aged between 15 and 29 was 7.6 per cent - almost twice the average jobless rate of 3.92 per cent.

That has driven many young Taiwanese such as Ms Heidi Huang into striking it out on their own.

Ms Huang, who studied design in the university, quit her magazine design assistant job three years ago to sell handmade dolls and accessories.

That decision has paid off for her. 'I used to draw about NT$30,000 in my previous job. Now I make three to four times more,' said the 26-year-old.

Observers noted that the profile of Taiwanese entrepreneur is getting younger, and more highly educated.

'In the past, graduates would prefer to join the civil service or big companies,' said Prof Liu.

'But nowadays, more and more graduates are choosing to become their own boss.'

Amid Taiwan's economic gloom, a vibrant entrepreneurial spirit remains a bright spot.

The island's economic growth has hovered around 4 per cent in recent years, trailing the other three Asian Tigers - Singapore, South Korea and Hong Kong.

Said Prof Liu: 'For Taiwan to repeat its economic success, it must transform itself into a truly entrepreneurial society.'

hwee@sph.com.sg