Starting a business can be a big issue for investors and entrepreneurs who may have a wide array of choices that may be very confusing, but also have many things to consider when they start their activity. Whether online or brick and mortar, there are things to look out for to ensure that the business to be started will not be destined to fail. Certain countries are easier than others for start-ups to get off the ground.
There have been many surveys conducted over the past period to determine the factors necessary in a country to start a business. The US News and World Report recently ranked the best countries for entrepreneurs based on several factors. These included connectedness to the rest of the world, availability of a skilled and educated workforce, developed infrastructure, a well-developed legal framework, and easy access to capital.
Five countries, according to the report, were ranked as the best in terms of starting a business. Talks were held with entrepreneurs in each of these five countries to uncover the benefits that a business gets from them, the BBC reported.
Germany was on the list, being the world’s fourth largest economy and the largest in Europe. The country has a well-educated workforce, in addition to policies that are rather start-up friendly. Germany has many cities that are deemed important economic hubs, such as Berlin, Frankfurt, Munich, and Hamburg.
Japan is also on the list, and to many, the country is on the verge of a major cultural shift. Additionally, the Japanese economy’s core is Tokyo, the city that makes it easier for foreigners to make professional connections and provides many global opportunities for people to be involved and connected to one another. English is spreading in Tokyo to prepare for the 2020 Olympic Games, which eventually works out for the best of the businesses and start-ups in the city.
The United States of America is also one of the best five countries for starting business. “While many recent successful tech start-ups are headquartered in California’s Silicon Valley, New York City, and other US metros harbour their fair share of start-ups. Because the US has a fairly uniform culture and a large market, scaling nationwide is easy here,” said Wen-Wen Lam, CEO and co-founder of San Francisco-based travel management platform NexTravel, according to BBC.
Business in the United Kingdom is easy in terms of getting financing. The UK managed to attract over £4bn in investments, which is the largest amount of venture capital of all European countries; however, the high costs of housing in London can be a struggle for business owners and potential employees.
Even though Switzerland has a lack of natural resources, it invests greatly in research and development to make sure its economy grows, which has resulted in creating a better environment for businesses. The country has a rather friendly regulatory environment and business-friendly tax rates, in addition to a distinct location in Europe.
Online business specifically requires a certain environment, and according to World First’s list of the best countries to start an online business in, Denmark, Singapore, US, Switzerland, and South Korea are the top countries.
Denmark has a small population of six million people. It has a strong market economy. Some of the largest companies there are Lego, Zendesk, Trustpilot, and Siteimprove.
Singapore has low business taxes and a favourable location in the heart of Asia. It has become a favourite base for companies looking for a gateway to Asian markets, including China.
As for South Korea, the country has high-speed internet connectivity. This country’s infrastructure is unparalleled. “South Korea is the world leader in broadband and boasts the fastest average internet connection speed of any country in the world. Additionally, about 92% of its population are internet users,” World First reported.
For the decision to start a business, there is a lot to consider, but looking at the indexes of the best countries for start-ups and businesses, things may be made a lot easier for business owners, and more doors are yet to be opened.