What it Takes to Start a Business
Starting a business anywhere can be a difficult and daunting endeavor. Fortunately, some countries provide better opportunities and incentives than others. In this article, we will explore the best countries to start a business and uncover the factors that make them so appealing.
The Top 10: The Best Countries to Start a Business
- Singapore
Singapore was recently named the world’s easiest place to do business for the fourth year in a row, according to the World Bank’s Doing Business Report. It tops the list due to its low corporate tax rate, minimal bureaucracy and strong infrastructure. Singapore also offers investors great access to markets across Asia.
- United Kingdom
The UK is home to some of the world’s most innovative businesses. Along with its well-developed infrastructure, an established legal system and world-class universities, the commitment in the UK to reduce regulations makes it a great environment for entrepreneurs.
- Canada
Canada has become a leader for entrepreneurs in recent years, boasting a well-developed technological infrastructure and a highly educated labour force. The government actively encourages start-ups by offering tax credits, grants, financing and support networks.
- The United States
The US is one of the most attractive locations to start a business due to its low corporate tax rate and relatively low start-up costs. Particularly attractive to international entrepreneurs, the vibrant multi-cultural business environment offer many advantaged and exciting opportunities.
- Hong Kong
Hong Kong is an attractive hub for investors looking to break into Asia. It enjoys a strategic geographic location, a low tax rate and an extremely efficient financial system. The cost of setting up and operating a business is low and the processes are streamlined.
- Australia
Australia offers start-ups access to educated talent and a dynamic cultural environment. It also boasts strong infrastructure, a flexible labour market and a very conducive legal system, not to mention its proximity to developing markets in Asia.
- Ireland
The Irish tax system is renowned for being advantageous for investors and start-ups. Ireland also provides good access to markets in the European Union, along with a well-educated, multilingual labour force.
- Sweden
Sweden is a great location for tech start-ups due to the nation’s enthusiasm for innovation, along with its high quality of life. Startup costs are relatively low, and local governments continue to increase incentives to encourage entrepreneurship.
- Switzerland
Switzerland has always been renowned for its political stability and prosperous economy; it is home to some of the biggest banks, pharmaceutical companies, and luxury watchmakers. Investors and entrepreneurs may receive significant tax breaks and access to global markets.
- The Netherlands
The Netherlands is renowned globally for its entrepreneurial and innovative spirit. Start-ups enjoy some of the world’s most competitive taxation systems, with business costs being highly affordable. The connection between the Netherlands and the rest of Europe provides start-ups with access to a wide pool of skilled workers and consumers.
Key Considerations for Starting a Business
Starting a business in any country requires careful considerations. Before entering a new market, it’s important to assess not just the economic climate and the political forces shaping the nation’s business environment, but also the cultural, ethnic and linguistic factors involved.
- Taxation
Taxation is perhaps the single most important factor when deciding on an ideal country to launch a business. The corporate tax rates in some countries can be as low as one-tenth of the rates charged in other countries. Make sure to investigate the applicable income tax and withholding tax structures, as well as double tax treaties that provide extra protection for multinational business operations.
- Market and Customer Size
Before setting up shop in any country, you need to be aware of the size of the local market and the size of your potential customer base. Knowing the population of the target country can give you an indication of the potential size of your customer base, as well as how much competition you may face.
- Infrastructure and Logistics
The infrastructure and logistics of the target market will have a big influence on the success of a start-up. Are there adequate roads, ports or railways for transportation and shipment? What is the internet, telephone and mobile phone coverage like? Is there enough power to keep the lights on and devices charged? All of these factors will determine just how easy it is to do business in the nation.
- Law and Order
The legal and regulatory environment of the target country is a key deciding factor. It is important to understand the laws that govern the setting up and running of a business. Property rights and contracts between consumers and businesses must be enforced, whilst shareholders need to be sure their investments are safe and secure.
- Labour Force
The labour force is an important factor to consider when setting up a business. Is there a sufficient amount of skilled workers? Will it be easy to find people for specialist roles? Is the population well-connected to the rest of the world? All of these factors will determine how easy it is to source the right talent for your venture.
All countries have their advantages and disadvantages when it comes to starting businesses, but the ones mentioned in this article stand out from the rest. Whether you choose to locate your business in Singapore, the UK, Canada, the US, Hong Kong, Australia, Ireland, Sweden, Switzerland or the Netherlands, make sure to keep in mind all of the factors discussed in this article. With the right planning and preparation, you can make your start-up a success regardless of where you choose to base it.
