July 1, 2022

RANKING | What are the best countries to start a business?

Company ranking |
What are the best countries to open your business in 2022? | Source: Getty Images

Location is an important criterion when it comes to setting up your business. Forbes unveils the ranking of the best countries to start your entrepreneurial adventure.

Among the factors playing a determining role in the success or the success of a company, the place is essential. Indeed, commercial rules differ from one city, state or country to another. The business climate, tax rate, and legal and regulatory requirements are all variables to consider. Ignoring these fundamental factors could spell failure for your new venture.

A new international study by UK organization Small Business Prices provides valuable insights into these key questions. However, this study does not provide all the answers. The ranking of the best countries to start a business from Small Business Prices is one indicator among many others.

This ranking is based on several parameters, including the number of new companies in 43 countries, the type of sectors in which they operate, the survival rate of companies and gross domestic expenditure on research and development. In light of all these parameters, Small Business Prices has therefore drawn up the following classification:

  1. United States
  2. The United Kingdom
  3. australia
  4. France
  5. Chili
  6. Italy
  7. Spain
  8. Turkey
  9. Mexico
  10. Germany

Other points of view

There are other rankings and resources to consider before deciding where to start a new business.

Forbes ranked 153 nations based on 15 factors: property rights, innovation, taxes, technology, corruption, infrastructure, market size, political risks, quality of life, labor work, freedoms (personal, commercial and monetary), administrative formalities and investor protection. Only countries with data covering at least 11 categories were selected for the final ranking.

According to this ranking, “despite all the talk about the potential of emerging markets, the developed economies of North America, Western Europe and Asia remain the best places to do business. »

The article also states that “Singapore appears to remain the most investor-friendly location in the world between 2014 and 2018, retaining its top spot from 2009 to 2013. Switzerland and Hong Kong also defend their second and third place. The rest of the top 10 is dominated by North America, Scandinavia and other developed Asian economies. »

This ranking is based on the results of a global opinion poll. Countries are ranked based on ratings from nearly 5,000 business decision makers in five categories: affordable country, bureaucratic country, country with cheap manufacturing costs, country connected to the rest of the world, and country with easy access to capital.

This index provides insight into the complexity of starting and operating businesses around the world. It analyzes key trends affecting three business areas: accounting and tax, global entity management and human resources, and revenue. Entrepreneurs can learn about several factors:

– Which are the most complex (or simplest) jurisdictions in terms of their business environment?

– Where and how are companies pushed towards responsible governance and increased transparency?

– How has digitization progressed to remove traditional processes during the covid-19 pandemic?

– Why the trend towards international alignment can come up against local complexities?

exercise caution

Exercise caution when seeking and relying on data and studies from different sources. For example, the report Doing Business of the World Bank ranks countries according to taxes, investor protection and administrative/bureaucratic formalities. In 2020, the World Bank stated that “irregularities in the data de Doing Business 2018 and 2020 were flagged internally in June 2020. World Bank management therefore paused the next report and initiated a series of reviews and audits of the report and its methodology. »

Other priorities

There are other priorities to consider when launching a new business: your expertise, your knowledge, your financial and other resources, your customer base, your growth potential, your distribution channels and the nature of the products or services you are going to sell.

That’s why Small Business Prices states, “If you want to build a business that will thrive and continue to succeed for years to come, then getting into the pharmaceutical (biotech) industry is the best way to go. »

Of course, not everyone can (and shouldn’t) get into a business, especially if they lack experience and expertise. Additionally, companies, industries, and countries that are hot or trending one year may take a back seat the next year. Whenever and wherever you decide to start a business, remember the importance of following sound business and financial advice and practices.

Article translated from Forbes US – Author: Edward Segal

<<< Also read: Ranking of cities where life is good and those to avoid: Paris is lagging behind >>>