Or entrepreneurs who decide to launch new business ventures can be as important as other factors in determining the success or failure of their ventures. Cities, states, and countries have different business climates, tax rates, and legal, regulatory, and other variable requirements that must be considered. Ignoring these fundamental questions could lead to a crisis for any new business.
A new international survey by UK Small Business Awards provides guidance on the “big picture” on this fundamental issue, but should not be considered the final word on the subject. Their list of the best countries for start-ups is not related to and should not be confused with lists of Forbes or other news outlets or websites.
The small business price list is based on several metrics, including the number of new businesses in 43 countries, the type of industries they are in, business survival rates, and gross domestic spending on research and development.
The top 10 countries that according to the Small Business Awards are the best for start-ups are:
- United States
There are other lists and resources to consider when deciding where to start a new business. They include:
Best countries for business according to Forbes (2018)
Forbes rated 153 nations on 15 different factors: property rights, innovation, taxes, technology, corruption, infrastructure, market size, political risk, quality of life, labor, freedom (personal, commercial and monetary), formalities administration and investor protection. Each category was weighted equally. They only included countries with data in at least 11 categories.
The UK ranked among the top 25 countries in each of the categories, with the exception of political risk where it ranked a few places lower. The United States came in at number 17.
He observed that “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, according to the latest environmental rankings. (BER) from The Economist Intelligence Unit.
“Singapore is expected to remain the most investor-friendly location in the world in 2014-18, maintaining its top spot from 2009-13. Switzerland and Hong Kong are also defending their second and third spots. The rest of the top ten are dominated by North America, Scandinavia and other developed Asian economies.
Their list was based on the results of a global perception survey. It ranked the countries based on the scores of nearly 5,000 business decision makers in a compilation of five national attributes: affordable, bureaucratic, cheap manufacturing costs, connected to the rest of the world and easy access to capital.
The index provides insight into the complexity of starting and operating businesses around the world. Their report analyzes key trends affecting three business areas: Accounting and Tax, Global Entity Management, and Human Resources and Payroll. According to the website, entrepreneurs can experience:
- Which jurisdictions rank as the most complex or the simplest based on their business environments.
- Where and how companies are being pushed towards responsible governance and increased transparency.
- How digitization has progressed to remove traditional processes during the Covid-19 pandemic.
- Why the desire for international alignment can come up against local complexities.
Be careful when researching and relying on data and research from different sources.
A good example is that of the World Bank To do business report that ranks countries taxes, investor protection and bureaucracy/bureaucracy.
In 2020, the World Bank stated that, “After data irregularities on Doing business 2018 and 2020 were reported internally in June 2020, World Bank management suspended the next To do business report and initiated a series of reviews and audits of the report and its methodology. Read it full statement published by the World Bank Group on the To do business report.”
Other priorities to consider when launching a new business are your expertise, knowledge, financial and other resources, your customer base, your growth potential, your distribution channels, and the nature of the products or services you will sell.
Based on other research it has conducted, Small Business Prices concluded that “if you want to start a business that will thrive and continue to be successful for years to come, then get into the drug (biotech) ) is the best way to go. .”
Of course, not everyone could or should go into this or any business based on optimistic predictions or assumptions about an industry, especially ones in which they have little or no experience or of expertise.
And companies, industries or countries that are hot or trendy one year may be out of date or difficult the next year due to current news, developments or events. Consider the impact of Brexit on the UK, for example.
No matter when or where you decide to start a business, remember the importance of following sound business and financial advice and practices such as those outlined on the US Small Business Administration.