A startup is a small business with a potentially bright future (over 1000 × the invested amount). It is a company that invests time, resources, and labor into a product it believes in. This product can be a new idea, technology, or an innovative service like www famousparenting com. Startups typically fail (9 out of 10), but those that survive often have a transformative impact.
Every day, business owners launch an average of 150,000 startups. That’s a lot of competition and activity, although statistics show that running a business before launching a startup increases one’s chances of success.
When choosing the best country to establish a business, factors like labour laws, economic stability, political stability, tax system, and cost to register are important to consider.
Kate Richardson is a recognized expert in online businesses and startups. Based on all these factors and others across various sectors, Kate has selected the best countries to start a business.
Leading Countries to Start a Business
Fun fact: 60% of startups begin from home.
Starting and operating a startup is risky, but the potential reward is life-changing. While there are many factors to consider, the country also determines the success of that venture.
Historically and statistically, these are the best countries in the world to start a business:
United States of America
In the words of Steve Jobs, “I’m convinced that about half of what separates the successful entrepreneurs from the non-successful ones is pure perseverance.”
Based on total startup output (TSO), no other country outranks the United States. For context, the total startup output measures startups’ collective performance and impact on the country’s economy. The TSO, in turn, reflects how well a startup or new business will perform.
The US has a smaller population size compared to China, yet it is the capital for startups. Perhaps it’s because the US is highly capitalistic.
Silicon Valley, the hub for technology, a highly skilled workforce, and the United States government’s favourable tax are some advantages of setting up your business in America.
Silicon Valley has over 1000 investors, with outstanding ones like Y Combinator, the world-leading startup incubator and venture capital company, offering $500,000 for 7% of startup equity. Over the years, it has invested in companies like Airbnb, Uber, CoinBase, DoorDash, and over 5000 other successful startups since 2005.
The US is one of the ten best countries in which to register a company because much of the focus is on individual rather than corporate tax. Instead of threatening a startup’s existence, the corporate tax rate secures and protects it. An Limited Liability Company (LLC) is also popular among startups for its flexible tax structure and the protection it offers to owners’ personal assets. However, it’s important to understand state-specific requirements before registering, as these can vary. For example, forming an LLC in Texas involves a filing fee of around $300, whereas in Arizona, the filing fee is generally lower at about $50.
There’s also a prevalence of tax relief, incentives, and grants for startups. This explains why it’s 6th out of 190 economies in the 2020 world bank’s ease of doing business index.
India
Statista reports that 1.2 billion out of 1.4 billion Indians used the web in 2023, and there are nearly as many mobile phones and smartphones as those with internet access.
In India, there’s a total startup output of 385,565. This indicates it is indeed favorable for online businesses and startups. In 2020, India jumped 79 positions from 142nd (2014) to 63rd (2019) in ‘The World Bank’s 2020 Ease of Doing Business Ranking.
India has a relatively low cost of living. This factor, plus a high population combined with significant internet access and cheap labour, reduces the odds of failing. Also, most of its demography comprises young adults or people under 35, making India an ideal market for tech products and innovations.
Finally, Digital payment platforms like UPI ensure consumers can seamlessly enjoy innovative services like e-commerce without toppling the balance. This has influenced the growth of tech hubs like Bengaluru, Hyderabad, and Mumbai, spearheading the rise, acceptance, and rampancy of technology in India.
United Kingdom
There are more than 5 million startups in the UK. Universities in the UK do renowned research that serves as the bedrock for great start-up innovations, especially in artificial intelligence. An example is GoAlpha, which developed one of the foremost Generative AIs in the world.
You can consider a place like the United Kingdom to maximize the potential to serve local and international customers. In terms of total startup output, the UK records a whopping 385,112.
Its workforce is highly-skilled, and the government protects the entrepreneur’s interests. The UK is a great business environment because you can register or incorporate a company without breaking the bank. The world bank ranks the UK 8th in the ease of doing business amongst the 190 economies
Despite a relatively low population, the UK boasts intelligent and skilled people in finance, technology, and healthcare.
Canada
Fact: the most valuable unicorn in the world is Bytedance, TikTok’s creator. It’s worth $225 billion.
Canada’s TSO is 189,175, thanks to unicorns like Shopify and thriving tech hubs like Toronto, Montreal, and Vancouver. Starting a business in Canada could be worthwhile because of the country’s policies as well as proximity to the US market.
Under certain circumstances, foreign investors get a 0% tax rate, while everyone participating in commerce gets a reasonable corporate tax rate. In addition, Canada’s Startup Visa Program offers permanent residence to foreign entrepreneurs. This government incentive reinforces that Canada is best for new businesses looking to thrive despite existing competition.
Canada has a relatively stable and strong economy, and English is widely spoken here. The country boasts a business-supportive and oriented government, which means easier access to grants and subsidies.
Germany
2% of the world’s unicorns come from Germany. It is the best place to start a technology-geared business because the country adopts new technologies fast. The Berlin Startup Hub and the government’s High-Tech Grunderfonds are other pillars in the German startup community.
Germany is a member of the European Economic Area, has consistent and profit-geared gross domestic product, and an overall supportive infrastructure. You get electricity, fast internet, reliable and efficient logistics and transportation systems, and the government’s support.
Germany has some of the most skilled workers in fields like engineering, technology, and research and development. The workplace culture is admirable because of its flexibility and undeniable efficiency.
Australia
Did you know that Canva is an Australian unicorn? Currently, Australian startups are valued at $100 million+, while the country’s TSO is 88,259.
Startups in Australia thrive because the country has a stable economy. In Australia, more than 50% of the population holds an advanced degree. The government’s policies towards startups and businesses are also generally friendly.
By setting up a new business in Australia, you can access Asia-Pacific markets thanks to the country’s strategic positioning.
France
According to Mark Zukerberg, Facebook’s founder, “the biggest risk is not taking any risk…In a world that’s changing really quickly, the only strategy that is guaranteed to fail is not taking risks.”
France is a strategic location for startups because of its business-friendly government and environment. The access to grants and tax credits, an intelligent and optimized workforce, and technological advancements make this country a worthy option.
International expansion, the ultimate goal of most startups, is possible in a country like France. This is because of its affiliation with the EEA, which provides more accessible access to the European market and international recognition.
A lot of research and development goes on in France. Therefore, it has the ideal population and demography for new ideas, potentially risky businesses, and innovative ways of doing things. So far, 0.2% of unicorns are France-based.
Spain
This country may have a high unemployment rate, but it is still one of the best places to start a business. As a European Economic Area (EEA) member, starting a new company in Spain would afford the opportunity for global business expansion.
Government startup policies like tax and labor laws are there to encourage new businesses. After the new startup laws passed in 2022, the new investment-friendly landscape saw the startup market skyrocket in value and activities.
Investing in Spain has many benefits, including access to the Latin American market, advanced ICT access and incorporation, and an intelligent workforce. Spain also has over 80 science and technology parks, among other tech-oriented infrastructures.
Brazil
There are more than 200 million people in Brazil. More astonishing is that less than 3% of the Federal district’s population has no education at all. By implication, Brazil has an intelligent workforce and a rising middle class.
Combined with the determination of cities like São Paulo to bring technology to the fore, Brazil is a great investment location for online businesses and startups. The Brazilian government further makes room for the growth of startups through tax-friendly initiatives, grants, and incentives.
Singapore
Singapore has one of the world’s largest economies, apart from being among the wealthiest countries globally. It consists of many business people and accounts for 53,571 total startup output.
You get a good GDP, political stability, a great cost of living, and a friendly business environment. Furthermore, it takes three days to set up a new company in Singapore.
Singapore also has four official languages, is technologically advanced, and offers some of the best tax rates in the world of business. In addition to all these, the advantage of a strategic location and world-class infrastructure favor startups. The country’s opportunities range from tech innovations to industries like entertainment and online services.
For instance, if you’re interested in the growing online betting industry, you can explore options like the Asian bookies listed at MightyTips. The items on this list highlight Australia’s expanding market for digital businesses.
Global Business Expansion: Factors to Consider When Choosing the Perfect Place to Start a Company
To increase your chances of success when starting an online or brick-and-mortar business, Kate recommends putting these factors at the back of your mind:
Market Size and Demand
The market size and demand for your services or commodities should be at the forefront when looking for a place for new company registration. You should consider the idea’sTotal Addressable Market, Serviceable Addressable Market and Serviceable Obtainable Market (TAMSAMSOM). Your target country should have a solid customer base for what you’re selling or introducing.
Ease of Doing Business
Although some countries may be a great place to launch your online business, factors like bureaucracy and legal regulations can get in the way. Before establishing a base, check out the ease of doing business index, government’s stance on entrepreneurship, and the country’s reputation for bureaucracy.
Access to Funding
There are different ways for a startup to raise capital. They include:
- Bootstrapping
- Government grants and incentives
- Crowdfunding
- Angel investors
- Venture capital
- Bank loans
You need a place with a strong investment network to maximize your growth opportunities.
Cost of Living
Remember, you’ll invest in office spaces, labor, and utilities. A location with a lower cost of living is generally better for a new business.
Infrastructure and Technology
Factors like internet speed, transportation, and utilities contribute directly to a startup’s success, especially online or tech-based. Developed countries like the US, UK, Germany, Singapore, and France are renowned for their futuristic incorporation of technology and ICT infrastructures.
Government Policies and Incentives
You want to invest in a country that has fair policies and incentives. Tax breaks, grant subsidies, and other inputs from the government can make or break a startup.
Global or International Accessibility
If you have a global ambition for your startup, you might consider setting up a shop in one of the European countries. Thanks to its association with quality logistics and trade agreements, the EU is a fool-proof way to fast-track success and awareness about your business.
In Conclusion
The world has been a global village for more than two decades. This provides immeasurable opportunities for businesses and entrepreneurs to expand their ideas beyond physical restrictions.
You can now set up a business abroad thanks to the internet. However, you want to make informed decisions about your most strategic options to maximize your returns.