The Pandemic has made it extremely challenging for businesses everywhere in the World. Let’s not look at the bad side only, COVID-19 brought so many opportunities that smart entrepreneurs hurry to make use of.
Startups are now growing fast than ever before especially as the world is growing progressively more globalized. Therefore knowing the best countries to start a business is one of the key factors to a successful business.
One of the most important things for an investor or a future business owner to consider is the freedom to build your startup anywhere around the world. This has been made easy by modern software that makes it possible to run your business from anywhere in the world.
This has opened an opportunity for many entrepreneurs to look beyond the country they are currently residing and search for the best country to start their business.
We have come up with a list of the best 11 countries to start a business based on many important factors such as the stability of the economy, quality of the skilled and educated workforce, opportunities to get investors, and more. We hope this article will help you find a suitable option for your business idea and goals.
#1. Japan
Japan is one of the world’s most literate and technically advanced nations being the second-largest computer and telecommunications market in the world and also the world’s third-largest economy after the; US and China.
There is now a real ecosystem in Japan and startups are conducting business with one another. Government agencies in Japan such as the Ministry of Economy, Trade, and Industry (METI), J-Startup, and the Tokyo One-Stop Business Establishment Center (TOSBEC) are working tirelessly to promote nationwide innovation by providing financial and business support to startups and connecting them with investors.
Startups, venture capital, major corporations, banks, and other investors are dipping more money into inventive new economic drivers in Japan. Startup ecosystems are becoming more and more important in this shift.
The central and municipal governments in Japan have devised a regional strategy for fostering startup ecosystems. Right from Tokyo Japan’s capital city to Nagoya, Fukuoka, and the Kansai area centered in Osaka. Both public and private sector players have collaborated to help new firms thrive and connect.
#2. Germany
Germany is the most populated nation in the European Union and possesses one of the largest economies in the world. Its role in the international community has grown steadily since reunification.
It has one of the largest economies and is also one of the leading importers and exporters in the world. The services contributing the most amount to the country’s economy are Telecommunications, Health Care, and the Tourism sectors. The agriculture sector also contributes a lot to the country’s economy.
The country has recently built a flourishing start-up scene. Through the government’s “Digital Agenda 2020”, the eCommerce and IT sectors have begun to play a considerably larger role.
Berlin has become a home for innovative software businesses, web designers, and even marketers. Munich’s high-tech economy has embraced artificial intelligence and innovative manufacturing techniques while Frankfurt attracts a large number of finance entrepreneurs to the city.
The growth of online eCommerce has produced a new kind of entrepreneur. These entrepreneurs are highly skilled with most of them under 40 years operating in Germany’s largest cities are driving business development and are now becoming a primary priority for government support.
To adjust and welcome the new kind of entrepreneur, the German bureaucracy has been simplified, employment regulations have been altered to allow for flexible working, and subsidies for young entrepreneurs have been provided.
Foundations have also begun sponsoring research for breakthrough projects and venture capital is now blooming.
#3. United States
I bet you already know that the USA is full of more opportunities than any other place in the world but let’s put all these ideas aside and talk facts. One advantage of having your startup in the US is that you will be credited for economic progress, driving innovation and job creation.
Entrepreneurs have always helped drive innovation, job creation, and economic progress in the US.
For many years Silicon Valley has dominated the US startup ecosystem. Other towns like Austin, San Francisco, Los Angeles, and Miami now have their own startup ecosystems.
The Commerce Department in the US is at the forefront of some new initiatives aimed at securing America’s position when it comes to entrepreneurship. This Department leads the Presidential Ambassadors for Global Entrepreneurship program.
This program aims to bring together America’s top entrepreneurs to use their success stories and knowledge to mentor and inspire young people and start-ups across the US.
The Commerce Department also participates in the annual Global Entrepreneurship Summit, in which innovators meet and share best practices, learn from each other, and get to meet successful and aspiring entrepreneurs.
If you need an investment to start your business, the American market is the most attractive for finding business partners and investors.
#4. The United Kingdom
The United Kingdom is a very developed nation that contributes greatly towards international economic, political, and scientific development. The nation’s global influence originates from the British Empire, formed during the European colonial era and peaked in the early 20th century before embarking on decolonization following World War II.
Almost 98% of small firms in the UK fall into the private sector businesses, making them extremely important to the economy. This is all due to the entrepreneurialism of UK company leaders and start-up founders, who share creative ideas and SMEs that propel the private sector ahead.
Alternative finance options to entrepreneurs such as EIS and Secured debt funds have aided the expansion of the UK SME sector and have also provided enormous growth potential and returns for investors who choose to back innovative and vibrant companies.
SMEs are employing millions of people in the UK and the number is expanding at a rate three times faster than that of large enterprises.
#5. China
Entrepreneurship in China has been cited as a fundamental engine of the country’s rapid development. The country shifted from necessity-driven entrepreneurship towards opportunity-driven entrepreneurship.
China has risen to become the world’s second-largest economy in just three decades. Entrepreneurship is highly acknowledged as a fundamental engine of the country’s rapid development.
The country shifted from a need-based economy to an opportunity-based economy. The vast and homogeneous Chinese market provides an ideal testbed for ambitious businesses. The Chinese central government fosters high-level inventions and technological breakthroughs, leading to increased employment and economic growth.
#6. South Korea
South Korea is a country with a thriving economy and a very talented and sophisticated workforce you can hire. This country is one of the best when it comes to starting a business in 2022 due to its ever-increasing contribution to the global economy.
The most thriving industries in South Korea are the automobile sectors, technology, and steel. The country has become an economic powerhouse because of the rise in entrepreneurship.
The government has also increased its support for foreign entrepreneurs’ companies to expand the domestic startup environment and also assisting its own startups to go international.
If you are looking for a country that is good for you to start your business and get funds for the same, South Korea’s government and government-sponsored innovation funds are spending money on creative firms willing to operate in the country.
#7. Switzerland
Although Switzerland is not completely tax-free, it is a veritable tax haven for business owners and investors. It is strategically located in the heart of Europe, making it a good place to start your business.
Switzerland is politically and economically stable and it has proven its stability by getting through many global crises almost unscathed. In addition, it has very lenient policies for opening a business and also boasts well-developed industrial facilities and one of the best workforces on the planet.
You can get all you need to build your business in Switzerland. It is the best location for projects with a wealth of funding and also a good place for attracting investors. The country attracts Technological startups more as compared to any other startup.
Switzerland is good for both new and established firms. You can easily set up your business if you are a foreigner since the country has business-friendly legislation, excellent infrastructure, and political stability.
However, starting a business in Switzerland can be expensive, especially for startups, but it’s a good choice when balanced against the benefits.
#8. Canada
Canada is one of the best countries to open your start-up as a foreigner. It’s easier to have business relations with the US when you are expanding your business in Canada.
Running a business in Canada means you get the advantage of natural resources like gas, oil, and timber, get skilled workers, and easily access the US market. The country also maintains one of the lowest tax rates and a reasonably stable economy.
Non-profitable organizations and other communities in Canada play a big role in promoting the growth of the startup ecosystem in the country. This is done through their programs.
It also has a clean environment, modern cities, and a desirable quality of life. To get started as a foreigner in Canada, you first need to get a work permit. Canada Startup Visa is one incentive that encourages entrepreneurs to come into the country and create their businesses.
#9. Sweden
Despite Sweden’s militaristic roots, it has remained neutral in times of war for centuries. The country has a long history of encouraging entrepreneurship and innovation.
Its ability to innovate has been made possible by its long-term commitment to education and research. Through compulsory schooling for children between the age of 6 to 15 years old, the overall level of education among its population increased.
This was a key component in Sweden’s transformation from a poor agricultural nation to a successful innovation leader. The country has shown its dedication to research and development (R&D) by investing more than 3% of its GDP in R&D on average.
#10. Denmark
Denmark’s leading industries include Tourism, the Production of iron, steel, machinery, and food processing. Denmark has several main exports, including processed foods, agricultural and industrial machinery, pharmaceuticals, and furniture.
The country’s economy is based on the flexicurity model which combines a flexible labor market with a policy for the unemployed. This model allows businesses to establish inexpensively and even fast since there is scarce government oversight regarding matters such as terminations or work hours.
Although its corporate tax rate is 24.5% the income tax rate is among the highest in the world. Denmark is a member of international organizations such as the European Union, the United Nations, the Nordic Council, the Organization for Economic Cooperation and Development, and the Organization for Security and Cooperation in Europe.
#11. Singapore
Over the last two decades, Singapore has earned the reputation of being the fastest-growing business hub and also the best country to start a business. However, the country was affected greatly by the COVID-19 crisis putting all this progress at great risk.
The country’s economy relies on international trade, and therefore it dropped by many points due to the pandemic. The uncertainty in global supply chains is still affecting Singapore deeply.
According to experts, the effect coursed by the pandemic on Singapore will not last long since the country is already back on track to recovery and more growth. This means it’s still one of the best countries to start a business today.
What has helped Singapore recover was the adoption of a digitized economy. Singapore is built on digital innovation making it the best for this type of business.
A manufacturing business is also a good opportunity in Singapore. The pandemic brought a lot of changes in the world one of them being the growth in distrust in global supply chains. Now many corporations prefer bringing part manufacturing nearer.
Singapore is a very good choice for top-grade digital manufacturing to service a big part of Asia. The country’s political stability and its level of wealth contribute a lot to its resilience in the current crisis.
One big benefit of having a startup in Singapore is the absence of capital gains and dividend taxes. Being a digitalized country, you can even open a business through online services.
Conclusion
Your business idea might not be applicable in your country of residence but it might turn into a big and successful business in another country, maybe one of the countries mentioned above. Choose a country that perfectly suits your business idea and other factors such as investors.
In this era of globalization, you should not limit yourself as an entrepreneur. Explore and find the best place to start your business and grow it to greatness.
