Ranking of Top Countries to Start a New Business: United States Ranks Fifth Worldwide
By: Larry Gigerich – Managing Director, Ginovus
The research examined over 180 countries and focused on several key areas that affect the launch of new companies as well as which countries have created the best environment for entrepreneurism. Information from the Small Business Administration, Global Entrepreneurship Monitor, and the World Bank was utilized to complete the report.
Several common themes emerged that impact the success of these locations — access to capital, attitudes towards entrepreneurs and types of businesses launched. Below please find the list of top 10 countries for starting a new business.
1. Singapore
2. New Zealand
3. Hong Kong
4. United States
5. United Kingdom
6. Denmark
7. Ireland
8. Canada
9. Australia
10. Norway
Many countries have done a poor job of creating a dynamic environment to start new businesses. Issues such as access to capital, regulatory approval time, procedures required to launch a new venture, and mentoring of male and female entrepreneurs conversely affect the success of a business start-up . Below is a list of the 10 worst countries to launch a business.
1. Niger
2. Eritrea
3. Burundi
4. Venezuela
5. Chad
6. Republic of Congo
7. Sao Tome and Principe
8. Guinea-Bissau
9. Democratic Republic of Congo
10. Central African Republic
Countries such as; Denmark, Canada, United States, Sweden and New Zealand score high on the list of countries that reflect the best attitude towards entrepreneurs and small businesses. Positive regulatory environments can be found in New Zealand, Australia, Singapore, Belgium and United States. The best locations for access to capital include Netherlands, Denmark, United States, France and Japan.
At the other end of the spectrum, countries such as; Uganda, Malaysia, Russia, South Africa and China score very low on access to capital. Suriname, Haiti, Brazil, Indonesia and Spain rank low on the speed of the regulatory process. Some of the poorest attitudes towards entrepreneurs exist in countries such as; Uganda, Philippines, Guatemala, Syria and Bolivia.
The Wall Street Journal’s study confirms what many others have said over the years. When cities, states and countries do a good job of reducing red tape, mentoring young entrepreneurs, providing incentives to encourage capital formation and exhibiting positive attitudes towards entrepreneurs, they enjoy economic growth. While economic conditions can impact the development of new businesses, if a country has the right infrastructure in place to support entrepreneurs, they will enjoy long-term success and the creation of wealth.
Let’s hope that the countries that have led the way in the development of new entrepreneurs will continue to look for ways to enhance their environments to foster more economic growth and the countries that rank lower on the list, will innovate and begin providing meaningful support to its entrepreneurs. For the globally economy to succeed and wealth to be created for many more people, all countries must commit themselves to supporting entrepreneurs and small businesses.
