Not every country has the infrastructure, environment, and government policies necessary to produce an environment that is suitable for entrepreneurial endeavors. That is why more and more business owners are looking abroad to start their companies; however, it can be challenging to determine the most suitable location for your office’s base.
Luckily, there is data to help you figure out the answer.
The Legatum Prosperity Index 2018 ranks the world’s countries according to nine pillars. One of these pillars is Business Environment which takes into account a country’s entrepreneurial environment, its business infrastructure, barriers to innovation, and labor market flexibility. For this reason, it is the most comprehensive data set to analyze if you want to know where you should start or expand your business.
To learn more, read on to learn about the five best countries for entrepreneurs to successfully build their companies in.
The United States clinches the top spot in the Business Environment pillar due to its high scores across all the sub-pillars such as Access to Credit and Labor Market Flexibility. Additionally, in recent years, the US has seen significant improvements in its labor market conditions.
That being said, despite overall improvements, the United States received a lower score than years prior in the Logistics Performance Index, which measures the efficiency of transporting goods into and across the country.
According to the 2018 Legatum Prosperity Index, last year, New Zealand had the easiest access to credit, which is essential for a flourishing entrepreneurial environment. What’s more, in addition to being awarded the second-best Business Environment score, New Zealand also takes the silver prize for the best country in the world overall thanks to its high scores in the Governance, Personal Freedom and Natural Environment pillars – making it a fantastic place to live, work, and play.
Similar to the United States, Canada is repeatedly ranked as one of the top countries in the world for its Business Environment due to its high scores in the sub-pillars of Access to Credit and Entrepreneurial Environment. However, its continuously decreasing Business Infrastructure score is cause for concern and must be addressed as soon as possible if the country is going to remain in the top five for this pillar.
The United Kingdom is ranked as one of the top countries in the world to do business. The island nation has high scores for Business Infrastructure and Investor Protections, and its Access to Credit is the highest in Europe. At least for this year, the UK’s Entrepreneurial Environment score continued to be strong, stable, and attractive to entrepreneurs from all over the world.
Unlike the other countries in the top five, Singapore has witnessed a significant amount of disturbance within its Business Environment scores which shows that just because a country is awarded a top spot, it doesn’t mean they are going to keep it automatically. In 2018, this Asian country kept its place thanks to a booming Entrepreneurial Environment and enhanced Labor Market Flexibility. That being said, in a similar vein to Canada, Singapore needs to pay attention to its Business Infrastructure – promptly.
While these five countries take the top spots, the fact is that in 2018, the Business Environment pillar saw the most significant one-year gain at a global level, as it rose in every region. In reality, the most notable 10-year growth has been in Asia, Sub-Saharan Africa, and Eastern Europe, mainly due to improvements in and a focus on their entrepreneurial environments. Out of all of these regions, Sub-Saharan Africa has witnessed the most considerable improvement in the ability to start your own company.
Are you considering starting a business overseas? Why or why not? Do you think that it is smart for entrepreneurs to take advantage of these emerging entrepreneurial hubs, or do you think it is better to remain at home and be a leader? Let us know your thoughts, comments, and any experiences you have in the comments below.