Which country is best for starting a small business?

The country where it is easiest to start and run a business is not necessarily the largest economy.Every year, the United Nations’ World Bank Group, an international financial institution that provides capital project loans, grants and other resources to low- and middle-income countries, releases Business environment in 2020 The report specifically studies which country/region is best for starting a small business. The ranking is based on 10 key indicators and examines 190 countries/regions around the world:of

  • Start a business
  • Apply for construction permit
  • Get power
  • Registered property
  • Get credit
  • Protect small and medium investors
  • Pay taxes
  • Cross-border trade
  • Execution of the contract
  • Resolve bankruptcy

If you are starting a business and want to know your overseas options, here is a list of the top five countries that are easiest to do business in 2020 and why these countries lead the World Bank Business environment in 2020 List.

Key points

  • The World Bank Group publishes its “Business Environment” report every year, ranking the best countries for doing business based on 10 key indicators.
  • In 2020, the top five countries most suitable for starting a business are New Zealand, Singapore, Hong Kong (China), Denmark and South Korea.
  • According to the 2020 report, although sub-Saharan Africa and Latin America are generally lagging behind, in the past year, 115 countries have easier business operations; no country in Latin America is in the top 50.

The 5 best international countries for entrepreneurship

1. New Zealand

New Zealand has become the business-friendly economy for the fourth consecutive year. The country received the highest score for “starting a business,” which measures the number of steps an entrepreneur needs to start and officially operate a business, as well as the time and cost required to complete these steps. It also ranks first in the “acquired credit” indicator that measures the strength of the country’s legal rights and the depth of credit information.

The country also ranks among the best in property registration (second place) and protection of small and medium investors (third place). Thanks to the simplified online process, it only takes about half a day to start a business in New Zealand-this is the shortest time in the world.

2. Singapore

Singapore has maintained its ranking as the world’s second-most business-friendly environment. Among them, China ranks second in terms of contract enforcement and third in terms of protecting small and medium investors. Singapore also ranks high in terms of entrepreneurship (fourth) and building permits (fifth).

Recently, Singapore has also simplified construction permits by improving risk-based inspection methods, increasing public access to soil information, and making it easier to obtain construction permits.

3. Hong Kong (China)

Hong Kong, a special administrative region regarded as part of China, has been at the top of the list in recent years. It ranks first in processing construction permits, second in taxation, and third in ease of access to electricity. The reforms of the past few years have made it easier to start a business in the following ways:

  • Cancel the requirement for company seal
  • Improve access to credit by using a modern mortgage registry
  • Make the company’s tax payment easier and lower cost
  • By simplifying the process of reviewing connected applications and installing meters, getting electricity becomes easier.

4. Denmark

Denmark is the fourth easiest country to do business. It ranks highest in cross-border trade (first place), fourth in handling construction permits, and sixth in resolving bankruptcies. The report pointed out that Denmark has reduced the cost of processing building permits by abolishing building permit fees.

In addition, Denmark recently “reduced the minimum paid-in capital requirement for domestic limited liability companies from 50,000 kronor (7,470 USD) to 40,000 kronor (5,975 USD).”

5. South Korea

The Republic of Korea ranks first in terms of contract enforcement and second in terms of access to electricity. Other areas of strength include: obtaining electricity (second place) and executing contracts (second place). In recent years, the country has made some progress, making property transfers easier and strengthening the protection of minority investors.

Overall, in South Korea, it only takes 13 days to connect to electricity, while it only takes 161 days to obtain a road maintenance contract.In this island country, everything is for efficiency: it is also the fastest economy after communicating bidding opportunities, collecting bids, opening and evaluating bids, finally signing the contract, and authorizing the start. It is also the fastest economy to award public contracts in just four months Work.

Bottom line

According to the World Bank report, the five countries listed are the easiest places to do business in the world Business environment in 2020 Report. The report also pointed out that in the past year, 115 economies around the world made it easier to do business, with the most significant improvements coming from Saudi Arabia, Jordan and Togo. By region, the ease of doing business in sub-Saharan Africa and Latin America still lags behind; in fact, no country in Latin America is in the top 50.

In the list of the most suitable countries/regions to conduct business, the top 10 are the following countries/regions:

  • United States (sixth place)
  • Georgia (seventh place)
  • United Kingdom (eighth place)
  • Norway (ninth)
  • Sweden (tenth place)

At the other end of the ranking are Libya (186th), Yemen (187th), Venezuela (188th), Eritrea (189th) and Somalia (190th).

Entrepreneurs play a vital role in any economy. Individual economies can increase investor confidence and growth by implementing measures that make it easier for entrepreneurs to conduct business. From the perspective of an entrepreneur, starting any business is challenging enough. It makes sense to consider these countries, which makes starting a business and running a business a bit easier.

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