Are you contemplating launching your business abroad? If so, read our in-depth guide to learn more about the most startup friendly nations in the world. The rise of digital technologies and cheap international transport options have allowed fledgeling start-ups to become more global in their outlook.
Thanks to globalisation, many of today’s entrepreneurs are looking to foreign countries as a base for their start-ups. According to the 2018 SVB Startup Outlook Report, nearly one-third of US start-ups report locating facilities or moving some aspects of operations offshore. If you’re thinking of starting a business abroad, then one of the first things you should research is the most start-up friendly locations in the world.
There are many factors that determine what makes a good startup friendly country. There are a lot of factors that determine what makes a good startup friendly country, and not all sources agree, but by the end of this article, you will know at least 10 countries that are a pro-new business.
What Are Some Advantages of Locating Your Startup Abroad?
· Access to a highly-educated workforce
· Lower overhead costs e.g. rent, labour costs, utilities
· Startup friendly government initiatives and tax policies
· Better positioned to penetrate international markets
· Tap into the local culture of entrepreneurship and innovation
· Avail of opportunities that are not available in your home country
What Factors Make a Country “Startup Friendly”?
There is a myriad of ways in which a country can foster a start-up friendly environment that attracts international start-ups. There are many differences from country to country in terms of corporate law, business environment, corporate tax and incentives, so it’s important to carefully research what each country has to offer.
Crossing borders can open up huge new opportunities for a new start-up, but an international move also comes with a lot of challenges so it’s important to ensure that you are making the right choice for your business.
Questions to Ask Yourself Before Relocating your Startup
· Do I need to open a new headquarters there or just a remote office?
· Does the country have a robust infrastructure (e.g. telecoms, roads, internet) and strong global connections?
· Look into whether the country has a proven track record of producing successful start-ups.
· You should also check if there is a strong culture of entrepreneurialism.
· Is this area well-known hub for your chosen industry? For example, Zug (a.k.a. “Crypto Valley”) in Switzerland could be an excellent choice for cryptocurrency and blockchain start-ups.
· Check to see if there are supports in place for aspiring start-ups (e.g. accelerator programmes, networking groups etc.).
· Research if the country offers supportive government policy, tax incentives along with any other start-up programmes.
· Check to see if there will be opportunities to access to funding and VC investors.
· Make sure that the country is both politically and economically stable.
· Depending on your recruitment needs, you may need to research the local availability of a skilled and educated workforce. For example, as tech company would probably require access to tech talents such as web developers and software engineers.
What Are the Most Startup Friendly Nations in the World?
A 2019 report from US News states that the ten best countries in which to start a business are:
- United States
- United Kingdom
- South Korea
If you are interested in learning more about start-up ecosystems in these start-up friendly countries, then you should take a look at the infographic below from Hansen and Company. This super useful guide looks at the unique combination of factors that have contributed towards the development of a world-class start-up scene.
The graphic also includes some examples of the most notable success stories from each country. Take a look at the infographic guide underneath to find out about the most start-up friendly nations in the world.