As an entrepreneur, there are times you feel like extending your business or brands to other countries in the world. There are some tips you should check to discover the best and worst countries for your business. Some business types may thrive well in a particular country because of these factors and may fail in another country. You also need to check the ease at which business necessities are acquired like registration, electricity, political affairs, etc. I have made a deep research and discovered these best and worst countries for different types of business.
Benefits of Starting a Business Abroad
There are different ways to start a business abroad. You either open a new business over there, or extend a business or brand you have already established in your home country. In either ways, there are many benefits.
The first benefit is international recognition. This adds extra credibility to your business or brand.
Another benefit is to enjoy a better government incentive. Some entrepreneurs are attracted to some countries because of some incentives and favourable policies in those countries. Some of these incentives are more friendly tax system, availability of business grants, etc. With all these incentives, your business will have a wide chance of survival.
You might also want to start a business in another country in order to get a wider market for your products. These are some of the benefits, among others.
Tips to Help you Choose the Best Country for your Business Line
According to World Bank’s 2019 Doing Business report, there are 11 indicator set that must be checked before concluding on starting your business in any country in the world. These indicator set will help you know the country that gives you the best answer to these questions:
- What are the procedures, time, cost and paid-in minimum capital to start a limited liability company in that country?
- How easily can you deal with their construction permit?
- What are the requirements to having access to electricity in that country?
- Can you easily register your properties and what are the requirements?
- What are the policies guiding their credit information system (access to loan)?
- How fair are the minority investors treated? Do they have full possession of their right?
- What percentage of income is paid as tax and at what interval?
- Can you easily import and export goods, both finished goods and raw materials?
- How do they judge commercial disputes?
- In terms of resolving commercial insolvency? How long does it take and what is the cost?
- What are the market regulations guiding sellers and buyers?
According to Digital, the economic indicators you should consider when choosing a foreign country to start a business are:
- Gross Domestic Product (GDP): The market value of all goods and services produced within the country; both from citizens and foreigners.
- Consumer Price Index (CPI): A measure of how often prices of goods and services change in the country.
- PMI Manufacturing and Services: This tells you how healthy the manufacturing sector of the country is. This is a very important indicator, especially for business purposes.
- Employment Indicators: Reveals the rate of unemployment and also tells you the percentage of people that are employable.
- Central Bank Minutes: Tells you the type of financial policies the country’s Central Bank implements.
- Other Indicators are: Population and GDP per capita (PPP – that is Purchasing Power Parity), etc.
10 Best Countries to Start a Business as an Entrepreneur
According to US News, here are the best business countries in 2020:
- GDP: $505 billion
- Population: 69.4 million
- GDP per Capita (PPP): $19,484
- GDP: $354.3 billion
- Population: 31.5 million
- GDP per Capita (PPP): $31,311
- GDP: $13.6 trillion
- Population: 1.4 billion
- GDP per Capita (PPP): $18,116
- GDP: $364.2 billion
- Population: 5.6 billion
- GDP per Capita (PPP): $101,387
- GDP: $2.7 trillion
- Population: 1.4 billion
- GDP per Capita (PPP): $7,859
Other Good Countries
10 Worst Countries to Start a Business
According to World Atlas, some of the causes of the poor ranking of these countries are: insecurity, poor economy, political instability, etc. Here are the worst countries to start business in the world:
- Central African Republic
- Democratic Republic of the Congo
- Sierra Leone
You now know the best countries to start a business as an entrepreneur. The ranking factor may slightly differ from that of another site. We based our ranking on ease of access of capitals, manufacturing costs and the people’s standard of living in those countries.
Money has always been a limiting factor, especially for young entrepreneurs. Business grants are the easiest ways to raise business capitals.
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