If you are thinking about starting a successful startup that you can retire with, you should know that different countries have different attitudes towards startup businesses. This is important because many factors determine if a startup will become a success.
A great idea is an excellent place to start, but you will need skilled leaders paired with determination, motivation, innovation, and a talented workforce if you want to make it. On the other hand, there should be easy access to investments, support from accelerators and incubators, and a robust and well-developed infrastructure.
Finally, consider tax benefits for entrepreneurs and support from the government regarding taking on risks related to your project. All of these factors matter if you are searching for a startup-friendly country to do business in.
Here is the list of countries that offer the best initiatives and benefits for people willing to bring a startup business to them.
Japan
For the longest time, the Japanese job market has had a reputation for being conservative, old-fashioned, and risk-averse. However, this mindset is beginning to change, contributing to the rapid growth of a start-up ecosystem. In 2018, the Japanese government launched the ambitious J-Startup program, which aims to produce 20 unicorns or listed companies by 2023.
Experts posit that the country presents an enticing option for start-ups due to its sizable ex-pat community and its highly-educated workforce. What’s more, entrepreneurs are attracted to Japan because of its solid reputation as a global leader in innovation across several fields such as electronics and automotive engineering.
Germany
Germany has the fourth-largest economy in the world and the largest one in Europe. The country offers ample opportunities for innovative and aspiring ex-pats as English is spoken widely, making it easier to build multinational corporations and attract talent from across the world.
Germany offers favorable financing options and transparent business culture for successful startups. German companies are backed by the best global investors, such as Earlybird VC and Ciaran O’Leary.
Germany is an excellent choice for startups who wish to access international markets due to its multi-lingual workforce and its central location within Europe. Some examples of German start-up success stories include SoundCloud, Clue, and Trivago.
Switzerland
Ranked as the most innovative country worldwide in the 2017 Global Innovation Index, Switzerland boasts a long history of investing in research and development. The country benefits from a central location within Europe, making trade and recruitment easier for start-ups.
In recent years, the city of Zug has become a hub for cryptocurrency and blockchain-based startups such as Ethereum and Dfinity, earning it the nickname Crypto Valley.
With an unemployment rate of only 3.3%, a burgeoning economy, and a notoriously stable political climate, Switzerland is undoubtedly one of the best countries in the world for startups. Plus, it is a trusted and valued member of the EU, which opens up some of Europe’s most advanced and biggest markets for investors.
United Kingdom
Despite the instability triggered by Brexit, the UK is still a top location for new start-ups. Start-up businesses are attracted to the UK for its diverse talent pool and the ease with which you can gain access to venture capital funding.
The UK is home to 37% of Europe’s total unicorn companies. There is a wealth of talent to choose from, with 2.1 million people working in the British digital tech economy.
Start-ups in the UK benefit from the largest English-speaking population in the EU, easy access to European markets, and a highly-educated and technically-qualified workforce.
Additionally, the British government offers various tax-related benefits for founders, investors, and even employees, making the country quite attractive from a financial point of view. The UK also has one of the lowest corporate tax rates among the G20 countries. As such, it is quite appealing to business investors.
Canada
Canada enjoys extremely balanced bilateral trade with the US, which opens up a huge market for business investors looking to tap into the US through Canada.
The country has a very stable political climate, excellent health care, and a substantially skilled labor force. These make it a lucrative destination for business investors looking to take advantage of the service or industrial sector.
Canada offers a robust support system for entrepreneurs and startups with an abundance of events and initiatives. Canadian startups benefit from transparent business practices, an educated population, a well-developed infrastructure, favorable foreign exchange rates, Research and Development tax credits, and more.
When talking business, the thriving sectors include Artificial Intelligence, life science & health, fintech, big data, cybersecurity, gaming, blockchain, and analytics. Successful Canadian tech startups include Shopify, Kik, and Hootsuite.
Conclusion
With the Fourth industrial revolution in full swing, starting a business in foreign countries in this day and age is not as difficult as it was just a few years ago. True, there are still foreign regulations, taxes, and policies to navigate, but thanks to the free flow of information through the internet, these requirements are now easier to find and understand.
Just because you own a small company, that does not mean that you have to think locally. You can quickly expand and make your company a global brand. Although the challenges exist, the potential rewards far outweigh any impediments that you might come across.
