Factors to consider
You should get informed about a series of factors that are going to affect the profitability of businesses in certain locations. These factors are highly important for entrepreneurs that plan to launch a business in a specific place. See if the location you choose respects the following criteria:
Accessible financing
Does the country offer accessible financing? Are the regulations formulated in such a way that starting a business is easy and efficient? Find answers to these two questions and things will rapidly escalate. Businesses that offer accessible financing are the top choices of entrepreneurs who don’t want complications in this journey.
HR availability
Human Resource is a factor that can influence your future company’s profitability in a visible manner. The lack of people who are interested in finding a job in the industry that you choose for the company will lead to bankruptcy. See if the community in the location you chose for your future business is eager to find jobs in this industry.
Educated workforce
Moreover, if your company is part of an industry that requires higher studies, make sure that the target audience in the place you select is educated enough to apply for a job position in your firm. Without an educated workforce, your future company won’t be successful.
Labor costs
Are the labor costs way too high for you to afford? The average salary in the location you selected is higher than what you initially planned to offer? Then you might want to reconsider the location you chose. In many cases, labor costs will influence how much money the company generates at the end of the month. Choose locations with acceptable labor costs.
Industry variety
If a location is based on one or two industries as its main sources of profit, coming up with a business that is related to an entirely new field can be risky. There are 50-50 chances to become profitable or to reach bankruptcy. It all depends on how the community perceives the diversification of the industries presents here.
The best locations to start a business
This is a list with the best locations for entrepreneurs to start their businesses, considering the factors mentioned above and several studies that assessed the situation.
The UK
The United Kingdom was always a top choice among entrepreneurs. There are no barriers here when it comes to starting a company here. Last 10 years, the UK worked for attracting more investors into the country. The regulations and laws there encourage people to invest their money into startups here. According to A1 Business, launching a business here should not take long. The barriers are lowered and the opportunities are numerous.
- Netherlands
Exploring the commercial market in the Netherlands made people classify it as one of the top choices in terms of starting a business. Even though the economic condition of Netherlands has been a hot topic of discussion during the past few years, it seems like the country has the exact financial schemes that people need in order to start profitable companies here. The only downside would be the difficult language, which is pretty hard to study.
- Canada
It’s well-known that Canada is one of the world’s paradises in terms of finance. Starting a business in Canada is rapid and efficient. Once you get a working visa for Canada, all doors are opened and the benefits are not limited to native inhabitants only. Immigrants can start their own profitable business without stumbling upon harsh regulations. More than that, Canada encourages immigrant founders to invest here.
- Denmark
Denmark is in the same situation as Netherlands. Nordic countries seem to gain popularity among entrepreneurs. There is a wide range of benefits that recommend Netherlands as a place to do business. First of all, the entrepreneurial ecosystem of this country encourages collaborations, partnerships and pitch competitions. The industry clusters encourage emerging companies to join the market, and the public system emphasizes the interaction between businesses. The livability in Denmark also recommends it as a place of the future for business owners.
- Singapore
A Singapore company formation might be the best choice for people who are looking for a gateway to the international market. The flexible work culture in Singapore can help any entrepreneur upgrade the way they set work hours and wages. It is a strategic location that people who want a business-friendly ecosystem should choose at any given point. Planning to do global business? Do it here.
The worst locations to start a business
From an opposing point of view, here is a list of the least recommended locations for entrepreneurs who want to launch a successful business on the market, as soon and convenient as possible:
- Venezuela
The Venezuelan state has set several regulations that make it impossible for people to run successful businesses there. There are more than 15 procedures that need to be handled before launching a business here. Electrical connections are troubling, as well as obtaining construction permits. Banking and the bureaucratic system are also extremely difficult to handle and time-consuming as well.
- Yemen
The war in Yemen is the major cause of why investors should stay away. The infrastructure of the city is crumbling. Yemen was the victim of bombing campaigns coming from Saudi Arabia and the coalition it is part of. The military issues in this area transform it into a risky ground to do business. The same goes for Afghanistan and Libya.
Considering all of the above, decide for yourself what is the best choice for starting and running a business. The conditions of each state can influence the way a company progresses in time, so don’t get fooled by a quick set of procedures for starting a business only. Look for the bigger picture – see how businesses are doing after years in the respective state. Gathering information about this topic should help you make the correct decision. Ask for advice from businessmen who already tried to start a business in these locations and see if they are happy with their companies’ statuses.
