New Study Reveals The 10 Best Countries For Startups

New Study Reveals The 10 Best Countries For Startups
Startups
  • The Czech Republic ranks as the best country for startups in 2023
  • The Philippines, Egypt, and India are considered the least favorable countries for startups
  • European countries are the best for quality of life and happiness, while Egypt leads the way for affordable living costs

February 2023: Starting a business can be a daunting task, and the choices entrepreneurs make early on can greatly impact their success. Securing funding and building a passionate team are already challenging enough, and the current economic climate makes it even more critical to choose the right launch location. 

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Business Name Generator has analyzed 50 countries to reveal the best places to launch a startup, looking at business tax rates, economic GDP growth, and the cost of startup procedures. The study also looks at country happiness, the cost of living, and quality of life to find out where is home to the most content employees, helping drive productivity and growth. 

The Best Country For Startups In 2023

The Czech Republic is ranked as the best country for startups in 2023, followed by Finland and Sweden

The Czech Republic emerged as the top country for startups. Its low cost of starting a business, with procedures costing just 1.1% of Gross National Income (GNI) per capita, combined with reasonable labor costs averaging $1,800, make it an attractive option.

Despite having some of the highest labor costs with an average monthly salary of $4,500, Finland still ranks second. The happiness of its citizens, the highest in the world, can have a favorable impact on business success.

Sweden placed third, with slightly lower labor costs of $4,300, but still relatively inexpensive start-up procedures at 0.5% of GNI per capita. However, business tax in Sweden is slightly elevated at 20.60%.

The top 10 countries for launching a startup:

Rank Country Business Tax Rate (%) Economic GDP growth (2022) Mean monthly salary (USD) Cost of startup procedures (% GNI per capita) Happiness score Quality of life score Monthly cost of living excl. rent (EUR)
1 Czech Republic 19.00 1.9 $1,800 1.1 6.97 163.0 $735
2 Finland 20.00 2.1 $4,500 0.7 7.84 189.9 $931
3 Sweden 20.60 2.6 $4,300 0.5 7.36 176.6 $881
4 Estonia 20.00 1.0 $1,200 1.0 6.19 171.6 $830
5 Slovakia 21.00 1.8 $1,550 1.0 6.33 149.9 $660
6 United Kingdom 19.00 3.6 $4,600 0.0 7.06 166.6 $865
7 Netherlands 25.80 4.5 $3,900 4.0 7.46 197.8 $977
8 Austria 25.00 4.7 $3,200 4.7 7.27 186.2 $965
9 Denmark 22.00 2.6 $5,900 0.2 7.62 195.1 $1,083
10 Portugal 31.50 6.2 $2,200 1.9 5.93 164.0 $626

The Least Favorable Countries For Startups In 2023

Philippines, Egypt, and India are considered the least favorable countries for startups

The Philippines is revealed to be the worst country in which to start a business. The cost of launching a startup is the highest among all the countries analyzed, totaling 23.3% of GNI per capita. Businesses are also taxed at a higher rate of 25%. 

Egypt comes in second place as the worst place to launch a startup.  Despite the availability of low-cost labor, India ranks lowest in terms of happiness and quality of life, with a score of only 3.81 and 118.4, respectively.

This could greatly impact job satisfaction, productivity, and overall well-being in the workplace. Additionally, the country’s 30% business tax rate may offset some of the savings gained from affordable labor.

Rank Country Business Tax Rate (%) Economic GDP growth (2022) Mean monthly salary (USD) Cost of startup procedures (% GNI per capita) Happiness score Quality of life score Monthly cost of living excl. rent (EUR)
1 Philippines 25.00 6.5 $850 23.3 5.88 81.8 $503
2 Egypt 22.50 6.6 $1,200 20.3 4.283 91.0 $273
3 India 30.00 6.8 $610 7.2 3.819 118.4 $317

This content was originally published here.