Economics

Countries Registering The Most New Businesses Per Capita

Currently, Hong Kong registers a higher new business density than any other nation on earth.

Hong Kong

The tax system in Hong Kong is favorable as taxes are relatively low, which attracts foreign investors. There is minimal interference by the government in businesses; as such, competition among businesses is highly encouraged. Hong Kong has ease of access to the airport, markets, industries, and the rest of the world due to its centralized location.

Malta

Malta operates a free market system, where prices are determined by the market and consumers; hence, there is no government intervention. There is an availability of good infrastructure such as communication systems and electricity which facilitate business operations. Malta also provides adequate security for foreign investors. In factors like rent, the cost of starting and operating a business in Malta is comparatively low.

New Zealand

New Zealand also operates a free market economy; businesses are protected by the government, but there is little to no interference by any authority. The low level of corruption in New Zealand also makes businesses thrive. Furthermore, the country's adequate infrastructure, especially in the field of ICT is a key contributor to starting and maintaining a business.

Estonia

Due to the fact that this is a Coastal region, there is unlimited access to trade channels such as ports, and this facilitates foreign trade. There are also qualified professionals that help to manage businesses for individuals and corporations after start-up. Due to the presence of good communication networks, entrepreneurs do not have to be physically present to conduct businesses in the region as businesses can be run from all parts of the Globe. Estonia's deregulation policy equally reduces government involvement in businesses.

Australia

Australia has transparent political and social policies which attract foreign investments. Business relationships are easily fostered due to the multicultural nature of the country, especially in the area of language. Business venture is also flexible in the sense that various forms of businesses are encouraged; whether sole proprietorship, partnership or joint business venture. This flexibility provides a wide range of ideas for entrepreneurs.

Cyprus

Cyprus has a favorable tax system, where taxes are relatively low. The country operates a free-market economy as well, hence the minimal bureaucracy involved in the business start-up. The presence of skilled and affordable labor facilitates entrepreneurship, as business owners can be assured their businesses are in good hands. Access to credit/loans for business in Cyprus is relatively easy.

Botswana

Botswana's economy supports all kinds of businesses; as such, anyone can own a business: rich, poor, young, elderly, etc., due to the highly diverse economy. There is also no VAT on imported machinery to be used for production. Botswana's tax system is simple thus making taxes predictable and relatively low. The country's investment in the area of ICT also aids the operation of businesses from anywhere in the world.

Latvia

The processes involved in registering a business in Latvia is easy and straight-forward, thus can be easily comprehended by both literates and the less-educated. There are also various policies such as laws which protect businesses and employees. Latvia's zero-tolerance for corruption eg., bribes makes the registration process less of a hassle. In addition, the cost of operating a business in Latvia is relatively low.

Singapore

Singapore's proximity to seaports and airports facilitates foreign investments and subsequently huge profits. The low tax system also makes starting a business less difficult. Furthermore, the policies required to start a business in Singapore are flexible: a person as young as 18 is liable to operate a business. It also takes a small amount of time to register a business in Singapore hence business establishment is not time-consuming.

Iceland

Access to finance in Iceland, in term of loans is easy, as commercial banks are operationally involved in lending. This makes capital readily available for business establishment. Competition among businesses in the country is also boosted due to the favorable tax system. In Iceland, entrepreneurs can register and operate their businesses from the comfort of their homes, and anywhere else in the world, due to effective ICT systems.

Countries Registering The Most New Businesses Per Capita

RankCountryNew Business Registration per 1,000 Working Age Residents per Year
1Hong Kong31.3
2Malta17.3
3New Zealand16.6
4Estonia16.1
5Australia14.9
6Cyprus13.7
7Botswana13.1
8Latvia10.6
9Singapore9.5
10Iceland9.5

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