New businesses drive the global economy and there are millions of entrepreneurs around the world who take the leap and launch a new startup each year. The benefits of a successful startup can be enormous but there is no riskier time for a business than in its first year with 20% failing during this time. Especially now, with the successful development of effective vaccines, there is finally a light at the end of the Covid-19 tunnel, and this means that new businesses will need to emerge to help repair the damage.
To see how the world is shaping up, here are the major countries that are leading the startup landscape.
Germany, one of the top countries for start-ups, is known around the world for its innovation and business acumen. In 2019, before the Covid-19 Pandemic hit, German startups raised a record $6.2 billion of investment capital. The success and proclivity of German startups are down to the high levels of education amongst Germany’s population, the country’s skilled workforce, as well as easy access to an enormous export market in the EU. By selling its products to the EU, Germany does not have to pay any tariffs or taxes due to EU law and so the products can be sold at a very competitive price.
The USA is still the biggest economy on the planet and with a population of 350 million people, there is a huge domestic market for new startups. There is very little regulation in the US compared to other Western countries and so starting a new business can be very cheap. This is also helped by the low costs of operating a business, including a low minimum wage in the country. The electricity cost in the USA is also dramatically lower than any other country on this list. This system is set up for potential entrepreneurs to try, fail and retry without sinking into debt that will hold them forever.
Japan is one of the most highly educated and tech-savvy countries in the world and this is the perfect environment for startups to thrive. The level of expertise and the technical knowledge of the Japanese population along with their incredible work ethic means that startups have an amazing pool of talent to draw from. In the earliest days of a business when funding and brand awareness are lacking, it is often the skill and dedication of the team which is the main driver of a startup.
Australia is similar to the US as it can cost relatively little to operate a business. Utility costs are lower than in Europe and the cost compared to wages looks very encouraging for entrepreneurs. This is due to a competitive market and the freedom to change plans via comparison tools like this. These tools enable startup owners to quickly compare the prices of multiple energy providers to get the best deal for their business. Australia is also very resource-rich, allowing clever startups to provide services to those mining and exporting raw materials.
Starting a new business can be an amazing experience and taking advantage of your country’s assets can give your startup a boost. By breaking down some key reasons why certain countries are leading the way for startups, one can decide whether it’s worthwhile to start in the first place – and where.
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