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Do you have plans to start a business or open a subsidiary abroad? Most of the time, this type of operation comes as a result of a partnership or market opportunity. But sometimes, it is simply about following your heart. If that is the case, you will certainly want to learn more about comparative studies of business and workforce criteria in different countries. Several different rankings of the best countries for doing business are compiled every year. You can find out more about them below.
Doing Business: the World Bank ranking
The World Bank Group’s highly rigorous “Doing Business” study evaluates the impact of regulations in different countries. It looks at whether regulations are favorable or not to business activities. The ranking analyzes concrete factors like the ease of starting a business, connecting to the power grid and obtaining a loan.
According to the 2015 Doing Business ranking, more than 2,400 regulatory reforms were put in place in 2014 to facilitate business around the world. Some have already achieved remarkable results. For example: 10 years ago, it took at least 57 days to start a business in Senegal. Today, future business owners only need to wait six days!
Among the 189 countries evaluated in the study, the Top 10 best countries for doing business are: Singapore (in the top position), followed by New Zealand, Hong Kong, Denmark, South Korea, Norway, the United States, the United Kingdom, Finland and Australia.
No single study is enough to determine your choice of a new country. But each can serve as a valuable tool to launch your own analysis tailored to your specific business activity. You can prepare your business using the tips provided in the BNP Paribas “Trade Solutions” portal, dedicated to businesses considering international development.
Global Entrepreneurship Index: the GEDI ranking
The Global Entrepreneurship and Development Institute (GEDI) ranks 120 countries based on their relative ease of starting a business in order to establish its annual Global Entrepreneurship Index. The ranking is based on a variety of criteria, such as the local population’s potential and aspirations, available infrastructure (including Internet access and international transport), the social context, etc. On the whole, the index presents a global assessment of the health of entrepreneurial ecosystems and is another essential decision-making tool.
Best Countries for Business: Bloomberg’s Top 20
The latest edition of Bloomberg’s Best Countries for Business, published in 2014, also analyzes the best countries in the world for doing business. The comparison ranks 157 countries on the basis of six criteria: degree of economic integration, cost of setting up a business, cost of labor and materials, cost of moving goods, cost of inflation and amount of corruption, as well as the health of its consumer base.
Hong Kong came in at the top of the ranking thanks to one critical advantage: the extremely low cost of starting a business. Next up is Canada, boosted by the receptiveness of its consumers (domestic consumption, per capita GDP, etc.). Then we have the United States, followed by Singapore. Tied for the fifth spot are Germany and Australia.
Bringing it all together
Though all three studies aim to rank countries based on their appeal for entrepreneurs, they each focus on different criteria. And they also give different results.
However, four countries appear in the Top 10 of all three studies: Singapore, the United States, the United Kingdom and Australia.
If you still have any questions or concerns, feel free to reach out to your contact at BNP Paribas. He or she will explain our Trade Development offer, which grants you access to different types of tools, from market studies to assistance from our 3,200 local market experts.
One Bank: experts located worldwide
With the One Bank for Corporates tool, BNP Paribas has gathered a range of expertise from around the Group, with the aim of supporting businesses in every aspect of our international development projects.
The result is a global network that brings together all 134 business centers located in 24 countries throughout Europe and 120 business centers in the United States, as well as the Group’s activities in 14 countries in Asia, South America and emerging countries in Mediterranean Europe. Are you setting up your business abroad? BNP Paribas is at your side throughout 80 countries, serving as a strong partner by enabling your business to benefit from our extensive knowledge of the local economic fabric!