Startups are on the rise, and it would dismissive not to mention to “contribution” of the pandemic. In the United States alone, startups grew from 3.5 million in 2019 to 4.4 million in 2020 – an increase of 24 percent! It’s been said that economic crises can breed “creative destruction”, the process whereby the old ways are scrutinised and either done away with or reconfigured for the world in which we now find ourselves. Having said that, startups are nothing new and still require the same incubation factors such as innovation, a talented workforce, motivation, determination, aspirational leaders and of equal if not greater importance, a great idea. In addition to these startup-inducing attributes, there should also be well-developed infrastructure, easy access to investments, entrepreneurial tax benefits and government support structures. All these factors combined lend themselves to an ideal startup environment. With all this in mind, let us now take a look at the 4 leading countries for startup businesses.
- The United States
Success in America, or to conquer the American market is a dream of anyone who’s ever had business or commercial aspirations. The Beatles, Duran Duran, U2 and Depeche Mode conquered the US market when each was in its prime. Music analogies aside, the US is the leader in startup friendly countries and has a long history of entrepreneurship. It leads the world in tech, epitomised by Silicon Valley. Throw in its film industry, well-developed infrastructure, global connections, the dollar as a major reserve currency, good tax rates depending on the state, and you have world’s leading startup nation.
- The United Kingdom
It should come as no surprise that the two top spots are occupied by the world’s two strongest economies. The UK is renowned for its several tech and entrepreneurial startups. It’s also home to some of the most prestigious universities in the world such as Oxford and Cambridge and an eclectic pool of global talent. Its capacity to attract both local and global investors to fund startups is impressive, so much so, that almost 40% of European unicorns have their origins in the UK. Thus, it should come as no surprise to find UK start ups on FTSE100. Despite the uncertainly brought about by Brexit, the UK’s determination to establish and finalise new agreements means that it will enjoy continued startup innovation. Fanning the flames of innovation are its global connections, educated population, good infrastructure and the world’s largest body of English speakers.
Coming in at the number three spot is Canada, known for its vigorous support structure for startups and entrepreneurs, personified by loads of applicable events and initiatives. Canada provides startups with the ideal incubation chamber by way of an educated population, transparent business practices, good infrastructure, R&D tax credits, incredibly likeable foreign exchange rates and lots more. Canada sports a slew of innovative ecosystem hubs, namely Vancouver, Quebec City, Montreal, Ottawa and Toronto. The sectors driving the most innovation include life sciences, fintech, cybersecurity, big data, blockchain, gaming, artificial intelligence and analytics.
Where would we be without German innovation? What would become of our timekeeping skills without this nation? Germany is the fourth largest economy in the world and Europe’s largest. It’s only fair that the world’s leader in car manufacturing should make this list and come in at 4th place. Germany provides ample room for entrepreneurs to stretch their innovation muscles and it does this by way of a transparent business culture and appealing finance options. Adding to its startup appeal are its global connections, well-developed infrastructure and an educated and skilled labour force.