The idea of creating and consolidating startups remains more relevant than ever, and even more so nowadays, when young people are eager to develop technological projects that meet new needs. However, what is the real panorama and which country is best suited to jump into the ring and start a company.
(See: What are the best ideas for starting a business according to artificial intelligence).
To answer this question, the Utility Bidder team has developed the ‘Business Country Index’ to identify the best countries. In addition, the starting point of the report was the OECD countries, the results of the Global Innovation Index in 2023, as well as a series of data on startups, population and inflation, among others.
Among the findings, it was highlighted that today Colombia is among the 10 OECD countries with the lowest rate of business creation: one new start-up per 100,000 inhabitants. Mexico tops this list with just 550 companies, which is just 0.4 new companies per 100,000 residents.
Costa Rica is close behind, with only 24 new companies, which translates to 0.5 per 100,000 inhabitants. Japan is also in second place with 608 new companies, equivalent to 0.5 per 100,000 inhabitants. Fourth, both South Korea and Turkey register only 0.7 new companies per 100,000 inhabitants.
On the contrary, The United States stood out among the OECD countries with the highest number of new companies per 100,000 inhabitants. There are 77,071 new firms in this country, equivalent to 22.6 per 100,000 inhabitants.
However, only 76.8% of them survive the first year, the seventh lowest rate of any country.
Another fact that attracted attention Colombia reported the highest corporate tax rate among OECD countries at 35% in 2022/23, while Hungary it has the lowest rate – only 9%.
But while the Utility Bidder report showed failure when it comes to setting up companies, it also highlighted countries “which best reflect the entrepreneurial spirit.”
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According to the report, the OECD country that stands out is Switzerland, which received a business score of 8.51.
That is why this country has a relatively high rate of 9.2 established enterprises per 100,000 inhabitants. 82% of all companies in Switzerland are still in existence one year after being founded. In addition, this country stands out because it has the third lowest corporate tax rate at 14.6%.
“Switzerland scores well on both the Trade Freedom Index and the Global Innovation Index with scores of 87/100 and 64.6/100 respectively. In addition, the country’s annual inflation rate is only 2.2%, which puts it in second place. “Switzerland receives an average of just under €104 per 100,000 inhabitants in foreign direct investment (FDI)” the report says.

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In second place was Sweden, which received a business rating of 6.99. According to data, 6.8 startups are created per 100,000 inhabitants in this country. In addition, 97.1% of companies still exist one year after their founding. The country’s corporate tax rate is 20.6%, which puts it in the middle of the list, just like Israel.
“Sweden scores well on both the Business Freedom Index and the Global Innovation Index with scores of 79/100 and 61.6/100 respectively. In addition, the country receives an average FDI inflow of more than 382 euros per 100,000 inhabitants. Sweden has an annual inflation rate of 6.9%.’ noted the Utility Bidder report.
Canada is third on the list with a business score of 6.89. The country has 9.8 new companies per 100,000 residents, the seventh highest rate, according to the report. It should be noted that 84% of all startups in the country continue to exist a year after their establishment.
This report also takes into account the OECD countries with the most commercial freedom, singling out Australia and New Zealand with a score of 90/100 in the latest Trade Freedom Index.
It should be noted that the index is formed taking into account two factors: the weighted average tariff rate and non-tariff barriers.
“Australia has strong trade links with the rest of the world and is a major supplier to markets in the Asia-Pacific region. The country currently has six Free Trade Agreements (FTAs) with other countries and eight more are under negotiation. New Zealand has three main trading partners: China, Australia and Great Britain.concluded the report.
(See: What is dropshipping and how this model drives business).
Inflation versus innovation
According to the report, the OECD country with the highest annual inflation rate is Turkey, at a whopping 51.2%, which is 33.5% higher than Hungary.
The inflation rate in the country reached its peak in 1980, when it rose to 138.71%. The lowest rate of inflation in Turkey was recorded in 1968, when it was -4.01%, meaning that average prices actually fell that year.
On the other hand, the most innovative country in the OECD is Switzerland with a score of 64.6/100 in the latest Global Innovation Index.
““The country received the highest score (89.2/100) in the category of institutions, which is related to aspects such as political stability,” the report says.
JOHANNA LORDOUI
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