Top 3 Countries to Do Business In

top countries to do business in best nations startups

If you’re looking to invest in entrepreneurial ventures, then you can train your sights in doing business in these countries: the United States, New Zealand, and Canada. 

Land Of Milk And Honey 

According to the 2018 Legatum Prosperity Index, the above-mentioned countries are the top three areas where the business environment is alive and thriving. Among the 149 countries included in the global survey, these three have come out as victors when it comes to the favorable factors that affect its business setting. 

The Prosperity Index is an annual ranking that rates countries according to nine pillars or sub- indices. These pillars are: Business Environment, Economy, Education, Governance, Health, Natural Environment, Personal Freedom, Safety and Security, and Social Capital. Using insights gleaned from these studies, world leaders and policy makers can use the Index as a powerful tool to set clearer agendas and guidelines for national growth and development. 

One of the most critical factors in determining a nation’s prosperity is it Business Environment. Having a strong business environment proves that a country has a climate where entrepreneurs are enabled to nurture new ideas and pursue opportunities. These, in turn, allow for the creation of wealth and better well-being. 

A robust business environment includes an entrepreneurial environment where businesses are easy to start and run. It also takes into consideration the business infrastructure needed to enable individuals and firms market access. This includes the quality of communication, transport or logistics, and utilities. 

Another aspect of a conducive business environment is the accessibility to credit. This assesses whether single entities or large businesses can get credit at affordable rates. The perceived affordability of financial services fosters entrepreneurship and encourages business-minded people to pursue their business ideas. How well an investor is protected in terms of cost and effectiveness of liquidation resolution, duration, ownership and rights, or property protection are also indicators of a country’s business environment. And then there are the flexibility of its labor market and its ability to adapt to challenges such as hiring and firing people without being hindered by costs and regulations. 

Taking into consideration all of the factors mentioned above, here is a brief look at the countries that displayed the highest rankings in this year’s Legatum Prosperity Index: 

1. United States 

Topping the charts in 2018 for the best Business Environment is the United States. According to the Index, the U.S. leads the pack when it comes to a booming business milieu, contributing to the overall success of the North American region. 

It ranks 17th overall in the Prosperity Ratings and has stayed consistent in its position since the Index started in 2007. Despite clinching the top spot in the Business Environment aspect, parts of the U.S. still experience poverty in different states. In particular, the south and west states of North America experience the highest poverty rates. Included are Louisiana, Mississippi, and New Mexico, which are all in the bottom three. 

This just shows that prosperity is on the rise, albeit not evenly spread out even across states. 

2. New Zealand 

New Zealand has enjoyed much success on the prosperity scale and has topped the charts for best in overall prosperity over five times since the Index started in 2007. It dropped just a point in 2018, making it 2nd in the overall rankings as well as in the Business Environment pillar. 

Nevertheless, New Zealand is a testament to turning wealth generated by the economy into prosperity for its people. It has the unrivaled ability to turn the tide around, mastering the art of doing a lot with relatively little to start with. The country used to rank 7th on the global scale back in 2011, struggling with highly aggressive competition when it comes to business-friendly policies. Continuous improvement, especially in the entrepreneurial environment and labor market, has helped them skyrocket to 2nd place in the world. 

3. Canada 

Canada has moved from 11th to 8th in the overall prosperity rankings and 3rd on the Business Environment pillar in 2018. This positive movement has also contributed to North America’s ascent as the number one region when it comes to overall prosperity. 

Canada improved on all pillars except for Social Capital. It has a consistent track record for placing in the top five in eight of the last 10 years. It chalked in a lag when it came to their Logistics Performance, dragging their Business Environment score down a bit compared to the United States. 

Canada also enjoys a relatively high perception when it comes to standards of living and household income. Its citizens reported 87 percent satisfaction in their living standards. However, there are still areas that exhibit high relative poverty rates, showing the sub-national disparity in the country. 

Pathways To Prosperity 

Prosperity is not only measured by the GDP or material wealth of a country. Rather, it is a combination of several factors that influence the way people enjoy life. The pursuit for wealth and well-being can help determine the roads to true prosperity, pointing to a life where people are free to express themselves, have no fear for their safety and security, and enjoy access to health, education, and entrepreneurial endeavors, among others. 

With the Prosperity Index as a tool for measuring how truly prosperous a country is, more defined steps can be taken to ensure that its citizens are living a flourishing life. Making use of in-depth research, thorough interpretation of results, and a methodical analysis of the facts and information presented, leaders and decision-makers all over the globe can make well-informed decisions to usher their nations into the land of prosperity.

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