Having an enabling environment is one important factor to consider when starting a business. You can have an excellent business model, enough startup and operating capital, and a ready market. However, without favorable government policies, a secure business environment, and access to basic government facilities, your business will struggle to thrive.
This article introduces you to the best countries in the world with the perfect environment and facilities for doing business in 2022. You’ll get to understand what makes them special and why businesses are fighting to extend their operations to these countries.
However, before we go into that, let’s understand the important factors to consider when starting a business.
Factors to Consider When Starting a Business in a Foreign Country
1. Ease of registering a business
The requirements it takes to register a business in some countries can put you off for good. While some countries have very simple, easy-to-follow processes for business registration, there are others whose bureaucratic requirements can take months to sort out.
Countries like New Zealand, China, and Singapore have the easiest business registration processes, unlike Venezuela, Haiti, and Somalia.
2. Economic prospects
You should consider the viability of a country’s economy when choosing where to do business. Countries with high debt-to-GDP ratio, low employment rate and low purchasing power only pose great disadvantages for your business growth. While it’s possible to run a profitable business in any country, countries with better economic prospects make everything easier for you.
3. Government support and regulations
A single government policy can escalate or crash the growth of a business. Some countries have regulations and policies that make it very difficult for any foreign company to thrive, while there are those that welcome foreign investments and even offer their maximum support. When setting up your business. You should look out for those countries known for putting up policies to support foreign businesses.
4. Access to skilled labor
Access to skilled labor is another important factor to consider when choosing a business location. This is because importing skilled labor to the country might cost you as much money as you need to make your business thrive.
5. Available market
All the factors listed above are invalid if there’s no market for your product or service. That’s why you have to conduct market research in the country to ensure there’s a hungry market for whatever product or service you are offering. The success of every business depends on how it’s able to provide what its market needs.
What are the Best Countries for Doing Business in 2022?
1. China
China has experienced consistent economic growth since its economic reform in 1978. In fact, with the rapid growth it’s experiencing, China’s economy is expected to exceed that of the USA by 2030. With its high labor provision, low taxes, technological advancement, and rapid economic growth, China is one of the best countries for doing business in 2022.
With many countries importing over 60 percent of their goods and services from China, it’s earned its right as the world’s manufacturing hub. While the regulations and policies may be a bit too strict for foreign businesses, most of these businesses don’t mind because of the huge return they get on their investments.
2. United States of America
The United States of America consistently ranks as one of the best countries in the world to do business in. While its high economic value is a factor, most companies love doing business in the USA because of its unrestricted support for all businesses. All businesses receive the same treatment from the US government, both resident owned and non-resident owned businesses.
The US government has policies, financial aid, tax support, and every other form of incentive that it uses to attract foreign investment. Doing business in the USA increases your chances of going global, as every system is set up to make your business successful. Some of the world’s biggest brands like Google, Apple, Facebook, Twitter, Uber, Airbnb, Amazon, and many others began operations in the USA.
3. Japan
There’s a reason Japan has consistently ranked among the three biggest economies in the world. The opportunities that the Japanese business ecosystem offers to both foreign and local businesses are massive. With a population of over 125 million people, Japan offers a market-driven economy that can only be rivaled by a few other countries.
The Japanese government has policies in place to support foreign businesses and foreign direct investments. Doing business in the first Asian country to get industrialized also comes with lots of technological support. Being home to some of the world’s most renowned brands like Sony, Toyota, and Canon proves that you can grow a global enterprise in the land of the rising sun.
4. Germany
Its low government regulation, access to venture capital and low tax rate, along with many other incentives, presents Germany as one of the best countries for doing business in 2022. Germany possesses a large and stable economy, an excellent investment environment, and an educated and highly skilled workforce.
As a country with great global recognition in terms of technology and innovation, Germany will give your business the global exposure it needs to thrive.
5. Singapore
If you’re looking to start or expand your business in a technologically advanced environment, Singapore might be the best destination for you. Singapore provides you with ample opportunities to make your business successful. It has been consistently ranked by the World Bank among the top countries for doing business.
The country offers favorable tax laws, world-class infrastructural facilities, and a highly-skilled and educated workforce. The low corruption rate in Singapore also makes it one of the safest Asian countries to do business in. With its location in the heart of South-east Asia, the country offers businesses swift and affordable logistics operations. It’s one of the top economic hubs in Asia, with some of the best airports and seaports in the entire world.
6. United Kingdom
The United Kingdom offers you a wide range of opportunities for successful business operations. Aside from giving you easy access to four top regions (England, Scotland, Wales, and Northern Ireland), the UK also gives you access to one of the world’s largest financial hubs.
The London Stock Exchange and the Bank of England, both of which are globally recognized financial institutions, open up several infrastructural and business opportunities to entrepreneurs.
The UK comfortably sits among the top 10 countries in the World Bank’s ease of doing business reports. Though it has a relatively high taxation rate, the UK has policies in place to protect businesses and guide them to the global stage. Multinational brands like Vodafone, Shell, EY, and HSBC are typical examples of how viable the UK business ecosystem is.
7. Canada
It’s not a surprise that Canada ranks as one of the best countries for doing business in 2022. The country presents entrepreneurs with several business opportunities to explore. Aside from its stable and large economy, there are many factors that could lure entrepreneurs to do business in Canada.
Canada is filled with a highly skilled and educated workforce, making it one of the countries with the richest human resources. But it’s not just human resources that Canada is blessed with. The abundance of natural resources like gas, oil, and timber makes it easy for manufacturers to situate their production plants in the city.
Another reason entrepreneurs are striving to establish themselves in Canada is the access it gives them to the US market. The bilateral relationship between Canada and the US presents a crucial opportunity to entrepreneurs doing business in Canada.
8. Netherlands
The Netherlands, with its strategic location, is one of the best countries in Europe and the world to run a business. Popularly known as the “Gateway to Europe,” the country offers you the easiest access to other European countries.
The Netherlands provides entrepreneurs with a healthy environment for their businesses to grow and thrive. Business owners have access to the largest port, the port of Rotterdam, which makes the Netherlands one of the busiest economic hubs in the world. With its highly developed physical and digital infrastructure and a well-educated workforce, doing business in the country becomes seamless.
9. Switzerland
Switzerland provides an enabling environment for businesses to thrive. It is the European headquarters of several internationally reputable organizations. Its central location, coupled with ports connected to European road and rail networks, makes it one of the best countries for doing business.
Furthermore, Switzerland provides you with a highly skilled and educated workforce while also giving you access to advanced digital facilities. Running a business in Switzerland is not just easy, but also affordable. Switzerland is listed as one of the world’s tax havens and attracts several businesses and wealthy entrepreneurs with its favorable tax rates and stable economy.
10. Thailand
Thailand, with its abundant resources, provides you with the best environment to build a global business. Being a major exporter of textiles, jewelry, fish, electrical gadgets, and many other things, investors see Thailand as a viable place to do business.
The country is located between India and China, the two most populous countries in the world. This makes it easy for business owners to navigate between both countries when conducting business operations. One other important factor you can consider when setting up a business in Thailand is the low wages and cost of resources. With an approximate population of 70 million, labor is relatively affordable, making it easy for you to maximize profit in your business.
The World Bank also ranks Thailand as one of the best countries for doing business because of the ease of starting and running a business in the country.
Conclusion
Natural and human resources, economic prospects, and the availability of the target market are important factors to consider when choosing a country for business investment. However, the impact of the political environment on the performance of businesses cannot be overemphasized.
You have to look out for the policies and regulations the government of a country has put out regarding business operations. You also have to look out for how consistently the government has done this and the prospects of favorable change in the future.
Thanks to this article, you already have knowledge of some of the best countries for doing business in the world. I hope you found this article valuable. If you have any questions or contributions, kindly leave a comment below.
