In 2024, Canada and Israel have emerged as the frontrunners in a new study identifying the most startup-friendly countries, while South Africa found itself at the bottom of the list.
The research, conducted by Hostinger, evaluated various factors to determine the best environments for early-stage entrepreneurs.
Canada claimed the top spot with a perfect score of 100, boasting the youngest entrepreneurs, a remarkably swift business setup time of just two days, and an outstanding ease of doing business index of 98. This robust business landscape not only allows for easy entry but also features moderate startup costs, making it an ideal destination for aspiring young business leaders.
Following closely, Israel ranked second with a composite score of 99, known for its supportive ecosystem, particularly in technology and innovation. Though the cost to establish a business is relatively high at $2,647, Israel’s Country Startup Friendliness Index of 51.5 showcases its appeal as a startup hub. With an average founder age of 25, the country combines youthful dynamism with strong networking opportunities, creating a vibrant entrepreneurial culture.
India secured the third position with a score of 94, distinguished by the fastest business startup time of only 1.5 days. The cost to start a business stands at a moderate $1,036. While its ease of doing business index is lower at 60, India remains an attractive option for entrepreneurs, driven by its rapid startup processes and emerging economic landscape.
Germany came in fourth with a score of 90, supported by its transparent business practices, well-educated workforce, and thriving business centers like Berlin and Munich. The cost to launch a business is $1,071, and the ease of doing business index is rated at 62, providing a solid environment for entrepreneurs targeting the European market.
In fifth place, Nigeria scored 87, with a startup cost of $679, though it faces challenges with a lower ease of doing business index of 58 and a longer startup time of approximately 8.5 days. Nevertheless, Nigeria’s burgeoning startup ecosystem presents significant opportunities for entrepreneurs.
Singapore ranked sixth with a score of 85, attracting entrepreneurs with its efficient regulatory processes and a moderate business startup cost of $315. Despite the older average age of startup founders at 33, Singapore’s ease of doing business index of 95 and excellent infrastructure make it a prime location for new ventures.
Portugal took the seventh spot with a score of 83, notable for its $0 startup cost, which makes it one of the most accessible countries for entrepreneurs. With a quick startup timeframe of 3.5 days, it offers a low financial barrier and a nurturing environment for new founders.
The United Arab Emirates ranked eighth with a score of 80, featuring a high ease of doing business index of 91. However, it also has the steepest startup cost at $7,443. While the UAE fosters a dynamic atmosphere for global entrepreneurs, the financial challenges may deter some early-stage founders.
With a score of 78, the Netherlands secured ninth place, known for its low startup cost of just $51 and a robust ease of doing business index of 90. Although the average age of founders is slightly older at 34, it remains a stable and appealing destination for startups.
South Africa, rounding out the rankings with a score of 17.8, presents the lowest startup cost at $13. However, it struggles with a lower ease of doing business index at 57 and an average startup time of 8 days. Despite these hurdles, South Africa’s developing entrepreneurial ecosystem offers potential for young innovators.
A spokesperson from Hostinger remarked, “The best countries for young entrepreneurs provide more than opportunities—they offer an ideal launchpad with quick setup times, low costs, and supportive environments. Nations that streamline the startup process and minimize financial barriers attract ambitious founders. Additionally, countries with vibrant business networks cultivate the perfect atmosphere for innovation and sustained success. As the next generation of business leaders steps forward, these nations lay the groundwork for entrepreneurial breakthroughs, enabling great ideas to flourish rapidly and effectively.”
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