New Data suggests the global business regulatory environment has changed dramatically in recent years. Per the World Bank Group, 119 of the 190 economies measured in the report Doing Business 2018 have enacted at least one business regulation reform in the past year. Of these, 79.8% implemented at least one reform for a second consecutive year and 64.7% have done so for a third.
Why is business regulation important? Put simply, it can encourage entrepreneurs to enter an economy where the rules governing start-ups are accessible, transparent and predictable. This, in turn, benefits the economy, boosts capital investment and job creation, and generates more choice for consumers. Proving the economic and political benefits of improved business regulation undeniable.
Inspired, online marketeers Reboot Digital Agency delved into research to discover the best economies to start a business in 2018, in the hope it will offer insight to both budding entrepreneurs and seasoned businessmen/women. To accomplish the research, Reboot utilised data from the World Bank Group, which considers the paid-in minimum capital requirement, number of procedures (such as obtaining all necessary licenses and permits and completing any required notifications, verifications or inscriptions), time and cost for a small to medium-sized limited liability company to start up and formally operate in economy’s largest business city.
That’s why Reboot Digital Agency, after considering all these factors, found New Zealand to be the number one economy to start a business in, with a Distance to Frontier (DTF) rating of 99.96. Distance to Frontier measures the distance of an economy to the “frontier”, which represents the very best performance across all economies and years included since 2005. An economy’s distance to frontier is indicated on a scale from 0 to 100, where 0 represents the lowest performance and 100 the frontier.
Though New Zealand’s rating has decreased by 0.18% on 2017 figures, it still presents the strongest case in starting a business in 2018. In fact, it would take just one procedure, half a day and less than 1% of income per capita to start a business in Auckland.
Other economies which rank in the top five for starting a business include Canada (DTF: 98.23), Hong Kong (DTF: 98.14) and Georgia, with a distance to frontier score of 97.84 supported by an increase of 2.12% on 2017 figures. Jamaica lands in 5th place – at 97.3.
Economies which continue to rank in the top 12 but present no change on 2017 figures, include Australia (DTF: 96.47) and South Korea, with a distance to frontier score of 95.83.
Comparably, two economies which have experienced positive change are Kosovo (DTF: 95.67) and Uzbekistan (DTF: 95.54) with vibrant growth of 4.98% and 4.46% respectively, on 2017 figures.
The United Kingdom
Though missing out on the top 12 ‘best economies to start a business in 2018’, the UK ranks in 14th place, with a distance to frontier score of 94.58; a 0.12% decrease on figures in 2017. On British shores, it would take four procedures and four and a half days to start a business in London, almost double that of Auckland who take the number one spot.
Shai Aharony, managing director of Reboot Digital Agency, said that “it’s encouraging to observe populist countries, like Georgia, Kosovo and Uzbekistan experiencing vibrant growth. It hints we are heading toward a rich, multi-cultural time in business, which will no doubt encourage us to venture to areas anew, to start-up or network. Some may even argue it will become essential to do so. I’m sure we will see continued change in the sector as businesses reform and push beyond old boundaries.”
Founder Dinis Guarda
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