The Doing Business report “seeks to measure business regulations for domestic ﬁrms through an objective lens” by presenting “quantitative indicators on the regulations that apply to ﬁrms at different stages of their life cycle.” The data collected for the Doing Business report was from 185 economies and based on 2 areas which included ten indicators: 1) Complexity and cost of regulatory processes (starting a business, dealing with construction permits, getting electricity, registering property, paying taxes, trading across borders); and 2) Strength of legal institutions (protecting investors, getting credit, enforcing contracts and resolving insolvency). Starting a business is based on “procedures, time, cost and paid-in minimum capital to open a new business”.
Based on this data, the 10 best countries to start a business are:
New Zealand – 2012 ranking: 1st. One reason why New Zealand ranked 1st is that most of the government agencies one needs to contact to start a business are easily located online.
Australia – 2012 ranking: 2nd. For Australia it is easy access to credit that helped propel them to the 2nd spot on this list.
Canada – 2012 ranking: 3rd. Canada has tapped into a current trend of large economies mentoring smaller ones. Canada chose to help further its business relationship with Peru to hold onto third place.
Singapore – 2012 ranking: 4th. Easy access to credit and quick building permits has helped Singapore come in fourth.
Macedonia – 2012 ranking: 6th. Macedonia rose to 5th place by reforming the process for getting construction permits and credit amongst other start-up needs.
Hong Kong – 2012 ranking: 5th. Reforms to their regulatory system has not only helped start-up businesses, but it aided Hong Kong in remaining in the top ten with a 6th place finish.
Georgia – 2012 ranking: 7th. Georgia’s work to improve access to credit and helping to protect investors helped them retain their 7th place finish.
Rwanda – 2012 ranking: 8th. Rwanda being in the top ten is indicative of the changes being made in Sub-Saharan Africa. In fact, they made changes to the entire process of starting a business to help encourage entrepreneurship which aided them in retaining 8th place on this list.
Belarus – 2012 ranking: 9th. The ease in which someone can register property has helped Belarus hold onto their 9th place finish.
Ireland – 2012 ranking: 14th. Enforcing contacts is something that helped propel Ireland into the top ten this year.
The United States ranked 12th in 2012 and 13th in 2013 when it came to starting a new business.
As you can see there was very little movement in the top ten which highlights that while other counties are trying to make the process of starting a business easier; the leading countries are remaining competitive. A good sign as small businesses play an important role in the backbone of economy as they bring innovation, create jobs and can help communities.