Best Cities in The World to Launch Your Startup
Written by John Munday
12 April 2018
A startup, as Homejoy co-founder and CEO Amanda Cheung defines it, is when people join a relatively new company having made the decision to forgo the stability of a regular 9 - 5 job. Individuals exchange the security and comfort of the corporate structure for the potential of tremendous growth and greater societal impact. However, before launching startups became a trend among young entrepreneurs, pioneers failed countless times until breakthroughs were reached. Luckily for everyone else in the business world, we get to learn from their mistakes.
All businesses start from somewhere. Among the many factors that contribute to the growth of a startup are the founders, the growth strategy, the product or service, the attitude of the entire team, and the funding strategy. These are internal factors that determine the path a startup takes in its early years. And while it is possible to launch a startup anywhere in the world, certain places have just the right environment to cultivate sustainable growth.
Ensure the growth and success of your startup by considering launching in the following countries and cities:
Auckland, New Zealand
The quiet neighbor of Australia, New Zealand is one of the easiest cities in the world to conduct business in. It has a pool of skilled and well-educated workforce. Incorporating a business is relatively quick, taking only a day. Registering property is likewise fast and easily done within two days. It is also interesting to note that there is no payroll, social security, or capital gains taxes. Perfect for a fledgling entrepreneur, New Zealand is worth exploring.
The Norwegian business scene is well-rounded, boasting expertise in technology, finance, design, and even music. Foreign entrepreneurs who plan to launch in Norway are given various business niches to pursue. Having one of the strongest economies in the world, Norway is digitally advanced and able to pay for new technology.
Most transactions with the government are done digitally, property registration is quick, and tax laws are straightforward. There is a pool of highly skilled and educated workers across different niches available to entrepreneurs.
Considered as India’s “Garden City”, Bangalore houses half the startup activity in India. It boasts 4,900 startups and $2.3 billion in investments. Indian universities produce a large number of engineering graduates per year, giving you a pool of eager fresh graduates to work with. There is a high concentration of engineering and tech development in the startup scene, which translates as a big opportunity for business development and design startups.
Berlin ranks ninth globally when assessing startup ecosystem characteristics including talent pool, market reach, and several other factors. Known as a major hub for the arts, Berlin is the place to be if you are in the design and publishing industry. It has an eclectic and edgy air unique to it, which attracts artists from all over the world. Its vibe is perfect for creative entrepreneurs who need daily doses of inspiration. With its colorful street art, history, and creative scene, Berlin is as much a startup hub as it is a cultural hub.
Home to Spotify, Stockholm hosts more billion-dollar companies per capita than any other city all over the world. It houses a whopping 22,000 tech companies. Dubbed as the “unicorn factory”, any tech related business will do well to take its first steps in Stockholm.
The more obvious business hub in Asia, Singapore is set to have a total of 188,000 millionaires by the year 2020. This city is a leader in e-commerce, logistics, and real estate. Many Western businesses set up their Asia headquarters in Singapore as it has easy access to other leading Asian cities such Japan, Seoul, and Shanghai.
Singapore is one of the richest countries in the world and is known for its political stability. It has long been considered one of the best places to conduct business in. It is also relatively easy to incorporate a company in Singapore.
Kuala Lumpur, Malaysia
With a larger test market than Singapore, Kuala Lumpur is a haven for the conscientious new entrepreneur. Its population is made up largely of Malay/Indonesians, Indian, and Chinese, which will give you a good idea of consumer response to your product or service. The cost of living in Kuala Lumpur is also beginner-friendly and allows for breathing room for any financially tight situations.
The Russian capital boasts a total of 6,000 tech companies launched between the years 2011 to 2016. The Russian government support for Research and Development includes tax benefits and education programs. Because of its Soviet origins, there is a pool of highly qualified engineers and strong hardware companies.
Tel Aviv, Israel
According to the recent Global Startup Ecosystem ranking, Tel Aviv ranks fifth among twenty cities in the world to launch a startup. The highest ranking city outside of the United States, Tel Aviv boasts more than 1,500 startups, and hundreds of accelerators and co-working spaces. It may not be as advanced as the other cities in this list, but this provides a gap in which young business owners can make their mark.
London, United Kingdom
In the European continent, the UK is generally considered to be one of the easiest companies to conduct business in. Incorporating a company can be done in under one hour for a very affordable fee. The government also provides tax incentives for founders and employees. Perfect for financial startups, London maintains its reputation as a hub for international trade.
The startup culture is nurturing and mutually supportive, with a healthy dose of competition to keep things interesting. Depending on your expertise and the industry you want to enter, there are different places around the world best suited for your startup. Consider the talent pool, government policy, taxes, and investors among others. Before entering a new location, get to know trends and the market. Learn from entrepreneurs by reaching out to the business community of the city you’re looking to move into and start from there.
Armenia was once the center of IT innovation for the USSR. Today, new government initiatives combined with highly-skilled, post-soviet engineering workforce and a diaspora of advocates are igniting renewed growth in Armenia’s IT sector. These businesses are creating new technologies — from award-winning mobile apps to world-first presentation tools.
The Armenian tech industry is growing at an annual rate of 20 percent. Annual tech revenues from some 400 IT companies make up $475 million and by 2018, it is estimated this industry will be the dominant sector driving new wealth for the economy. Today, you really can launch a startup for a very low cost – and the effects of this are a growing startup ecosystem, and a culture of excitement. Armenian businesses are gaining traction and experiencing global recognition.
This century of innovations implies an exponential growth and development for businesses and startups. New ideas and beginnings arise every single day. With the help of internet and broad communication channels starting a business today became much easier.
However, a nice idea and will are not enough, because external factors like the geographic location, economic situation and societal welfare play not less important role in creation of a business. These are the very geographic locations where it’s beneficial to start your next successful project!
Author Bio: John Munday is the head of marketing at www.GravIT.com - an IT Company based in Geelong, Australia. They specialise in IT solutions for small to medium sized business. In his spare time, he enjoys giving back to the community by sharing his knowledge on marketing.