Some countries are more in favor of paving the way for small business and startups, creating an entrepreneurial culture that generates global startups.
These seven examples provide strategies to consider and even some expansion to expand your growth. For example, Chile has been dedicated to import entrepreneurs to promote their local ecosystem of startups. In addition, many governments have realized that future economic growth will come within larger enterprises and startups. People, meanwhile, are less convinced that working in a company is the best career choice. And the private sector does not want to stay away: successful entrepreneurs supporting new players and some corporations join forces with the public sector to achieve positive results.
Best Startup Countries
The following are countries that drive the development of startups:
The entrepreneurial environment in this country has recently reactivated after years of dormancy. The Argentina version of Wayra UK has evaluated nearly 3,000 projects this year. According to the newspaper La Voz, citing the president of Local Endeavor, Argentina is among the five countries with the highest percentage of population engaged in entrepreneurship.
Argentine technology entrepreneurs are internationally recognized for their creativity and potential for high impact. According to Endeavor, a handful of successful entrepreneurs have affected 80% of the network of companies that make up the technology sector. This has generated a multiplier effect. Likewise, opening offices in Buenos Aires Google, followed by Yahoo! and Facebook between 2007 and 2011, favored the environment. Endeavor recorded almost a hundred technological companies founded during this period.
For its part, the government has programs of seed capital, loans and subsidized loans to small factories to finance rate. Some initiatives promote partnerships between entrepreneurs and established companies. Now the great challenges of Argentina is improving scarce funding, boosting the tiny capital market, and simplify the tax framework highlights.
This country offers one of the five best environments for entrepreneurs from all G20 members, making it an ideal startup country. Today there are about 1,500 technology startups, mostly in Sydney and Melbourne, according to The Economist. And its potential is huge: by 2033 this sector could contribute $109,000 million, or 4% of GDP to the economy of the country, as well as the generation of 540,000 jobs, according to a report by PWC Consulting.
This will be accomplished provided that coordinated entrepreneurs, educators, government and private sector efforts are aligned. This would be an exponential leap, based on the 9,500 jobs and 0.1% of the economy that currently represent technology startups.
Australia attracts low levels of entrepreneurial and private equity. As for the encouragement, the government launched a program to limited partnerships, where investors deliver resources without incurring obligation to mercantile venture capital (ESVCLP, for its acronym in English), in which fund managers structure their investment capital group. Partners (ie investors) of a fund that operates under this figure obtained a tax exemption on the income of the fund, both revenue and capital gains received.
In 2010 the government launched Startup Chile, an incubator that provides entrepreneurs worldwide $ 40,000 office space and support, regardless of the share capital of the company. All they ask in return is for those entrepreneurs to develop their projects for seven months in the South American country, and contribute to the development of their entrepreneurial ecosystem, offering lectures and mentoring their local counterparts.
According to the program website (startupchile.org) during their most recent startups application process 1,577 applications were made from 68 countries, that it is 80% more than they were during the first generation. About 20% of the accepted business by Startup Chile remains in the country after a year, when the working visa of its founders arriving in Chile originally expires.
Through the importation of entrepreneurs, the government aims to encourage the local origins. And the initiative appears to be working. This is complemented by government programs of seeding capital funds to support local startups, and a more agile company to establish a new process.
Just over 28,700 startups operate here, 87% more than the 15,400 it had in 2008. Their number has quadrupled in a decade, according to local Venture Capital Association. The economy is dominated by large conglomerates known as chaebols: only five of them control assets equivalent to the 57% of the Korean GDP. The main characteristic is the culture of risk aversion. Bankruptcy laws are lenient with a company that files for bankruptcy.
Highlight recent initiatives by the private sector to finance business in the early stages, as the background for startups released $26.5 million by Kakao Corp (developer of popular messaging application in Korea). The government, meanwhile, will allocate $2,900 million to fund startups, especially in the technology sector, according to a report by The Wall Street Journal.
On the other hand, private investor’s startups have fiscal incentives such as tax cuts and extensions to pay income taxes if they decide to reintroduce their profits in new businesses. Seoul, the capital, through the Youth Project 1000 scholarships CEO since 2009, provides free office space to young entrepreneurs with innovative ideas.
13% of American adults were involved in a startup in 2012, the highest percentage since 1999, according to a report by Baruch and Babson Colleges. Businesses are underpinned by easy access to funding, where the entrepreneur and private equity are particularly strong.
Community programs and private sector support is prevailing for the feds. The government promotes the environment through initiatives such as Startup America, launched in 2011, that promotes a partnership between innovative entrepreneurs, corporations, universities and foundations to maximize the competitiveness of new business. The effort includes funding of $ 2,000 million for innovative startups and emerging sectors.
Other projects include the SBIC; an investment company that started in 2012, whose focus is to fund companies with capital requirements between $1 and $4 million, and in partnership with the private sector, the government also launched WEAmericas, which supports women who wish to undertake entrepreneurship.
The birthplace of Silicon Valley remains one of the best places for a current entrepreneur. However, corporate taxes are very high compared to international standards.
It offers a friendly environment for entrepreneurs. Recently there have been numerous startups, including 300 founded by former employees of giant Nokia mobile phone (now in decline) and whose mobile phone division was acquired by Microsoft.
The entrepreneurial boom has as its background the need to avoid dependence on the Scandinavian country into one company: in 2000, Nokia accounted for 4% of the national economy. Among other actions, the Finns created Tekes, an agency of innovation and technology, with an annual budget of about $ 440 million. Finnvera also formed a venture capital fund. And they have established different acceleratosr funded by both the state and private investors.
The Scandinavian nation stands its peak in the video game industry, with outstanding Rovio Entertainment, creator of Angry Birds, and Supercell made Clash of Clans, whose new headquarters used to be the center of research and development of Nokia.
Rovio is supporting new entrepreneurs to support Startup Sauna, a funded program by the government, private sector and academia accelerators, offering trips to Silicon Valley and collaborative workspaces and networking opportunities .
It is considered as the country with the highest density of startups in the world. According to an article in the European Entrepreneurship Foundation, attracts 2.5 more risky investments per capita than the United States, and there are more Israeli companies listed on NASDAQ than the all of Europe.
Here the entrepreneurial ecosystem is a result of several factors, starting with the chutzpah or audacity that characterizes Israel. Also influence the huge military industry and a tiny domestic market, which leads to the creation of startups with global view since creation. Yozma, the program that triggered the venture capital in the country, was established 20 years ago.
The government supports entrepreneurs through an agency called the Office of the Chief Scientist (part of the Ministry of Economy, which promotes research and development), with financial and development programs. Startups accepted and entering an incubator receives seed capital of $500,000.
On the other hand, there are many forms of financing for entrepreneurs: from incubators and accelerators to micro funding (investment professionals, falling angels with less capital, and smaller units) and crowd funding platforms.