The United Kingdom is now the second-best country in Europe to launch a tech startup company
Launching a new startup is not an easy task. According to reports, 90 percent of all startups will fail. However, starting your startup in a business-friendly environment can increase your chance of success. There are a lot of factors that determine what makes a good startup-friendly country. A new study conducted by NimbleFins, a UK-based consumer research firm, shows that the United Kingdom is the second-best country in Europe for running a startup company.
The UK has kept its position from last year, coming in second right after Germany. The UK is a great place for startups due to venture capital accessibility and the ease of doing business, despite relatively low GDP growth expectations.
Startups in the UK enjoy relatively low costs of doing business. The study further shows that the UK is a favorable place for finding skilled workers. Lower corporate tax rates (19%) are certainly an attraction as well, compared to many other European countries. Finally, there is a proliferation of startup support in the UK to help out new entrepreneurs when needed.
NimbleFins’ study analyzed the economic data of 31 countries in Europe. The best European countries for startups have highly educated populations, strong economies, healthy business environments, and relatively low costs for conducting business. To determine the ranking, NimbleFins analyzed data from the World Bank, World Economic Forum, UNESCO, OECD, and tax consultancies.
See the 2019 study for reference on how the UK was doing last year.
Study highlights for the UK in 2020:
• 2nd Best in Europe overall, outranking 29 other countries!
• 3rd Best for Business Climate, demonstrating the ease of doing business and good access to venture capital.
• 5th Best for Economic Health with a GDP of $2,827.1. The Economic Health category takes into account traditional economic measures such as GDP, GDP per capita, GDP growth, and unemployment rate.
According to their methodology, the best European countries for startups have highly educated populations, strong economies, healthy business environments, and relatively low costs for conducting business. With this in mind, our scoring system uses relevant publicly-available data to rank each country across several categories. Lower scores indicate higher ranks (i.e., better locations for startups). Below is a summary of the top 12 startup-friendly countries.
Summary of Top Countries for Startups in Europe
Below are the 31 countries in our study ranked from best to worst for startup businesses, with scores across economic health, cost of doing business, business climate, and quality of labor force. As each startup has different circumstances and requirements, we’ve expanded our data to show how each country ranks in each category. Lower figures are better (1=best, 31=worst).
|Overall Rank||Country||Economic Health Rank||Cost of Doing Business Rank||Business Climate Rank||Labor Force Quality Rank||Average Category Rank|