In Europe, establishing a SME (small or medium-sized) business is not as threatening as the outer voice has presented. While it is true that some of the countries of the European Union have imposed very tough rules and regulations for the companies to establish, and people who are outside of the EU might face it as a challenge to get settled here, on the other hand, there are other countries also who are welcoming and much more open with both the local and the outer investors and the entrepreneurs.
As of the COVID-19 period, the energy crisis is at an all-time high, but this is the only period when the European Union has surged their support and efforts to the SMEs for the establishment. The support, such as financial leverage and numerous programs like connecting the Europe facility, the single market program, and Horizon Europe, is provided by Europe to these SMEs, and till now they are continuing it. Moreover, the European Union has taken various steps to support young and new entrepreneurs by providing them with portals such as Your Business Portal, Enterprise Europe Network, and Eramus for the Young Entrepreneurs.
In the year 2023, over 24.4 million SMEs will be hosted by the European Union.
Statista`s report has stated that there are around 24.4 million enterprises that are based on SMEs (small and medium-sized enterprises), with an employment population of around 85 million people from every corner of Europe. The statistics have also shown that the SMEs are 99.8 percent job recruiters among all other active businesses across the continent, and SMEs played an important part in supporting the lower sides and towns of the continent.
As per the World Bank’s ease of doing business index, it has categorised these sectors into 10 different constraints, while these factors are main to understanding the ease of doing business in that particular region. So, the 10 factors are: initialisation of a business, dealing with the permits for the construction procedure, electricity, whether the property is registered or not, credit attainment, safety of the minor investors, taxation process, overseas trading, enforcing of contracts, and resolving insolvency. But maybe some of the countries are unable to provide all the facilities due to numerous reasons, but now we can discuss some of the European countries that are the easiest countries to start a new business. Here are some top five ease of doing business countries:
- Data Based on Ireland:
If you are looking for a prime location for your next business setup in a continent like Europe, then Ireland is just for you, thanks to its high income status and the most advanced digital infrastructure. Here the data says that around 90 percent of the population has smart phone access and 92 percent of them can avail the benefits of the internet, while this country is a prime location of tech and innovation and also for the most advanced digital enterprises. The report concerns Ireland`s annual investment in around 200 start-ups, which shows their welcoming mentality for the new entrepreneurs, which also provides a clear message on a global level that this country is very much concerned about innovations in the field of business.
Several Irish cities are ranked top in various factors in ease of doing business, as per the reports issued by the World Bank Doing Business in the European Union in the year 2020. In cities like Cork, businesses are allowed to enforce their contracts efficiently with access to safe electrical connections. The city of Dublin also stays in a good position in these aspects, while this is also a most favourable environment for initialisation of any business, while another city, Waterford, is leading in the issuing of the Swift construction permit, and for property and business start-up registration, the city of Galway stands top in these actors. Additionally, entrepreneurs from different regions, such as the UK, Iceland, Norway, Switzerland, and EU, are allowed to set up their businesses in Ireland without any visa or border permit.
- Data based on Bulgaria:
Currently in Eastern Europe, Bulgaria is evolving as a top list priority for the businesses and entrepreneurs because of their ease of doing business in factors such as negligible bureaucracy and a fast business setup, which just takes a couple of weeks. Basically, this country provides you with the lowest form of corporate taxes in comparison to other EU nations, which is just around 10 percent, and this factor is mostly enough to attract more and more businesses and entrepreneurs to choose it as a prime location.
There are no legal barriers for the outside companies in the case of buying land in Bulgaria, where operational cost is the only price that the companies need to pay post registration. The Bulgarian work force is one of the most multi-talented and top-skilled, which is the actual need of these companies, and the cost of living is also lower than the remaining part of Europe. The Bulgarian membership is also beneficial because it provides you with full access to the European single market.
- Data based on Netherlands:
As of the reports of the World Economic Forum, the Netherlands has been listed 5th among the largest economies of the entire Europe, whose gross domestic product (GDP) is almost 990.6 billion U.S. dollars, which is 918.7 billion in European euros, so this huge GDP is around 5.96 percent of the entire European Union`s economy.
The Netherlands population is ranked among the most educated population of the entire Europe; this country’s workforce is highly skilled and advanced compared to others, and its strategic location is also an important factor in its significance. The Dutch government has introduced several ranges of business support programs and tax incentives for the newly established enterprises, but also its corporate tax of 25.8 percent is a matter of concern because it is quite higher than the other European countries, but the cost is still justified due to the facilities like location advantage and full market access that are provided to the businesses.
- Data based on Sweden:
According to the reports of the Network Readiness Index 2020, Sweden is listed among the top two favourable countries because of its well-established world-class infrastructure and technical advancements. The data indicated that the country is performing well on its digital preparedness and provides a strong commitment to other people; businesses and the government have full leverage to use technology.
Currently, Sweden is involved as a major hub for the start-ups and the tech entrepreneurs globally, which is due to its early technological adopters. Sweden is a capital for several prominent companies such as Ericsson, AstraZeneca, Volvo, and Sandvik, as well as technological giants like Klarna and Spotify.
- Data based on United Kingdom:
The reports issued by the British Business Bank have stated that around 360000 new businesses are established each year in the United Kingdom. This is because setting up a new company in the UK is much more affordable and fast, where the offline applications have taken 10 days to complete and the online mode takes just 24 hours to complete all the procedures.
The United Kingdom is Europe`s one of the most advanced and diverse economies, where they are supporting newly built businesses during their initial phase, even in their tougher times like low profit generation periods, as well as providing a well-balanced tax rate. The UK maintains efficient and around 25 percent of corporate tax rates for some limited companies, which makes it a favourable destination for the businesses.
- What are your thoughts on this topic? Have you ever encountered any issues regarding your business? Please share your valuable perspective with us. Thank you.
Credit Source Link: https://www.euronews.com/business/2024/08/31/these-are-the-five-european-countries-you-should-start-a-business-in
https://european-union.europa.eu/live-work-study/doing-business-eu_en
