A new study by NimbleFins shows Denmark ranking as the 6th Best Country in Europe for Startups, while Norway ranking 8th and Sweden 9th. The countries stood out amongst others by having a favorable business climate (especially regarding the ease of doing business and access to venture capital) and a high-quality labor force. Learn more about why Scandinavia Ranking High for Startups in Europe.
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.
In a similar study last year, Sweden reached the TOP 7 in Europe.
Methodology
The data collection focused on general economic factors, such as growth rates and unemployment rates, and factors specific to startups including the ease of securing financing and salary costs.
Related: Sweden – the best Start-Up Country in the World
Using these data sets, the study first ranked 31 European countries based on each metric and calculated an average ranking for each category. The overall composite ranking is an equally weighted average of each category’s average ranking across the various metrics. A lower score indicates a better rank.
Economic health
Economic Health data include general indicators of an economy’s strength. The study included GDP per capita, GDP growth rates and unemployment rates. Together, these factors gave us a picture of the general state of each economy.
Related: Meet an Ever Optimistic Swedish Entrepreneur
Cost of doing business
Cost of Doing Business data include costs related to business operations. The study included corporate taxes, cost of living ranks and average salaries.
Business climate
Business Climate data relate to the ease of doing business and development status of each country, such as trust in the independence of the justice system, market dominance of large players, regulatory burdens and availability of venture capital funding.
Labor force quality
Labor Force Quality incorporate primary and secondary education attainment rates, the availability of staff and vocational training as well as the ease of finding skilled workers to compare the skill of each country’s workforce.
Related: The Sky is No Limit for Norwegian Entrepreneur
Scandinavia Ranking High for Startups in Europe – Differences from the 2019 study
A few changes to the study for 2020 have been made. First, the study expanded the number of countries presented in the study to include the United Kingdom and all of the European Economic Area (EEA) except Liechtenstein (due to a lack of reliable data for Liechtenstein resulting from its small size).
Photo credits:
Plant in tin can: Photo by Wilhelm Gunkel on Unsplash
Turn ideas into reality: Photo by Mika Baumeister on Unsplash
A few changes: Andrew Neel on Unsplash
Feature image (on top): Photo by Franck V. on Unsplash
Scandinavia Ranking High for Startups in Europe, based on a press release from NimbleFins