Countries with higher rankings commit more resources to promoting better and more equal access to opportunity across society
1. Sweden (Rank 1)
As the birthplace of Spotify, Skype, SoundCloud and a host of other groundbreaking start-ups, Sweden has a firmly rooted reputation for innovation and it keeps the crown it took in 2013 for the world’s most entrepreneurial country. The nation boasts one of the most digitally connected economies on the planet, alongside a welcoming business environment and a highly entrepreneurial culture. That combination of factors is sending start-up founders from far and wide flocking to the nation’s cities, most notably its capital Stockholm. The city has become one of the biggest start-up hubs in the world over recent years and forms a rival to Berlin as the hottest place in Europe to launch the next big thing.
2. Hong Kong (Rank 6)
It’s perhaps unsurprising that one of Asia’s biggest commercial centres is also the continent’s most popular go-to hub for entrepreneurs. Ranking sixth in the world for entrepreneurship and opportunity, Hong Kong has a vibrant tech community and the past four years have seen over 200 start-ups created there. That community has seen rapid growth over recent years, leading Hong Kong to hike up from 15th position in just two years. That’s perhaps because a large number of entrepreneurs flock from overseas; last year it ushered in a record number of UK start-ups, as founders in search of affordable rent and attractive tax incentives looked to capitalise on Hong Kong’s vast opportunities.
3. UK (Rank 8)
With the third lowest start-up costs in the world, the UK continues to draw in budding entrepreneurs looking to launch the next big thing on a shoestring. Starting a company in the UK costs an average of £66 (a little under $100), according to the index – just 0.3 percent of GNI per capita. The UK has consistently ranked in the top 10 of this index, and it is little surprise given the country’s liberal approach, wallet-friendly costs, and now fairly stable economy. This year the country improved its ranking in the sector yet further, moving up to eighth place, perhaps on the back of increased work motivation. 84 percent of those surveyed said they believe working hard is the key to getting ahead.
4. US (Rank 11)
The US just misses the mark for the top 10 most entrepreneurial nations in the world. As the home of Silicon Valley and its numerous start-up successes, supported by a strong network of investors and VCs, it is perhaps surprising that it doesn’t rank higher. The US offers diverse opportunities for keen entrepreneurs alongside a host of role models that help to inspire those looking to steal a slice of the action and leave their footprint on the business world. On the more negative side, however, the portion of those feeling free to choose their futures has fallen by four percent over the past three years (from 86 percent to 82 percent) – which is ironic given the opportunities apparently on offer.
5. New Zealand (Rank 18)
Stable economic growth over the past few years, combined with an investment-friendly climate and secure environment, make New Zealand a fairly appealing destination for entrepreneurs. That’s perhaps little surprise given the nation’s high levels of personal freedom, for which it ranks first – and which is likely conducive to creative enterprise. There’s still room for improvement, however, especially given its high rankings for the other sub-indices in the prosperity index; the country ranks second for governance and social capital, third for overall prosperity and seventh for education. Greater emphasis on entrepreneurship at an early age could help improve its ranking for the sector.
6. Brazil (Rank 51)
Brazil has fallen two places since 2013 and four since 2012, but at rank 51 it still scores higher for entrepreneurship than it does elsewhere. The country’s entrepreneurial prospects are growing, especially in the financial capital of São Paulo, where a start-up scene is starting to emerge. That could change further when Google Campus – an area for start-ups backed by the tech giant – opens there this year. As the most populated country in South America and one of the region’s highest scoring in terms of personal freedom, Brazil certainly has potential to develop its entrepreneurial scene further, but high levels of bureaucracy and low-internet coverage in certain areas continue to hold it back.
7. Mexico (Rank 83)
At 83rd, Mexico has plunged 10 places in the space of a year in terms of its entrepreneurship and opportunity. Its entrepreneurial climate is clearly lagging despite a relatively strong economy – for which it comes 34th in the index – and mid-range level of overall prosperity. Low levels of education (for which it ranks 85th) combined with security issues and an unstable political environment are all proving obstacles. Mexico City is, however, playing host to a gradually growing start-up community, with the likes of Startup México looking to encourage activity in the sector. At the end of 2014 there were 45 venture capital funds registered across the country, compared to just 14 in 2012.
8. Niger (Rank 139)
Despite relatively high levels of personal freedom compared to the rest of the region – ranking 48th – Niger falls behind for entrepreneurship, coming fourth from bottom among all ranked countries. Certain parts of sub-Saharan Africa (such as Namibia, Ghana and Kenya) perform comparatively well in terms of entrepreneurship and opportunity (ranking 96th, 97th and 101st respectively), and could provide inspiring examples for the lower-ranking African nations such as Niger to follow. Micro-entrepreneurship in Niger is nevertheless still an essential source of income and employment for a number of local people, with such activity mainly centred around resource-based enterprise.
