In Europe, Germany is simply the most favorable country for start-ups. As expected, they have become the absolute best in this regard based on their annual ranking compared to other European countries. This is their second time consecutively to earn this title, surpassing 30 other countries. This makes Germany the most attractive option for aspiring entrepreneurs.
Germany is Undisputedly the Best in Europe
The finance and research company named NimbleFins did a great job evaluating European countries. They took a close look at the data provided by a wide range of sources. These sources included the UNESCO, World Bank, business consultants, OECD and the World Economic Forum.
All this data was related to 31 countries overall. In their thorough analysis, they have evaluated each of them in 4 different categories. Based on Company Climate, Business Costs, Economic Health and Quality of Labor, they gave a 1-31 score with 1 being best and 31 being weakest.
Germany did pretty well in all aspects, except maybe Business Costs which got a score of 14. In the Business Climate category, however, it got a solid 2. When NimbleFins averaged all the categories, it turned out that Germany got a 6 out of 31 score.
Such an incredible economy, business climate and a GDP of almost 3.5 million Euros makes it the absolute best place for start-ups. Besides that, the corporate tax being rather low (almost 16%) is another good reason for entrepreneurs to consider setting up business there.
Those looking to hire people there will also meet a highly educated labor market. Around 83 percent of people in Germany have an upper secondary degree to show.
Other Honorable Mentions for Start-Ups in Europe
Germany is the absolute best without doubt, but what about other countries? In fact, evaluating the top 10 when it comes to the study performed by NimbleFins can be part of your whole strategy. As we mentioned above, Germany got an overall score of 6 out of 31.
But there are also the UK (7.8), Switzerland (8.3), Netherlands (10.0), Ireland (10.5), Denmark (11.8), Finland (12,0), Norway (12.3), Czech Republic (12.8) and Sweden (12.8).
What About Berlin as a Start-Up Location?
Although Germany is the strongest overall, the scores can differ if we narrow the study down to cities. Berlin is by far the most popular city start-ups turn to when it comes to establishing a German company. It is definitely among the best, but how good is it exactly?
There is another study performed by Ernst & Young Global Limited that compared start-up locations in Europe. They ended up with a solid top-10 list where Berlin ended up 3rd after the evaluation. The main factor there was to take a look at the financing volume that got funneled into new companies over a certain period.
