What are the best places to start a business in?
Unsurprisingly, American cities stand out. The world's leading economy has built a solid reputation among entrepreneurs, especially in cities like Los Angeles, New York, and San Francisco. In addition, Chicago is stepping up to the plate, determined to become the new hub of the tech industry. Australia is also gaining momentum. This leading expat destination is known for its ease of doing business. It only takes a few days to set up a new company. Both Sydney, the economic capital, and Melbourne, Australia's second-largest city, often considered the most pleasant city in the world, are rolling out the red carpet for entrepreneurs.
Mauritius is nicknamed "the business island" by entrepreneurs. Considered an Eldorado for people in business, the island of Mauritius is the most open African country to foreign entrepreneurs. According to the World Bank Doing Business Report, it is the first African destination for investments and business. In Asia, Singapore, a financial stronghold, offers monetary freedom that facilitates trade. While the government has favored local employment during the COVID crisis, it is now open to foreign investment. Foreign entrepreneurs are also welcome in Dubai. For the past few years, the star city of the United Arab Emirates (UAE) has been a regular feature on the list of the world's favorite cities for entrepreneurs. The Global Entrepreneurship Index (GEI) 2022 even ranks the UAE as the world's top destination for entrepreneurs.
In Europe, there is Paris and Berlin. The French capital manages to attract entrepreneurs thanks to its geographical location and its technological ecosystem. The same goes for Berlin, a high-tech mecca and city of young entrepreneurs. Surprisingly, London is gaining points among financial startups. After the post-Brexit turmoil, the British capital is making a strong comeback. In 2022, it was even ranked as the world's Fintech capital, ahead of San Francisco and New York.
How to choose a destination for your business?
While business-friendly cities are attractive, be careful not to forget your professional objectives. Low corporate taxes or administrative facilities should not be the only reasons for setting up a business in a given city. The personal assessment should come first, and then the business plan.
Are you ready to be an entrepreneur overseas?
Starting a business is one thing; setting it up abroad is another. Before even considering whether to expand to Melbourne or Dubai, knowing if you can live overseas is crucial. This phase of introspection is essential. You will need to integrate your travels, family, friends, and children into how you project yourself in your life as an entrepreneur abroad. Are you a big or small traveler, a homely person? Will you be able to live far from your loved ones? Are you moving alone or with your family? All of these questions that prospective expats usually ask themselves must also be answered before starting a business abroad.
Most expat entrepreneurs have chosen their destination because of the experience and network they gained while traveling to their host country. In general, they were immigrants there at the time of the creation of their business. Typically, they will have already developed local contacts and a network, have a good command of the language or are learning it, and know the local culture. They can adapt their project to the country's culture and will also have reflected on their business plan according to their target. They rarely go on an adventure, but as experts, and if they do not necessarily have technical knowledge, they have the socio-cultural background and the professional network to thrive. Such a background greatly facilitates the development and growth of a business.
Design your business plan first
The business plan is an official document that defines and develops the company's strategy. It includes the definition of the project, its strengths and weaknesses, the market study, the marketing and sales strategy, the financial study (with the famous startup financing plan), and the legal status. By working on the business plan, you will be able to identify the areas in which you will establish your company, which were researched during the market study.
Drawing up a business plan cannot be improvised. It takes between 2 and 6 months on average for an activity to be launched in the home country, and the time required varies according to the type of project. The more complex, the longer. Starting a business abroad will add extra time and possibly complexity to the process, if only because of visa issues. This is why it is important to take the time to develop a proper business plan carefully.
Some people entrust the task to professionals to save time, but this is not necessarily a good idea. While it is recommended that you surround yourself with experts in the expat country for advice (legal, accounting, etc.), it is essential to remain involved in the project because the business plan is actually the business on paper. You will not be asked to be a legal expert in a foreign country or to know all its planning laws or accounting specificities, but you will be called to understand the different stages of creating your company in the host country, to thoroughly know your business activity, and to be able to explain why setting up in a particular area of the country is the best for you.
Which governments promote a Startup Nation?
Governments unanimously agree that the future lies in innovation. To attract the best foreign talent, governments are developing ambitious incentive programs. Let's take a look at some of these programs that have been put together to attract foreign entrepreneurs.
France
"Welcome to France" is certainly France's most famous tagline when it comes to promoting legal immigration to its territory. To attract foreign entrepreneurs, France has developed special programs, including the famous French Tech Ticket, dedicated to international talent. It is a competition that allows selecting innovative companies (in Tech or not). There is also the Talent Passport, a multi-annual renewable residence permit for 4 years, which is available according to the activity either as "business creator", "carrier of an innovative economic project", or as "entrepreneur/professional" (one year renewable). The French government has added another visa, the French Tech Visa, specially designed for international startups.
Netherlands
The Netherlands has released €75 million to support business startups, strengthen the country's position on the international scene, attract foreign entrepreneurs, and finance innovative projects. The government has developed Techleap, a Tech ecosystem, and Netherlands Point of Entry, a consulting platform for foreign entrepreneurs.
Canada
Canada wants to welcome more foreign entrepreneurs. Its immigration plan calls for 3,500 talents this year and 6,000 by 2025. To entice them, it has designed its Business Startup Visa Program (BSVP) in collaboration with support organizations. Foreign entrepreneurs who obtain (among other things) a letter of support from these organizations will be able to apply for a visa. These organizations may be angel investor groups, business incubators, or venture capital funds designated by the EDVP, which commit to supporting the business project.
United States
The United States intends to remain the stronghold of entrepreneurship. Its International Entrepreneur Parole program, relaunched in 2021, targets young creators of innovative startups with rapid growth potential. It is not a visa but an incentive program. Joe Biden shows here that he is taking back control of the immigration issue that was undermined by the Trump administration, with its hardliner intent to reduce immigration as much as possible. Conversely, the Biden administration is all gears out to attracting international entrepreneurs.
Innovative startups: The winning formula
The term "Innovation" is regularly used in government programs. Some thought that the Tech sector would crash in 2022. While the industry is learning the lessons of overly massive recruitments during 2020-2021, it is still hiring. The dark year of 2022 is giving way to a new reality, and Chicago, for instance, intends to capitalize on this momentum and is actively appealing to foreign talent.
Meanwhile, Japan is also planning to win some points in the race. The country, which needs some 6.7 million foreign workers by 2040, is banking on the startup visa to attract foreign talent. In 2018, it had already launched J-startup, a program inspired by the French Tech. Thought into 3 parts, the program includes a strategy to attract foreign entrepreneurs via its startup visa, the involvement of the Jetro Global Acceleration Hub and the intervention of support groups that should ensure the smooth settlement of foreign entrepreneurs in Japan.
Of course, innovation is not only reserved for Tech! Whether it's the environment, food, textiles, industry, services, marketing, health, tourism, or construction, almost every sector is concerned and involves different types of innovation. There is the development of new products, new processes, or new organizations. In all cases, research and innovation remain essential levers for meeting societal challenges while promoting growth and diversity.
Useful links:
Netherlands: supporting ambitious entrepreneurs and startups
Canada: Startup Visa Program (SUVP)
