2014-08 Most favourable countries to start a new business in Europe

Detailed Information

Ever since the last economic meltdown in Europe, many entrepreneurs are looking for the most favourable conditions to start a new business or expand an existing one. This list by the European Chamber with data from the World Bank and International Finance Corporation, gives an insight on the best countries to do business in Europe on the criterion of “Starting a business” (except in Andorra, Liechtenstein and Monaco). The methodology measures the procedures which are officially required for an entrepreneur to legally operate a business in a country, how much time is required and how expensive is to establish a business.

According to the rankings, meanwhile in other European countries it takes 5 procedures and 12.8 days on average to set up a business, in Armenia (ranked 1st), it takes just 2 procedures and 4.0 days, which is 3 times shorter. Macedonia, Georgia, Azerbaijan and Lithuania follow suit. Even though in Macedonia it takes less time than in Armenia, the associated costs is what gives Armenia the edge. The most difficult country to establish a business in is Bosnia and Herzegovina (ranked #44) with several bureaucratic procedures which are time consuming and expensive.

Table 1: Most favourable countries to start a new business in Europe, 2013

Source: IFC, WB (2013)
EuCham Research Department – Compiled by Alina Moroz 2014-06-20, Reviewed by Kenneth Vekima 2014-07-28