A digitized world provides the best eco-system for a startup to flourish. Entrepreneurs starting businesses are often low on budget but high on ideas. They look out for the best city to start their business. Well, certain cities are featured by the business-friendly infrastructure, low tax rates, favourable legal sanctions and so on. Startups look out for these cities to grow their roots. Here, you will find the names of ten cities around the world with the best environment for startups and the reasons for their status.
1. San Francisco, The USA
The right blend of manpower and machines have leveraged business in the Silicon Valley region of San Francisco in the USA. Since the 1970’s new companies have been rapidly growing in this area. Today, it has more than 25,000 registered start-up companies. The companies here receive a lot of incentives and benefits from the Government. The ‘Small Business Week’, an event targeted to streamline business, is organized every May. It has low rates for office space, office rent and corporate taxes.
2. London, The UK
London has emerged as one of the most ideal hubs for startups in recent years. It provides a complete infrastructural support to the companies. Couple with low tax rates and affordable rental slabs, the startups get incentives from the Government. The estimated office rent per annum is around $152, 500 for a startup. The ‘London Technology Week’ is a notable event that takes place in June, aiming to leverage the business environment in the city. It has around 8,514 start-up companies till date.
3. Berlin, Germany
Krewzberg and Friedrichshain are two of the most important startup areas of Berlin. It has around 1,774 registered start-up companies and enjoys a superb infrastructure in the state. It has more than 80 co-working spaces and a corporate tax rate of 29.45%. The estimated office rate in this area is $37,500 per annum. The most notable trading event here is ‘Startup Camp Berlin’, which takes place in April. In 2015, the Berlin Startup Unit was set up to establish collaboration between the firms and various service structures.
4. Vancouver, Canada
The most prominent advantage for entrepreneurs in this city is the lower tax rate, as compared to other cities in the USA and Canada. In the recent years, it has featured an increasing concentration of startups. Thus, the upper part of the West Coast of America has turned out to be a profitable destination for the startups. The ‘Vancouver Startup Week’ is organized every September to promote business and encourage the entrepreneurs. It has over 1,625 startup companies.
5. Amsterdam, The Netherlands
This Dutch city is known for its low living costs and provides a complete infrastructure to the startups. The investors receive good incentives from the Government. The companies which look forward to expand the business to the public sector receive more facilities. It has around 1,123 startup companies and is one of the most profitable destinations for entrepreneurs across the globe. The most notable business event here is the ‘Amsterdam Business Week’, which takes place every September.
6. New York, The USA
The investors take a large number of initiatives here, both in the private and the public sectors. This is a good hub for female entrepreneurs. A study in 2012 revealed that this place attracts double the number of female entrepreneurs, as compared to Silicon Valley. As many as 356 tax-free zones have been set up in the region, and the investors find it an ideal place to start a business from the scratch. It has over 15,718 registered startups till date and the number is rapidly rising.
Singapore is a small yet prosperous destination for startups. It provides co-working spaces to the entrepreneurs and a number of facilities enhance the quality of business here. The ‘Singapore Fintech Festival’ takes place in November every year. Apart from these, there are scheme systems to provide financial assistance to startups. It has over 25 co-working spaces and over 1,824 start-up companies.
8. Sydney, Australia
Business in Sydney has evolved over the last 15 years in a big way, making it the startup capital of the country. In New South Wales, the companies enjoy various schemes that enable them to get the desired infrastructural support and financial assistance. With more than 1, 589 startups and 40 co-working spaces, it is one of the best destinations for entrepreneurs to start from. Along with the financial support, the companies also get assistance for carrying out research and development to promote innovation.
9. Bangalore, India
Once, this city was known as the back-office of the world. With upgraded infrastructure, easy business norms and slashed off tax burdens, Bangalore enjoys its place in the top ten lists. Technological advancements have leveraged business infrastructure in the city and it has a low cost of living as well. All these enable the entrepreneurs to sustain their business. It is the information hub of India and has been experiencing an explosive business growth in the recent years.
10. Moscow, Russia
The Russian capital is one of the best hubs for entrepreneurs these days. Most of these companies are IT based firms. It has some of the leading software brands of the country. The business infrastructure is complemented by the sound educational system. The companies also get a sufficient backup in terms of funding and infrastructure from the Government. Altogether, it is one of the most technically advanced cities of the world.
If you are an entrepreneur, you probably know the conditions that determine the success of a business. This list has been developed on the basis of certain common parameters like support from the Government, tax benefits, available infrastructure and so on. With this list, you may decide where to start from.