Canada named second easiest country to start a business in

Canada was identified as the second easiest country in the world to start a business in, according to data from the World Bank. New Zealand ranked first, while emerging economies like Kosovo, Uzbekistan, and Georgia also placed in the top 12.

Ease of doing business is an important part of well-functioning economies. If a country has too many regulatory blocks, an arcane system of permits (and endless avenues for corruption), and barriers to foreign companies and investment, businesses will be less likely to move in, start up, and thrive. Poor systems of business regulation can reinforce a cycle of weak economies while hindering job creation.

Delving into data from the World Bank’s Doing Business 2018 report, however, digital marketing consultancy Reboot Digital Agency has found that countries around the globe are increasingly trying to remove barriers to business and commerce. Reboot highlights that of the 190 countries measured in the World Bank report, 119 enacted at least one business regulation reform in the past year. Of those countries, 80% implemented a reform for a second consecutive year, while 65% did so for a third year.

World Bank data shows that New Zealand is the best country to start a business in, while also being the champion of the entire Ease of Doing Business index. Though the country’s Distance to Frontier (DTF) – which measures the distance from the best recorded performance across all economies since 2005 – fell 0.18%, New Zealand still reigned supreme. Reboot relates that it takes just one procedure, half a day, and less than 1% of income per capita to start a business in Auckland.

Aside from the ease of starting a business, the small island nation was also tops in ‘getting credit’ and ‘registering property,’ while snagging top-three rankings in ‘dealing with construction permits’ and ‘protecting minority investors.’

Meanwhile Canada was ranked the second best country in which to start a business in 2018. According to Reboot, it would take just two procedures, 1.5 days, and less than 1% of income per capita to start a business in Toronto. Overall, the World Bank report ranked Canada 18th for ease of doing business, with high rankings in ‘getting credit’ (12), protecting minority investors (8), resolving insolvency (11), and paying taxes (16). Canada scored poorly in ‘getting electricity’ (105) and ‘enforcing contracts’ (114).

In an alternate ranking from Forbes’ Best Countries for Business, Canada ranked fifth overall while New Zealand came in second. In Forbes’ ranking, the United Kingdom snagged the top spot.

Meanwhile, emerging economies like Georgie, Jamaica, Kosovo, and Uzbekistan placed in the top 12 best countries in which to start up a business, highlighting efforts in those nations to attract foreign businesses while also making the startup process easier for their own citizens. Kosovo and Uzbekistan’s DTF score jumped by 4.98% and 4.46% respectively, while Georgia’s increased by 2.12%.

“It’s encouraging to observe countries, like Georgia, Kosovo, and Uzbekistan experiencing vibrant growth,” commented Shai Aharony, managing director of Reboot Digital Agency. “It hints we are heading toward a rich, multi-cultural time in business, which will no doubt encourage us to venture to areas anew, to start-up or network. Some may even argue it will become essential to do so. I’m sure we will see continued change in the sector as businesses reform and push beyond old boundaries.”