Best countries in the world for business development in 2023: competitiveness ranking
The World Competitiveness Ranking conducted by the International Institute for Management Development (IMD) provides information about which countries offer the best conditions for business prosperity. The ranking is based on the evaluation of four main indicators: the state of the economy, government and legislative efficiency, labor market conditions and productivity, and infrastructure development. This information can be useful for entrepreneurs planning to expand their business in other countries, as it allows them to assess which jurisdictions offer the best conditions for business prosperity.
When compiling the ranking of country competitiveness, four main indicators were taken into account:
- State of the economy: This indicator includes factors such as GDP, economic growth, inflation, unemployment rate, and investments. It reflects the overall economic situation in the country and its potential for business development.
- Government and legislative efficiency: This indicator assesses how effective and predictable the government’s actions are and how favorable the legislative environment is for business. Important components of this indicator include political stability, corruption, tax system, and protection of property rights.
- Labor market conditions and productivity: This indicator evaluates the flexibility of the labor market, availability of skilled workforce, wage levels, and unemployment rate. It reflects the extent to which favorable conditions exist for hiring and retaining qualified employees.
- Infrastructure development: This indicator assesses the quality and accessibility of infrastructure in the country, including transportation, energy, and communication infrastructure. Well-developed infrastructure ensures efficient business operations and contributes to its development.
Each of these indicators carries a weight in the overall ranking, and experts from the International Institute for Management Development (IMD) conduct an analysis to determine which countries offer the best conditions for business development.
Top 10 countries for business development: competitiveness rating 2023
Starting from 2022, Denmark has become the leader in the list of the most competitive countries. Over the past five years, this Scandinavian country has consistently ranked among the top ten best places for business development, and in the past four years, it has significantly improved its position in the ranking. According to experts, Denmark’s three key advantages lie in its quality infrastructure, favorable legislative system, and efficient business environment.
Ireland ranks second, having climbed five positions in the ranking over the past four years. The country’s high economic indicators are its main advantage. Ireland has created favorable conditions for attracting investments and business development.
Switzerland has been one of the most favorable countries for entrepreneurship development over the past five years, and in 2021, it managed to take the first place in the ranking. Despite Switzerland’s high performance in several key indicators, the process of developing the business environment in the country is relatively slow.
Ranking countries by their level of competitiveness can provide valuable information for those planning to start a new enterprise or relocate their business to another country. However, it is important to consider that besides these indicators, there are numerous other factors such as cultural characteristics, market competition, tax policies, etc., which can influence business prosperity. Therefore, the decision to choose a country for business development should be based on a comprehensive analysis.
Based on the competitiveness ranking, it can be concluded that countries with developed economies, efficient governments, strong labor markets, and well-developed infrastructure provide the best conditions for successful business development.