Best country to start a business
The most ridiculous thing I have read in the mass media lately is the a list of the best countries to start a business or to do business. The is absurd. They list countries like Norway and Canada and Denmark and Switzerland as top.
This is crazy. They talk about stable law and tax codes etc. This is pure madness. Let me explain. The people writing the articles are journalists at best. I only have a masters in Economics but I am an entrepreneur. I am running my own business. The last place I would go is a high cost, high tax area, regardless of how stable the tax laws are.
The best place to start a business – Poland
The highest cost of connected starting or setting up any business is labor. In Poland you have people with PhDs and Masters that will work hard, with creative minds for 3 Euros an hour. Will anybody do that in Canada or Denmark or soft France? Poland’s tax rate is 19% on business, with tax breaks for new and foreign businesses, while the USA, Britain, France, Germany its 40%. Other countries are upset with Poland as they have not “harmonized” their tax rates with the west. Absurd. Low taxes are good, high taxes bad.
What about Scandinavia, even higher taxes and higher labor costs. Maybe five times the rate of Poland, and these western countries haved a worker shortage, while Poland and Eastern Europe has a worker surplus and a capital shortage. Read Adam Smith when there is free movement of labor and capital and a condition like this exists. Then you will figure out where the best country to start a business is.
What about infrastructure, Internet etc. Everything is new in Poland. Everyone is plugged into the internet, Poland is being pumped with EU money to rebuild its infrastructure.
What about accounting and laws. Very easy. Its called an accountant. Hire an accountant. Laws are EU laws. Accountants are pennies in Poland. Same laws, better labor for 1/5 the price. Very cheap. To start a company it could take one day and a few hundred dollars. Language-English is the second language in Poland, no language problem.
If anyone, wants to argue with me I am here. Can you honestly say that entrepreneurs are running to high priced Denmark to start a company? Why is Google and other major firms opening in Poland and not Norway? Price. Cost of labor. What is the best country to start a business? Poland. When you see these articles about the best place to start a company, do not believe them unless they tell you the best place to start a company is in Eastern Europe.
Tags: best country to start a business, business, country, entrepreneur, law, Poland, tax
56 responses to Best country to start a business
Hi Mark, I am from India presently staying with my spouse working in Ireland. I have a plan to set up and start a laundry business in Poland which deals with hotel and hospitals. Is it a good idea to start such business there at lower cost with less budget. Also, like to know there in Poland what will be the estimated cost for purchasing any type of machinery?
I think Poland has no laundry mats because everyone does it at home. People have tried to start those businesses with modest success. Yes labor cost is lower, much lower but machine costs are the same. I do not know if that business would work, but I am not an expert on that niche.
Mark Thanks for your reply, would you suggest what type of business could help me to start in Poland otherwise.
It depends what you like to do. Poland has a lot of tourist so anything connected with this including restaurants. However, it depends where you like to spend your time and your expertise. I would start something I know and like. In my opinion it is the only way to have a business.
Hi Mark, Once again thanks for your mail, what is your opinion about property investment? if it is good whom I have to hire for all my paper works and help me to buy a property. what will be the the approx for semi deluxe house property? Waiting for your reply.
Property is good in times of bubbles as it is a highly leveraged investment. However, in most times you can expect normal economic returns. The land rush happened right as Poland entered the EU.
The best business to start in Poland will be connected with employing some of the very highly educated or skilled workers at a fraction of the price of most countries. I think Poland has a good work ethic and talent.
Also consumption is raising as real wages and disposable income is increasing with growth. So if you can tap in on this it is another idea. Study what is working in Poland now and this will give you a good clue for what to start. You know with this Euro 2012 football match in Poland there will be a lot of opportunity.
Leave a reply to Best country to start a business