As of the end of 2022, there were 1,203 startups in the world worth over $1 billion in revenue - with TikTok’s parent company, ByteDance, taking the top spot as the world’s most valuable startup, estimated to be worth over $140 billion.
Millions of entrepreneurs attempt to carve out their own space in the market every year, and 2023 is no exception - but with over 90% of startups failing in the first year, location is a key consideration for increasing your chances of success. Here, Moneyzine.com has taken a look at the top-rated countries for startups in 2023 and compared key factors any new business owner may want to consider.
With many more startups failing each year than those succeeding and skyrocketing to unicorn status, it makes sense that any aspiring entrepreneur will want to situate themselves in an environment in which startups have a history of success.
Our research shows that there is no single metric that can be used to find the best single city or country to launch a startup - instead, businesses need to take a myriad of factors into account.Jonathan Merry, CEO of Moneyzine.com
Top rated countries for startups
Data released recently rated 100 countries and 1,000 cities to find the best locations for startups. With an overall score of 195.37, the United States was scored as the top country for startups by four - scoring almost four times higher than the United Kingdom, which came in second place with a score of 52.56.
| Country | Startup Blink Score | # of Unicorn Startups | Average Monthly Net Salary (After Tax) | Unemployment % | % Adults with Tertiary Education | Ease of doing business rank | Cost of Living Index Score |
| US | 195.37 | 651 | $4,179 | 5.5% | 50.10% | 6 | 72.4 |
| UK | 52.56 | 50 | $2,823 | 4.5% | 49.40% | 8 | 61.5 |
| Israel | 45.06 | 23 | $2,626 | 5.0% | 50.10% | 35 | 76.4 |
| Canada | 35.26 | 20 | $3,076 | 7.5% | 60% | 23 | 66.1 |
| Sweden | 28.5 | 7 | $2,650 | 8.7% | 44.60% | 10 | 62.9 |
| Germany | 25.33 | 29 | $2,958 | 3.5% | 31.30% | 22 | 62.9 |
| Singapore | 23.41 | 14 | $4,974 | 3.6% | - | 2 | 85.9 |
| Australia | 22.45 | 8 | $3,766 | 5.1% | 49.30% | 14 | 75.3 |
| France | 20.99 | 25 | $2,475 | 8.1% | 39.70% | 33 | 68.7 |
| China | 20.66 | 173 | $1,103 | 4.8% | - | 32 | 39.2 |
United States also has the most unicorn startups
According to the latest data from CBI, the US has the most unicorn startups out of any other country in the world. With more than 651 unicorn startups, the US once again far surpasses any other country on the top 10 list, with China in second place with 173.
The other eight countries all have considerably less unicorn startups. The UK comes in third with 50 unicorns - more than any other European country. Success breeds success, so many aspiring entrepreneurs may be drawn to the well-regulated environments with a history of innovation in the top countries in the world for highly successful startups.
Monthly income variations and cost of living
Higher average incomes are a good indication of economic growth within a country, so here we’ve taken a look at the average monthly net (after tax) incomes of the countries ranked as the top 10 for startups.
The highest overall average monthly wage can be found in Singapore, at $4.974. However, it’s also worth noting that Singapore scores lowest on the Cost of Living index with a total score of 85.9 (with 1 being the best), so although workers are well-paid here, they’re also paying more for daily living costs.
The only other country with an average monthly income over $4,000 is the US, where employees earn an average of $4,179. In comparison, the European countries on the list have an average monthly net income of between $2,475 (France) and $2,958 (Germany) - considerably lower than across the pond.
There are a number of factors to consider in these differences beyond merely just economic strength, however. For example, European countries tend to have more social benefits, healthcare, and social infrastructure, while workers in the US are required to spend a larger portion of their income on medical care, retirement, etc.
The lowest average monthly salary of the top 10 startup countries can be found in China, at an estimated $1,103 per month. Again, the correlation of cost of living can be found here - with a score of 39.2, China scores higher on the cost of living index than any other country listed. Therefore, while workers in China may be paid less, they also ‘need’ less in terms of living expenses.
Ease of doing business
The World Bank’s ease of doing business score measures the gap between a country’s economic progress, and best practices regarding regulatory practices such as time to start a business, registering a property, getting credit, and paying taxes.
Once more, the scores each country gets in this ranking (with 1 being considered the best) do not directly correlate to the top 10 countries for startups. In fact, Singapore comes top of the list once again for this factor with a score of 2, despite being scored as seventh best country for startups.
Bottom of the list of countries ranked above for ease of doing business is Israel, despite being ranked third overall for startups.
Overall, what’s clear is that there are a myriad of factors to be considered and compared when categorising the best countries for startups. With ever fluctuating economies, regulations, and technological advancements, no single metric can be used to point out the best environment for a business to thrive - which is why the top 10 countries ranked above were calculated using a number of factors and indicators.
Aspiring startups need to take their own needs and industry into account before deciding what environment is best for their business to grow.
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