Many things in life are a piece of cake, but not starting a business. From collecting enough funds to making a reliable team to building a strong network and marketing your ideas right, setting up your own company requires all kinds of preparation. While all of these factors influence the success of your business, there is another factor that most seem to ignore – the location.
Image : shutterstock
Choosing the right location is in fact one of the crucial first steps for successful functioning and overall growth when you venture out to set up your own company. In case you are clueless about what place would make a mark for your business, fret not. We did some research and identified the world’s five best cities to set up a new company. Not only do these cities offer the best amenities, community engagement and adequate access to resources, but they also have low living cost and a well-educated workforce – the perfect recipe for a successful endeavour.
The technology hub of India, Bengaluru is one of the best places to give wings to your startup dreams. The foremost reason to start up here is the access to a reliable workforce. There is never a lack of workforce, owing to the large number of meritorious engineers and management students graduating every year.
While there are no special startup incentives, it wouldn’t cost you a fortune to set up your business in Bengaluru. If you have a reasonable amount of funds, you are good to go. The corporate tax rate of only 30 percent gives the city another edge to attract startup founders. Furthermore, the city always has a startup event happening every week such as hackathons, competitions and startup meets, mostly organised by corporates.
If high work ethics are what drive you the most, Berlin is the place to be for you. Touted as a younger version of New York City, Berlin is yet to be completely explored, making it one of the best choices for startups looking to target smaller markets.
The cost of living is low. Another advantage is that quality workforce for a smaller market allows you to keep your funds in check, especially in the early years when your main focus is to market your product to the audience. Looking at the numbers, the booming economy and other factors, Berlin has the potential to be the next Silicon Valley.
Kuala Lumpur, Malaysia
Kuala Lumpur is touted as one of the best test markets for new ideas because of the presence of different nationalities. Since the city holds shelter for diverse nationalities, it allows you to explore the world’s three largest potential marketplaces. There are many private and public institutions that are willing to invest in startups. This makes the city a good deal for those who are looking for promising investment opportunities.
Many successful companies incorporated in Singapore run their core processes out of Kuala Lumpur in order to lessen and/or negate risk factors.
Furthermore, with the same standard of living as that of its bigger counterpart, Singapore, Kuala Lumpur offers way cheaper accommodation and access to the required resources.
Known for its strict culture and traditions, China has been surprising the world with its successful startup stories for quite some time now. The idea that a ‘Made in China’ stamp implies low quality does not stand true anymore. Xiaomi and Oppo are the newest examples and feathers in its enviable startup culture that have left the world wanting for more.
The biggest advantage other than availability of high-end, high-margin manufacturing material at lower prices is its policy of tax relief for startups. In addition to this, China offers a tax relief program for startups with annual tax deductions of up to 1,500 USD to businesses established by previously unemployed workers and recent college graduates.
Those who know entrepreneurship know Sydney. The most attractive factor that works in favour of Sydney’s startup culture is the lux and comfortable yet affordable corporate lifestyle. The high work ethics, dependable workforce and healthy economy allow founders to take well-informed and calculated risks.
Secondly, the city is known for its lively culture, and so networking comes easy. Doubtless, this would work in the favour of new founders. On top of this, startups are given a tax relief of up to 14,500 USD along with an additional 45 percent discount on any R&D projects.
Each city mentioned here offers attractive qualities that one should look for when setting up the base: a strong startup community, low living costs, a well-educated workforce and cooperative taxation laws. So make your choice based on your business needs.