Canada ranks as the top country for early-age entrepreneurs, with the youngest average founder age, a business setup time of two days, and an ease of doing business index of 98.
Research by Hostinger analysed the best countries for young entrepreneurs, examining factors such as founder age, cost of starting a business, and regulatory environment. Portugal and South Africa offer the lowest startup costs at $0 and $13, respectively. Israel ranks highest in the Country Startup Friendliness Index, making it a strong location for new businesses.
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“For young entrepreneurs, the best countries offer more than just opportunity—they provide the perfect launchpad with fast setup times, low costs, and supportive environments. Places that simplify the startup process and lower financial barriers are becoming magnets for ambitious young founders. Meanwhile, countries with thriving business networks create the perfect conditions for innovation and long-term success. As the next wave of business leaders emerges, these nations are setting the stage for entrepreneurial breakthroughs, where big ideas can take off quickly and efficiently.” the report reads.
The study ranked countries based on the most supportive conditions for young entrepreneurs. Criteria included the time required to start a business, the ease of doing business, and the overall startup environment. The findings highlight the importance of business-friendly policies in fostering innovation and economic growth. Entrepreneurs seeking favourable conditions may consider these locations for their ventures.
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Here are the 10 most startup-friendly countries in 2024
Canada
Canada ranks first among the most startup-friendly countries in 2024 with a score of 100. The country has the youngest entrepreneurs and allows businesses to set up in just two days. Canada’s ease of doing business index stands at 98, and the country provides moderate startup costs, making it an attractive option for young entrepreneurs.
Israel
Israel secures the second spot with a score of 99. The country has a strong technology and innovation sector. The cost to start a business is $2,647, while the country startup friendliness index stands at 51.5. The average age of startup founders is 25, and the country has strong business networks supporting entrepreneurship.
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India
India ranks third with a score of 94. It has the shortest startup process, with businesses able to register in just 1.5 days. The cost to start a business is $1,036, and the ease of doing business index is 60. India’s rapid startup process and expanding market attract entrepreneurs despite moderate business costs.
Germany
Germany ranks fourth with a score of 90. The country has a transparent business culture and a highly skilled workforce. Entrepreneurs can start a business at a cost of $1,071, and the ease of doing business index stands at 62. Major business hubs such as Berlin and Munich offer strong support for new businesses.
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Nigeria
Nigeria ranks fifth with a score of 87. The cost to start a business is $679, but the ease of doing business index stands at 58. It takes approximately 8.5 days to register a business. Despite these challenges, Nigeria has a growing startup ecosystem, attracting entrepreneurs seeking opportunities in emerging markets.
Singapore
Singapore ranks sixth with a score of 85. The country has a moderate business setup cost of $315 and an ease of doing business index of 95. The average age of startup founders is 33. Singapore’s regulatory framework and infrastructure make it a strong choice for entrepreneurs.
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Portugal
Portugal ranks seventh with a score of 83. Entrepreneurs can start a business at zero cost, making it financially accessible. The startup process takes 3.5 days. The country provides a low-entry financial barrier and a supportive business environment for new founders.
UAE
The United Arab Emirates ranks eighth with a score of 80. The ease of doing business index is high at 91, but the cost to start a business is $7,443, the highest among the ranked countries. The UAE attracts entrepreneurs with global ambitions, but the high costs may be a challenge for early-stage startups.
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The Netherlands
The Netherlands ranks ninth, with a score of 78. The cost to start a business is $51, one of the lowest among the listed countries. The ease of doing business index is 90, and the average age of startup founders is 34. The country provides a stable and attractive business environment.
South Africa
South Africa ranks tenth with a score of 17.80. The cost to start a business is $13, one of the lowest in the ranking. The ease of doing business index stands at 57, and it takes around eight days to start a business. Despite challenges, South Africa’s emerging entrepreneurial ecosystem presents opportunities for new business founders.
Chisom Michael is a data analyst (audience engagement) and writer at BusinessDay, with diverse experience in the media industry. He holds a BSc in Industrial Physics from Imo State University and an MEng in Computer Science and Technology from Liaoning Univerisity of Technology China. He specialises in listicle writing, profiles and leveraging his skills in audience engagement analysis and data-driven insights to create compelling content that resonates with readers.
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