"Goverment's view of the economy could be summed up in a few short phrases: If it moves, tax it. If it keeps moving, regulate it. And if it stops moving, subsidize it." -Ronald Reagan
#01 United States of America
Entrepreneurial Freedom Score (EFS): 100%
GDP – Nominal: $20.89 trillion (2022)
GDP per Capita: $63,413
GDP – (PPP): $20.89 trillion
Deducted Score: Non
Review: The land of *Reaganomics in economics, USA, is often considered a land of opportunity and a bastion of freedom and democracy. The country has a capitalist economic system that is characterized by private ownership of property, goods, and services, and the ability to invest and pursue profits. This system has led to a culture of entrepreneurship and innovation, with many individuals and companies starting new ventures and businesses. The US provides opportunities for all citizens, regardless of their background to succeed.
*Reaganomics is a term used to describe the economic policies promoted by former U.S. President Ronald Reagan during the 1980s. These policies included a combination of tax cuts, deregulation, and decreased government spending, with the goal of stimulating economic growth and reducing inflation. Reagan was from the republican party (GOP) in the USA (Kenton, 2004). Being republican matters!
#02 Brazil
EFS: 75%
GDP – Nominal: $1.44 trillion (2022)
GDP per Capita: $6,450
GDP – (PPP): $3.08 trillion
Deducted Score: Non-english speaking
Review: Brazil has a large and diverse economy, with a growing startup ecosystem (Egusa and Carter, 2017). However, it also faces challenges such as high taxes, bureaucracy, and a complex legal system. Despite these challenges, there are many opportunities for startups in sectors such as e-commerce, technology, and renewable energy. Additionally, the government has implemented programs and initiatives to support the development of startups, such as funding and incubators. Brazil will have a better future even though there is reportedly corruption at the highest level of government during past years for the former government and president (France 24, 2022).
#03 South Korea
EFS: 65%
GDP – Nominal: $1.63 trillion (2022)
GDP per Capita: $30,644
GDP – (PPP): $2.29 trillion
Deducted Score: Non-English speaking, Institutional Racism (Shin, 2021).
Review: South Korea has a strong and rapidly growing economy, with a particular emphasis on technology and innovation. The country has a high level of support for entrepreneurship and venture capitalism, with a number of government-backed initiatives and programs aimed at promoting the development of startups and small businesses.
Additionally, South Korea has made significant progress in terms of gender equality, with a number of initiatives aimed at promoting the participation of women in the workforce and in leadership positions. As a result, many women entrepreneurs and venture capitalists are finding success in South Korea and even in stem science in USA and UK. South Korea jumped into top 10 startup ecosystems from 18th in 2022 due to attracting international founders and investors with pension VC funds by Government (Gnome, 2022).
#04 United Kingdom
EFS: 55%
GDP – Nominal: $2.76 trillion (2022)
GDP per Capita: $39,229
GDP – (PPP): $2.98 trillion
Deducted Score: Monarchy. high tax
Review: 2nd top spot for tech founders to choose and 1st choice for Fintech founders (Tech Nation, 2022). Well, entrepreneurs are pirate spirits and they work in different countries and adapt to different systems. It is true that some entrepreneurs and investors may prefer a more decentralized and less centralized government, while others may prefer a more centralized and predictable system. Some entrepreneurs like the monarchy in UK and more liberal ones prefer a republican system in the USA over a democrat party in the USA.
London is a well-known global financial center and has a strong and growing fintech startup ecosystem. The city has a large pool of talent, including a significant number of financial and technology professionals, as well as a large number of business incubators and accelerators. Additionally, London has a pro-business environment, with a number of government initiatives and programs in place to support the growth of startups and small businesses. The city is also home to a number of leading venture capital firms and angel investors. All of these factors have contributed to London's reputation as a leading location for fintech startups.
London is ranked 3rd (Gnome, 2022) after New York for best startup ecosystem by some research and index and is a cluster for many rising fintech and Ai startups. The city has a diverse and well-established ecosystem that includes a vibrant startup community, a large pool of talent, and a supportive government. As a result, many entrepreneurs and investors are drawn to London to start and grow their businesses.
#05 CANADA
EFS: 55%
GDP – Nominal: $1.64 trillion (2022)
GDP per Capita: $42,080
GDP – (PPP): $1.81 trillion
Deducted Score: Under the constitutional monarchy, high tax
Review: Canada is known for its economy, high standard of living, and welcoming attitude toward immigrants. The country is also considered a leader in terms of multiculturalism and diversity and is known for its inclusive society. Canada has some challenges for entrepreneurs and investors, such as a high tax burden and barriers to entry in the startup ecosystem, particularly for those without access to capital.
Additionally, the weather in Canada can be challenging, particularly in the winter months, which may be a deterrent for some entrepreneurs and investors. The Canadian government has been working to address these challenges by introducing tax reforms and providing support to entrepreneurs and startups through programs such as funding and incubators. The country also hosts some important conferences like the Collision conference which is considered one of the best spots for startups to raise funding and find investors and clients.
#06 Switzerland
EFS: 45%
GDP – Nominal: $632 billion (2022)
GDP per Capita: $77.427
GDP – (PPP): $739.49 billion
Deducted Score: Non-english speaking, High Tax, and non-immigrant welcoming
Review: the Federal Republic of Switzerland has a well-developed economy and was first in innovations for consecutive eleven years between 2011-2022 by WIPO (Dutta et al, 2022). The country is known for its high-quality research and development, as well as its strong universities and scientific institutions. Additionally, the government of Switzerland places a strong emphasis on innovation, with a number of initiatives and programs in place to support research and development, and the growth of startups and small businesses. Switzerland also has a highly skilled workforce and a pro-business environment, which makes it an attractive location for companies in a variety of sectors, including technology, biotechnology, and finance. The country is also considered as a welcoming location for international talents, researchers, and entrepreneurs. All these factors contribute to Switzerland's reputation as an innovative country.
Switzerland is a federal parliamentary republic and not a monarchy. Switzerland has a unique political system, characterized by a balance of power between its national government, cantons (regions), and communes (municipalities). This system of government is intended to protect the rights and interests of the country's different linguistic and cultural groups, and to promote a more direct form of democracy. This system gives a level of autonomy to the regions and municipalities and allows for a more flexible and responsive government.
#07 Germany
EFS: 45%
GDP – Nominal: $3.85 trillion (2022)
GDP per Capita: $45,466
GDP – (PPP): $4.45 trillion
Deducted Scores: Non-english speaking, high tax, institutional racism (Fürstenau, 2022)
Review: The country is considered a global leader in heavy industry, particularly in sectors such as automotive, machinery, and engineering. Germany is considered as the inventor of Industry 4.0, the term used to describe the fourth industrial revolution. Industry 4.0 is characterized by integrating advanced technologies such as artificial intelligence, the internet of things, and big data into manufacturing processes. Germany has been at the forefront of this development, with many of its companies investing heavily in research and development in these areas, and its government has been fostering the development of Industry 4.0 through policies and initiatives (European Commission Report, 2017).
The country's strong economy, well-established industrial base, and expertise in technology and science make Germany an attractive location for entrepreneurs and investors in a wide range of industries, particularly in heavy industry and high-tech. Additionally, Germany has a large pool of highly skilled workforce, which is one of the key factors for their success.
#08 France
EFS: 45%
GDP – Nominal: $2.63 trillion (2022)
GDP per Capita: $39,257
GDP – (PPP): $2.95 trillion
Deducted Score: Non-english speaking, high tax, institutional racism (Wenden, 2016)
Review: France is particularly known for its strong pharmaceutical, agriculture, cosmetics, and game startups, and is also developing a growing tech startup ecosystem. The French government has been supporting the development of the startup ecosystem through initiatives and programs such as funding and incubators and more in 2023! (O’Brien, 2023).
France is also known as a country of liberalism, as it was the birthplace of the Revolution in 1789, which marked the end of the monarchy and the beginning of the Republic. This event, as well as the country's liberal and revolutionary history, have shaped French society and culture and have also had an impact on the country's economy and politics.
The country's strong economy and well-established startup ecosystem, combined with the government's support for innovation and entrepreneurship, make France an attractive location for entrepreneurs and investors in a wide range of industries.
#09 Italy
EFS: 45%
GDP – Nominal: $1.88 trillion (2022)
GDP per Capita: $30,657
GDP – (PPP): $2.42 trillion
Deducted Score: Non-english speaking, high tax, and non-immigrant welcoming
Review: Italy is known for its rich cultural heritage, and strong economy, and has a long history of innovation in various sectors such as fashion, design, food, and art. The country has a number of strong universities and research institutions and has recently started to develop a growing tech startup ecosystem.
Italy has faced challenges in attracting and retaining international talent and entrepreneurs, particularly those with technical skills. The lack of a diverse talent pool can be a barrier to growth for startups, as it limits their access to global markets and customers.
The Italian government has been working on addressing these issues by improving the immigration process, making it easier for foreign entrepreneurs and tech workers to start and grow their businesses in Italy (Butcher, 2020). Additionally, the government has been investing in initiatives and programs to support the development of the startup ecosystem and promote innovation in the country.
Methodology for Entrepreneurial Freedom (EF) Score:
+25% Liberal/Republic/Democrat Vs -25% Under Monarchy/Communism/Globalist/Theocracy
+10% for Republicans (laissez-faire GOV) Vs -10% Democratic/Liberal (GOV Influence on Market)
-10% for Institutional Racism/Discrimination (Feagin, 2013)
-10% for immigrant talents fair opportunities
+20% Venture Capitalism (low Tax) vs -20% Socialism (high tax)
-25% deduction for non-English speaking Vs. + 25% for Native English
Bibliography:
Kenton, W. (2004) Reaganomics: Definition, policies, and impact, Investopedia. Available at: https://www.investopedia.com/terms/r/reaganomics.asp (Accessed: January 23, 2023).
Egusa, C. and Carter, D. (2017) “Brazil: A look into Latin America’s largest startup ecosystem,” TechCrunch, 19 January. Available at: https://techcrunch.com/2017/01/19/brazil-a-look-into-latin-americas-largest-startup-ecosystem/ (Accessed: March 1, 2023).
France 24 (2022) From prison to the presidency: Brazil’s Lula rises from ashes, France 24. Available at: https://www.france24.com/en/americas/20221031-from-prison-to-triumphant-return-brazil-s-lula-rises-from-ashes (Accessed: January 23, 2023).
Shin, G.-W. (2021) Gi-Wook shin on racism in South Korea, Stanford.edu. Available at: https://fsi.stanford.edu/news/gi-wook-shin-racism-south-korea (Accessed: January 23, 2023).
Genome, S. (2022) Startup genome, Startup Genome. Available at: https://startupgenome.com/report/gser2022 (Accessed: December 5, 2022).
A decade of UK tech 2022. Tech Nation. Available at: https://technation.io/a-decade-of-uk-tech/ (Accessed: August 7, 2022)
Dutta, S. et al. (2022) Global innovation index 2022 : [object Object]: WIP.
European Commission Report (2017) Germany: Industry 4.0, Europa.eu. Available at: https://ati.ec.europa.eu/sites/default/files/2020-06/DTM_Industrie%204.0_DE.pdf (Accessed: March 1, 2023).
Fürstenau, M. (2022) Racism in Germany is part of everyday life, Deutsche Welle. Available at: https://www.dw.com/en/racism-in-germany-is-part-of-everyday-life/a-61700339 (Accessed: January 23, 2023).
O’Brien, C. (2023) France plans to use the startup downturn to come out on top in Europe, Sifted. Available at: https://sifted.eu/articles/france-plans-startup-downturn-top/ (Accessed: March 1, 2023).
Wenden, C. W. (2016) Institutional Discrimination in France Towards Foreigners and Their Children, Cairn-int.info. Available at: https://www.cairn-int.info/article-E_CM_094_0083--institutional-discrimination-in-france.htm (Accessed: January 23, 2023).
Butcher, M. (2020) “Surging homegrown talent and VC spark Italy’s tech renaissance,” TechCrunch, 17 November. Available at: https://techcrunch.com/2020/11/17/surging-homegrown-talent-and-vc-sparks-an-italian-tech-renaissance/ (Accessed: March 1, 2023).
Feagin, J. (2013) Systemic racism: A theory of oppression. London, England: Routledge. Available at: https://www.fairfightinitiative.org/systemic-racism/ (Accessed: January 31, 2023).
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