How hard is it to start a business
Well, according to http://www.doingbusiness. org/ran. . all the social democratic countries are easier to start a business in, and Denmark and Norway even surpasses the US at the ease of doing business in general, with Sweden following quite close.
So. How is this possible? They are totally socialist, so they should per definition suck at doing business right? Well no, but they do go around it in a different way, which does ease the life of employers quite a bit. To mention but a few examples:
- Free healthcare means massive burdens lifted from employers. You never have to insure your employees, the state will handle this for you. Practicly no social contribution cost for employers.
- Comprehensive and functioning tax system. IRS storing data on magnetic discs? Ha, just go online and figure out your taxes fast and easy.
- Flexicurity, hiring and firing is easy and can be done as the employer wishes (but don't worry, employees collect state
benefits should they be sacked).
- Employer/employee getting sick, possibly long term? No worries, the state will once again pitch in, also paying other things, such as 80% of the payed maternity leave etc.
- You can setup a business in one day and have residence and work permits within 5 weeks.
- Literally no corruption is definitely also a plus.
- Extremely skilled workforce.
- 22% corporate tax rates.
- And the list goes on.
So, no quite frankly, it is easier to setup businesses in social democratic countries. However, the obvious downside for most people, Americans in particular, is the 36-66% income tax you will have to pay in the other end. This was obviously not calculated in the rankings, but the general deterrent for running business in a social democratic country. So it might be easier to start and run a business, but you might end up being "rewarded" less in cold cash, which is obviously on many people's minds. Unfortunately.Source: www.quora.com
Category: Personal Finance