UK the third cheapest place in the world to start a business

The UK has been ranked as the third cheapest place in the world to set up in business, according to the latest Legatum Prosperity Index from public policy think-tank, Legatum Institute.

Start-up costs for new businesses in the UK are at 0.3 per cent of the gross national income, a stark contrast to start-up costs in America (1.5 per cent) and Germany (4.7 per cent).

On the whole, the UK has been ranked as the 13^th most prosperous country in the world in the Index’s annual ranking of 142 nations covering 96 per cent of the global population.

When comparing performance with other leading European nations, Germany polled just below the UK in the prosperity index in 14^th place, above France in 21^st, Spain in 26^th and Italy in 37^th place.

Russia was the least prosperous nation in Europe, falling seven places from 2013 to rank 68^th.

The Index claims to be the only global measurement of prosperity based on income and well-being and also analysed nations on the overall strength of their economies, entrepreneurship, governance, education, health, safety and security, personal freedom and social capital.

Norway ranked in pole position for its economy, freedom and charitable activities. The UK rose three places on last year’s study in terms of overall prosperity, with the Index claiming the nation to be “a world-leader in entrepreneurship”, ranking above all large European countries and G7 nations for entrepreneurship and opportunity.

In terms of online connectivity and capability, the UK ranked number-one in the world for global internet bandwidth per person and 11^th for the most secure internet servers per person.

James Barty, a special adviser to the Legatum Institute, believes there are multiple facets to UK’s growing prosperity post-recession and that public finances are only one of many critical factors.

“Politicians are often blinkered by what drives national success,” said Barty.

“Although a solid economy is a pre-requisite – and the Government should be proud of its achievements in putting the public finances on a sound footing – other factors are vital [too] when it comes to prosperity.”

Date published 12 Nov 2014 | Last updated 12 Nov 2014