Owning a business although may sound easy, but is definitely not that easy, dude. First of all, you need to have that guts to take the risk of starting a business despite knowing whether you will earn profit or loss. 

Then, the very important part of starting a business is the capital. You have to invest a big amount of money to start a business initially. Now, think of the fact that if you get duped or run at an immense loss. What next?

You Might Also Like To Read Top 10 Economic Predictions For 2019

Well, profit and loss are a part and parcel of every business story. At some point in time, you have to experience both. However, notwithstanding the impact of a business, it is better to start with steady research as in where you want to establish your business. Or, let’s put it this way that you need to research the places that are beneficial for your business.

Reports of World Bank

Let’s see what the World Bank has to say us.

According to the reports of the World Bank, New Zealand has one time again gained the trophy of the best business spot. World Bank has said that it is really easy to conduct and organize a business in New Zealand. So, you can say that amongst the ten best spots of business, New Zealand stands at number one.

Although the UK has been overtaken by Norway and Georgia, yet it captures the ninth position in the scale of the best place for business. Last year, UK had grabbed the seventh position. Unfortunately, this time it could not buck up much and has eventually climbed down the ladder more. Along with the UK, the US has also undergone a similar situation. From last year, it fell down by two levels. Presently, US acquires the eight position in the chart of the top ten best places for business.

You will be surprised to know that for the past three years consecutively, New Zealand, Denmark, and Singapore have been sitting in the top 3 positions respectively. The bottom rank has been fixed for Somalia just like the rest of the time. So, it is high time that either Somalia takes part in this rat race or you, as a businessman, do not look at it. Somalia may be good for a holiday vacation, but for establishing a new business, it’s a big NO!

Report on the impact of red tape            

An annual study of the World Bank puts emphasis on the red tape that brings an impact upon the medium and small-sized enterprises all over the globe. This is inclusive of starting and getting your business registered, tax payments and also trading over the borders.

To this study, the Wall Street Journal has said something important. It goes like this. It says that all the policymakers and businessmen around the world have closely watched the rankings of the places suitable for business. The countries are trying to heighten their positions by connecting their domestic lifestyle very frequently. In carrying out this process, there are three countries that have immensely developed. They are – Afghanistan, Djibouti, and China. Along with these three, Beijing also had tried their level best to make significant changes so that it can cut the regulations from the end year.

The Financial Times has asked some people regarding the changes that have taken places over the years in the business-oriented places. Rita Ramalho, the senior manager from the global indicator group of the World Bank has commented that, for China, it has been a ‘remarkable’ year. She has also added that: “Normally, we do one to two reforms. This year, they have seven areas of reforms. The intensity has increased significantly.”

Again, Shanta Devarajan, who is the chief economist of the World Bank, passed her comments regarding this as well. She has said that the diversity that has been noticed amongst the improving countries is a clear indication of “economies of all sizes and income levels, and even those in conflict” is ready to make advancements for developing a business environment that is suitable for both domestic and medium industries.

In spite of regarding the governments and the businesses all over the world, this ranking of the best place for business has faced several criticisms. The aid agencies criticize the rankings for rewarding the countries with a level of inequality. They believe that the rankings have not been honest enough to be showcased to the whole world. According to them, it was a biased calculation.

Paul Romer, the former chief economist of the World Bank has exclaimed something regarding this ranking procedure. He has said that since there were several changes made in the methodology of the report, therefore, it has brought a sense of unfairness among the staffs of the World Bank to deliberately push some countries higher or lower to a position that they do not deserve. He has also added that even though the business environment of certain countries has remained the same, yet the World Bank staffs have been biased towards them.

Further, the newspaper Financial Times adds: “An external audit found the report had not been manipulated for political purposes, but the World Bank took some of the criticisms to heart: There were no changes to the report’s methodology this year, and the Bank has committed to making updates to its methodology only once every five year.”

So, it is time to take a look at the top ten places suitable for business. They are as follows:

1. New Zealand
2. Singapore
3. Denmark
4. Hong Kong
5. South Korea
6. Georgia
7. Norway
8. US
9. UK
10. Macedonia

At the same time, it is important for you to keep a track upon the places where you should avoid doing business. They are given below:

1. Somalia
2. Eritrea
3. Venezuela
4. Yemen
5. Libya
6. South Sudan
7. Democratic Republic of the Congo
8. Haiti
9. Chad
10. Central African Republic

Conclusion

Therefore, before you settle any business, make sure that you go through this piece of the report as has been prepared by the World Bank. The data provided here are authentic. Hope it will help you.