Choosing the right country for launching a startup is an important decision that can significantly influence the success and growth trajectory of a business. The ideal location offers a supportive ecosystem that includes access to funding, a favorable regulatory environment, a robust infrastructure, and a vibrant network of entrepreneurs and mentors. Additionally, the cultural and economic climate of a country can impact innovation and market opportunities. Factors such as government policies, availability of skilled talent, and market demand play essential roles in nurturing startups. In this article, we shared the key highlights from the Global Startup Ecosystem Index, ranking 1,000 cities and 100 countries’ startup ecosystems to uncover the best countries for startups in 2024.
Which country is best for startups and entrepreneurs?
In this section, you’ll read about the top 10 countries in the world for startups and entrepreneurs. The chart below represents how each country’s position changed from 2020 to 2024.
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1. United States
The United States continues to rank as the best country for startups and entrepreneurs in the world. Despite a decrease in the number of US cities in the Index—from 383 in 2020 to 240 in 2024—the US maintains a substantial lead, nearly four times that of the second-place United Kingdom. This dominance is attributed to a combination of factors, including a robust venture capital market, a culture of innovation, and a highly skilled workforce. Major cities like San Francisco, New York, and Los Angeles remain epicenters of startup activity, fostering an environment where new businesses can thrive. The gap between the US and the UK has narrowed since 2020 but has stabilized over the past two years, indicating a steady state of leadership for the US.
2. United Kingdom
The UK holds steady in the second spot, maintaining a lead over Israel, which ranks third. The gap between the UK and Israel has decreased from nearly 17% in 2022 to 8.6% in 2024. London continues to be the hub of startup activity in the UK, benefiting from a strong financial sector, a diverse talent pool, and supportive government policies. The UK’s consistent performance underscores its status as the best European country for startups. The stability and slight narrowing of the gap with the US show the UK’s ongoing efforts to enhance its startup ecosystem, including increased investments in tech and innovation sectors.
3. Israel
Ranking third, Israel continues to close the gap with the UK. Known as the “Startup Nation,” Israel’s innovation ecosystem is driven by its strong technological sector, significant R&D investments, and a culture that encourages entrepreneurship. Cities like Tel Aviv and Jerusalem are hotbeds of startup activity, particularly in cybersecurity, biotech, and fintech. The gap between the UK and Israel has been decreasing, reflecting Israel’s relentless push to improve its startup environment through various initiatives, including fostering ties with global markets and enhancing local infrastructure.
4. Canada
Canada remains in the fourth position, but its gap with the top three has widened. Major cities such as Toronto, Vancouver, and Montreal are at the forefront of Canada’s startup scene, benefiting from a highly educated workforce and supportive immigration policies that attract global talent. However, the increasing gap suggests that while Canada’s startup ecosystem is robust, it faces stiff competition from more rapidly evolving markets.
5. Singapore
Meanwhile, Singapore’s remarkable rise to fifth place, surpassing Sweden, highlights its growing influence in the startup world. Singapore’s strategic location, excellent infrastructure, and pro-business policies make it an increasingly attractive destination for entrepreneurs. The country has also improved its Business Environment ranking, emphasizing its focus on creating a conducive environment for startups to flourish. Singapore’s rise is particularly impressive given the high difficulty of advancing at such a high level in the rankings.
6. Sweden
Among the middle tier, countries ranked 6th to 12th are fiercely competitive, with smaller score gaps. Sweden leads the EU’s startup nations at sixth place, followed by Germany at seventh, which closely competes with France in eighth. Sweden’s strong emphasis on innovation and sustainability has helped it maintain a leading position, while Germany’s industrial strength and engineering prowess continue to support its vibrant startup ecosystem.
7. Germany
Germany ranks seventh and has long been a powerhouse in the startup scene, driven by its strong industrial base, engineering excellence, and a growing number of innovation hubs. Berlin, Munich, and Hamburg are key cities where startups thrive, benefiting from a robust support network, ample funding opportunities, and a culture that embraces technological advancement. Germany’s startup ecosystem is also supported by its strong education system and government initiatives aimed at fostering entrepreneurship. The country’s strategic focus on sectors like automotive, manufacturing, and IT has enabled startups to leverage existing industrial strengths and innovate at a global scale.
8. France
France has steadily climbed the ranks, now standing as Europe’s fourth most successful startup nation. Paris remains the focal point, with significant investments in tech and innovation driving its growth. The French government has introduced several initiatives to support startups, including tax incentives, funding programs, and efforts to streamline regulatory processes. The country’s diverse and dynamic market, along with its strategic location in Europe, makes it an attractive destination for entrepreneurs. The rise of numerous accelerators and incubators across France further strengthens its startup ecosystem, providing essential resources and mentorship to new businesses.
9. The Netherlands
The Netherlands, now ninth, is poised to overtake France, with Amsterdam leading the charge through its strong digital infrastructure and vibrant tech scene. The Netherlands has become a hotbed for startups due to its strategic location, multilingual workforce, and excellent quality of life. The Dutch government’s supportive policies and the presence of numerous accelerators and incubators further enhance its attractiveness as a startup destination. Cities like Rotterdam, Utrecht, and Eindhoven also contribute to the thriving startup ecosystem, each offering unique strengths in various sectors such as fintech, agritech, and smart technology. The Netherlands’ emphasis on sustainability and innovation continues to draw entrepreneurs looking to make a global impact.
10. Switzerland
Switzerland reenters the top ten, increasing Europe’s representation in the top 10. Known for its stability, high quality of life, and strong education system, Switzerland provides an excellent environment for startups. Zurich and Geneva are particularly notable for their focus on fintech and medtech sectors.
Which countries have shown significant improvement in their startup ecosystem rankings?
There are some interesting shifts happening among the countries ranked between 11th – 50th.
- Australia, now 11th, remains a top contender with strong policies supporting startups. Sydney and Melbourne are central to Australia’s startup activity, offering a vibrant community and supportive infrastructure. The small score gap between Australia and Switzerland suggests that with focused policies, Australia could reclaim its top 10 position next year.
- Estonia makes a significant leap to 12th, marking one of the highest jumps within the top 20. Known for its advanced digital society and e-residency program, Estonia has created a highly conducive environment for startups, particularly in the tech sector. Tallinn, the capital, is a hotspot for digital innovation.
- China continues its downward trend, dropping to 13th, further distancing itself from the global top 10. Despite being home to massive tech giants and a large consumer market, regulatory challenges and geopolitical tensions have impacted its startup ecosystem.
- Lithuania and Ireland traded places, reflecting the intense competition in this segment. Lithuania’s climb to 16th and Ireland’s slip to 17th underscore the dynamic nature of the European startup scene, where small changes in policy and market conditions can significantly impact rankings.
- India’s resurgence to the 19th position showcases its growing startup ecosystem, driven by a large and young population, increasing internet penetration, and a vibrant entrepreneurial culture. Cities like Bangalore, Mumbai, and Delhi are central to India’s startup activity, particularly in the tech and fintech sectors.
- South Korea maintains its 20th spot, rounding out the top 20. Seoul continues to be the focal point, with strong government support and a high-tech infrastructure bolstering its startup scene.
- Japan, now ranked 21st, remains highly competitive with close score gaps separating it from South Korea and Taiwan. Tokyo’s strong tech scene and the country’s emphasis on innovation keep Japan as a significant player, despite its slight drop in rankings.
- The UAE achieved the largest jump within the top 25, now ranking 23rd, its highest position ever. Dubai and Abu Dhabi are the central hubs, benefiting from pro-business policies and strategic investments in technology and innovation.
- Brazil holds steady at 27th, leading in Latin America, while Italy climbs to 28th, its best position since 2021. São Paulo and Rio de Janeiro are key cities in Brazil’s startup ecosystem, while Milan and Rome drive Italy’s growth.
- Indonesia and Türkiye, each moving up five spots, showcase significant potential driven by their large populations and growing middle class. Jakarta and Istanbul are pivotal to their respective startup ecosystems.
- Cyprus’s nine-spot climb to 45th highlights its growing startup ecosystem, surpassing several European countries. The country’s strategic location and supportive business environment contribute to its rise.
Which countries are emerging as startup hubs around the world?
We observe some ecosystems slowly drowning in the rankings, while others are rising to emerge as key startup hubs in their regions. Here are some examples of these countries.
- Vietnam and Mauritius show positive momentum, with Vietnam climbing to 56th and Mauritius entering the top 60. Ho Chi Minh City and Port Louis are central to their startup activities, benefiting from strategic economic reforms and supportive policies.
- Bahrain experiences the greatest drop in the Middle East, while Qatar makes a significant leap to 79th. The region’s startup scene is marked by rapid developments and strategic initiatives to diversify economies.
- South Asian countries, including Pakistan, Sri Lanka, and Bangladesh, demonstrate remarkable progress. Karachi, Colombo, and Dhaka are emerging as key startup hubs in the region.
- In the Caribbean, Jamaica and Trinidad and Tobago solidify their positions, with Jamaica climbing to 89th and Trinidad and Tobago re-entering the top 100. Kingston and Port of Spain are pivotal to their startup ecosystems.
- However, Ghana and Ecuador experienced significant declines, reversing last year’s positive trends. Accra and Quito face challenges that have impacted their rankings.
To Sum Up,
As illustrated in the latest Global Startup Ecosystem Index, the right environment can significantly influence a startup’s success by providing access to funding, favorable regulatory conditions, and a supportive infrastructure. The insights from the Index reveal key trends and shifts among the top-ranked countries and cities, showcasing both emerging and established hubs of innovation. Whether it’s the stable dominance of the United States, the rising influence of Singapore, or the noteworthy advancements in countries like Vietnam and Mauritius, each region presents unique opportunities and challenges for entrepreneurs.
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