Oberlo.com, an e-commerce tool that helps entrepreneurs set up their own online business, has released an analysis which shows the leading cities to start and grow a business venture worldwide. Inspired by the numerous individuals who have managed to turn the economic and personal challenges of the pandemic into creative and innovative opportunities, Oberlo decided to delve into the topic further by investigating the cities which offer the most supportive entrepreneurial ecosystems, as well as the frameworks to ensure long-term success. The resulting index shows the cities best placed to provide the tools an entrepreneur might need to maintain and build an enterprise from the ground up – from bootstrapping and financing, to the logistical details that can make or break a business.
The study revealed that with a score of 100.0, London ranks first among top global cities for entrepreneurial success worldwide. Other cities in the top 5 are New York, San Francisco, Sydney and Melbourne.
After reviewing a list of over 200 global metropolises, Oberlo shortlisted the top 75 global cities based on factors relating to innovation, economic strength and entrepreneurial spirit. This ranking was based on an index that combines different data points and sources from third parties:
- Investigating the basic infrastructure and regulations required to get a small business started: local taxes, regulatory freedom, and the average timeframe it takes in each city to register a new limited liability company.
- Checking local support systems available for female founders in each location, as an example of diversity and inclusion, as it’s a relevant and important indicator of equality within the entrepreneurial landscape.
- Looking at the level of Covid-specific economic assistance available to businesses in each city was analysed.
- Reviewing financing and bootstrapping, such as unemployment benefits, small business loans, local business taxes and venture capital. Oberlo also looked into the specific needs of two of the most popular industries with entrepreneurs – tech/digital ventures and import/export:
- For tech/digital ventures: the local tech ecosystem, as well as the resource capital available in each city were evaluated.
- For import/export the local logistics ecosystem, as well as the access to global markets and the cost of postage were assessed.
The final index combines and scores all of the above factors to determine the leading cities that entrepreneurs may wish to consider when choosing a location that will help them establish and grow a successful business.
“London’s reputation for building globally successful start-ups means it is no surprise it ranks number one in the study, particularly in the tech/digital realms. The city boasts a plethora of venture capitalists, incubators, accelerators, networking opportunities and entrepreneurial events both online and under normal circumstances”, comments Audrey Liberge, Marketing Manager at Oberlo. “Despite Brexit and the pandemic, it remains the top city in its geographical region for entrepreneurs to found a world-renowned business. It will be interesting to conduct the study again in a few years’ time to see if the financial instability of the period will have an impact on the resilience of its entrepreneurial ecosystem.”
Featured image: Jeremy Reddington / Shutterstock.com
