Denmark has been in the news in recent times as one of the most popular destinations for startups and entrepreneurs. The country has grown over the years to take the first place in Europe, with factors like human capital, ease of doing business, product innovation, and competition helping to raise its ranking. Denmark currently ranks as Europe’s leading country for entrepreneurs, holding down the number five spot in the global ranking, with the likes of the United States, Canada, and Australia leading by a few spots.
The Global Entrepreneurship Index, otherwise known as the GEI, is used for measuring the scale and the quality of the entrepreneurial process in a country, with about 137 countries in the assessment. In addition to focusing on high growth entrepreneurship, the index also looks at the different characteristics of entrepreneurship, helping to bring about innovation, productivity, and market expansion. This further considers whether the conditions in the country are growth-oriented or not, with an international outlook to the consideration.
According to the GEI of 2017, Denmark ranked 2nd in the sub-index of ‘Entrepreneurial Abilities.’ The country ranked first when in the ease of doing business, access to technology, and having a competitive landscape. Denmark was also the highest in access to a highly educated and professional workforce.
The Scandinavian country is fast becoming a major startup player in Europe, thanks to its growing and active ecosystem, with an increasing number of professional companies with a global outreach and risk capital, making it one of the fastest-growing economies in the Nordic region. Industries that have attracted the attention of entrepreneurs in Denmark include life sciences, cleantech, and ICT.
According to a recent report, Denmark hosts the largest number of scalable tech companies in Northern Europe. Consequently, entrepreneurs and their businesses tech to enjoy the benefits of economies of scale, including co-working spaces, incubators, accelerators and several companies that are poised with developing the ecosystem.
One of the major challenges most businesses, particularly the ones outside Denmark have identified is high wages as well as taxation. However, these negatives have not been able to dampen the high entrepreneurial spirit in the country, with the country reporting record-breaking employment levels in 2018.
The government as an institution has worked with communities and investors to form a strong collaboration to boost entrepreneurship in the country. Ranked fourth in the world, and second for the “fewest hours worked,” Denmark’s level of productivity has positively affected the profitability of businesses in the country. Studies have also revealed that several Danish companies are attempting to modify their working duration to 30 hour work weeks to further boost the productivity of employees.
Danish entrepreneurs have been able to record a remarkable level of productivity through resource management and task prioritization.
The government, on the other hand, has been able to provide the needed incentive to workers and entrepreneurs to keep the economy at optimal performance. In addition to providing the necessary institutions to improve the conditions of the country and create economic growth, which includes higher educational opportunities for the students and welfare to the people, new entrepreneurs can now establish their own companies online quite easily and receive support from the government
One company that has done relatively well as a startup in Denmark is lovebuddy, harnessing the amazing entrepreneurship opportunities in the country.