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Romania ranks 39th-best country for setting up an online business

posted onJanuary 20, 2021
nocomment

In a new study ranking the best countries for starting an online business, Romania came in the 39th place. Conducted by US-based Best Accounting Software the survey ranked 99 countries based on 20 categories:

Mobile and Fixed Broadband Internet Speed, Fixed Broadband Subscriptions, Social Media Users, Secure Internet Servers, Corporate Tax Rat, Gross National Income, Individuals with a Finance Account, Internet Users, Online Purchases/Paying Bills Online, Time Zones, Logistics Performance Index (LPI), Integrated Index for Postal Development, Co-work spaces, Global Competitiveness Index Digital Skills , Payment Processing Providers, Economic Freedom, Business Start-up Procedures, Days Required to Start a Business, Cost of Start-up Business Procedures. 

The majority of countries most suited to starting an online business are located in Europe. At the top of the league is Denmark (total score 78.46), followed by Switzerland (78.20), the Netherlands (77.58),  USA (75.20), Norway (74.26), Sweden (73.54), Singapore (71.85), Germany (70.86), Canada (70.11) and Luxembourg (69.94). Romania's total score was 53.50. 

Denmark enjoys a top score for secure internet servers (over 277,000 per 1 million people) and share of individuals with a finance account (99.92%). And based on the percentage of GNI it costs to start a business, Denmark is the cheapest of our top 10 (0.2%). It also ranked second highest for how much of the population use the internet for online purchases/paying bills (88%) and is positioned near the top for total number of internet users (98%). 

Denmark did, however, have the second-lowest postal efficiency score in the top ten, has a very low number of co-work spaces (32), and received mid-range scores for mobile internet speeds (66.68 Mbps), social media user penetration (71%), and corporate tax rates (22%). 

Over the past decade Romania has emerged as a hotspot for many international technology companies and also for those who are attracted by the IT ecosystem here, especially within large cities like Bucharest and Cluj-Napoca. Investors have access to technical talent, a multilingual workforce in most cities,  high-speed internet connection and a well-developed services sector. The IT industry is one of the key components in the country’s economy, contributing 6% to the  GDP, while is expected to reach 12% by 2025. 

E-commerce continues to grow year-on-year, with eMarketer forecasting global sales worth $6.542 trillion by 2023, accounting for 22 percent of all retail sales (up from 14.1 percent in 2019). This means 2021 could be the year to start your online business venture.