19 December 2011

Five Worst Countries To Start Business

While the Western countries including the U.S. and the European countries are facing an economic slowdown, there are several other countries who irrespective of good economy have become the worst place to start business. Below mentioned are five such countries that one will never think of starting business in.


Argentina, worst country to start businessRanked 83 by World Audit Corruption, Argentina has one of the lowest rankings when it comes to acquiring construction permit. It takes a time frame of one year to get a construction permit. In 2002, Argentina defaulted on its debt that led foreign investors to flee the country. Since then, the government has been taking measures to enforce several steps to decipher the issue.


India, TajMahal, worst country to start business, corruptionWith a GDP of $1.73 trillion and FDI of $24.6 billion, India is the world’s fourth largest economy and sees a quarterly GDP growth of around 7.5 percent. But, the stories of corruption in the government have become so rampant in India that it is ranked as the second worst country in the world to enforce a business contract. Also, it is ranked 70 by World Audit Corruption. When it comes to enforce a business contract through India’s courts, it takes nearly four years to do so, and for dealing with construction permits, more than seven and half months to get one.


Russia, worst country to start businessRussia with a GDP of $ 1.5 trillion and FDI $41.2 billion is ranked 127 by World Audit Corruption. To get an electricity connection, it takes approximately nine and a half month. Also, the upcoming presidential elections have further created a havoc among the business fraternity. The lack of capital expenditure in the power sector is also a fear factor among them. When it comes to cross-border trade, it takes three times more than other countries to export something.


indonesia, worst place to start businessOne of the most difficult country in the Southeast Asia to start business is Indonesia, irrespective of it being the biggest economy of Southeast Asia.  When it comes to corruption, World Audit Corruption ranks Indonesia 88. A person needs more than one and a half month to launch a business and 20 days more than other East Asia countries to get electricity. The infrastructure problem is also to be blamed for this situation. Also, Indonesia wants private investors to provide at least two-thirds of the $150 billion needed for infrastructure development in the next five years.


Nigeria, worst place to start businessWith a GDP of $194 billion and FDI of $6.1 billion in 2010, Nigeria is one of the worst countries to start business in. Being the largest oil producer of Africa continent, it draws the interest of the world’s biggest energy and resources companies. Nigeria is ranked 108 when it comes to corruption. However, due to political unrest and growing ethnic and religious tensions, there arise several factors that are responsible to term Nigeria as the worst place to start business in. Nigeria ranks among the lowest in the world when it comes to getting electricity and registering property for business, where a business needs nearly three months to get through the 13 procedures required to register a property.