Cyprus Mail 25 August 2025 - by Theano Thiopoulou
Many factors need to consider when choosing a country to relocate — especially if you're planning to start a business in your destination country. From tax regulations and market capabilities to quality of life and infrastructure, finding the right location can play an important role in the success of your business.
The analysis, compiled by international insurance provider William Russell, scored 10 European countries on six equally weighted metrics: startup density, one-year survival rates, venture capital investments, collaboration infrastructure, workforce participation, and number of billionaire founders. The team then averaged these scores to calculate the final "foreign entrepreneur score."
Kim McClatchy, Head of Human Resources, asks the question of what is the best country in Europe for entrepreneurs? "To answer this question, we analyzed a wide range of indicators – from startup survival rates and availability of co-working spaces to venture capital investment and workforce participation. Whether you want to start from scratch or take your business abroad, this information will help you identify the most promising locations across Europe."
But beyond the end result, he points out, factors such as access to a skilled workforce, support for start-ups, and a thriving business ecosystem play an important role.
On www.william-russell.com/blog/european-expat-entrepreneurs website on the subject of "starting a business in Europe", the countries based on the score are:
>> The UK is the best country for overseas entrepreneurs in Europe, and the rating is 8.66/10 and it ranks first. It is noted that the UK is at the top of the list thanks to its balanced combination of opportunities, infrastructure and investment. It has by far the highest venture capital investment in technology, with over 3 billion pounds (US$4 billion) invested in UK-based startups, over 1 billion pounds (US$2 billion) more than the second-highest country, Germany. In addition, the United Kingdom ranked high in the density of new enterprises, with 18.62 new enterprises per 1,000 employees.
>> In second place is Sweden with a score of 7.47/10. Indicated, with the highest labour force participation rate (57.71%) among the top five and a stable survival rate of 95.7%, the Netherlands provides a stable, well-connected economy for new start-ups. Its strong digital infrastructure and quality of life explain why it is consistently ranked as one of the best places in Europe for entrepreneurs abroad.
>> Switzerland is in fourth place with a score of 7.37/10. The columnist says the country combines high productivity with access to capital. While its survival rate is lower, at 82%, it has significant venture capital investments (879.5 million). It has room for growth in venture capital funding — just 41.25 million pounds ($55 million) in 2025 — but offers institutional support and a high standard of living that attracts expats with families.
>> Cyprus is in 5th place with a score of 6.77/10. The article notes "Cyprus far exceeds its expectations for the creation of new businesses, with a high density of new businesses (12.79) and a stable survival rate (87.8%). However, venture capital investment is low (US$500,000), suggesting that securing funding here is more difficult. Cyprus is an up-and-coming destination for start-ups, particularly attractive to digital nomads and small business founders looking for a Mediterranean base with access to the EU."
>> Norway is in sixth place with a score of 6.29/10. Norway combines a stable workforce, a decent business density, and strong digital connectivity. It has room for growth in venture capital funding — just 41.25 million pounds ($55 million) in 2025 — but offers institutional support and a high standard of living that attracts expats with families.
>> In seventh place is Iceland with a score of 6.13/10. The start-up rate in Iceland is high — 12.07 per 1,000 employees — and has one of the most active workforces in Europe. But many startups don't last: the 73.5% survival rate is the lowest among the top 10.
>> Estonia is in eighth place with a score of 6.08/10. It has built a startup engine around its digital infrastructure. It leads the continent in the density of new businesses — 24.32 per 1,000 people — and much of it is driven by politics.
>> Luxembourg is in ninth place with a score of 6.08/10. Luxembourg has the highest number of co-working spaces per inhabitant in Europe (10.5 per 100,000 people) — a sign of its remote-friendly environment and the attractiveness of small groups. Its business density is high, but its venture capital remains modest at £15.75 million, or about $21.3 million.
>> Belgium is in tenth place with a score of 5.97/10. Belgium has a good survival performance (93.8%) and offers a decent share of funding (around $247.9 million), but low labour force participation (45.38%) and the complexity of recruitment can create challenges.
Think about employee benefits
What makes a country ideal for foreign entrepreneurs in Europe? The article states that "it is possible to make a profit, build a team, and maintain your business standards abroad—especially when you offer attractive benefits to employees. But beyond the end result, factors such as access to a skilled workforce, support for start-ups and a thriving business ecosystem play an important role."
"As the war for talent becomes more intense, businesses need to think better about the benefits they offer to employees. The right benefits package could help you attract, retain and motivate your best employees, giving you a competitive advantage in the market and helping you grow your business internationally."
