Sydney and Melbourne have been highlighted as two of the best cities in the world for aspiring entrepreneurs to start their own business.
Drop-shipping ecommerce website Oberlo investigated 75 global cities, establishing their final results based on factors such as innovation, technology, economic strength and infrastructure.
The total score was intended to encompass the overall suitability of a city for launching and growing a successful business.
London, UK, achieved first place in the research with a total score of 100. New York City (NYC) and San Fransisco, US, came second and third consecutively. Los Angeles (LA) followed behind our Australian cities in sixth place.
Curious what global city you should avoid, according to the research? The city of Sofia in Bulgaria came last, with a total score of just 50.
One of the primary considerations throughout the research was each city’s economic freedom score. The score used components from the Economic Freedom Index, which included monetary freedom, trade freedom and investment freedom.
Sydney and Melbourne again ranked fourth and fifth in this sector. Auckland, New Zealand (NZ), came in third place, while Singapore and Hong Kong came first and second respectively. China’s Beijing and Shanghai ranked last in this area.
Sydney also ranked in the top 10 in accessibility for female entrepreneurs. The research considered the shares of companies with female ownership in each city, as well as any gender-specific limitations on ownership rights and access to financial resources.
Sydney and Melbourne received the same score, each ranking as 95.8 for female entrepreneurship. New York was ranked first in this sector with a score of 100, while Santiago in Chile received the worst score of 70.8.
The research also took into consideration different barriers for small businesses in different countries, including local taxes, regulatory freedom and the average timeframe required to start a new limited liability company (LLC).
Last year introduced a new barrier for small businesses – the coronavirus pandemic. The score for this factor reflected the economic support given by the government for business. Australia was very middle-of-the-road in this area, coming 37th overall.
New Zealand ranked first in two categories. Entrepreneurs in Auckland benefit from the best small business loans, according to Oberlo.
The research also suggested it takes NZ-based entrepreneurs just half-a-day to set up their LLC. In comparison, it takes two days in Sydney or Melbourne.