New business density (new registrations per 1,000 people ages 15-64) - Country Ranking

Definition: New businesses registered are the number of new limited liability corporations registered in the calendar year.

Source: World Bank's Entrepreneurship Survey and database (http://www.doingbusiness.org/data/exploretopics/entrepreneurship).

See also: Thematic map, Time series comparison

Find indicator:
Rank Country Value Year
1 United Arab Emirates 29.69 2016
2 Hong Kong SAR, China 27.34 2016
3 Estonia 20.76 2016
4 Tonga 19.58 2016
5 Botswana 18.37 2016
6 Malta 17.89 2016
7 Cyprus 16.56 2016
8 United Kingdom 15.74 2016
9 Australia 15.51 2016
10 Luxembourg 15.35 2016
11 New Zealand 14.50 2016
12 Iceland 12.14 2016
13 Bulgaria 10.89 2016
14 South Africa 10.22 2016
15 Denmark 9.91 2016
16 Mauritius 9.78 2016
17 Chile 8.93 2016
18 Singapore 8.62 2016
19 Georgia 8.37 2016
20 Norway 8.15 2016
21 Sweden 8.09 2016
22 Latvia 8.04 2016
23 Ireland 6.71 2016
24 Montenegro 6.70 2016
25 Mongolia 6.31 2014
26 Netherlands 6.07 2016
27 Romania 5.61 2016
28 Portugal 5.01 2016
29 Croatia 4.96 2016
30 Slovak Republic 4.70 2016
31 Timor-Leste 4.63 2014
32 Russia 4.34 2016
33 Switzerland 4.31 2016
34 Gabon 4.11 2009
35 Antigua and Barbuda 4.01 2016
36 Czech Republic 3.98 2016
37 Finland 3.95 2016
38 North Macedonia 3.88 2016
39 Belize 3.86 2016
40 Belgium 3.72 2016
41 Peru 3.63 2016
42 Israel 3.44 2016
43 Hungary 3.38 2016
44 Lithuania 3.33 2016
45 Spain 3.23 2016
46 Dominica 3.17 2016
47 Slovenia 3.13 2016
48 São Tomé and Principe 3.04 2014
49 Iraq 2.94 2016
50 St. Lucia 2.74 2016
51 Italy 2.65 2016
52 Grenada 2.58 2016
53 Korea 2.58 2016
54 Brunei 2.48 2016
55 Colombia 2.28 2016
56 Malaysia 2.26 2016
57 Kazakhstan 2.24 2016
58 Oman 2.11 2016
59 Costa Rica 2.10 2016
60 Uruguay 2.07 2016
61 Rwanda 1.95 2016
62 France 1.84 2016
63 Serbia 1.76 2016
64 Moldova 1.75 2016
65 Armenia 1.74 2016
66 Qatar 1.70 2014
67 Tunisia 1.67 2013
68 Poland 1.66 2016
69 Morocco 1.65 2016
70 St. Vincent and the Grenadines 1.57 2016
71 Lesotho 1.55 2014
72 Ukraine 1.54 2016
73 Vanuatu 1.52 2016
74 Dominican Republic 1.48 2016
75 Suriname 1.41 2016
76 Albania 1.35 2016
77 Liechtenstein 1.32 2016
78 Jamaica 1.31 2016
79 Germany 1.30 2016
80 Kyrgyz Republic 1.27 2016
81 Turkey 1.18 2016
82 Bosnia and Herzegovina 1.13 2016
83 Zambia 1.12 2016
84 Belarus 1.09 2016
85 Namibia 1.09 2016
86 Azerbaijan 1.03 2016
87 Samoa 1.01 2016
88 Uzbekistan 1.01 2016
89 Thailand 0.99 2016
90 Nepal 0.98 2016
91 Ghana 0.90 2012
92 Kenya 0.84 2008
93 Panama 0.84 2016
94 Greece 0.77 2010
95 Nigeria 0.76 2016
96 Uganda 0.70 2009
97 Jordan 0.60 2016
98 Austria 0.60 2016
99 Algeria 0.58 2014
100 Bolivia 0.54 2016
101 Guatemala 0.54 2011
102 Mexico 0.54 2016
103 El Salvador 0.53 2016
104 Sri Lanka 0.51 2012
105 Mauritania 0.50 2016
106 Saudi Arabia 0.44 2016
107 Argentina 0.43 2014
108 Senegal 0.42 2016
109 Indonesia 0.33 2016
110 Philippines 0.33 2016
111 Lao PDR 0.30 2011
112 Sierra Leone 0.26 2016
113 Togo 0.26 2014
114 Myanmar 0.20 2016
115 Afghanistan 0.19 2016
116 Tajikistan 0.18 2016
117 Japan 0.15 2014
118 Burkina Faso 0.15 2012
119 Paraguay 0.14 2016
120 Brazil 0.13 2016
121 Guinea 0.13 2014
122 India 0.11 2016
123 Bangladesh 0.09 2012
124 Bhutan 0.09 2016
125 Malawi 0.08 2009
126 Madagascar 0.07 2016
127 Haiti 0.07 2010
128 Canada 0.06 2016
129 Pakistan 0.06 2016
130 Syrian Arab Republic 0.04 2011
131 Dem. Rep. Congo 0.04 2016
132 Ethiopia 0.03 2009
133 Liberia 0.01 2016
134 Niger 0.00 2009

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Development Relevance: Entrepreneurship is a critical part of economic development and growth and important for the continued dynamism of the modern economy. To measure entrepreneurial activity, annual data is collected directly from 139 company registrars on the number of newly registered firms over the past seven years. The data shows the trends in new firm creation across regions, the relationship between entrepreneurship and the business environment and financial development, and the financial crisis' effect on the entrepreneurial activity in the formal sector. Private sector development and investment - tapping private sector initiative and investment for socially useful purposes - are critical for poverty reduction. In parallel with public sector efforts, private investment, especially in competitive markets, has tremendous potential to contribute to growth. Private markets are the engine of productivity growth, creating productive jobs and higher incomes. And with government playing a complementary role of regulation, funding, and service provision, private initiative and investment can help provide the basic services and conditions that empower poor people - by improving health, education, and infrastructure.

Limitations and Exceptions: The definition of entrepreneurship used is limited to the formal sector. Yet, it should be noted that the exclusion of the informal sector is based on the difficulties of quantifying the number of firms that compose it, rather than on its relevance for developing economies. The Entrepreneurship Database facilitates the analysis of the growth of the formal private sector and the identification of factors that encourage firms to begin operations in or transition to the formal sector. Data is collected all limited liability corporations regardless of size. Partnerships and sole proprietorships are not considered in the analysis due to the differences with respect to their definition and regulation worldwide. Data on the number of total or closed firms are not included due to heterogeneity in how these entities are defined and measured. The data itself only provides a snapshot of a given economy's business demographics, and cannot by itself explain the factors that affect the business creation cycle. However, when the Entrepreneurship Database is combined with other data such as the Doing Business Report, Investment Climate Assessments, and/or OECD Entrepreneurship Indicators, researchers and policymakers can better understand the dynamics of the business creation process. The Entrepreneurship Database is a critical source of data that facilitates the measurement of entrepreneurial activity across countries and over time. The data also allows for a deeper understanding of the relationship between new firm registration, the regulatory environment, and economic growth. Previous research using the Entrepreneurship Database has shown a significant relationship between the level of cost, time, and procedures required to start a business and new firm registration.

Statistical Concept and Methodology: The new business entry density, which is the number of newly registered limited liability corporations per calendar year, normalized by working age population. This is a valuable indicator which quantifies the impact of regulatory, political, and macroeconomic institutional changes on new business registration, a vital component of a dynamic private sector. The data includes all limited liability corporations regardless of size. Partnerships and sole proprietorships are not considered in the analysis due to the differences with respect to their definition and regulation worldwide. Data on the number of total or closed firms are not included due to heterogeneity in how these entities are defined and measured. To facilitate cross-country comparability, the Entrepreneurship Database employs a consistent unit of measurement, source of information, and concept of entrepreneurship that is applicable and available among the diverse sample of participating economies. The data collection process involves telephone interviews and email correspondence with business registries in 139 economies. The main sources of information for this study are national business registries. In a limited number of cases where the business registry was unable to provide the data - most often due to an absence of digitized registration systems - the Entrepreneurship Database uses other alternatives sources, such as statistical agencies, tax and labor agencies, chambers of commerce, and private vendors or publicly available data. The units of measurement are private, formal sector companies with limited liability.

Aggregation method: Unweighted average

Periodicity: Annual

General Comments: For cross-country comparability, only limited liability corporations that operate in the formal sector are included.