Did you know that Denmark is ranked the best
country for doing business in Europe? The city of Copenhagen used to be the
capital city of three countries; Denmark, Sweden, and Norway for about 150 years.
Today, the city of Copenhagen is the capital city of
Denmark. It is also considered as the most populous city in Denmark with a
population of 1.2million people.
Equally fascinating is the fact that the city
boasts of the oldest amusement park called Dyrehavsbakken, or “Bakken” for
short. The city is also regarded as one of the top greenest in the world. With
a clean water system, you can almost swim in any water you find around.
The city is a top attraction
for tourists yearly with top attractions ranging from the History Museum to the Mermaid statue, the
oldest amusement park and lots more. For business startups and entrepreneurs,
such an environment with so much exposure is priceless.
How
to Grow Your Business in Copenhagen?
Now that you know how much of a potential the
business hub of Copenhagen is, you should be interested in knowing how to
leverage in to make the best of it. Here are a few tips either for startups or
already developed businesses.
1- Get Walk-in Stands:
One beauty of Denmark as a country is the use of bicycles. The
environment is such that it encourages its citizens to walk as well as ride
bicycles. Hence, it is not far-fetched that the
city of Copenhagen has the longest pedestrian-only shopping avenue in the
world. This
avenue is located in Strøget. To exploit this business
opportunity for maximum profit, look
for stands in Copenhagen where people
can see your products.
2- Make the Best Use of Government Policies:
The policies in Denmark
concerning financial aids for foreign expats and entrepreneurs are great. An
example of such government-supported investment funding schemes that you can
have access to for your business is the VC Vækstfonden. Asides funding, you can
also have access to initiatives like Startup Denmark. This unique initiative
gives you the tools necessary to build your business including free mentoring
services. Seed accelerators across the country also complement the efforts of
the government. Accelerace, for instance, is one such and since 2010 has been
able to help startups raise as much as 269.5USD in funding and investments.
3- Tourist Exposure:
To make the best out of Copenhagen, you need to get
your business the exposure that it needs. Copenhagen has lots of visits yearly
from tourists that could be potential customers and might be interested in what
you have. To make the best use of this market, you have to give your business
the exposure that can get you a lion share of this market.
Engage in trade fairs
where you can showcase your products to the world. Meet with people and expand
your network as much as possible.
Why
Copenhagen?
Here are some reasons why you should do business in
Copenhagen;
1- Ease of Doing Business:
Denmark is unlike in most
countries where the bureaucratic processes of starting a business might take
some time. Registering a business in Denmark usually takes less than 24hours.
As of 2018, Denmark was ranked the best country for doing business in Europe (7th time consecutively) by the World Bank.
In the world rankings by the World
Bank, Copenhagen ranks third, coming behind New Zealand and Singapore.
According to a report by the Global Entrepreneurship Index in 2018 as well, it
was the fifth-best country with the best environment for entrepreneurs.
2- Supportive Government:
The Government of Denmark has unreserved support for foreign
entrepreneurs. It is noticeable in its
all-embracing policies that are geared towards driving economic growth,
improving global startup connections, and reducing
unemployment via foreign investments. These policies offer startups monetary
funds with initial investment rounds that could be as much as 4 million DKK.
Foreign entrepreneurs have access to a two-year work visa as well as a range of
free mentoring services.
3- Large Market:
Copenhagen’s location gives you
access to the rest of Europe. The airport in Copenhagen was rated as the best
in Northern Europe at the World Airport Awards 2015. It is said to have the
most intercontinental, European, Scandinavian and Baltic connections of all the
airports in Scandinavia. Also, there are a variety of road networks that will link you with other major cities in the world.
This network offers you a potential market of about 25million
consumers in Scandinavia alone and a potential 100 million in Northern Europe.
With the estimated time of travel around 24hours, your reach is almost
unlimited.
4- Business Operating Costs:
Costs of operating business in
Copenhagen is relatively cheap when compared with the rest of Europe. In fact, in terms of salaries, rent, and social contribution, Copenhagen is considered
15-20% cheaper than Stockholm, Sweden.
Furthermore, taxation is on the fair side of Denmark. With cooperate
taxes at a low 22%, lower than the average for the European Union and
the OECD. The system is designed such that it doesn’t give room for double taxation.
5- Employee Accessibility:
In Copenhagen, you have access to a wide pool of skilled and unskilled workforce from Scandinavia. The environment which welcomes visitors readily allows you a huge pool of people of like minds that you can work with. It might also interest you to note that the costs are relatively friendly. The cost of educated staff in Denmark is relatively competitive. In terms of the social contribution rate paid in Europe, Denmark has the lowest. Furthermore, there are no language barriers. In Copenhagen, 9 out of 10 Danes speak English and about 6 out of 10 Danes speak German.
Conclusion
Making a business thrive anywhere in the world
requires a lot of work. It is obvious that it is easier to do business in
Copenhagen, however, you need to do some research on how to improve your
business. Put in more efforts into the right mentorship programs, leverage in
on favorable policies and your business will do well.
