Canada: The Best Country for Business in the G20
For companies that are looking to locate in a G20, Canada should be a serious consideration. Forbes Magazine recently ranked Canada first among G20 countries as the Best Country for Business. The countries were ranked on 11 factors, and Canada sets itself apart from the other countries in a number of ways.
Friendly Business Environment
Canadian businesses enjoy one of the leading commerce environments, making doing business easier and more efficient than anywhere else in the world.
Canada has one of the easiest systems for paying corporate taxes, according to the World Bank Group’s Doing Business project, ahead of the United States and Germany. The tax burden for small businesses is low, and there have been reductions to corporate and employee taxes, making Canadian businesses more competitive.
Canada ranked 2nd in investor protection, thanks in part to the Canadian Investor Protection Fund (CIPF). This is a not-for-profit corporation that protects investor assets in case of bankruptcy. Financial institutions are also guaranteed by the government through the Canada Deposit Insurance Corporation, boosting confidence in the Canadian banking system. Canada was able to avoid the banking meltdown of 2008 thanks to a solid banking system, and careful leadership throughout the financial crisis.
Canada also has access to powerful trading hubs, including the Toronto Stock Exchange (TSX), and is positioned for ease of exporting to the rest of North America and Europe. The Canadian economy takes advantage of its proximity to the United States, while enjoying its own economic freedom which ranks ahead of its neighbour to the south.
Support for Start-ups
On average 150,000 small businesses are created in Canada each year, and 98% of businesses employ fewer than 100 people. More Canadian immigrants are self-employed than those born in Canada.
The Canadian Government provides countless programs for start-ups and entrepreneurs, giving businesses that choose to locate in Canada a leg up. Resources range from business advice to grants and low interest loans, which are easily accessed through government organizations designed to connect companies with programs.
Canada supported its start-ups and small businesses through the pandemic, including $1.2-billion in pandemic funding, made available early in the Covid-19 crisis.
Canada is seen as one of the most politically stable countries, ranking in the 85th percentile as far as political stability and absence of violence and terrorism.
Canada operates on a parliamentary democracy, and has an international reputation for leadership and diplomacy. In contrast to the United States, Canada participates in international commitments, like the Paris Agreement.
The perception of corruption remains low, and Canada ranks as one of the most transparent governments according to the Corruption Perceptions Index (CPI).
There is very little violence and terrorism within Canada and the social safety nets are well developed. Canada scores well on both Quality of Life and Social Purpose rankings, giving it a safe and stable feel so that businesses and their employees can prosper.