With Europe and the USA go slow on growth, businesses are turning around to look for emerging markets for profits and expansions. These markets, according to the Foreign Direct Investment include, but is not limited to Indonesia, Brazil, and Russia. Brazil is on record as attracting $44.4 billion dollars in 2010, which is an increase of 87% over 2009. Although the opportunities are irresistible, starting and running a business successfully can be hell.
Here are some of the 10 worst countries to run a business
10. Argentina
Getting a construction permit in Argentina is tough as it takes over a year compared with 7 months in the Caribbean and Latin American countries. Starting a business in Argentina takes 26 days, which is double the number of days it takes in Organization for Economic Cooperation and Development countries. Its GDP is at $388 billion.
9. Russia
It has a GDP of 1.5 trillion and it boasts to be one of the fastest growing economy in the world, yet one of the most difficult places to start a business. To get electricity connected, it will take you 9 and a half months, double the time it takes to connect in Central Asia and East Europe. It also takes 3 times longer to export something from Russia as compared to other OECD countries. With the sign up to the World Trade Organization, things are better.
8. Brazil
With a GDP of $2.1 trillion, this is one of the fast growing economy globally. It is rated 8th globally when it comes to economicgrowth, which makes it an attractive foreign investment destination, but the hurdles for businessmen are just unbearable. Taxation is just high with companies spending over 2,600 hours yearly, filing taxes. More than 67% tax is imposed on traders, which, according to WHO, is 20% higher than the Caribbean and Latin America.
7. Indonesia
It is one of the largest economy in Southeast Asia, making it a haven for foreign investors, but alas, it has tough business engagements that scare away investors. To launch a business, it takes one and a half month, which is 3 and a half times longer than the average for all OECD countries. To get electricity, it takes 20 days longer than in the Pacific and the rest of East Asia. Over 15 million households lack electricity and its five international airports are operating above capacity.
6. India
It is the world fourth largest economy with a GDP of $ 1.73 trillion. There is rampant corruption in the government making it the 2nd worst country in the world when it comes to enforcing a business contract. It will take one 4 years to get a business contract through India’s courts in comparison to OECD countries
5. Nigeria
It has a GDP of $194 billion and it is Africa’s largest producer making it an attraction for foreign investors. But the political unrest and ethnic and religious tensions are not good for business investment. To get connected to electricity and register a business, takes nearly 3 months. Corruption is also ripe in the Niger Delta.
4. Philippines
With a GDP of $199.6 billion and despite having massive untapped mineral wealth, investors are wary of the weak legal system, bureaucracy, and violence in the Philippines. In OECD countries, it only takes one year and seven months to resolve the insolvency while in the Philippines, it takes over five and a half years.
3. Algeria
It is one of the five oil rich countries which are tough to start a business in. It will take a business 48 days to register as compared to one month in OECD countries. Electricity connectivity takes more than 5 months as compared to two and a half months in the Middle East and the rest of North Africa.
2. Ukraine
It gained its independence from Russia in 1991 and since then, it has been caught up between reconciling with Russia and getting closer integration with Western Europe. Starting a business here is tough due to difficulties in connecting electricity and tax payments. It takes 27 days to pay taxes at more than 57% of the company profit.
1. Venezuela
It is the most difficult place to do business in due to the fact that, it is tough to pay taxes, getting credit, cross border trading, and investor protection laws. Foreign firms spent over 864 hours annually to pay tax.
Though they seem to be great and attractive to invest in, getting the business started and maintained is tough. Alert others so that they think twice before thinking of investing in the above countries.
Santosh Kumar is a Professional SEO and Blogger, With the help of this blog he is trying to share top 10 lists, facts, entertainment news from India and all around the world.