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.
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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.
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.
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.