Rise of Sweden in the Business Attractiveness Index

Sweden’s trajectory on PwC’s (one of the largest accounting services firms) relative list regarding the business attractiveness index has been steadily ascending, reaching the second position on the table this year!

Switzerland holds the top spot, followed by Germany, completing the top three. Thus, Sweden continues to maintain the highest position in the European Union. This ranking is derived from comparing conditions for private enterprise and entrepreneurship.

While private enterprises may vary, for example, in focus, industry, location, etc., they share many common needs. For instance, fair tax legislation as well as clear regulations and access to employees with the right qualifications.

In this year’s report, PwC examined the performance of 33 countries, mainly in Europe, across nine different categories. The results are combined into an index, and the ranking of countries is based on scores defined in 64 different data points within the categories. The two main categories are Sustainability-Climate and Social Responsibility-Governance.

Notably, out of the 33 countries, 17—including Sweden—have improved their index this year. The main aim of the research is for the information it yields to guide businesses, governments, and decision-makers on how they can improve business operating conditions in their respective countries. Simultaneously, it enhances their economic development. This is because countries with a stable social foundation can provide better conditions for businesses.

Countries ranking high on the list, including Sweden, have a more favorable business climate and therefore tend to have a well-established domestic investment environment that supports growth.

Sweden leads in technology, a fact reflected in this report where it ranked second. As highlighted in the report, countries at the top of the technology category focus on investments for stable and smooth infrastructure. Businesses in these countries are protected to a greater extent from external risk factors through advanced cybersecurity and secure supply chains.

Countries at the top of the startup ecosystem category have a history of successful startups and an ecosystem based on a wide and diverse range of funding opportunities.

Public investments in healthcare, as well as a stable infrastructure, measured, among other things, by the number of hospital beds and doctors per capita, contribute to the high ranking of countries in the healthcare category. Moreover, the number of employed persons increased on average by 2% for the countries participating in the survey.

In the sustainability and climate category, countries at the top stand out with the existence of various sustainability practices, including a high degree of renewable energy sources and recycling infrastructure.

Switzerland and Sweden, occupying the top two positions on the list, have both progressive work on gender equality and public trust in their governments. They also tend to have the highest representation of women in their respective parliaments. In fact, in Sweden, out of the 349 members of the Parliament, 163 are women!

The top ten countries on PwC’s list for 2023:

1. Switzerland

2. Sweden

3. Germany

4.  Netherlands

5.  Denmark

6.  Norway

7.  UK

8.  Finland

9.  Ireland

10. Spain

Source: www.pwc.se

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