The results of two studies released yesterday paint a conflicting picture of Denmark that raises questions about its future prosperity.
While it is economically healthy with a good employment rate and high salaries, it is no cakewalk in the private sector, where the odds of a new company surviving its first five years are only one in three.
Low ranking for starting a business
Despite it being relatively easy to set up a company compared to most other countries, Denmark is only the 22nd best country in the world to begin a business, according to a study by card payment solutions provider Paymentsense.
Denmark ranked fifth for average annual pay – 51,466 dollars (345,000 kroner) – and sixth for its high employment rate (calculated to be 75.32 percent).
However, it was let down by its high cost of living, which is calculated to be 974 dollars (6,520 kroner) a month.
And it also had a low five-year survival rate for businesses (just 34.72 percent). In fact, every single one of the 21 countries that finished above Denmark had a higher survival rate.
“The country’s continued initiatives to support its SMEs are surely paying off, solidifying the country as an attractive location for prospective business owners around the world,” the survey commented.
The US topped the rankings, followed by Belgium and Ireland. Completing the top ten were Canada, France, Slovenia, Sweden, Austria, Germany and Latvia.
World’s eighth most competitive economy
Meanwhile, Denmark has slipped two places in the latest IMD World Competitiveness Ranking to number eight.
Singapore topped the ranking, ahead of Hong Kong and the US, which was judged to have the world’s most competitive economy in 2018. Switzerland, the UAE, the Netherlands, Ireland, Denmark, Sweden and Qatar completed the top ten.
Among the top 30, the biggest fallers were Norway, Israel and the UK, which all slipped three places. The biggest riser was Saudi Arabia, which advanced 13 places to 26th.
Established in 1989, the ranking takes into account 235 different economic indicators.