Annually Forbes magazine makes a rating of the cities most suitable for doing business. But in order to use this information, you must understand how the place in the ranking is calculated.
Both the Russian and English versions of Forbes magazine use a similar counting technique. As in any rating, when making settlements in the list of the best cities for business, several factors are taken into account.
To begin with, we consider such an indicator as the population. The more people live in the city, the greater will be the potential market for products. At the same time, this criterion can be considered the least significant than the rest. For a business focused not on private consumers, but on companies and corporations, the number of residents in the village is of secondary importance.
The second important factor is human resources. Such an indicator can only correlate with the total number of inhabitants indirectly. For example, the densely populated cities of Southeast Asia are very poor in skilled labor. The labor force coefficient takes into account the number of able-bodied citizens, their level of education and professional skills.
Next, the possibility of seeking financing for a business is assessed. This is a comprehensive indicator. It takes into account the development of the banking system that provides services to legal entities, as well as the state of the local currency and the availability of free capital from investors.
The influence of the state is taken into account in two aspects - in tax policy and the position of the city administration in relation to businessmen.
And the list of factors completes the state of the city’s infrastructure, especially roads and communication lines. Indeed, without the normal development of this sphere, any trade and production will be difficult.
For each item in the analysis, the city is assigned several points. It should be noted that this is a fairly subjective process. After the indicators are summarized, the readers of the magazine are presented with a rating of the best cities for doing business in the world or in a particular country.
