Why Does Sweden Have So Many Start-Ups?

Sep 2018
6,740
1,148
cleveland ohio
How a tiny country with high government spending bred a large number of vibrant young businesses

STOCKHOLM—This is a high-tax, high-spend country, where employees receive generous social benefits and ample amounts of vacation time. Economic orthodoxy would suggest the dynamics of a welfare state like Sweden would be detrimental to entrepreneurship: Studies have found that the more a country’s government spends per capita, the smaller the number of start-ups it tends to have per worker—the idea being that high income taxes reduce entrepreneurs’ expected gains and thus their incentive to launch new companies.

And yet Sweden excels in promoting the formation of ambitious new businesses, on a level that’s unexpected for a country whose population of roughly 10 million puts it at 89th in the world in population size. Global companies like Spotify, the music-streaming service; Klarna, the online-payment firm; and King, the gaming company, were all founded here. Stockholm produces the second-highest number of billion-dollar tech companies per capita, after Silicon Valley, and in Sweden overall, there are 20 start-ups—here defined as companies of any size that have been around for at most three years—per 1,000 employees, compared to just five in the United States, according to data from the Organization for Economic Cooperation and Development (OECD). “What you see is that start-ups have a high survival rate in Sweden, and they have relatively fast growth,” Flavio Calvino, an OECD economist, told me. Sweden also ranks highest in the developed world when it comes to perceptions of opportunity: Around 65 percent of Swedes aged 18 to 64 think there are good opportunities to start a firm where they live, compared to just 47 percent of Americans in that age group.
Why Does Sweden Have So Many Start-Ups? - The Atlantic
 

RNG

Forum Staff
Apr 2013
40,276
28,144
La La Land North
So, based on this story are they socialist again or are they just high tax free enterprise? What do you say, all you RWs?
 
Dec 2013
33,811
19,364
Beware of watermelons
Sweeden is a homogenous nation of about the same number of people of nyc.

Want to try this experiment in the states have nyc break off, form its own autonomous economy and give it a whirl.

I completely support that.
 
Sep 2018
6,740
1,148
cleveland ohio
Sweeden is a homogenous nation of about the same number of people of nyc.

Want to try this experiment in the states have nyc break off, form its own autonomous economy and give it a whirl.

I completely support that.
how about vermont?
 
Jul 2014
15,658
9,755
massachusetts
Sweeden is a homogenous nation of about the same number of people of nyc.

Want to try this experiment in the states have nyc break off, form its own autonomous economy and give it a whirl.

I completely support that.
You don't have to break off NYC, it's one of the most successful, productive pieces of America, that's why people move there.
You want an experiment, break off Fargo ND, and see if anyone notices.
 
Sep 2018
6,740
1,148
cleveland ohio
Sweeden is a homogenous nation of about the same number of people of nyc.

Want to try this experiment in the states have nyc break off, form its own autonomous economy and give it a whirl.

I completely support that.
I've thought on this, this is an idea conservatives and liberals should sit down and discuss, it may be a good way to keep the peace and avoid terrible blood shed
 
Dec 2013
33,811
19,364
Beware of watermelons
You don't have to break off NYC, it's one of the most successful, productive pieces of America, that's why people move there.
You want an experiment, break off Fargo ND, and see if anyone notices.
Wouldn't you want an already prosperous economy?