Canada leads in early-age startup formation, as new report highlights surprising startup hotspots
A new set of findings from hosting provider Hostinger offers insight into conditions that shape the efforts of entrepreneurs at the early stages of their careers. Finland appears outside the top 10, ranking 12th, while Latin America is represented by Brazil, Mexico, and Chile, starting from the 27th position.
The study data examines countries through factors such as average founder age, business registration times, cost of entry, ease of doing business, and an overall measure called the Country Startup Friendliness Index.
By comparing these metrics, the study from Hostinger identifies which nations may provide environments that align more closely with the needs of those launching businesses at a young age.
Canada rising
Canada ranks first in the composite score, placing it at the top of the list. According to the data, the average startup founder in Canada is 25 years old. The country’s time required to start a business is two days, a relatively short span that may reduce initial administrative hurdles. Canada’s ease of doing business index stands at 98 on the scale used, indicating regulatory processes that may present fewer barriers to entry.
Follow us on: 
The report shows that the cost to start a business in Canada is around $236, which may not be the lowest among the countries surveyed, but is still not at the higher end of the spectrum. These combined factors, reflected in a composite score of 100, place Canada as a leading environment for those looking to establish operations at an early age.
Holy land of innovation?
The second-ranked country is Israel, which also records an average founder age of 25. The data shows that the cost to start a business in Israel is $2,647, a figure that is considerably higher than several other countries in the study. However, Israel’s Country Startup Friendliness Index is recorded at about 51.5, indicating conditions that may support entrepreneurship despite the higher initial financial entry point.
The time required to start a business there is roughly 16.6 days, longer than in some other countries on the list. Israel’s position at rank two suggests that certain structural or cultural elements, as represented in the Startup Friendliness Index, can offset higher costs and more protracted setup times.}
Faster, Cheaper, Friendlier
India, in third place, has an average founder age of 27. One detail that stands out is the 1.5-day average time required to start a business, a figure lower than that of both Canada and Israel. The cost to start a business in India is $1,036, less than in Israel but more than in some European countries listed. India’s ease of doing business index is noted as 60, lower than the top two countries.
Despite this, India’s composite score of 94 indicates that fast registration times may influence the environment in ways that benefit entrepreneurs, potentially by reducing the waiting period before operations can begin.
A spokesperson from Hostinger stated "For those developing startups at an early age, certain characteristics may influence the choice of location, including how quickly one can complete registration and how much initial capital is required".
"Some regions include support networks or frameworks that correspond to a higher Startup Friendliness Index. As new business leaders emerge, variations in costs, administrative processes, and policy environments may guide decisions about where entrepreneurs choose to establish and scale their activities."
Spokesperson from Hostinger
Methodology of the research (along with the examining factors)
The methodology behind this study involved gathering and synthesizing multiple data sets that capture key elements of the early startup environment. Researchers began by examining the average age of startup founders in each country, seeking to identify where younger individuals are taking leadership roles in new ventures.
Following this demographic assessment, the team incorporated a range of established indicators, including cost and time to officially register a business, as well as each country’s ease of doing business rating and a Country Startup Friendliness Index. These metrics were chosen for their potential to reflect direct or indirect hurdles entrepreneurs might face during the initial phase of business formation.
Once the raw data was assembled, researchers standardized the values to enable consistent comparisons. They then calculated composite scores to rank the countries under review, placing particular emphasis on those conditions most likely to influence early-age entrepreneurship.
The resulting analysis does not serve as a prescription for where individuals should launch enterprises, but rather as a tool that highlights varying landscapes. By identifying contrasts among cost structures, regulatory complexities, and general business climates, the study aims to provide founders with a data-driven perspective on environments they may consider when establishing their own startups.
Appendix: From 4th to 10th
- Germany, ranked fourth, has an average founder age of 30. Starting a business there costs $1,071, and requires about four days. The ease of doing business index stands at 62, and the Country Startup Friendliness Index is approximately 25.8. With a composite score of 90.
- Nigeria, in fifth place, has an average founder age of 32. The cost to start a business is $679, and it requires about 8.5 days. The ease of doing business index is 58, and the Country Startup Friendliness Index is close to 2. Its composite score of 87 indicates that while the ease of operation may be lower, the financial entry point is not extremely high.
- Singapore ranks sixth with a composite score of 85. Founders average 33 years old. It takes about 13 days to start a business, and the cost is $315. The ease of doing business index is 95, which is on the higher end, and its Country Startup Friendliness Index is around 37.7.
- Portugal, in seventh place with a composite score of 83, has one of the lowest costs to start a business at $0. The time required to start a business is 3.5 days, and the ease of doing business index is 75. The Country Startup Friendliness Index stands around 9.4.
- The United Arab Emirates is eighth with a composite score of 80. The average founder age is 34. It takes about 17.5 days to start a business, the longest duration among the top ten. The cost to start a business at $7,443 is the highest in this group, and the ease of doing business index is 91.
- The Netherlands, at ninth place with a composite score of 78, has an average founder age of 34. It requires four days to start a business at a cost of $51. The ease of doing business index is 90, and the Country Startup Friendliness Index is about 24.5.
- South Africa is tenth, with a composite score of 75. The average founder age is 34, and it costs about $13 to start a business. The time required is about 8 days, and the ease of doing business index is 57. Its Country Startup Friendliness Index is approximately 3.3.
Appendix 2: What about Finland?
Finland, appearing in the 12th position with a composite score of 70, stands in the upper tier of the ranking. While not at the very top like Canada or Israel, the country’s performance suggests that it provides a relatively supportive environment for young entrepreneurs compared to many other nations assessed.
The average startup founder age in Finland is 35, which places it on the older side when juxtaposed with top-ranked countries, yet the overall conditions—such as regulatory frameworks, ease of doing business, or potentially favorable market dynamics—appear strong enough to secure a competitive spot well above the global midpoint.
Appendix 3: Where’s Latin America placed?
Among the Latin American countries included in the study, Brasil, Mexico, and Chile rank toward the lower end of the list. Brasil holds the 27th position with a composite score of 40.00 and an average founder age of 40. The cost to start a business there is around $877, the ease of doing business index stands at 55, and it requires about 7.5 days to begin operating.
While these conditions do not match the more favorable environments seen in the top-ranked countries, they still reflect some level of support for entrepreneurship. However, the combination of factors suggests that younger founders may encounter more barriers when compared to places like Canada or Israel.
Mexico follows in the 28th position, with a composite score of 38.00 and an average founder age of 45. Starting a venture in Mexico costs roughly $1,296, the ease of doing business index is 64, and the process takes about 4 days.
Chile appears at 29th with a composite score of 36.00 and an average founder age of 45. Although it costs $0 to start a business in Chile, its ease of doing business index is 82 and the registration process takes about 4.5 days.
Despite some positive elements, the overall landscape for these Latin American countries is less conducive to young entrepreneurship than the conditions found in the top-ranked nations within the study.
