Advantages of doing business in Denmark
Robust domestic economy
Although a small country with a population of just less than $6 million, Denmark has one of the strongest economies in the world and a comparatively large domestic market – making it an attractive option for foreign companies and individuals.
Denmark’s workforce is renowned for being highly motivated and productive. This provides a labor market that is cost-efficient and flexible.
The country also benefits from a well-connected infrastructure and boasts a world-class R&D innovation environment.
Ease of doing business
The World Bank’s “Ease of Doing Business Index” scores Denmark highly. It is one of the easiest places to do business in Europe, second only to Finland, and is within the top five in the world. Investing companies benefit from stable economic and political systems and a business-friendly environment – transparency is important to the Danes. The government has also developed efficient and cost-effective processes – including the simplification of several legal procedures – that make it easy and quick to establish a business in the country.
Strong services sector
The services sector is the leading contributor to Denmark’s GDP, employing about 80% of the population. This includes a highly developed and concentrated banking and finance industry. A gateway to Europe and steeped in history, Denmark also has a robust tourism sector which forms a large part of its economy.
Although Denmark has many official languages including Danish, Faroese, Greenlandic, and German, English is the official language of business – an important factor for U.S. investors and entrepreneurs to consider.
Risks and Considerations
Cultural differences are important to consider. The business environment in Denmark is quite informal and relaxed. There are no strict hierarchies between colleagues, teamwork is highly prized, as well as maintaining process, order, and structure in the workplace.
There are few challenges to doing business in Denmark, however, entrepreneurs must understand the processes and steps needed to comply with local rules, regulations, and compliance requirements. Denmark’s preference for order and structure means that missing any step or information can set business plans back. Having the right support in starting or expanding a business in Denmark can go a long way.