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Spotify founder wealth growth in the UK show how starting a business in Sweden is hard
Wednesday, 02 May 2012
If Spotify founder is among the UK's richest, does it mean that starting a business in Sweden is hard?
Well, Daniel Ek, founder of the music streaming service Spotify, made
it onto the Sunday Times' annual list of the UK's richest people. Ek, a
Swede, lives in London and has a fortune valued at about 350 million US
dollars, writes newspaper Svenska Dagbladet, citing the Sunday Times,
reports radio Sweden.
But why are most Swedish young entrepreneurs making their wealth by
developing their internationally facing businesses mostly if they move
abroad or start their business from abroad. Sweden is seen as one of
the best places to do business in the world but it is seen to be good
for the big international companies and not very good for smaller
One major problem with starting a business in Sweden is the excessive
demand for capital. Although the government says that a start up
capital for a limited liability company in Sweden should be Skr50 000,
down from Skr100 000 some year ago, entrepreneurs end up forking out
more before their business will start making earnings. Experimentation
in business in Sweden as could be seen in places such as the USA or
Japan is not possible in Sweden as such real entrepreneurs will tend to
migrate abroad to grow their businesses.
A good example
is this network, Scandinavian companies and market that has moved from
Sweden to London because being a start-up, its capital was eaten up
just by administrative procedures. think of others such as Skype which
also grew when it was running from abroad, England
See also that the richest among Swedish people living in the United Kingdom is the Tetra Pak heir Hans Rausing and his family.
By Scancomark.se Team
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