Every year, Forbes magazine compiles a rating of the cities most suitable for doing business. But in order to use this information, you need to understand how the place in the ranking is calculated.
Both the Russian-language and English-language versions of Forbes magazine use a similar calculation method. As with any ranking, several factors are taken into account when listing localities as the best cities for business.
To begin with, we consider such an indicator as the population size. The more people live in a city, the larger the potential market for the product will be. At the same time, this criterion can be considered the least weighty than the others. For a business focused not on private consumers, but on companies and corporations, the number of inhabitants in a settlement is of secondary importance.
The second important factor is human resources. This indicator can be correlated with the total number of inhabitants only indirectly. For example, the densely populated cities of Southeast Asia are extremely poor in skilled labor. The labor force ratio takes into account the number of able-bodied citizens, their level of education and professional skills.
Further, the possibility of finding financing for the business is assessed. This is a complex 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 among investors.
The influence of the state is taken into account in two aspects - in tax policy and the position of city administrations in relation to businessmen.
And the list of factors is completed by the state of the city's infrastructure, primarily roads and communication lines. Indeed, without the normal development of this sphere, any trade and production will be difficult.
The city is assigned several points for each point in the analysis. It should be noted that this is a rather subjective process. After the indicators are summed up, the readers of the magazine are presented with the rating of the best cities for doing business in the world or in a particular country.
