USA Slips off the Top 10 Rankings For Entrepreneurial Access to Capital

The Top 25 Countries:

The Capital Access Index ranks countries around the world by the type of financial infrastructures that support entrepreneurial activity by providing access to capital.

The index looks at macroeconomic environments, financial and banking institutions, the development of the equity and bond markets, and alternative capital sources.

Because access to capital creates an atmosphere where making innovative ideas come to fruition more likely, and in addition, the likelihood of technological advancement, job creation, and an increased quality of life, the index is a good tool for measuring how countries can improve their financial infrastructure.

The United States, which dropped from fourth to fifth last year, slipped off the top 10 rankings completely in the 2007 index, to 11th place. This was due to a weaker macroeconomic environment, including higher and more volatile interest rates and higher inflation, compared to the other top 10 countries.