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Inequality in Russia

How Russia Is One of the Most Unequal Countries on the Entire Planet

Since my childhood in Brazil, I always heard about how our country is unequal in terms of income and wealth, so since high school, we have been taught about something called the Gini Coefficient because we know that Brazil performs very badly on it.

The problem is that the Gini coefficient is not a very good measure of certain countries.

Why?

While the Gini coefficient measures the distribution of income in a society, it does not count for two things:

1st: The income that is earned by people from that certain country but are not brought to its economy (eg: Russian oligarchs with large bank accounts in Dubai).

2nd: It does not measure the regional disparities.

I am not here trying to invalidate the Gini coefficient. Brazil is an unequal country, and that is visible in our society.

BUT…

As someone who has traveled to every continent since I left Brazil almost a decade ago, I dare to say that Brazil is not even close to being among the worst cases. And here I bring up the matter of Russia.

Because Russia is an extremely unequal country when you observe its regional disparities. Something that has deep roots in the very genesis of the Russian state (more about it later).

So I decided to compare the income per capita of the richest and poorest regions of different countries in the world (at least those that have public information easily available, so sorry North Korea, you are not part of my little study).

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Criteria for a Regional Approach to Income Inequality in Different Countries, including Russia.

I made it simple.

Basically, I compared the most recent data from multiple sources like Statista (for the United Kingdom and a few other countries), Eurostat (for EU countries like Poland), and UNDP (for Russia).

On these websites, I searched for the sub-unit (meaning state, province, region, voivodeship, oblast, etc) GDP per capita. Not PPP, since there are different methodologies for PPP calculation, but nominal GDP per capita.

Then, using an excel sheet, I calculated the income difference between the richest and poorest sub-unit of each country.

The results are shown in the table below.

Country	Year	Richest State/Unit	GDP Per Capita (US$)	Richest State/Unit	GDP Per Capita (US$)	Difference
Russia	2018	Moscow	$22,060	Ingushetia	$1,790	1132%
India	2020	Goa	$6,227	Bihar	$661	842%
Mexico	2018	Campeche	$67,233	Chiapas	$7,255	827%
Brazil	2019	Distrito Federal	$22,677	Maranhão	$3,515	545%
Colombia	2016	Casanare	$26,546	Vaupés	$4,293	518%
France	2018	Île de France	$70,500	Mayotte	$11,800	497%
The United States	2021	Washington	$226,861	Mississippi	$42,411	435%
Poland	2019	Warsaw	$30,612	Lubelskie	$9,535	221%
Italy	2018	South Tyrol	$55,600	Calabria	$19,100	191%
Japan	2014	Tokyo	$68,776	Nara	$24,970	175%
The United Kingdom	2020	London	$55,974	North East	$23,109	142%
Germany	2019	Hamburg	$78,904	Saxony-Anhalt	$33,978	132%
Canada	2019	Northwest Territories	$100,871	Nova Scotia	$47,837	111%

Income inequality between the richest and poorest administrative units of each country. Multiple sources (to check, see first paragraphs).

A Regional Approach to Income Inequality in Russia

As expected, developed countries like Canada, Germany, and the UK all had relatively low inequality between their richest and poorest regions.

Inside the US, a country with 50 states, the richest unit (Washington DC) has a GDP per capita 435% higher than the poorest (Mississippi).

France is a bit of an outlier when compared to other European countries because their overseas possessions are relatively poor, and that is the case of Mayotte, an island close to Mozambique. Île de France, the department where Paris is located, has an income six times larger than Mayotte.

As one could expect, all the analyzed Latin American countries have very high regional inequality. In Brazil and Colombia, the richest regions have more than six times the income of the poorest ones. In Mexico, it is almost 10 times more.

In India, a country with over 1 billion people and where a caste system still exists in some regions, the richest region (the former Portuguese colony of Goa) has a GDP per capita 842% higher than the poorest region, Bihar.

But none (I repeat: none) of these countries have regional inequality close to that of Russia.

Check also: Debunking the Myth “Sanctions Against Russia Aren’t Working”

Why does Russia have so much Inequality?

Image of Moscow. Regional income inequality in Russia has some very expressive numbers.

Moscow has a GDP per capita that is 1132% higher than the poorest region.

There are some other regions in Russia that also have high incomes, but due to their very small populations (e.g., the Nenets Autonomous Okrug has a GDP per capita larger than Moscow, but since it has only 42 thousand residents, it is likely that a single entity or person is skewing this number). If we considered these regions, the regional inequality in Russia would be even higher.

There are many explanations for why Russia has so much inequality, but many fail to consider that this inequality is not a recent phenomenon. It is historical, and has existed for centuries across many regimes: from Czarist Russia to the Soviets and now to Putin’s government.

There is one single expression that may explain why there is so much variation between regions.An expression proudly repeated by Russian ideologues like Alexander Duguin, but which bears a much more sinister meaning:

Russia as the “The Third Rome”

I will not enter into all the complex explanations behind the idea that for centuries, Russian intellectuals considered their country the successor of Rome, but rather on the economical implications of it.

Rome prospered and thrived by exploring the outskirts of the empire. Yes, they also brought law and protected the borders, this is true, but the heavy taxes and enslaved rebels from the provinces were some of the most important foundations of the Roman economy.

When the Roman empire ceased to expand, it was the beginning of its downfall.

And the very idea of “Third Rome”, which forms the expansionist Russian ideology, explains a little of why Russia needs to expand. Why do the Czars, Trotsky, Khrushchev, and now Putin all need to expand? Because Moscow requires resources, just like Rome needed them.

If you enjoyed this article about inequality in Russia, check these below:

The Most Dangerous Cities in Europe

The Cost of Living in London vs The Cost of Living in Berlin, Madrid, Paris, Rome, and Warsaw

These 5 Countries Are Getting Stronger with the Turmoils of 2022

The Chinese Banking Bankruptcy Could Trigger the Mother of All Crises

Subscribe (for free) to receive my articles directly in your inbox and receive a special gift. If you enjoy this article, please consider becoming a Medium member by using this link and have access to premium, unbiased content from authors not tied to big media.

Levi Borba is the founder of expatriateconsultancy.com, creator of the channel The Expat, and best-selling author.

Best Countries Ranking

The Most Dangerous Cities in Europe

The 10 Most Dangerous Cities in Europe in 2022

Have you ever asked yourself what is the most dangerous city in Europe?

The old continent has a much lower level of violence than Africa or Latin America. To put it in perspective, São Paulo, the safest of the 27 Brazilian state capitals, would still be more violent than any European country except Russia (which has many similarities to Brazil). So it may sound odd an article about the most dangerous cities in Europe. You can be sure that even the most unsafe city in this ranking is not among the most dangerous cities in the world.

Listen to “The 10 Most Dangerous Cities in Europe (BE CAREFUL THERE!)” on Spreaker.

But violence is not always inexistent in Europe. After all, the old continent is home to 44 countries and nearly 800 million people.

While it is safe in general, it is also a very unequal continent. In western Europe are some of the most developed countries in the world, but eastern nations like Belarus, Albania, or Moldova have a development level comparable to places in Latin America or Asia.

When we talk about the ten most dangerous cities in Europe, one might assume that the majority of them are in the poorer nations of Eastern Europe.

But nothing could be further from the truth. In fact, nine of Europe’s ten most dangerous cities are located in developed, western countries.

Before starting the list of the 10 most dangerous cities in Europe, it is important to understand the criteria behind this ranking.

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The criteria to define the most violent cities in Europe

Numbeo’s Crime Index is built using data from cities all over the world and its local inhabitants to determine the severity of perceived crime and safety levels. The survey is conducted twice a year. It focuses on increases in crime over the previous three years, as well as issues regarding break-ins, thefts, robberies, and being attacked in the city.

The statistics are derived from a variety of sources, such as surveys. The questions in these surveys are similar to those in many other scientific and government assessments, and they are treated to eliminate outliers or untrustworthy data.

Numbeo uses data up to 36 months old to generate the index (which is constantly updated). They only include cities with a sufficient number of data points to be statistically reliable.

What is considered “Dangerous” or “Safe”?

Cities with a crime index value of less than 20 have a low prevalence of crime. Some examples of cities with index values less than 20 are Zurich, Bern, Lugano (all of them in Switzerland), or Funchal in Portugal. The worst city in the world in this index is Caracas, in Venezuela, with an index value of 84, followed by Port Moresby, Papua New Guinea, and Pretoria, South Africa, both scoring 82.

The most dangerous city in Europe scored a whopping 70.76. This is worse than São Paulo (Brazil) or Mexico City. Time to reveal its name and the entire top ten.

A reminder that these numbers don’t take into consideration the recent war between Russia and Ukraine. By the way, we also wrote an article about what you should do in case of conflict.

Is Europe Dangerous?

Europe isn’t dangerous; that’s a simple fact. Comparatively, the violence rates in Europe are incredibly low. Across Europe, the annual homicide rate is 3.5 murders per 100,000 inhabitants. In comparison with the United States, Africa or Latin America, that is very low. However, as you may discover in the next paragraphs, some cities are becoming increasingly violent, including crimes like sexual assault.

You may also get surprised by the absence of some names in this list, cities that once were famous for their violence, like Belgrade in Serbia, but now are relatively safe.

The ranking below has the most dangerous cities in Europe, but if we also wrote about the most dangerous city in each European country.

The 10 Most Dangerous Cities in Europe to Visit

10th — Malmo, Sweden

Crime Index Score: 56.75

Comparable to: Indianapolis, IN (USA) or Johor Bahru (Malaysia)

Why is Malmo so dangerous:

Over the past two years, Malmo, Sweden’s third-largest city, has become one of Europe’s most dangerous cities and is sometimes compared to Chicago in the US.

In one single year, Malmo had 65 shootings. Consider that the city has less than 350 thousand inhabitants and this data gives an idea of how violent this Swedish city became.

There were also cases of attacks with hand grenades.

Swedish media say that half of these victims are connected to organized crime networks and gangs. Others attribute it to the city’s changing demographics: Malmo has become a magnet for immigrants over the years —almost 40% of its population comes from abroad.

The Best (and Safest) District to Stay if You Are Travelling to Malmo

If you are visiting Malmo, the finest (also in terms of cost-benefit) area to stay in is near Gamla Staden. It’s convenient to everything, and it’s also one of the most attractive places, rich with historical buildings. Furthermore, it is far safer than areas such as Rosengard.

09th — Naples, Italy

Crime Index Score: 58.52

Comparable to: San Francisco, CA (USA) or Noida (India)

Why is Naples so dangerous:

As the regional capital of Campania, Naples is one of the largest cities in Italy. It has a long and rich history, and it’s filled with amazing architecture, arts, and sounds. Unfortunately, Naples is also famous for its crime rate.

This southern Italian city is chaotic and sometimes dangerous. In 2020, Naples was the #1 province in Italy in terms of robberies, which happened at a rate of 95 per 100,000 people.

One Italian described his impressions of Naples for the website The Top Tens:

I am Italian and have actually been to Naples a few times. The first time I was in middle school, I got my wallet stolen as soon as I got there. Then I went again recently for business. The city is, in all honesty, a mess. It’s dirty, noisy, smelly. There are ALWAYS people harassing you, even multiple times in a single day.[…] On the good side, the food is just amazing. Trust me, you won’t be disappointed!

The Best (and Safest) District to Stay if You Are Travelling to Naples

Last time in Naples, we chose to stay in the Capodimonte district, and we did not regret it! Aside from being considerably cleaner than the city center, the rates are reasonable, and there are several great local trattorias and bakeries nearby. The region’s proximity to major sites such as the Capodimonte Palace and the Catacombs of Saint Januarius is a great bonus.

08th — Nice, France

Crime Index Score: 58.85

Comparable to: Nairobi, Kenya, or Washington, DC, in the United States.

Where should you avoid in Nice?

Nice’s most dangerous neighborhoods are those on the outskirts of the city center, where crime is much higher.

Often residents of these areas fear going out at night or running into criminals while walking around their neighborhood because they are not sure what will happen. Because the police presence is so low in these areas, they are more vulnerable to crime.

With over 2348 CCTVs installed in the streets, public transportation, and parking lots, the center and other districts are relatively “safe.”

Many people remember Nice for what happened on July 14, 2016. On this day, a 19-tonne cargo truck was purposefully pushed into a crowd of people, killing 86 innocents.

However, this was not the city’s first (or last) encounter with violence.

The Best (and Safest) District to Stay if You Are Travelling to Nice

The region around the Massena square is a favorite of tourists visiting Nice for a few reasons: besides being safe, it is beautiful and well-connected.

07th — Minsk, Belarus

Crime Index Score: 59.85

Comparable to: Delhi, India or Nantes, France

Is Minsk safe to visit?

While statistics from Belarus may not be the most reliable in Europe, it is no wonder to find Minsk among the most violent cities in this ranking.

The most common crimes in Mink are theft and assault. Street crime is not a common occurrence in the Belarussian capital, but harassment from both organized crime and public agents are among the reasons locals few unsafe.

The US Department of State recently issued a Do Not Travel memorandum for all American citizens, citing, among other things, the possibility of foreigners being harassed by local officers.

There was also the prominent case of a KGB officer involved in a double homicide in 2021.

06th — Nantes, France

Crime Index Score: 60.06

Comparable to: Brasilia, Brazil, or Catania, Italy

Is Nantes a safe city?

Nantes, located on the Loire River’s bank, is the most dangerous city in France on this ranking.

The total crime rate in Nantes has increased during the last years. The most common crimes in Nantes are assaults, fights, rapes, thefts, and burglaries. Especially the districts of Centre-Ville and Les Hauts-Pavés/Saint-Félix are dangerous because the number of assaults occurring there is high.

The Best (and Safest) District to Stay if You Are Travelling to Nantes

Our choice here is Centre-Ville, since it has a decent structure and is one of the most connected districts in Nantes.

05th — Catania, Italy

Crime Index Score: 60.36

Comparable to: Ghaziabad, India

Why Catania is dangerous?

Catania is the second-largest city in Sicily and has been hit by earthquakes over the years that left their mark on the city. If you look at pictures of the city, you will see that there are large areas of wasteland, abandoned buildings, and factories.

The city has a certain reputation. It is not just tourists who are at risk of being targeted by thieves but also those who live there. The streets are loaded with people who want to make money from tourists, so you need to be careful when you go out after dark.

There are also complex issues with organized crime (also known as mafia) that, for decades, haunted the region. The catholic church in the city even banned nominated godfathers during baptisms to avoid the blessing of criminal ties.

04th — Birmingham, United Kingdom

Crime Index Score: 61.53

Comparable to: Dar es Salaam, Tanzania, or Anchorage (Alaska), in the United States.

Why is Birmingham so dangerous?

In 2021, Birmingham had 116.93 crimes reported for every 1000 inhabitants. The third-largest city in England also has the second-worst robbery rate among large English cities, with 3.36 currencies for every 1000 people.

Birmingham has some of the highest crime rates in the country, and many parts of the city are blighted by gangs and drugs.

The Best (and Safest) District to Stay if You Are Travelling to Birmingham

03rd — Marseille, France

Crime Index Score: 61.65

Comparable to: Guadalajara, Mexico

Why is Marseille so dangerous?

According to the French writer Charles Dantzig, Marseilles is a port city with a tradition of gangsters.

And he is right. Marseille is a port city on France’s southeast coast, near the mouth of the Rhone. It’s one of France’s largest cities and has a population of nearly 900,000.

Unfortunately, Marseille suffers from high levels of crime (compared to other parts of France), with gang violence and pickpocketing being the most common offenses affecting tourists.

The most dangerous areas to avoid in Marseille are the northern suburbs — neighborhoods such as L’Estaque and Le Panier are plagued by crime. However, it’s important to realize that other parts of Marseille can be equally dangerous — especially at night.

In 2021, a string of murders in Marseille has sparked a political uproar over drug gang turf wars terrorizing poor housing estates, where one recent shooting victim was only 14 years old.

The Best (and Safest) District to Stay if You Are Travelling to Marseille

The Old Port district of Marseille is the heart of the city, very close to the antique Hellenistic port. Nowadays it offers a nice walk on both side, with many bars and restaurants.

02nd — Coventry, United Kingdom

Crime Index Score: 69.45

Comparable to: Lima, Peru, or Guayaquil, Ecuador.

Why is Coventry so dangerous?

Coventry is an English city located in the West Midlands, approximately 100 miles northwest of London. It is the tenth-largest city in England and the 12th largest in the United Kingdom.

The city is known for being the birthplace of St. George, but also has a history of figuring among the most dangerous cities in the UK and Europe.[

The crime rates, however, are falling drastically in Coventry, and maybe these rankings are being slightly unfair. Between 2020 and 2021, the city had a decrease of almost 50% in its crime rate. While in 2020, Coventry had 29,615 crimes, in 2021 there were only 15,258 occurrences.

Therefore, it is understandable why, this year, Coventry lost the top spot to another British city.

01st — The most dangerous cities in the UK is also the most dangerous city in Europe

Bradford, United Kingdom

Crime Index Score: 70.76

Comparable to: Saint Louis, MO, United States, or Sao Paulo, Brazil.

Why is Bradford so dangerous?

Bradford is a city in the North of England. It’s quite a dangerous city, with crime rates almost twice the national average.

Crime in Bradford is mostly centered around drugs, prostitution, and violent crime. The most dangerous part of Bradford is the city center, but other areas such as Girlington, Clayton, Little Horton, and Manningham are also quite dangerous.

For a few years, the city was a hotspot for rapes and sexual assaults, particularly in Keighley, a Bradford district that was also home to one of the many child grooming gangs operating in the UK at the time.

Bradford is a relatively poor city by UK standards. The government is pouring money into the city in the hope that better living conditions will also help to solve the violence problem.

In one year Bradford, a city with 536 thousand residents, had

1,724 Occurrences of burglary
2,448 Occurrences of Vehicle Crime
4,888 Occurrences of criminal damage and arson

And here is the most impressive statistics:

22,870 Sexual offenses, and it is getting worse. Sexual offenses correspond to 42% of all crimes committed in Bradford.

Travel Safety Tips

If you are traveling to any of the cities listed in this ranking (or elsewhere), there are a few things you can do to travel SAFER and avoid any unpleasant surprises.

1st – Buy travel insurance that also covers theft-related expenses. Although it is often very inexpensive to purchase such insurance in Europe, many people ignore this small precaution and end up disappointed. I recommend the company Ekta, which provides some of the most innovative solutions for travelers, allowing you to relax and enjoy your vacation without worry.

2nd – Don’t let “drivers” trick you by offering to pick you up at the airport or train/bus stations. They often try to cheat people, which can be dangerous. I prefer to use GetTransfer, a website that compares multiple, reputable transfer providers and offers you the best price. It is the best way to plan ahead of time.

3rd – Avoid walking around with your luggage. Radical Storage is a website that shows safe locations where you can leave your luggage, pay a small fee, and pick it up after touring the city.

Conclusion: Crime in Europe – The Most Dangerous Cities

According to the Numbeo Crime Index Ranking, these are the 10 most dangerous cities in Europe.

10th — Malmo, Sweden
9th — Naples, Italy
08th — Nice, France
07th — Minsk, Belarus
06th — Nantes, France
05th — Catania, Italy
04th — Birmingham, United Kingdom
03rd — Marseille, France
02nd — Coventry, United Kingdom
01st — Bradford, United Kingdom

Some curious facts about them:

None of the most dangerous cities in Europe analyzed are even close to being among the most dangerous cities in the world, although Bradford comes close in terms of sexual assaults.
60% of all the cities in this ranking are either in the UK or France.
Only 1 city is located in eastern Europe: Minsk.
This ranking didn’t take into consideration the current conflict between Ukraine and Russia.

So, in this article we told you which cities are NOT that safe in Europe, but where are the safe ones? Are there places where I can enjoy the European atmosphere without the need to worry much?

Yes, and here are some ideas (tested by our own editors!):

If you enjoyed this article about the most dangerous cities in Europe, check also:

Is Rio de Janeiro Safe?

Argentina — Once a Paradise for War Criminals, Now a Great Place to Retire

The Best Cities to Retire in Europe

Best Place to Visit in Europe on Each Month of the Year

First, subscribe (for free) to receive my articles directly in your inbox and receive as a special gift the digital book 20 Essential Hacks for Saving Money While Travelling.

Second, if you liked this article, please consider supporting other writers and me by becoming a Medium member. By using this link, you will directly support me with a piece of your fee; there will be no additional cost to you. Thank you a million times if you do!

Levi Borba is the CEO of expatriateconsultancy.com, creator of the channel Small Business Hacks, and best-selling author. Subscribe to my articles (for free) and receive (also for free) the ebook “The Blueprint for First-Time Business Owners”.

Business in Europe

Tips and Crucial Advice for Anyone Moving from a…

5 Tips for Moving to Europe

In Europe, there is a sizable amount of expatriates from warm places like Australia, Latin America, or the southern regions of the USA. Among them, issues like cultural shock, accommodation, or homesickness receive attention enough. But there are tips for moving to Europe that are almost unheard of.

Things like the “temperature” hindrances are hardly discussed — and here I am not only talking about the weather but also temperament.

The problem is that those forgotten matters affected most, if not all, Latin Americans living in Europe. While some of these issues have inexpensive and easy answers, the lack of attention about them results in us, immigrants, discovering the solution only after having problems.

To be frank, the tips that I will write below may not apply to sun-balmy places like Portugal, Spain or Greece. But if you are moving to countries like Germany, Sweden, or even the UK, keep reading.

These 5 tips for moving to Europe are based on my personal experience as a Brazilian in Poland. They are some of my most valuable insights on moving away from home, and I believe they will be beneficial to you as well.

1 — Moving to Europe for a Year? Remember about Vitamin D during the Winter!

Winter with snow. If you are moving to Europe for a year or more, and have darker skin tones, be aware that you may lack Vitamin D during the cold season. — If you are moving to Europe for a year or more, and have darker skin tones, be aware that you may lack Vitamin D during the winter.

On average, people that live near the tropics, like Latin Americans, have darker skin tones than most Europeans, particularly those from the continent’s northern and eastern regions.

Darker skin is a convenient adaptation for anyone living in sunny areas such as Brazil’s northeast or the Andean altiplano. Darker tones filter out more of the sun’s ultraviolet B (UVB) rays. They have more melanin, which means they are more protected from sunburn and other problems caused by excessive sun exposure, such as skin cancer.

The issue is that the same UVB rays that cause cancer are also responsible for breaking down cholesterol in skin cells, providing energy for the human body’s vitamin D synthesis. Vitamin D is essential for good health, and a lack of it can cause fatigue, muscle cramps, depression, and immune system problems.

During European winters, the sun is a rare visitor, and days are much shorter. In December, for example, the sunset in Warsaw is around 15:30, and the sky can be cloudy for weeks. In the winter, the total amount of sunlight per month is less than 30 hours. To put it into perspective, there isn’t a single month in Buenos Aires or Mexico City that has less than 130 hours of sunlight.

People in countries such as Poland and Estonia have very white skin, which filters fewer UVB rays. So, even with a small amount of sunlight, they get enough UVB to get the vitamin D they need.

That was not my case. I have olive skin, and I spent my first year in Poland constantly feeling ill and getting sick. I went to the doctor, and he ordered an exam, which revealed that I was severely deficient in vitamin D.

My problem of fatigue and constant sickness was solved after I started taking Vitamin D3 supplements during the fall and winter — something that costs me less than 8 euros per month.

2 — Moving to Europe from the US? Here we can go to work by bicycle or roller-skaters!

With a few exceptions, such as Santiago, Chile, most cities that I lived in outside Europe are not bike-friendly and have inadequate public transportation.

If you are moving to Europe from the US, likely you also know what I mean.

Others, such as the Brazilian capital (and planned city) Brasilia, have plenty of cycling routes, but the climate makes riding a bike to work or school unappealing — unless the person doesn’t mind arriving swimming in his sweat.

Things are different in Europe. Yes, the climate in the northern regions is still unfavorable for riding a bike to work during a few months of the year, but for the rest of the year, even in a city as cold as Helsinki, cycling is an excellent mode of transportation. When you consider the safer traffic, the flat topography of most capitals, and the high cost of fuel, it’s easy to see why so many people use bicycles to get around.

You don’t even have to own a bicycle. Large European cities frequently provide bike-rental services, where you pay a nominal charge to ride from one location to another. In Warsaw, this service is known as Veturilo, and the first 20 minutes of renting are free. I went riding one of Veturilo’s bikes when I had a doctor’s appointment in the morning. It was a wonderful morning trip that cost me one zloty (less than 30 cents of euro).

As a bonus, it will assist you in absorbing some UVB rays for Vitamin D synthesis (see point 1 above) and staying in shape!

Book recommended: Budget Travelers, Digital Nomads & Expats: The Ultimate Guide: 50 Tips, Tricks, Hacks and Ways to Free Stuff & Cheaper Flights

3 — Avoiding long showers to help your skin (and pockets)

Water prices — not bottled water, but the water used for showering, flushing, and so on — in countries like Brazil, Colombia, and Argentina are significantly lower than in Europe. Water will be far more expensive in middle-income nations such as Poland and Hungary than in Chile, for example.

In Poland, a 10-minute shower with 120 liters of water will cost 1.5 zlotys or 30 cents of euro at the current exchange rate. This is merely the cost of the water; it does not include the cost of heating or other charges. This price would be far higher in Germany, the United Kingdom, or France. The identical 10-minute shower in So Paulo, Brazil, will cost 29 cents of Real, or less than 5 cents of Euro. Showering once a day in Poland will cost you 108 euros, compared to 13 euros in Brazil.

We shower a lot in hot countries. However, I would not recommend continuing this practice in Europe. This will not only save you money, but it will also benefit your skin, because frequent and hot showers cause dry skin and hair, according to American Academy of Dermatology researchers.

Gas is expensive nowadays, but there are some extreme ways to reduce heating costs.

4 — To have a better life in Europe, learn the language and use it to understand the ethos.

Learning the language of your new nation will open up a whole new world to you.

This is, unfortunately, something that many of those moving to Europe as an American ignore, and try to live the whole time only using English. This deprives them of so many incredible perspectives of life…

You’ll be able to say “Thanks” or “Please” when shopping at the grocery store or ordering at a café.

Better than that: you will also notice the nuances that shape people’s humor and behavior in their daily activities. Understanding local jokes and insults can give you a good notion of what is humorous and shocking in your new neighborhood.

Lera Boroditsky, a cognitive scientist, confirmed in her studies that language shapes the way we think. As a result, learning the local language allows you to think like a local, increasing your chances of success (or at least survival) in your new nation. What could be a greater incentive than this? Ludwig Wittgenstein, an Austrian philosopher, wrote:

“The limits of my language mean the limits of my world”.

An easy way that I found to learn new idioms is to frequent language exchange groups. Not only will you be able to speak with people in your new location and learn their idiom, but they will be delighted if you offer to teach them your language.

5 — The meaning of a smile varies according to the country

Smiling may appear to most of my people to be a minor gesture. Born in the Brazilian countryside, I learned early on that smiling at people on the street was not unusual. I’m not referring to Joker-style frightening laughter, but to those courteous demonstrations of goodwill that are accompanied by a nod. On a good day, we salute our neighbors, coworkers, and anybody who crosses our path.

The same was true for the first nation I lived in after leaving Brazil, Chile, as well as other countries I visited in the area.

However, I later moved to Poland.

On a certain day, as usual, I greeted one lady that worked with me. Cheers Dominika, everything fine?

She said yes and asked if I was fine too. I answered, “Everything great!”

Then she asked me: So, why are you smiling? Some good news?

After the surprise of hearing such a question, I said, “Oh, not really. But nothing bad happened either”

I’ve been paying closer attention to the facial expressions of individuals around me since that day. This led me to the conclusion that paying attention to physical and behavioral details is beneficial while adjusting to a new culture. — something that I wrote about in my book Moving Out, Working Abroad, and Keeping Your Sanity.

People in Poland do not smile unless they have a compelling reason to do so. A similar trait I saw in other Slavic nations I visited. To mention a few, Slovakia, Serbia, Montenegro, and Russia.

I’m not implying that Slavs are always pessimistic or gloomy. A happy young couple chatting during a walk or a father playing with his daughter are likely to chuckle or perhaps giggle. Outside of such occasions, though, their facial expression is serious.

People may misinterpret joyful expressions. Smiling during a formal talk may be interpreted as not taking it seriously. My wife’s grandmother once felt I didn’t believe her story because I had a smile on my face.

In other cases, folks may assume you’re a moron or have a psychiatric condition., as a Russian proverb says:

Smiling for no reason is a sign of stupidity.

Which side is correct? The slavs that need a reason to smile or the Latin-Americans that need a motive to not do so?

Likely both. That is why humor is one of the 4 dimensions of cultural shock.

How Easy Is It to Move to Europe

There are many reasons why people want to move to Europe. The economic situation in their home country may be bad, or they may want to experience a different culture. If you are thinking about moving to Europe, you should take some time to consider the benefits and drawbacks of this move.

The first thing that you must consider is your visa status and what type of visa you need for living in the country where you want to live. This will depend on how long you plan on staying and what type of work you do. You should also make sure that your employer can sponsor your visa so that if something goes wrong with your application, they have already agreed that they will help pay for any costs associated with getting a new visa or returning home if necessary.

Another thing that needs consideration is health care coverage while abroad. Most countries have health care coverage available for visitors, but it may not cover everything that is needed if an emergency arises while living there permanently. If possible, check out what kind of coverage each country offers before making

If you don’t have a job lined up yet, then try looking into work visas or permanent residency permits so that you can legally work in the country where you want to live (I wrote a special article on this subject, called the best countries to start a new life abroad with no money). Once this has been done, then it’s time for the fun part: packing up all your stuff and moving!

Conclusion: 5 Tips for Moving to Europe

1 — Darker tones of skin filter out more of the sun’s ultraviolet B (UVB) rays and can cause a lack of Vitamin D during the European winter. A lack of Vitamin D can cause fatigue, muscle cramps, depression, and immune system problems. Take a supplement.

2 — Biking is an excellent model of transportation in Europe due to the mild climate during spring, summer and fall. Large European cities frequently provide bike-rental services.

3 — Avoid showering more than once a day, and take a colder shower. This will also benefit your skin, as frequent and hot showers cause dry skin and hair.

4 — To have a better life in Europe, try to learn the language and use it to understand the ethos. Understanding local jokes and insults can give you a good notion of what is humorous or not in your new neighborhood.

5 — Smiling during a formal talk may be interpreted as not taking it seriously. People may misinterpret joyful expressions as stupidity.

Do you have other tips for moving to Europe? Share with us in the comment section!

If you liked this article, check these selected for you:

The 10 Most Dangerous Cities in Europe in 2022

Shock! The Cost of Living in London vs Other European Capitals

If you wish to become a Medium member and have access to articles like this, check this link. It is only $5 per month and will support writers like me.

Levi Borba is the CEO of expatriateconsultancy.com, creator of the channel The Expat, and best-selling author. Subscribe to my articles (for free) and receive (also for free) the ebook “The Blueprint for First-Time Business Owners”.

Business in Europe

Shock! The Cost of Living in London vs Other…

The Cost of Living in London vs The Cost of Living in Berlin, Madrid, Paris, Rome, and Warsaw

Listen to “SHOCK😮! Cost of Living in London vs Rome, Paris, Madrid, Berlin, and Warsaw” on Spreaker.

During the last two years, there is a certain buzz about how Polish immigrants that lived for years in the UK are returning to Poland due to the increasing salaries and improving economy in their homeland. That puzzled me: yes, the salaries here in Poland are increasing, but still, I bet they are far lower than London for the same jobs. I imagined that there is something else at play here: the cost of living in London when compared to other European capitals.

For this reason, I decided to spend hours researching how the prices in London, the capital of the United Kingdom, compare with the capitals of the five largest countries in the European Union: Germany (Berlin), France (Paris), Italy (Rome), Spain (Madrid) and Poland (Warsaw).

I came with the exact living cost that a single person needs to live in each of those European capitals (considerably different from the living costs in Brazil, the place where I came from).

To forecast living costs is, IMHO, among the 4 best tips for anyone moving out.

Here are the premises used for this comparison between London’s living costs and other European capitals:

Average Monthly Expenses for One Person

To make this objective, I wrote this article using the following guideline: What are the average monthly expenses for one person (a single, young professional living alone in a rented studio)?

Why did I use this specific pattern to write this article?

First, to make it straightforward.

Second, I guess this represents a large share of my readers.

Third, from the numbers written below, you can also guess the costs for a couple or a family by adding additional expenses like nursery or education.

And Fourth, because during seven years of my life I was exactly this kind of person: a single, young professional expatriate.

Living Costs Considered

The living costs below consider the late 20s, early 30s person, living alone, eating 2400 kcal per day in a diversified diet, who enjoys eating out once per week and drinking some pints of beer every time he meets his friends, frequents a gym and has a haircut once per month.

In other words, I took my own expenditures as an example — except for the part of eating 2400 kcal per day, since my size requires way more than that.

Housing: rent of a 45 m2 furnished studio in a middle-class area.
Transport: monthly ticket for public transport
Utilities: 1 month of heating (to discover how to save money on heating, check here), energy, gas, Internet, etc, for 1 person
Supermarket: 2400 kcal per day with a diversified diet + cleaning products
Entertainment: eating out 5 times per month, 10 beers at a local pub, and 2 movie tickets
Gym: 1 Month of full membership
Health and Personal Care: 1 haircut and 1 visit to the dentist or private doctor.

The sources for the cost of living came mostly from two sites:

Numbeo for supermarket items. Numbeo is a crowd-sourced global database of reported consumer prices. Currently, it 7,389,784 prices in 10,384 cities registered by 607,931 contributors. It is an enormous database with, in my experience, accurate numbers.
Expatistan for other expenses (except the listed below). As Numbeo, Expatistan is another tool for calculating the cost of living in cities around the world. Their database is composed of 3,374,000 prices in 1,764 cities recorded by 388,500 contributors

I also double-checked some prices at other sources: entertainment in Paris, restaurants in Paris, gyms in Berlim, Warsaw, Madrid, and the London monthly public transport ticket rates.

Reminder: Despite not all countries using the Euro as currency (UK and Poland have their own money), all the values below are converted to Euros.

Cost of Living In London

Housing (Rent of a 45 m2 furnished studio in a middle-class area): € 1,454.00

Transport (Monthly Ticket of Public Transport): € 168.00

Utilities (1 month of heating, energy, gas, Internet, etc, for 1 person): €112.00

Supermarket (2400 kcal per day with a diversified diet + cleaning products): € 248.08

Entertainment (eating out 5 times per month, 10 beers at a local pub, and 2 movie tickets): € 214.00

Gym (1 Month of Full Membership): € 48.00

Health and Personal Care (1 haircut, 1 visit to the dentist or private doctor): € 85.00

How much does it cost to live in London per month:

For a single person to live alone in London with a conventional lifestyle, he will spend € 2,329.08 per month.

Living Costs Berlin

Housing: € 728.00

Transport: € 78.00

Utilities: € 97.00

Supermarket: € 247.71

Entertainment: € 138.40

Gym: € 25.00

Health and Personal Care: € 50.00

How much money do you need to live in Berlin?

To live in Berlin without sharing an apartment, a young professional will spend € 1,364.11 per month between housing, transport, utilities, supermarket, entertainment, gym, and healthcare.

How the Cost of Living in Berlin Compares with The Cost of Living in London

The cost to live in Berlin is 41.4% smaller than in London.

Cost of Living in Paris

Housing: € 1,229.32

Transport: € 76.00

Utilities: € 109.00

Supermarket: € 274.57

Entertainment: € 213.60

Gym: € 33.00

Health and Personal Care: € 55.00

How much money do you need to live in Paris?

To live in Paris, renting a studio for one person, and considering all the other living costs, you will need € 1,990.49 per month. To enjoy some of the best things Paris offers, however, you will need a bit more.

Is London or Paris More Expensive?

London is 14.5% more expensive than Paris. This is the smallest difference among all the cities researched in this article, giving the French capital 2nd place among the most pricey European cities.

Cost of Living in Rome

Housing: € 663.00

Transport: € 35.00

Utilities: € 92.00

Supermarket: € 216.86

Entertainment: € 161.10

Gym: € 25.00

Health and Personal Care: € 62.00

How much money do you need to live in Rome?

To live in Rome as a single person and not sharing an apartment, you will need € 1,254.96 per month. You don’t necessairly need to live in expensive areas, since Rome is a safe place and most districts are ok to live.

How the Cost of Living in Rome Compares with The Cost of Living in London

The living costs in Rome, for a single young professional, are 46.1% lower than in London when you consider all the criteria above.

Cost of Living in Madrid

Housing: € 679.00

Transport: € 54.00

Utilities: € 87.00

Supermarket: € 215.57

Entertainment: € 138.10

Gym: € 35.90

Health and Personal Care: € 63.00

How much money do you need to live in Madrid?

To live in Madrid in a studio by yourself, and considering expenses with transport, utilities, groceries, entertainment, gym, and healthcare, you will need € 1,272.57 per month.

How the Cost of Living in Madrid Compares with The Cost of Living in London

Madrid is 45.4% cheaper than London for a single person living alone. This is a result similar to Rome.

Cost of Living in Warsaw

Housing: € 518.00

Transport: € 24.00

Utilities: € 97.00

Supermarket: € 168.15

Entertainment: € 77.00

Gym: € 25.00

Health and Personal Care: € 43.00

How much money do you need to live in Warsaw?

Warsaw is the cheapest city on this list, and it comes as no surprise (despite it being much more expensive than other Polish cities). Considering all the expenses, you will need to live in Warsaw, per month, € 952.15. The Polish capital is the only European capital among the assessed where you can live with less than 1000 euros per month. Warsaw is also among the cheapest cities to take an Uber in Europe.

How Warsaw Compares with The Cost of Living in London

Warsaw is an impressive 59.1% cheaper than London.

Photo I took during a sunny day in Warsaw, Poland, a place with a fraction of the cost of living in London

Conclusion: the cost of living in London compared to Berlin, Paris, Rome, Madrid and Warsaw

Country	The UK	Germany	France	Italy	Spain	Poland
City	London	Berlin	Paris	Rome	Madrid	Warsaw
Housing (Rent of a 45 m2 furnished studio in a middle-class area)	€ 1,454.00	€ 728.00	€ 1,229.32	€ 663.00	€ 679.00	€ 518.00
Transport (Monthly Ticket of Public Transport)	€ 168.00	€ 78.00	€ 76.00	€ 35.00	€ 54.00	€ 24.00
Utilities (1 month of heating, energy, gas, Internet, etc, for 1 person)	€ 112.00	€ 97.00	€ 109.00	€ 92.00	€ 87.00	€ 97.00
Supermarket (2400 kcal per day with a diversified diet + cleaning products)	€ 248.08	€ 247.71	€ 274.57	€ 216.86	€ 215.57	€ 168.15
Entertainment (eating out 5 times per month, 10 beers at a local pub and 2 movie tickets)	€ 214.00	€ 138.40	€ 213.60	€ 161.10	€ 138.10	€ 77.00
Gym (1 Month of Full Membership)	€ 48.00	€ 25.00	€ 33.00	€ 25.00	€ 35.90	€ 25.00
Health and Personal Care (1 haircut, 1 visit to the dentist or private doctor)	€ 85.00	€ 50.00	€ 55.00	€ 62.00	€ 63.00	€ 43.00
Total (Expenses per Month)	€ 2,329.08	€ 1,364.11	€ 1,990.49	€ 1,254.96	€ 1,272.57	€ 952.15
Cost of Living vs London		-41.4%	-14.5%	-46.1%	-45.4%	-59.1%

The cost of living in London compared to Berlin (Germany), Paris (France), Rome (Italy), Madrid (Spain) and Warsaw (Poland)

The results above pretty much explain the question I made myself days ago, which inspired me to write ask why so many Poles are returning from the UK to Poland, despite the salaries in Great Britain still being higher than here? I remember some time ago

The answer, in this case, became simple: because the living costs in the UK are far higher than in Poland. Not everything is inexpensive in Polish lands, however. Months ago, I wrote an article about 5 things insanely expensive in Poland

It is crucial to remember, however, that the whole planet is experiencing the largest inflation cycle of the last 40 years, therefore the amount of money that you need to live now certainly will change in the coming months.

If you wish to become a Medium member and have privileged access to articles like this, check this link. It is only $5 per month.

The Best Lessons I Learned about Moving Away from Home (After Doing It 14 Times).

Levi Borba is CEO of expatriateconsultancy.com, creator of the channel Small Business Hacks, and best-selling author. You can check his books here, his other articles here, or his Linkedin here.

Business in Europe

Norway Electric Cars

Why Does Norway Have So Many Electric Cars?

While researching for another article, I found some shocking information: There is a country in the world where 75% of all vehicles sold are electric. This country is Norway. But how Norway has so many electric cars?

All this is even more surprising when you consider that only 4.2% of all the vehicles sold on the planet are electric vehicles (EVs).

My first reaction after discovering this was to think about the reasons for the enormous success of EVs in Norway. Here are some of my guesses:

1st theory: Norway is a high-income country, therefore it is easier for people to buy the more expensive EVs.

The reason it is wrong: If that was the case, EVs would also be a success in similarly high-income countries like Switzerland or Ireland, but there they represent only 14.3% and 7.4% of the vehicles sold.

2nd theory: Norwegians have a high level of environmental awareness, therefore they prefer to spend more to reduce gas emissions.

The reason it is wrong: Let’s ignore the fact that not always EVs reduce gas emissions — if the energy matrix of a country is based on coal, EVs can even make it worse. This 2nd theory is wrong simply because Norway is far from the top in terms of environmental consciousness. The most eco-friendly countries in the world are Denmark (Copenhagen is an example of safe and green city), Luxembourg, and Switzerland, and the EV market share in these 3 are only 16.4%, 11.4%, and 14.3%.

3rd theory: Norwegian government has heavy subsidies for EVs, so people buy them because of these incentives.

The reason it is wrong: There are some incentives for electric vehicles in Norway, like reduced toll charges and parking fees. The Norwegian subsidies are, however, minor compared to what other European Union countries offer. In Germany, for example, buyers of electric vehicles costing less than 40,000 euros can apply for a premium of up to 9,000 euros. Still, only 13.5% of all the cars bought by Germans are EVs.

All my initial theories were wrong. Later, however, another piece of data revealed the answer.

Why Are Electric Cars So Popular In Norway?

The short answer: because Norwegians can do the math.

The long answer starts with a table. Below are the electricity prices in 29 different European countries.

Why are there so many electric cars in Norway? Cheap energy is one of the answers. Data source: Strom-Report

Norway has one of the lowest electricity rates in entire Europe, despite being the 3rd richest nation on the continent (below only Luxembourg and Switzerland, and excluding micro-states).

According to the UN, the per capita income of Romania is US$12,914. This is less than 20% of the Norwegian income (US$74,986). Even so, Romanians pay more for electricity than the average Norwegian resident.

Meanwhile, gas and diesel prices in Norway are comparable to other Scandinavian countries and higher than the European average.

Using a fuel cost calculator, we can check that, with similar cars, electric vehicles in Norway have a fuel cost per mile of 3.5 cents against 19.1 cents per mile of petrol cars.

Let’s put it into perspective with one hypothetical example:

You live in Norway and drive an average of 10 miles (16 kilometers) per day. You need to decide between an electric Nissan Leaf and a non-electric Nissan Juke.

With the Leaf, your annual fuel costs will be 128 euros.
Buying the Juke, your annual fuel costs will be 697 euros.

Which car would you buy? And that is why….

The percentage of electric cars in Norway is above 70%!

75% of the vehicles in Norway are electric because there, electricity is crazy cheap compared to petrol prices. In another article, I wrote about the rules to follow before buying a car. I think Norwegians follow them.

Electricity in Norway is cheap because they produce enormous volumes of energy at a low cost.

They produce so much energy that they export it to other European countries. Norway is the largest exporter of electricity in the European market, and Norwegian hydropower is a major contributor to that export.

It is a virtuous cycle that boosts Norway’s electric vehicle market share.

Tesla recharging. 75% of the cars in Norway are electric vehicles. — 75% of the cars in Norway are electric vehicles.

How Does Norway Produce Electricity?

Norway’s 22 hydroelectric plants produce about 96% of the country’s electricity Hydropower demands very specific geographic features as rivers with large terrain unevenness, therefore it cannot be used everywhere — it represents only 16% of the world’s electricity

Norway’s hydro plants, first developed in the late 19th century, use water falling from glaciers to produce electricity and were among the first in the world to harness that kind of power. The artificial lakes that makeup Norway’s hydroelectric reservoirs are some of the largest in the world.

The country is also looking to expand hydroelectric production, investing close to $200 billion in renewable energy projects, including $30 billion for hydropower expansion, making Norway one of the most energy-independent nations in the world.

This is the same strategy adopted by an African country on the road to be a powerhouse.

If you liked this article, maybe these are also for you:

3 Life Lessons from Skin in The Game, from Nassim Taleb

4 Industries and Jobs That Will Disappear Due to Technology

Before Investing in Emerging Markets, You Should Have These Characteristics

If you wish to become a Medium member and have privileged access to articles like this, check this link. It is only $5 per month.

Levi Borba is CEO of expatriateconsultancy.com, creator of the channel The Expat, and best-selling author. You can check his books here, his other articles here, or his Linkedin here.

As an entrepreneur, the help I found on Fiverr and Freelancer.com was essential for a smooth beginning.

To Join Fiverr and start with a $20 Bonus, Click Here.

Join Freelancer using this link and earn a USD20 discount on your first purchase

Business in Europe

5 Unusual Fiverr Gigs – The Best Website to…

Lottery prizes are unplanned events. Starting a business is the opposite — you plan, research, and finance it. That takes time and effort. Something that can be solved if you check a certain website to hire freelancers, and here I will tell you how.

Besides these well-known phases of creating and running a company, there are dozens of minor tasks you need to complete, from registering your firm with state authorities to buying insurance.

It’s a lot to tackle for one person, but starting and running a business is often a solitary activity made by a single hero or his close group of brave co-founders.

Or at least it was like that until the rise of the gig economy and websites like Fiverr and Freelancer.

These websites — and other online marketplaces for freelance services — made it possible for entrepreneurs to hire talents anywhere in the world. Remote workers that can push new enterprise to a whole new level of performance and profitability.

You can hire a variety of specialists to help you with various aspects of starting a business, but it’s important to find someone who complements rather than duplicates your skillset. You don’t want someone doing all the marketing for you, for example, if you’re an expert at developing products.

Some well-known tasks became the realm of remote professionals from the gig economy. Things like:

There are hundreds of articles explaining how to find good professionals in these areas at Fiverr, including one with The 5 Top Fiverr Gigs for New Entrepreneurs and Creators.

In this article (which contains some affiliate links, meaning that I may earn a financial incentive if you decide to purchase any of the listed services), I will tell you about some specialists out of the radar. Still, they can make the difference between a successful and a stagnant business — for only a few dollars.

Use This Website to Hire Freelancers Outside of the Radar: Our top 5 list.

You can find some of the highest-paying jobs for digital nomads on Fiverr.

Infographic Designer

If you are a fan of pages like Visual Capitalist or Cool Infographics, you’ve noticed infographics.

They are graphic visual depictions of data. They help us make some of the most complex, important topics more digestible and memorable.

An infographic designer creates visual displays of data. They use graphic design to convey information in an interesting, eye-catching way.
Infographics help explain complex topics, inform and educate viewers, and promote your brand. It is much more than just pretty pictures. An infographic designer has the skills, creativity, and experience to create something that conveys your message with immense shareability — meaning viral posts.

For example, people create infographics to show their friends what their cats do in their sleep. Imagine how a cat-food company or a pet shop can use that to promote its brand with a highly shareable viral post.

Among these boring numbers in your excel sheets and market research docs is a gold mine for customer engagement — but to dilapidated it, you need a specialist.

At Fiverr, you can hire a good infographic designer with multiple good references for 10 dollars.

Virtual Assistant

In another article, I wrote about how hiring a virtual assistant helped me to save multiple hours during my week. Enough to write 3 books and become a top writer in 5 categories at Medium.How To Add Multiple Extra Hours to Your Week
Hiring a Virtual Assistant freed me enough time to write 3 books in a yearentrepreneurshandbook.co

A virtual assistant (VA) is a freelancer who performs administrative work for one or more clients. He/She can be anything from a social media guru to a writer. A VA can help your business for the three reasons below:
1. They save you money.
2. They save you time.
3. They free you up to grow your company.

Many entrepreneurs choose to hire a virtual assistant for the simple fact that the overhead costs are lower than hiring a full-time employee. In-house staff needs desks, computers, office space, and equipment. A VA can work from their home or anywhere with internet access, so their expenses are smaller.

In this website to hire freelancers working as virtual assistants with a solid reputation may cost as low as 15 dollars.

Website Reviewer

Hiring a Website Reviewer made my business website soar to the first page at Google in multiple keywords in a matter of months.How My Website Rose to Google First-Page Rank in only 10 Months
I am no WordPress Specialist, but spending less than $100, it happened!medium.com

A website reviewer is a service provider who evaluates and provides feedback and solutions to improve the performance of your site.

They conduct a comprehensive review and provide detailed feedback about design, content, logic, functionality, usability, and SEO.
It is a great step to produce a positive user experience. They can also help you find and fix technical errors, and suggest ways to make your website more effective.

They can also help you with Google Analytics, Google AdWords, and a variety of other online marketing strategies.

Reviewers can help you create a website content strategy that appeals to your target audience, improve your search engine ranking, your social media presence, and customer loyalty.

Lastly, they can also review your website for compliance with general best practices, industry standards, and government regulations.

At Fiverr website to hire freelancers to review your website can cost as low as 30 dollars.

Grant-Writing Services

Grants, often issued by governmental agencies or NGOs, can be a significant source of funding for many projects. The application process, however, is daunting, and there’s a steep learning curve involved.

This is a problem that can be solved by a grant-writing expert.

Here are 5 reasons why a grant writing service can help you:

They have access to the right information. Sometimes it can be found online, but sometimes it is hidden under hundreds of government documents.
They often have the connections you need to get your application approved.
Writing an application is not easy. You have to provide all of the information that a potential grantor is looking for. A grant writing service can help you create a persuasive application.
They ensure you submit on time. Deadlines are stressful.
They avoid costly mistakes — the type of error that can make your entire application go to the garbage bin.

Grant writing isn’t for everyone. It requires research, organizational skills, and a lot of time. It requires you to hire top freelancers.

At Fiverr, you can purchase well-evaluated grant-writing services for 25 dollars.

Chatbot Programmer

A chatbot is a computer program designed to simulate conversation with human users. Chatbots can operate as an easy interface to websites, and can also operate across various messaging apps, including Facebook Messenger, Slack, Skype, and Google Hangouts, to name a few.

They are starting to take over customer service, and one of the most important benefits is their help to provide faster customer service.

Fast and personalized customer service is no longer just a nice-to-have. It’s a must-have for many businesses. Today, 79% of customers say it’s very important for businesses to contact them via their preferred channel. Further, 55% of customers say they’re willing to pay more for faster service.

Businesses are using chatbots for a variety of customer service tasks, including helping with customer orders, answering questions, and giving information about products.

Chatbots are more than just a customer service tool: they can turn customer service into revenue.

They can help customers quickly find the information they need on your website or messaging platforms, and they can save time for your employees by automating repetitive tasks.

Chatbots can also boost your sales by simplifying the checkout process. Rather than asking for a name and shipping address, customers can interact with a chatbot, which asks them only for their payment and delivery information. When a customer’s credit card is charged, a chatbot can send them a receipt and provide them with the tracking number for their package.

In that website to hire freelancers to program chatbots may cost only 30 dollars — for a simple chatbot.

What are other out-of-radar professionals that your business hired?

If you are an entrepreneur or is planning to start a business, here are some other articles that may be useful to you:

5 Books Every Entrepreneur Must Read This Year

The 7 Best Business Channels on YouTube in 2021

How to Rank Website on Google First Page

To Join Fiverr and start with a $20 Bonus, Click Here.

Join Freelancer using this link and earn a USD20 discount at your first purchase

If you wish to become a Medium member and have access to articles like this, check this link. It is only $5 per month. It will support multiple writers, including me.

Brazil

Before Investing in Emerging Markets, You Should Have These…

The definition of developing economy hide some crucial elements.

Often, great opportunities hide behind dreadful risks. Anyone investing in emerging markets knows that. Risks are of a different magnitude in developing markets when compared to stable locations like Western Europe or the USA.

This is not bad at all. The definition of risk is the chance that an outcome or investment’s actual gains will differ from an expected outcome or return. Therefore, as much as it can cause losses above expectations, it can become profits above measure.

To catch the upper side of the risk tail, however, there are some features that both entrepreneurs and investors should have when venturing into emerging economies. Here, we consider emergent as a developing nation engaged with global markets showing characteristics from both developed and non-developed economies. As Investopedia puts:

Emerging market economies typically feature a unified currency, stock market, and backing system, and are in the process of industrializing.

Emerging market economies can offer greater returns to investors due to rapid growth, but also offer greater exposure to some inherent risks due to their status.

All the countries where I lived, worked, and started business in my life are emerging economies, although in different parts of the world — South America, the Middle East, and Eastern Europe. I also used my personal observations of non-mainstream emerging countries like Paraguay, Ethiopia, or Botswana.

Considering all this information, here are 3 essential things needed before investing in emerging markets.

Definition of Developing Economy

A developing economy, also known as an emerging market, means a country with a generally significant degree of financial development and security. Standard rules for assessing a nation’s degree of advancement are income per capita, the degree of industrialization, the overall way of life, and the economical matrix.

Noneconomic factors, for example, the human development index (HDI), which measures a nation’s degrees of income, education, and health into a single indicator, can likewise be utilized to assess the development level of a country. There are also some common characteristics among developing economies, like regional inequality, an element that is very present in places like Russia or South Africa.

Examples of developing economies: Turkey, Brazil, Russia, China, etc.

Survival Skills Under Tax Terrorism

Tax disputes are as Brazilian as string bikinis or samba. The Economist

When I tell my European friends that in Brazil, it is common local branches with larger legal units than their European headquarters; they ask me if this is not a waste of resources.

It is not, because Brazil and other emerging nations like India or — on a minor scale — Poland, live under a regime of tax terrorism.

In the same way that firms in war zones like Iraq or Sudan must invest extra resources in security, firms in countries like Brazil or India need to protect themselves against the vast government’s hunger for money.

Since I opened my first business in Poland, I couldn’t stop seeing similarities with the Brazilian complex, dubious, and expensive tax regime.

In Poland, inheritance of practices from the communist era explains this — the monetary surveillance apparatus and the need to take resources from private to public hands. Curiously, Brazil has a post-communist tax system without never being communist itself.

Complicated fiscal controls are almost a rule in these markets. In the Tax complexity index compiled by the Paderborn University and LMU Munich, of the 7 most complex systems, 6 are in emerging economies — the other is Italy. There are, however, emerging countries with simple taxes and low bureaucracy: Georgia, or Macedonia, for example.

Three points to expect from tax laws when you are investing in emerging markets are:

They are constantly changing and you must be up to date. Excuses like “I was not aware of the recent changes” are rejected in court.
They are dubious, paving the way to free interpretation by government officials and to corruption.
The universal principle of in dubio pro reo(meaning that you are innocent until proven guilty) is regularly ignored. There are situations where the entrepreneur must prove his innocence, that he paid his taxes, etc. This results in an enormous amount of registries, archives, and bureaucracy.

Middle-Class Focus: Affordability with (some) quality

Researchers often separate the middle from the lower classes by income. This may lead to wrong assumptions if you do not consider local prices or economic changes.

I prefer another definition: what differs them is their ability to spend larger portions of income on items other than food. Things like household durables, holidays, and leisure.

Therefore, a growing middle class results in an explosive demand for non-basic items like cars, electronics, digital services, food delivery, etc.

This demand has a singular characteristic in emerging markets: anchored prices. The rising middle class will often expect items of superior qualities but for prices anchored by their previous, lower-income.

The immense market of 1.0 engine cars in Brazil is an example of how the automotive industry adapted an item (cars) for the purchasing power of the local middle class. Many of the vehicles sold in Brazil, like the Volkswagen Gol, were domestically developed, stripping out accessories to reduce the price and increase affordability while keeping a modern, pleasant design. The Gol was the best-selling car in Brazil for 27 consecutive years, from 1987 to 2014. Later it went to other emerging markets like Argentina, where it also turned into a best-seller.

The skyrocketing increase in the middle-class size in India, Brazil, China, or Indonesia includes almost two billion people, spending nearly $7 trillion per year. A figure that can reach $20 trillion during the next decade and be akin to the growth experienced by Post-War Europe, as explained by David Court and Laxman Narasimhan for McKinsey Quarterly:

These new spenders offer an opportunity for early winners to gain lasting advantages, just as companies in Europe and the United States did at similar points in their development. In 17 product categories in the United States, for example, we found that the market leader in 1925 remained the number-one or number-two player for the rest of the century. These companies include Kraft Foods (Nabisco), which led in biscuits; Del Monte Foods, in canned fruit; and Wrigley, in chewing gum.

Awareness of the Transitional Nature of Investing in Emerging Markets

I will not state the obvious fact that emerging economies are volatile. Even kids building sandcastles know that.

Emerging markets have a feature that is confused with volatility: the fickle nature of their economies.

If volatility is the daily temperature change, the transitional nature is the seasonal fluctuations. But here, we don’t know when winter finishes or summer starts.

Nothing defines better this concept than 2 covers from The Economist:

In 2009, the British magazine had an image of the Christ Redeemer (the most well-known Brazilian landmark) taking off under the title Brazil takes off. The main article had an optimistic tone about the South-American country and excellent projections.
In 2012, the same magazine had a similar cover, but this time the Christ Redeemer was falling, under the title Has Brazil blown it?. The main article had a pessimistic tone and gloomy forecasts for the Brazilian economy.

Less than 4 years separated both covers. Less than 4 years between wonderful perspectives and a dark future. The same happened with Turkey, which less than 10 years ago was considered a Breakout Nation by fund managers like Ruchir Sharma, and now is far from attractive for most investors.

These changes are not to be considered volatility because they are part of a longer trend, not daily or weekly fluctuations.

The conversion from a closed to an open market economy also affects the nature of emerging markets. To accomplish this, they try to promote international trade and focus on industry or services. Sometimes reducing their protective tariffs to diversify their exports and imports. Sometimes reducing restrictions on creating and operating businesses within their own country.

When these changes generate the desired results for society and governments, these emerging economies keep climbing the ladder. But when they fail, revolutions, armed coups or impeachments come to the surface.

Conclusion About Investing in Emerging Markets

Venturing in emerging markets is not the same as starting a business in Western Europe, it has its own risks and opportunities (especially when you consider the complicated moment of mature markets like the USA).

There are three characteristics that an investor or entrepreneur should have before investing in emerging markets:

Survival skills under tax-terrorism, because of government changes and economical downturns resulting in complicated, dubious, and unstable fiscal laws.
Middle-class focus, looking for affordability with decent quality. The growing middle class in emerging countries has free income to spend on goods other than food. They desire quality with affordability, since lower salaries may still anchor their price perception.
Awareness of the transitional nature of emerging economies. Everyone knows that emerging markets are volatile, but they are also transient. That means entire trends going upside down in a matter of a few years, and a promising, exciting nation becoming a collapsed society — and vice versa.

If you are an entrepreneur (or is planning to become one), I bet these two posts below may be helpful:

The 5 Top Fiverr Gigs for New Entrepreneurs and Creators

How to Rank Website on Google First Page in only 10 Months

Business in Europe

Top 5 Fiverr Gigs Expatriates Can Offer to Make…

5 Top 5 Fiverr Gigs to Make Some Quick Cash.

I left my fatherland almost a decade ago. During this time, I saw many fellow expatriates facing a dilemma in their new countries. A dilemma that I also encountered myself years ago in Chile, and that I solved when I discovered some of the listed below among the best Fiverr gigs.

When you wait for your work permit, or for some professional opportunity, how to pay your bills if you still cannot work? And what about students that often do not have access to the labor market?

In an era where remote work popularity is skyrocketing due to its cost-savvy nature and faster internet connections, this problem became easier to solve.

You don’t need to be a skilled Python programmer or an SEO master to earn as a freelancer on the Internet — although this would help. In fact, if you are bilingual or speak English fluently — meaning everyone that is reading this article — you already have what is needed to make money online on Fiverr.

What is Fiverr?

Fiverr is an online marketplace for freelance services. They provide a platform for freelancers to offer their work to potential customers all over the world. This work does not come as a long-term contract, but rather as one-off jobs — they are called gigs.

These gigs are things like logo design, backlink creation for SEO purposes, data entry, translation of punctual documents, etc. These services are for Fiverr what accommodation is for Airbnb or car rides for Uber. Fiverr connects customers and service providers.

The website adds value to the whole process by presenting a system of qualifications where customers can check the credentials and previous reviews of the gig’s providers. Fiverr also handles the payments between the parts, adding an extra layer of safety so that everyone gets rewarded as agreed.

On Fiverr, you can find some of the highest-paying gigs for digital nomads.

If you read until here, you may be asking by now:

What Are the Best Selling Gigs on Fiverr?

It depends on the time of the year and the public. Below is some short context.

I used Fiverr quite often, for my 3 different businesses. I bought SEO packages, WordPress fixing gigs, and English-speaking proofreaders. Until now, I am 100% satisfied.

The gigs I will list below are unlikely to make you a millionaire — although this may happen in a few cases. But they will do indeed help you to pay your expenses or boost your savings accounts. I tell that as someone that often uses these gigs. For example, I am looking for an English-speaker proofreader for my incoming book and the rates are around $1500 USD. Not bad, right?

You will realize that for every Gig listed, I use the rates for a Polish Speaker and a Brazilian Speaker because they are well-known to me (I speak both languages), but also because they show that not only popular idioms like Spanish or French will find a place at Fiverr.

There are also buyers for services in Russian, Arabic, German, Chinese, Hindi, and a variety of other languages. There are even customers for gigs in Esperanto! (I never met an Esperanto-speaker in my life).

Here is the list and the rates of the most popular offers (values from July 2021).

Click here if you would like to join Fiverr and get a $20 start bonus.

Top 5 Fiverr Gigs For Expatriates To Earn Money Abroad

Bird reading a book to illustrate article about translation services - one of the Top 5 Fiverr gigs for expatriates looking for a source of income. — Translation services – one of the Top 5 Fiverr gigs for expatriates looking for a source of income

Offering on Fiverr Translation Services

The list starts with the most obvious, but also one of the most demanded gigs on Fiverr.

Every day, hundreds of companies need to translate their job offers, or students need to translate their paper abstracts, etc. They could hire a translation office, but the time and effort for this would just be too much.

On Fiverr, they can find a translator in seconds. And the provider of these Fiverr translation services can be you. You don’t need to hold a major diploma in any language. In many cases, the translations are of simple texts, like warning signs or game dialogues.

There are also Fiverr translation services for entire books, priced at thousands of dollars. If you have time and patience, speak good English plus another idiom, this can be a great chance to earn an extra salary.

Rates (US$) for a translator from Polish to English: The price range of the gigs to translate a 1000-word text is between $5 and $50. The average price of all the offers analyzed is $19 per 1000-word text translated.

Rates (US$) for a translator from Portuguese to English: The price range of the gigs to translate a 1000-word text is between $10 and $30. The average price of all the offers analyzed is $17.5 per 1000-word text translated.

Voice-Over Services – The Most Profitable Among the Top 5 Fiverr Gigs

A voice-over is when someone reads a script in a determined language. Sometimes dialogues in computer games, sometimes presentations for corporate training, or tutorials for YouTube videos. Voice-over gigs are in general more profitable than translation gigs, and often they are faster to execute. This alone already qualifies it among the best Fiverr gigs to offer. They demand, however, two things:

1st — That you have at least a decent microphone to record audio in good quality.

2nd — That you have a pleasant voice. It does not need to be Frank Sinatra good, but at least with good diction and clearly pronounced words.

Rates (US$) for a Polish voice-over gig: The price range of the gigs to voice-over a 1000-word text is between $25 and $155. The average price of all the offers analyzed is $100.

Rates (US$) for a Brazilian Portuguese voice-over gig: The price range of the gigs to voice-over a 1000-word text is between $25 and $190. The average price of all the offers analyzed is $112.

Proofreading

According to Reedsy, proofreading is the act of reading written work and marking any errors. These mistakes most commonly involve spelling, grammar, punctuation, and consistency.

A proofreader is someone that will read a paper, a book, a pamphlet, or test software looking for language mistakes. This demands a native level of fluency in the language to which you offer the gig. Eg: While I speak Portuguese, Spanish, Polish and English, likely I could offer to proofread only in my native Portuguese.

Rates (US$) for a Polish proofreading gig: The price range to proofread 1000 words is between $10 and $20. The average price of all the offers analyzed is $13.75.

Rates (US$) for a Brazilian Portuguese proofreading gig: The price range to proofread 1000 words is between $10 and $20. The average price of all the offers analyzed is $15.

Language Teaching

While Fiverr was created for one-off jobs, it is common to find services you can purchase multiple, sequential times, like language lessons.

They are usually done via Skype or Zoom, and a differential — although not a requirement — is to have a good microphone and reliable connection. Also remember that Fiverr connects customers from all over the world, therefore, flexibility in your agenda can expand dramatically the number of customers you may have.

Rates (US$) for a Polish lesson: The price range for a 1-Hour Polish lesson is between $10 and $17.5. The average price of all the offers analyzed is $14.38.

Rates (US$) for a Brazilian Portuguese lesson: The price range for a 1-Hour Brazilian Portuguese lesson is between $10 and $50. The average price of all the offers analyzed is $30.

General Advice

Are you moving to another country? Want to know where to find a place to stay, how good is the public transport or the etiquette norms?

You can find people on Fiverr selling advice. As a popular motto common in my region in the Brazilian countryside says:

If a piece of advice is good, it will be sold, not given.

Rates (US$) for an advice gig about Poland: The price range of the advice gigs about Poland is between $5 and $10. The average price of all the offers analyzed is $7.5.

Rates (US$) for an advice gig about Brazil: The price range of the advice gigs about Brazil is between $5 and $25. The average price of all the offers analyzed is $11.7.

Conclusion about the Best Fiverr Gigs Expatriates Can Offer

As you can see by the prices offered, it is unlikely that someone will buy a new Tesla Roadster by selling Fiverr gigs — unless you are this guy that charges $200 to translate Faroese, since there are not many people who speak this language around.

But if you are at your home, have a good microphone or time to read and correct some texts, why not? It is a good chance to make extra money and pay for your next holidays.

Click here if you would like to join Fiverr and get a $20 start bonus.

If you are moving abroad, there are some articles that I wrote to help you. You can check the best countries to start a life abroad with no money, how to start a business in 18 different European countries, my list of 10 business-friendly countries with low taxes and little bureaucracy, or these 8 cities where you can live a non-stressful life.

Business in Europe

Living in a Stressful Place?

Consider Moving to the World’s Least Stressful Cities

Do you live in a large, stressful city and always wondered how is your life compared to residents of other metropolises?

Listen to “The 8 Least Stressful Places to Live In the World” on Spreaker.

Back in 2011, while stuck in a traffic bottleneck in São Paulo, Brazil, I wondered if residents of other mega-cities had a comparable level of stress. Because life in São Paulo was stressful: noise, pollution, traffic, floods, pickpocketers, and the awful smell in certain places all contribute to a sense that this is not the life you should be living.

In the end, this contributed to my decision to move out of São Paulo (and Brazil). It turned out that the other large cities that I lived in (Santiago, Doha, Warsaw, etc) had similar problems, but in different dimensions and with different causes.

Days ago, I found a ranking of the least and most stressful cities in the world, and to my surprise, all the mega-cities that I lived had similar positions — that explained why I felt that life, in all of them, was not really as good as it could be — or at least as peaceful as it was in the small city where I was born, in the Brazilian countryside.

All the cities that I lived in are almost equally stressful. So are London, Paris, or San Francisco. But it doesn’t need to be like that.

And that is the most important lesson that the ranking — elaborated by the German-based wellness products brand VAAY — taught me.

The VAAY Ranking of the least stressful cities in the world.

To build the ranking, VAAY used a method considering indicators like:

Governance — Safety, Security, Socio-Political Stability, etc.
Demographic and Geographic factors — Density (population/km2), Traffic Congestion, Weather, Air Pollution, Noise Pollution, and Light Pollution.
Finance — Unemployment Rate, Financial Stress, Social Security,
Citizens’ Health

The VAAY is calculated by scoring and averaging each indicator in the following way, as explained by their page:

z-Score = x — mean(X)Standard deviation(X)in short x — μσ

[…] Where present for a factor, scores are normalised such that 1 equals the lowest value in the final dataset and 100 the highest value in the final dataset. The equation for normalization is as follows: score = (100–1) *x — min(X)max(X) — min(X)+1

The final score was determined by calculating the sum of the weighted average score of all the indicators.

Knowing the method and what they considered, I understood why the ranking reflected so precisely my own perception. I had been to some of the least stressful cities (and lived for years during some of the most stressful ones). From my experience, I could only agree with the results.

But why cities like Innsbruck or felt so… relaxed?

After careful analysis of their results, I will tell you why in this article.

The Eight Least Stressful Places to Live in the World

8th Least Stressful City in the World: Innsbruck, Austria

Landscape picture of Innsbruck, in Austria, the 8th least stressful city in the world. — Innsbruck, in Austria, is the 8th least stressful city in the world.

I visited Tyrol’s capital 8 years ago. Although the 6-digit number of residents does not allow me to call it a small city, it had the feeling of a local community, except for the crowds of tourists during winter — ski resorts surround Innsbruck.

Innsbruck achieved such a prominent place in the ranking thanks to factors like the low pollution indicators: it is not a noisy city, and the air is as clean as one could wish. That a large winter resort had such a clean atmosphere, in fact, surprised me.

I am used to places like Farellones (Chile) or Zakopane (Poland), where the atmospheric pollution in the winter skyrocket. Since I am not a climatologist, I cannot how Innsbruck can keep such low levels of pollution, but I attest they are true.

Innsbruck total score (from 0 to 100): 92.2

7th Least Stressful City in the World: Copenhagen, Denmark

I also visited Copenhagen, more recently than Innsbruck but for a shorter period. The feeling of a larger city was more present there than in Austria, but the parks and pedestrian paths allow you to go in your own rhythm.

Copenhagen, a remarkably safe city, achieved some of the highest results in indicators like safety, health services, and political stability. That makes sense: when was the last time you heard about major riots in Denmark? Maybe in Hamlet.

Copenhagen total score (from 0 to 100): 92.6

6th Least Stressful City in the World: Oslo, Norway

I never had been to Oslo. I planned to travel there two years ago, but I asked a friend that lived in Denmark and visited Norway a few times, and he told me that the danish complain about the unbelievably expensive prices of Norway.

Since I wished to respect my budget, I traveled somewhere else. Yes, Norway is expensive. The Norwegian capital, even more. A BigMac there can cost as much as a fancy restaurant in other parts of Europe.

But for its residents, Norway offered one of the strongest economies in entire Europe. Plus, the local government uses part of the enormous profits from Oil exportation to boost the quality of life. Unemployment rates below 5%, the — allegedly — best health service on the planet, and world-class public transport services granted Oslo a place in the Top 10.

Oslo total score (from 0 to 100): 93.9

Book: Budget Travelers, Digital Nomads & Expats: The Ultimate Guide: 50 Tips, Tricks, Hacks, and Ways to Free Stuff & Cheaper Flights — Recommended book: Budget Travelers, Digital Nomads & Expats: The Ultimate Guide: 50 Tips, Tricks, Hacks, and Ways to Free Stuff & Cheaper Flights

5th Least Stressful City in the World: Melbourne, Australia

One of the two southern-hemisphere cities in the top 8, Melbourne counted with — surprise surprise — excellent results in the climate indicator. Compared to Northern European cities, it looked almost like cheating the fact that the Australian city scored a whopping 71.2 in the weather index — an index measuring how close the city’s climate is to the ideal for human life.

This is more than double Oslo’s result, for example.

But it is not only the sunny skies and mild winter that gave Melbourne 5th place. The city scored high in political stability, and health services.

Melbourne also scored low in Pollution — as low as Copenhagen. This is remarkable, considering that Melbourne has a population almost 10X larger than the Danish capital.

Melbourne’s total score (from 0 to 100): 94.2

4th Least Stressful: Wellington, New Zealand

The 4th place is a city close to the previously mentioned Melbourne — meaning Oceania standards of closeness since they are 2500km apart.

Wellington scored a perfect 100 in the indicator of social and political stability. It also had remarkably good results in demographics (because of the low population density) and presented one of the lowest unemployment levels of all cities in the research: 4.6%

Curiously, among the top 8, Wellington has the worst indicators in traffic. Maybe the sheep — New Zealand has 5.6 of them for each human — are forcing the cars to wait too long while they cross the roads.

Wellington’s total score (from 0 to 100): 95

3rd Least Stressful: Helsinki, Finland

Landscape image of Helsinki, in Finland, is the 3rd least stressful city in the world. — Helsinki, in Finland, is the 3rd least stressful city in the world, despite the climate.

Among the cities in the top 8, the Finnish capital has the second-worst results in the Climate index — ironically, the worst weather belongs to the best city in the ranking, to be revealed soon.

Still, Helsinki reached the podium by having near-perfect governance indicators and excellent health services for the population.

Helsinki total score (from 0 to 100): 95

2nd Least Stressful: Bern, Switzerland

Yes, the ranking of the least stressful cities on the planet would not be complete without a Swiss city. There are not many nations in the world that value peace and tranquility as Switzerland — their non-belligerent approach to diplomacy being a reflex of this culture.

Among all the cities surveyed, Bern has the lowest population density, meaning that people lucky to live in this breathtaking city have space enough for their kids to play, their dogs to run, and to hide their colossal gold reserves.

They also have the lowest unemployment among all the cities in the ranking: 2.8%. This is such a low unemployment level that, in less stable economies, it could be considered harmful. But apparently not in Bern.

Bern total score (from 0 to 100): 96.6

The Least Stressful City in the World: Reykjavik, Iceland

Image of Reykjavik, in Iceland, which is the least stressful city in the world — Reykjavik, in Iceland, is the least stressful city in the world.

My reaction after seeing Reykjavik (I have a typing speed of 450 words per minute, but I write the name of this city slower than my Mom) in the first place was:

What about the weather/climate component of the ranking? How can the capital of a country called Iceland take the first place?

VAAY, however, did not forget the climate index. In that component, Reykjavik scored the lowest result of all the top-ranked cities. Their weather index result is even worse than Moscow.

But still, Iceland’s capital got first place.

How?

Almost perfect results in Governance
Almost no traffic.
A perfect 100 score in the air pollution index (where 0 is the most polluted and 100 is the least polluted).
Another 100 in sound pollution — Icelanders apparently do not use their car honks that often.
Health services are comparable to Switzerland.

Lesson from Reykjavik? When you are a fairy-tale city with no traffic, no pollution, no noise, and good doctors, you can have a miserable climate and still be the least stressful city in the world.

Reykjavik total score (from 0 to 100): 100

If, instead of a stress-free, relaxed life, you are looking for challenges and countries with business opportunities and fast-growing economies. These articles below will help you with that:

The Best Countries to Start a New Life Abroad with No Money

10 Business-Friendly Countries with Low Taxes and Little Bureaucracy

Starting a Business in Europe as a Foreigner

The best city for Digital Nomads and (some) expats!

Levi Borba is CEO of expatriateconsultancy.com, creator of the channel The Expat, and best-selling author. You can check his books here, his other articles here, or his Linkedin here.

Business in Europe

Why a Small Business Fail? The Major Reasons in…

An alert from the UK’s Federation of Small Business is a true eye-opener about why a small business fail.

In numerous countries, 2021 will be a year of exceptional economic growth. Not a surprise — it partially offsets the tragic numbers of 2020. Some nations, like Sweden or the United Kingdom, returned to the Pre-Covid levels already in the first semester. Below I list 3 major reasons why a small business fail in the post-Covid era.

(Remember however that also large businesses may fail terribly. One example is Nokia’s failure.)

The recovery creates unusual situations. Places like the US state of Minnesota are experiencing a labor shortage that led authorities and employers to declare they are in dire need of workers.

What explains, partially, the absence of people willing to apply to new jobs is the entrepreneurial boom. A considerable share of unemployed started their own business, or are planning to.

As reported by Experian and the U.S. Census, during the last year business starts soared 27 percent to 4.4 million in the US alone.

How many of these new firms will survive to their second year? How many will still be open in 2025?

During ordinary, non-pandemic times, these are the small business survival rates(data from the U.S. Bureau of Labor Statistics):

21.6% of small businesses collapse within the first year
31% of small businesses collapse within 2 years
49.3% of small businesses collapse within 5 years.
66.3% of small businesses collapse within 10 years.

The Federation of Small Businesses from the United Kingdom estimates that a quarter of a million small businesses could disappear in 2021 in the UK alone. The same alert is valid for any economy that was hit by the Covid crisis in 2021 — meaning nearly the entire world.

If you are thinking about taking the entrepreneurial road, you have my admiration— and, as Nassim Nicholas Taleb once wrote, fallen entrepreneurs deserve almost as much respect as fallen soldiers. Most of the jobs are created by small businesses, and entrepreneurs are the risk-takers that catalyze the economy.

The business traps listed below are more active than ever in 2021. If you are an entrepreneur or are planning to start a firm this year, pay close attention to them. I would like to see your firm alive and well in 2025.

Over-Optimism Leading to Poor Credit Arrangements

This is the first item on the list of why small business fail because it is also the first I made as an entrepreneur.

Years ago, I took a loan to expand my business. It had an interest rate of 6%, which I considered ok since my business plan forecasted an ROI (Return of Investment) of 8% per year.

The problem is that the sector of my first company (hospitality) has an average ROI of 4%. I expected to double the industry return. All that as a beginner. That was a very optimistic expectation.

To make things worse, the COVID crisis came. The 6% interest rate that I considered adequate became higher than our ROI. The loan turned to be a poor credit arrangement.

With the 2021 economic recovery, other entrepreneurs may risk the same path. Here is my alert: do not take credit considering your best-case scenario. Instead, consider the worst-case, and if your ROI is still larger than the interest rate, then, and only then, you take the loan.

As an alternative to bank loans, consider capitalization rounds. I made one 3 years ago — also thanks to the Talebian concept of Antifragility — and it reduced my risks compared to a loan. You will need to give periodic explanations to your partners about the business situation but this is little effort for the benefit of not paying dividends if you don’t profit — while banks will demand loan payment no matter your situation.

Another alternative I used to raise capital was crowdfunding, which is a good choice during uncertain times.

Book suggestion: All the Hows of a First-Time Business Owner: There is a thin line between bankruptcy and the freedom to be an entrepreneur

It is worse in the events, concert, and tourism industry

Banks work to maximize their return while reducing their risks — that is how every business should act.

To reduce risks, they tightened the credit criteria to the most affected sectors. This led to absurd requirements, like financial institutions demanding hotels to sell assets if they want to get credit.

Let’s think about this for a moment: a hotel chain is taking credit to survive but is forced to sell assets that, in an event of recovery, will make the income to pay the credit. That increases the risk that they will not make enough to pay their obligations.

It is the closest to financial suicide that someone can get.

Over-Optimism Leading to Over Hiring or Over Investment

When you have a once-in-a-century pandemic, planning gets hard. For years I worked at airline headquarters with demand forecasting. There, we worked with a concept called SE (Special Events) adjustments.

To put it straight, it means that disruptive events, like the 2010 Eyjafjallajökull eruption, make your local forecasts useless or even harmful. The 2020 Pandemic was the mother of all special events. Instead of local, it made global forecasts useless.

Without forecasting, planning is complicated. Jason Lee, owner of Healthy Framework, in an interview for Entrepreneur.com, stated

COVID is making forward planning near impossible. Without knowing how long it’s going to be here and to what degree, it’s nearly impossible to plan out marketing efforts, gauge staffing needs, or just know what our customers and clients need.

Planning mistakes can affect multiple areas. But none of them have the side-effects of staffing mistakes. When a firm over-hire, either they need to bear higher costs for undetermined periods, or they need to let people go. The first damages the bottom line, the second, the team morale.

When hiring, do not hire optimistically, but realistically. More employees than necessary result in idle talents, a slower work environment, and a lack of challenges and motivation. Failures that answer the question of why small businesses fail.

To help you, we wrote an article with strategic questions to ask candidates during job interviews for your business.

Growing Too Fast While Ignoring Marginal Costs

There is an episode of the comedy The Office where Michael Scott, the main character and paper company manager, decides to open his own firm and compete with his former employer.

At first, the Michael Scott Paper Company is an apparent success. Sales are growing so fast that he needs to make his team work extra hours — poor Ryan and Pam. But what Michael had as a sales genius, he lacked in finance. Days later, they discovered they had funds enough to survive only a week more.

They were selling at a loss. With the sales expansion, their marginal costs skyrocketed, unnoticed.

This is the mystery of unhealthy growth that answers why small business fail.

Often founders and managers confuse success with rapid expansion. Nobody wants to limit growth, but everyone wants — or at least should — to limit cost increase. If your sales increased to the point that to deliver it, you need to pay extra hours or hire pricey services, it is time to go to the old, boring excel and do the numbers.

Do you have cash flow enough to make these investments? Is the price of your product enough to cover it at a profit?

An alternative is to leverage price instead of production. Instead of selling more at the same price, sell the same at a higher price. This is one of the tools I learned working at the Revenue Management departments in global airlines. Airlines cannot easily create more seats in their planes — it would be too expensive or unpractical. So they leverage their prices.

Entrepreneurs often win the race against the competition by going slow and steady. The increase in marginal costs is one of the alarming signs that you are growing too quickly. Others are staff burnout, quality decline, delivery delays, etc.

Conclusion: Why a Small Business Fail? Nearly All Problems Are Caused by Insufficient Cash Flow

It is a well-known error from aspiring entrepreneurs to underestimate the funds they need — an error that I also committed once.

If you are planning your first business, in a new industry (like I was 5 years ago), maybe cash flow is still a mystery in that sector. There is an enormous chance that you will miscalculate the money needed to take your plans from paper, and the time necessary to recover it. Fortunately, in my case, I found a local ally that warned me of these mistakes.

Business often takes longer than expected to deliver their full results. This time gap is one of the reasons nearly 1/3 of the companies collapse before their second anniversary. When calculating your finances, consider the worst-case scenario for at least the first two years to plan how much money you will need.

Sales need time to pick up, and until there, you need cash flow to survive.

Because cash flow is for a business what water is for an aquarium. If you have a hole that leaks it out, you need to discover it and tamper it quickly, otherwise, it will go dry.

An aquarium without water means death to your goldfish. A business without cash flow is death to your entrepreneurial dreams — until you start again.

The three traps listed in this article either are causes or results from cash flow problems.

Over-optimism Leading to Poor Credit Arrangements. It happens when someone wants to invest but does not have the resources to do so neither the arguments to raise cheaper capital without using banks.
Over-optimism Leading to Over Hiring or Over Investment. A trap that results in layoffs or assets returned when the excess staff or machinery remains idle, and the cash to sustain them is not enough.
Growing too fast while ignoring Marginal Costs. A sped-up expansion can quickly increase marginal costs of production or marginal costs of sale, to where companies are trapped between not delivering their services/products or forced to take loans to honor contracts.

Selection of related articles to why a small business fail:

5 Books Every Entrepreneur Must Read This Year - Even Before Starting a Business

Lessons from Skin in The Game – Nassim Taleb

4 Industries and Jobs That Will Disappear Due to Technology