Taxes| VAT on sales in other EU countries; then VAT on the same sales in Sweden. That’s the reality for Swedish companies selling services against payment via SMS text messaging. Swedish company Stardoll is now considering relocating outside the country.

Business Climate| Sweden gained over 20,000 new entrepreneurs in 2010. The largest increase was for women and youth. Altogether over 800,000 people are involved in entrepreneurship one way or another. Recent reforms like the Act on System of Choice in elderly care and the household services tax reduction have had a positive effect on entrepreneurship, says Carolina Brånby at the Confederation of Swedish Enterprise.

Infrastructure | Sweden has invested less on its infrastructure than the rest of Europe for the last 25 years. This limits business growth, reducing national production. “We need a long-term strategy that addresses maintenance, cargo transportation, and accessing larger markets," comments Fredrik Bergström, WSP Analys & Strategi, at a Riksdag seminar. Investment in infrastructure is rarely bad—generating much more than lower transportation costs and greater reliability.