A new analysis from SMVdanmark reveals significant differences in how business-friendly Danish municipalities are, with smaller towns in Jutland outperforming major cities like Copenhagen and Aarhus in supporting small and medium-sized enterprises (SMEs). If you are looking to start a small business, some municipalities are more business-friendly than others. Find Denmark’s best municipality for businesses right here.
Struer Named Denmark’s Best Municipality for SMEs
A comprehensive new analysis by SMVdanmark, a leading organization representing small and medium-sized enterprises, ranks municipalities across Denmark based on their support for SME business environments. According to the report, Struer Municipality in western Jutland, home to many successful businesses, topped the list with a business-friendly score of 47.6 on a scale from 0 to 100. Close followers include Ikast-Brande, Mariagerfjord, and Billund, while municipalities like Gribskov, Rudersdal, and Jammerbugt landed at the bottom.
The ranking is based on responses from 2,244 businesses nationwide and evaluated 79 municipalities. To ensure statistical relevance, municipalities with fewer than 10 responses were excluded from the final assessment.
Substantial Regional Disparities
The analysis reveals more than geographic trends – it points to a broader regional imbalance in public support for businesses. Notably, the capital region and other larger cities underperform significantly; for example, Copenhagen ranks 73rd out of 79 with a total score of just 33.0. Likewise, other major urban centers such as Aarhus, Odense, and Aalborg also placed in the bottom half.
Conversely, the top performers are largely mid-sized or smaller municipalities in Jutland, where local governance emphasizes quick administrative processes, lower local taxes and fees, and direct communication with local businesses. These municipalities also frequently offer tailored business support services and fewer bureaucratic obstacles.
Political Influence Examined
The list also highlights a political pattern. All ten of the top-ranking municipalities are governed by mayors from the center-right Venstre or Conservative parties, both of which traditionally focus on pro-business policies. In contrast, six of the bottom ten municipalities are led by mayors from the center-left Social Democrats.
This indicates that local political leadership and administrative priorities play an essential role in shaping the business climate, more so than city size or geographic location.
Key Challenges Identified by SMEs
Across the board, SMEs pointed to limited access to skilled labor as their greatest obstacle, affecting both urban and rural areas. In cities, this is due to intense competition for employees, while in rural areas, younger populations often migrate toward urban centers for educational and job opportunities. This talent gap stifles the potential for sustained local growth in many municipalities.
Companies also expressed frustration with their limited access to municipal procurement opportunities. Smaller businesses often struggle to meet requirements for participating in public tenders, reducing their access to vital public contracts.
Recommendations for Improvement to Become Denmark’s Best Municipality
The findings suggest several concrete steps municipalities can take to improve their business climate. Enhancing vocational education and promoting skilled trades among youth could help address the talent shortage. Municipalities are also encouraged to make local government services more accessible and transparent for SMEs, especially regarding public tenders and administrative processing times.
The report calls on local authorities to foster stronger partnerships with businesses and to more accurately tailor services to the needs of smaller firms, which make up around 99% of all private companies in Denmark and are vital drivers of employment and growth.
Breakdown of Denmark’s Best Municipality – And the Worst
Here are the five most and least business-friendly municipalities in Denmark, according to SMVdanmark:
Top 5
1. Struer – 47.6
2. Ikast-Brande – 45.4
3. Mariagerfjord – 45.4
4. Billund – 44.8
5. Hedensted – 44.3
Bottom 5
75. Odsherred – 32.4
76. Hillerød – 32.2
77. Jammerbugt – 32.0
78. Gribskov – 31.5
79. Rudersdal – 31.5
About SMVdanmark
SMVdanmark is the national organization representing approximately 18,000 small and medium-sized enterprises across Denmark. The group advocates exclusively for SMEs on issues ranging from national regulatory reform to EU policy and local government initiatives. Through annual reports and targeted research, SMVdanmark aims to ensure that SMEs remain a foundational part of Denmark’s economy.
