Do regulations stifle business growth?
Entrepreneurs throughout the world throw up their hands and exclaim that ‘too much regulation’ is a major stumbling block for them to expand their businesses.
A current publication by the World Bank and the IFC (International Finance Corporation), that compares business regulations in 185 economies reveals some interesting findings for small and medium enterprises.
Doing Business 2013 is the 10th in a series of annual reports investigating the regulations that enhance business activity and those that constrain it. Doing Business presents quantitative indicators on business regulations that can be compared across 185 economies—from the USA, New Zealand and the United Arab Emirates to Mongolia and Madagascar.
One finding is that Poland improved the most in the Doing Business measures in 2011/12, while Singapore maintains its top spot in the overall ranking. Another finding is that European economies in fiscal distress are making efforts to improve the business climate, and this is beginning to be reflected in the indicators tracked by Doing Business, with Greece being among the 10 economies that improved the most in the Doing Business measures in the past year.
But perhaps the most exciting finding is that of a steady improvement from 2003 to 2012 toward better business regulation across the wide range of economies included. With a handful of exceptions, every economy covered by Doing Business has narrowed the gap in business regulatory practice
Regulations affecting 11 areas of the life of a business are covered – including trading across borders. The indicators are used to analyse economic outcomes and identify what reforms of business regulation have worked, where and why. To read the full report, go to http://doingbusiness.org
Do regulations in your country stifle the growth of your business?