The Impact of the Business Environment on the Business Creation Process
New data from the 2008 World Bank Group Entrepreneurship Survey indicates a very strong and statistically significant relationship between entrepreneurship and a better business environment. Data for 100 countries on the number of total and newly r...
| Main Authors: | , , |
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| Format: | Policy Research Working Paper |
| Language: | English |
| Published: |
2012
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| Subjects: | |
| Online Access: | http://www-wds.worldbank.org/external/default/main?menuPK=64187510&pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000158349_20090519094645 http://hdl.handle.net/10986/4131 |
| Summary: | New data from the 2008 World Bank Group
Entrepreneurship Survey indicates a very strong and
statistically significant relationship between
entrepreneurship and a better business environment. Data for
100 countries on the number of total and newly registered
corporations over an eight-year period (2000-2007) were
collected directly from registrars of companies around the
world. Data were also collected on the functioning and
structure of business registries. Empirical evidence
suggests that greater ease in starting a business and better
governance are associated with increased entrepreneurial
activity. After controlling for economic development (gross
domestic product per capita), higher entrepreneurial
activity is significantly associated with cheaper, more
efficient business registration procedures and better
governance. Although the degree of progress in the
modernization of business registries varies greatly,
countries usually have a common goal to evolve from a
paper-based business registry to a one-stop, automated,
web-enabled registry capable of delivering products and
services online via transactions involving authenticated
users and documents. Tests show that business registry
modernization (often a component of broader private sector
reforms) has a positive impact not only on the ease of
creating a business, but also on new business registration.
Overall, the data show that a quick, efficient, and
cost-effective business registration process is critical for
fostering formal sector entrepreneurship. |
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