What Key Factors Influence Entrepreneurship And Business Growth? Ideas For Researchers
If getting things done requires too many steps, there will be fewer entrepreneurs. That seems to be something of a consensus in the economics and social science literature regarding conceptual linkages between regulation and entrepreneurship.
This all has lessons for public policy. As the World Bank stated in its well-known and wide-ranging annual Doing Business survey, “[Hernando] de Soto’s conjecture, which turned out to be right, was that measuring and reporting would create pressure for improvements in the efficiency of government.”
The Doing Business report ranks nations on business climate with respect to “regulation that affects small and medium-size enterprises, operating in the largest business city of an economy.” The report also presents “quantitative indicators on the regulations that apply to firms at different stages of their life cycle” (The report “relies on four main sources of information: the relevant laws and regulations, Doing Business [survey] respondents, the governments of the economies covered and the World Bank Group regional staff.”) Doing Business underscores, on an internationally comparative basis, the dramatic effect the number of steps involved in starting a business can have. There are 11 core quantitative measures of business regulation, among them:
hurdles in starting a business,
dealing with construction permits
Trading across borders
and labor market regulation