The impact of the business environment on the business creation process
AbstractNew 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.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by The World Bank in its series Policy Research Working Paper Series with number 4937.
Date of creation: 01 May 2009
Date of revision:
E-Business; Competitiveness and Competition Policy; Business in Development; Business Environment; Governance Indicators;
This paper has been announced in the following NEP Reports:
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Leora Klapper & Raphael Amit & Mauro F. Guillén, 2010.
"Entrepreneurship and Firm Formation across Countries,"
in: International Differences in Entrepreneurship, pages 129-158
National Bureau of Economic Research, Inc.
- Klapper, Leora & Amit, Raphael & Guillen, Mauro F. & Quesada, Juan Manuel, 2007. "Entrepreneurship and firm formation across countries," Policy Research Working Paper Series 4313, The World Bank.
- Leora Klapper & Juan Manuel Quesada Delgado, 2007. "Entrepreneurship : New Data on Business Creation and How to Promote It," World Bank Other Operational Studies 11163, The World Bank.
- Hassan Gholipour Fereidouni & Tajul Ariffin Masron & Reza Ekhtiari Amiri, 2011. "The effects of FDI on voice and accountability in the MENA region," International Journal of Social Economics, Emerald Group Publishing, vol. 38(9), pages 802-815, August.
- Alcina Nunes & Elsa de Morais Sarmento, 2010. "Business Survival in Portuguese Regions," GEMF Working Papers 2010-22, GEMF - Faculdade de Economia, Universidade de Coimbra.
- Alcina Nunes & Elsa Sarmento, 2010.
"Business Demography Dynamics In Portugal: A Non-Parametric Survival Analysis,"
0022, Gabinete de Estratégia e Estudos, Ministério da Economia e da Inovação, revised Sep 2010.
- Alcina Nunes & Elsa Sarmento, 2010. "Business Demography Dynamics in Portugal: A Non-Parametric Survival Analysis," GEMF Working Papers 2010-09, GEMF - Faculdade de Economia, Universidade de Coimbra.
- Elsa de Morais Sarmento & Alcina Nunes, 2012. "The Dynamics of Employer Entreprise Creation in Portugal Over the Last Two Decades: A Firm Size, Regional and Sectoral Perspective," Notas Económicas, Faculdade de Economia, Universidade de Coimbra, issue 36, pages 6-22, December.
- Elsa Morais Sarmento & Alcina Nunes, 2010. "Business creation in Portugal: Comparison between the World Bank data and Quadros de Pessoal," GEE Papers 0029, Gabinete de Estratégia e Estudos, Ministério da Economia e da Inovação, revised Dec 2010.
- Elsa de Morais Sarmento & Alcina Nunes, 2011. "Criação de empresas em Portugal e Espanha: análise comparativa com base nos dados do Banco Mundial," GEE Papers 0036, Gabinete de Estratégia e Estudos, Ministério da Economia e da Inovação, revised May 2011.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Roula I. Yazigi).
If references are entirely missing, you can add them using this form.