WORLD BANK GROUP SUPPORT TO BUSINESS ENTRY REFORMS Andrei Mikhnev Karim O. Belayachi

What kind of support we provide To improve regulatory requirements for setting up a formal business we provide assistance on: Legal Solution drafting new or amending existing laws and regulations Institutional Solution identifying the role and authority of state agencies building their capacity Procedural Solution business process reengineering Technological Solution automation of processes through ICT

To improve regulatory requirements for setting up a formal business we provide assistance on:

Legal Solution

drafting new or amending existing laws and regulations

Institutional Solution

identifying the role and authority of state agencies

building their capacity

Procedural Solution

business process reengineering

Technological Solution

automation of processes through ICT

Recent trends in business registration reforms Simplification of regulatory requirements for registering a business Integrating registration functions of various government agencies Using ITC to make registration procedures effective and efficient

Simplification of regulatory requirements for registering a business

Integrating registration functions of various government agencies

Using ITC to make registration procedures effective and efficient

WBG Business Entry Reform Projects We support business entry reforms in 50 countries

How do we support business entry reforms? Diagnostic and analytical work Doing Business Enterprise Surveys Entrepreneurship Database Advisory services Lending

Diagnostic and analytical work

Doing Business

Enterprise Surveys

Entrepreneurship Database

Advisory services

Lending

Doing Business indicators Update of 2008 Add 3 countries Reformer’s Club: 16 case studies 2008 2009 Starting a business Dealing with construction permits Employing workers Registering property Enforcing contracts Getting credit Trading across borders Protecting investors Paying taxes Closing a business Add Using infrastructure Research program on regulation and business opportunities for women 2010

Update of 2008

Add 3 countries

Reformer’s Club:

16 case studies

Starting a business

Dealing with construction permits

Employing workers

Registering property

Enforcing contracts

Getting credit

Trading across borders

Protecting investors

Paying taxes

Closing a business

Add Using infrastructure

Research program on regulation and business opportunities for women

Starting a Business: the indicator All procedures for an entrepreneur to start up and formally operate an industrial or commercial business Pre-registration Registration Post-registration

All procedures for an entrepreneur to start up and formally operate an industrial or commercial business

Pre-registration

Registration

Post-registration

Top 20 on the ease of Starting a Business, 2009 1. New Zealand 11. Jamaica 2. Canada 12. Macedonia, former Yugoslav Republic of 3. Australia 13. Azerbaijan 4. Georgia 14. France 5. Ireland 15. Hong Kong, China 6. United States 16. Denmark 7. Mauritius 17. Iceland 8. United Kingdom 18. Finland 9. Puerto Rico 19. Tonga 10. Singapore 20. Belgium

Reforms inspired/informed by Doing Business 80 Completed Reforms

Ongoing reforms inspired/informed by Doing Business 94 Ongoing Reforms

Poland Belarus Antigua & Barbuda Colombia Dominica El Salvador Grenada Guatemala Guyana Haiti Honduras St. Kitts St. Lucia Albania Macedonia Armenia Azerbaijan Kyrgyz Rep . India Bangladesh Mozambique Kenya Rwanda Burundi DRC Madagascar Central African Rep. Senegal Sao Tome Zambia Burkina Faso Cote d’Ivoire Ghana Liberia Mali Mauritania Jordan Kuwait, Iran Lebanon, Saudi Arabia, UAE Yemen Greece Singapore Lao PDR Cambodia Indonesia Vanuatu Timor Leste Tonga Vietnam DB Reform Unit Advisory: requests received

2005 2006 2007 2008 2009 Countries: 42 Cities: 272 Subnational Doing Business

Expands Doing Business indicators beyond the most populous city 3. M&E device Subnational Engagement 2. Reform instrument 1. Diagnostic tool Creates baseline Allows locations to compete locally and globally Entry point in countries averse to international comparisons Puts regulatory reform on political agenda 1. Diagnostic tool Comparisons within cities are strong drivers of reform Uncovers bottlenecks and local good practices Promotes peer to peer learning 2. Reform instrument 3. M&E device Measures progress over time Creates an incentive to maintain reform effort even when governments change Actively involves local governments and other reform stakeholders High media appeal Initiate reform process

Expands Doing Business indicators beyond the most populous city

Creates baseline

Allows locations to compete locally and globally

Entry point in countries averse to international comparisons

Puts regulatory reform on political agenda

Comparisons within cities are strong drivers of reform

Uncovers bottlenecks and local good practices

Promotes peer to peer learning

Measures progress over time

Creates an incentive to maintain reform effort even when governments change

Actively involves local governments

and other reform stakeholders

High media appeal

Subnational Doing Business in AFRICA Nigeria First subnational DB report DB in Nigeria 2008 launched May 2008 Second round started in January 2009 Kenya First subnational DB report has started in October 2009

Visibility of DB Report increases governments’ willingness to reform; DB tight deadlines help focus actions and increase speed of reforms DB triggers several factors that are needed for successful reforms: Identify a “champion” to drive reforms; establish reform committees; identify technical leaders and working groups; get inputs from the private sector Start with simple reforms: focus on administrative changes first, while preparing the ground for long-term reforms Conclusions: Doing Business triggers reforms

Visibility of DB Report increases governments’ willingness to reform; DB tight deadlines help focus actions and increase speed of reforms

DB triggers several factors that are needed for successful reforms:

Identify a “champion” to drive reforms; establish reform committees; identify technical leaders and working groups; get inputs from the private sector

Start with simple reforms: focus on administrative changes first, while preparing the ground for long-term reforms

For more information visit: www.doingbusiness.org

Entrepreneurship Database Objectives To understand the universe of private enterprises around the globe To study the impact of regulatory, political, and macroeconomic institutional changes To understand what drives entrepreneurs to graduate from the informal to the formal sector Indicators Business Entry Rate New Business Density Total Business Density

Objectives

To understand the universe of private enterprises around the globe

To study the impact of regulatory, political, and macroeconomic institutional changes

To understand what drives entrepreneurs to graduate from the informal to the formal sector

Indicators

Business Entry Rate

New Business Density

Total Business Density

Results (3-year average) Total and New Business Density Entry Rates

Ease of Doing business http://econ.worldbank.org/research/entrepreneurship.