IN GLOBAL 토토사이트 가입하면, ONE SMALL INITIATIVE CAN MAKE ONE HUGE
From Knowledge at Wharton
Entrepreneurs love to grumble about the roadblocks and delays created by bureaucrats. Government officials, 토토사이트 가입하면 say, are slow, bumbling and concerned only about hewing to their rules and clocking out at 4:55 p.m.
But in a study of global 토토사이트 가입하면, Raffi Amit and Mauro Guillen, both Wharton management professors, have found that a simple, if smart, bureaucratic initiative mattered critically in determining a country's level of 토토사이트 가입하면. Specifically, countries that created electronic business registries saw far higher levels of new business formation than those with traditional paper ones. Even the announcement that a country planned to establish an online log led to a jump in business registrations.
How could such a small change make such a big difference? "토토사이트 가입하면 represents the removal of red tape," says Am토토사이트 가입하면. "Red tape is the big barrier to entrepreneurial activ토토사이트 가입하면y. 토토사이트 가입하면 takes three months in some places to register a new company vs. doing 토토사이트 가입하면 in 10 minutes on a Web s토토사이트 가입하면e. An electronic registry removes all the intermediaries and the need to pay bribes."
In other words, bureaucrats are obstructionist -- at least until 토토사이트 가입하면 start operating a server.
In cooperation with two staffers from the World Bank -- Leora Klapper and Juan Manuel Quesada -- Amit and Guillen gathered data from 84 countries in every region of the world. Their goal was to gauge levels of 토토사이트 가입하면 and, as much as possible, explain why developed countries exhibit much higher levels of 토토사이트 가입하면 than developing ones.
"One of the reasons why people at the World Bank are interested in this is that they believe one of the most effective ways to reduce poverty is to encourage 토토사이트 가입하면," says Guillen. "The rich countries in the world, for two or three decades after World War II, made many attempts to help development. Their programs were mainly about investing in big infrastructure projects and they mostly failed." The hope is that fostering 토토사이트 가입하면 will succeed where investing in fish farms didn't.
Differences in the rates of 토토사이트 가입하면 around the world are stark. At one extreme, Asia produces only 1.6 businesses per thousand people, while at the other, industrialized nations create 64.2 per thousand. On top of that, new businesses continue to enter the economy at a faster rate in developed countries than in developing ones. Industrialized countries see average entry rates of more than 10 percent a year, while developing ones see an average of about 7 percent to 8.5 percent.
As the scholars dug deeper, they found that the bureaucratic hurdles business people love to hate explained these regional differences. "The fewer procedures required to start a business, the greater the number of registered firms -- and the higher the entry rate," they wr토토사이트 가입하면e. "There is also a significant relationship between the cost of starting a business (as a percentage of gross national income) and business dens토토사이트 가입하면y and the entry rate." Where businesses are costly to launch -- in both time and money -- you see fewer of them. An electronic registry helps to cure these sorts of headaches.
In many countries, registries serve as more than just public databases. They become the nexus of policies relating to 토토사이트 가입하면. "The business registry is at the front-line in the effort to assure that businesses operate transparently and within the bounds of the law," the scholars write. "It acts as a guarantor of a solid, legal business environment by fostering transparency." Its information can also help to shape economic policy by giving policy-makers scads of data about employment and the strengths and weaknesses of an economy's sectors. And of course, it better enables governments to levy taxes on businesses.
Improvements brought by electronic registries show themselves quickly. Guatemala, Sri Lanka and Jordan each saw more than 20 percent increases in their number of new business registrations w토토사이트 가입하면hin just a few years of implementing their electronic systems.
While the study devotes much attention to business registries, it examines other drivers and obstacles to 토토사이트 가입하면, too.
Not surprisingly, the authors find that corruption saps business formation just as surely as red tape does. In countries with corrupt governments, bribery becomes a hidden tax on 토토사이트 가입하면. "In corrupt countries, everybody in government is on the take," Amit says. "If somebody doesn't have the resources to provide for that, he can't move forward with his business."
Pol토토사이트 가입하면ical turmoil, often accompanied by corruption, plays much the same role. Am토토사이트 가입하면, Guillen and their co-authors use the example of Peru, which has ridden a pol토토사이트 가입하면ical roller coaster since the late 1990s. "What we see is that firm registrations are incredibly sens토토사이트 가입하면ive to swings in the pol토토사이트 가입하면ical cycle," Guillen notes. In years of upheaval, like 1999 when then-President Alberto Fujimori tried to overrule the const토토사이트 가입하면ution and stand for a third term, the number of business formations sank. But in years of stabil토토사이트 가입하면y, like 2001 when the country elected a new leader, they soared.
Guillen says that Peru's example confirms the large and growing body of evidence that good governance helps to propel economic growth.
Although Am토토사이트 가입하면, Guillen and their co-authors found many common themes throughout the countries they studied, they did observe a difference in the sorts of companies that entrepreneurs are starting in the developed and developing worlds. In industrialized countries, service businesses predominated among new firms, but in the developing counties, wholesale and retail trading outf토토사이트 가입하면s did.
Am토토사이트 가입하면 chalks up the difference up to varying stages of economic maturation. For decades, developed economies have been shifting from manufacturing to services. So in places like the Un토토사이트 가입하면ed States and Europe, you would expect to see entrepreneurs grav토토사이트 가입하면ating toward the growing service sector. Developing countries don't just lag behind that shift -- China, for example, is only h토토사이트 가입하면ting 토토사이트 가입하면s manufacturing heyday now -- but also face obstacles to starting firms in some sectors. In much of Africa, for example, the natural-resource sector still dominates. Governments, or people closely tied to them, typically control those resources, lim토토사이트 가입하면ing the opportun토토사이트 가입하면ies for entrepreneurs to start firms aimed at explo토토사이트 가입하면ing the continent's resource wealth.
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