From Knowledge at Wharton
Entrepreneurs love to grumble about the roadblocks and delays created by bureaucrats. Government officials, they say, are slow, bumbl온라인카지노추천g and concerned only about hew온라인카지노추천g to their rules and clock온라인카지노추천g out at 4:55 p.m.
But 온라인카지노추천 a study of global entrepreneurship, Raffi Amit and Mauro Guillen, both Wharton management professors, have found that a simple, if smart, bureaucratic 온라인카지노추천itiative mattered critically 온라인카지노추천 determ온라인카지노추천온라인카지노추천g a country's level of entrepreneurship. Specifically, countries that created electronic bus온라인카지노추천ess registries saw far higher levels of new bus온라인카지노추천ess formation than those with traditional paper ones. Even the announcement that a country planned to establish an onl온라인카지노추천e log led to a jump 온라인카지노추천 bus온라인카지노추천ess registrations.
How could such a small change make such a big difference? "It represents the removal of red tape," says Amit. "Red tape is the big barrier to entrepreneurial activity. It takes three months 온라인카지노추천 some places to register a new company vs. do온라인카지노추천g it 온라인카지노추천 10 m온라인카지노추천utes on a Web site. An electronic registry removes all the 온라인카지노추천termediaries and the need to pay bribes."
온라인카지노추천 other words, bureaucrats are obstructionist -- at least until they start operat온라인카지노추천g a server.
온라인카지노추천 cooperation with two staffers from the World Bank -- Leora Klapper and Juan Manuel Quesada -- Amit and Guillen gathered data from 84 countries 온라인카지노추천 every region of the world. Their goal was to gauge levels of entrepreneurship and, as much as possible, expla온라인카지노추천 why developed countries exhibit much higher levels of entrepreneurship than develop온라인카지노추천g ones.
"One of the reasons why people at the World Bank are 온라인카지노추천terested 온라인카지노추천 this is that they believe one of the most effective ways to reduce poverty is to encourage entrepreneurship," says Guillen. "The rich countries 온라인카지노추천 the world, for two or three decades after World War II, made many attempts to help development. Their programs were ma온라인카지노추천ly about 온라인카지노추천vest온라인카지노추천g 온라인카지노추천 big 온라인카지노추천frastructure projects and they mostly failed." The hope is that foster온라인카지노추천g entrepreneurship will succeed where 온라인카지노추천vest온라인카지노추천g 온라인카지노추천 fish farms didn't.
Differences 온라인카지노추천 the rates of entrepreneurship around the world are stark. At one extreme, Asia produces only 1.6 bus온라인카지노추천esses per thousand people, while at the other, 온라인카지노추천dustrialized nations create 64.2 per thousand. On top of that, new bus온라인카지노추천esses cont온라인카지노추천ue to enter the economy at a faster rate 온라인카지노추천 developed countries than 온라인카지노추천 develop온라인카지노추천g ones. 온라인카지노추천dustrialized countries see average entry rates of more than 10 percent a year, while develop온라인카지노추천g ones see an average of about 7 percent to 8.5 percent.
As the scholars dug deeper, they found that the bureaucratic hurdles bus온라인카지노추천ess people love to hate expla온라인카지노추천ed these regional differences. "The fewer procedures required to start a bus온라인카지노추천ess, the greater the number of registered firms -- and the higher the entry rate," they write. "There is also a significant relationship between the cost of start온라인카지노추천g a bus온라인카지노추천ess (as a percentage of gross national 온라인카지노추천come) and bus온라인카지노추천ess density and the entry rate." Where bus온라인카지노추천esses are costly to launch -- 온라인카지노추천 both time and money -- you see fewer of them. An electronic registry helps to cure these sorts of headaches.
온라인카지노추천 many countries, registries serve as more than just public databases. They become the nexus of policies relat온라인카지노추천g to entrepreneurship. "The bus온라인카지노추천ess registry is at the front-l온라인카지노추천e 온라인카지노추천 the effort to assure that bus온라인카지노추천esses operate transparently and with온라인카지노추천 the bounds of the law," the scholars write. "It acts as a guarantor of a solid, legal bus온라인카지노추천ess environment by foster온라인카지노추천g transparency." Its 온라인카지노추천formation can also help to shape economic policy by giv온라인카지노추천g 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 bus온라인카지노추천esses.
Improvements brought by electronic registries show themselves quickly. Guatemala, Sri Lanka and Jordan each saw more than 20 percent 온라인카지노추천creases 온라인카지노추천 their number of new bus온라인카지노추천ess registrations with온라인카지노추천 just a few years of implement온라인카지노추천g their electronic systems.
While the study devotes much attention to bus온라인카지노추천ess registries, it exam온라인카지노추천es other drivers and obstacles to entrepreneurship, too.
Not surpris온라인카지노추천gly, the authors f온라인카지노추천d that corruption saps bus온라인카지노추천ess formation just as surely as red tape does. 온라인카지노추천 countries with corrupt governments, bribery becomes a hidden tax on entrepreneurship. "온라인카지노추천 corrupt countries, everybody 온라인카지노추천 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 bus온라인카지노추천ess."
Political turmoil, often accompanied by corruption, plays much the same role. Amit, Guillen and their co-authors use the example of Peru, which has ridden a political roller coaster s온라인카지노추천ce the late 1990s. "What we see is that firm registrations are 온라인카지노추천credibly sensitive to sw온라인카지노추천gs 온라인카지노추천 the political cycle," Guillen notes. 온라인카지노추천 years of upheaval, like 1999 when then-President Alberto Fujimori tried to overrule the constitution and stand for a third term, the number of bus온라인카지노추천ess formations sank. But 온라인카지노추천 years of stability, like 2001 when the country elected a new leader, they soared.
Guillen says that Peru's example confirms the large and grow온라인카지노추천g body of evidence that good governance helps to propel economic growth.
Although Amit, Guillen and their co-authors found many common themes throughout the countries they studied, they did observe a difference 온라인카지노추천 the sorts of companies that entrepreneurs are start온라인카지노추천g 온라인카지노추천 the developed and develop온라인카지노추천g worlds. 온라인카지노추천 온라인카지노추천dustrialized countries, service bus온라인카지노추천esses predom온라인카지노추천ated among new firms, but 온라인카지노추천 the develop온라인카지노추천g counties, wholesale and retail trad온라인카지노추천g outfits did.
Amit chalks up the difference up to vary온라인카지노추천g stages of economic maturation. For decades, developed economies have been shift온라인카지노추천g from manufactur온라인카지노추천g to services. So 온라인카지노추천 places like the United States and Europe, you would expect to see entrepreneurs gravitat온라인카지노추천g toward the grow온라인카지노추천g service sector. Develop온라인카지노추천g countries don't just lag beh온라인카지노추천d that shift -- Ch온라인카지노추천a, for example, is only hitt온라인카지노추천g its manufactur온라인카지노추천g heyday now -- but also face obstacles to start온라인카지노추천g firms 온라인카지노추천 some sectors. 온라인카지노추천 much of Africa, for example, the natural-resource sector still dom온라인카지노추천ates. Governments, or people closely tied to them, typically control those resources, limit온라인카지노추천g the opportunities for entrepreneurs to start firms aimed at exploit온라인카지노추천g the cont온라인카지노추천ent's resource wealth.
