A new World Bank report has been published citing Singapore as the easiest place in the world to do business. 178 countries are ranked in a league table which shows Greece in position number 100…the worst placed of the European Union countries.
With the EU bloc generally considered a pretty good place to do business, what brought about Greece’s poor showing? Melissa Johns, Private sector Development Specialist at the World Bank:
First, Greece is a hard place to start a business; entrepreneurs have to put aside 18,000 Euro as protection for potential creditors when they first start a company. This is money that most people do not have, if they do have it, entrepreneurs would rather put 18,000 Euros to work in the new Business. It is an amount equated to requirements that most countries have done away with years ago.
DID THE LOW RANKING IMPACT DIRECTLY ON THE ECONOMY?
Globally, the report is associated with low employment and greater economic growth. When the government works to reduce bureaucracy, more companies start up. So one of the more optimistic side of doing business this year is that investment returns are higher in countries that are reforming most and this is proof regardless of where a country places in the overall ranking. The government can attract investors by introducing regulatory reforms that will make Greece an easier place to do Business.
WHAT ARE OTHER COUNTRIES DOING THAT GREECE IS YET TO ADDRESS?
Greece did make it easier to comply with tax regulations; nevertheless it slipped a bit on the ranking because other countries are reforming at higher rates. We see countries reforming in multiple areas, in the topics measured by the report. Egypt for example moved over twenty places in the ranking by reforming in five areas measured by doing business.
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