Written by: Anant Pandey
What is the Ease of doing business?
As we all know a new startup requires a lot of work and effort to stabilize the business, but that’s not enough, to sustain business growth we also need good resources such as finance, acceptance of social norms, proper market conditions, labor, and many others. That means, we have to research about the places where we are trying to start a business.
One of the most important things, check out the country rank ease of doing business. Ease of doing business Index clarify the right business environment countries. The index tells us how easily we can get resources.
Ease of doing business is one of the most effective Index created by two economists simeone Djankov and Gerhard Phol. Every year the world bank publishes ease of doing business index, this rank indicates us, How effortlessly you can start a business in a country. This rank is the aggregated figure which includes 12 different parameters.
Recently ease of doing business 2020 report is released and showed 190 countries ranking. For your information, empirical research invested by the world bank to explain their work show.
As I have mentioned earlier that rankings lists are made based on a country’s performance on 12 different parameters. These parameters are captured by small and mid-size companies experiences in a country.
Here are 10 parameters that are used for calculating ease of doing business.
- Starting a business
- Dealing with construction permits
- Getting electricity
- Registering property
- Getting credits
- Protecting minorities investors
- Paying taxes
- Export-import across the border
- Enforcing contracts
- Resolving insolvency
Ease of doing business is vividly evaluated by investors. When they try to invest money in any country or start a firm. In a short way, the country’s GDP will start to increase rapidly. Here are the top 10 doing business ranking countries such as New Zealand, Singapore, Hong Kong, Denmark, Korea rep, United States, Georgia United kingdom, Norway, and Sweden. In these countries, anybody can start a firm very easily.
India has performed well in 2019. According to EODB Rank, India has got 63 out of 190. If we see the past history of doing business ranking that clarify the improvement. So let’s have a glance.
- In 2005, India had 116 rank
- 2005 to 2014 India had 142 rank
- 2014 to 2016 India got 130 rank
- 2016 to 2018 India received 100
- 2019, India has 63 ranks.
Apart from India other best performers such as Saudi Arabia 62, Jordan 75, Togo 95, China 31, Pakistan 108.
An Insitive of the government of India:
A lot of Insitive ideas have taken by prime minister Narendra Modi like the start-up India, make in India and many others. The camping was started on 15 August 2015. Although, these action plans are not working anymore. The government needs to implement those ideas and relaunch them. Recently, the government has cut off the corporation’s taxes. Moreover, GST service is giving relaxation to businesses.