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Administrative barriers for start ups: what can and must be done?

Administrative barriers for start ups: what can and must be done?. Slavica Singer CEPOR. Can it be more simple?. How did World Bank reach the data?. Specific entrepreneur was supervised in his/her business operation, from the beginning till the end

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Administrative barriers for start ups: what can and must be done?

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  1. Administrative barriers for start ups:what can and must be done? Slavica Singer CEPOR business growth sibenik-toscana, 24.06.2005.

  2. Can it be more simple?

  3. How did World Bank reach the data? • Specific entrepreneur was supervised in his/her business operation, from the beginning till the end • Every step of the proccess was identified, with the needed time and costs • All relevant laws, regulations and price-lists are collected business growth sibenik-toscana, 24.06.2005.

  4. The best 20 economies in regard to easiness of doing business – World Bank, 2005 business growth sibenik-toscana, 24.06.2005.

  5. Doing Business in 2005, World Bank • Good practise in Croatia • Cost of registering assets (% of asset value): • Croatia 2.5 • Slovenia 2.0 • Saudi Arabia 0 min • EU 15 6.1 max business growth sibenik-toscana, 24.06.2005.

  6. Doing Business in 2005, World Bank • “decent” practise in Croatia • Cost of collection by contract (% of debt value): • Croatia 10.0 • Slovenia 16.3 max • Norway 4.2 min • EU 15 12.4 business growth sibenik-toscana, 24.06.2005.

  7. Doing Business in 2005, World Bank • Chances for reforms in Croatia • Cost of starting business (% income per capita): • Croatia 14.4 max • Slovenia 12.3 • Denmark 0 min • EU 15 9.4 business growth sibenik-toscana, 24.06.2005.

  8. Doing Business in 2005, World Bank • Chances for reform in Croatia • Time needed for registration of ownership (in days): • Croatia 956 max • Slovenia 391 • Norway 1 min • EU 15 48 business growth sibenik-toscana, 24.06.2005.

  9. Doing Business in 2005, World Bank • Chances for reform in Croatia • Percentage of return of assets in bankruptcy: • Croatia 26.1 • Slovenia 23.6 • Japan 92.4 max • EU 15 70.2 • Romania 6.9 min business growth sibenik-toscana, 24.06.2005.

  10. Which countries are eliminating barriers? • rich countries did implement three times more reforms in 2003. in the field of encouraging conditions of investments than poor countries • EUmembers are specificaly active in these processes business growth sibenik-toscana, 24.06.2005.

  11. Which countries are eliminating barriers? • ten leading countries in reforms (among 145 countries): • Slovakia, Columbia,Belgium, Finland, India, Lithuania, Norway, Poland, Portugal and Spain • effectiveness and flow of doing business (145 countries), 5 countries in the region are in first quarter: • Lithuania, Slovakia, Latvia, Czech Republic and Estonia Source: WB Doing Business in 2005 business growth sibenik-toscana, 24.06.2005.

  12. Slovakia 1 • time needed for starting the business halved • consequences: number of registered companies is 12% higher • time needed for collection the debts is decreased for three quarters • new register to keep records of private loans is opened business growth sibenik-toscana, 24.06.2005. Source: WB Doing Business in 2005

  13. Slovakia 2 • reform of the loan insurance law (guarantees) • consequences : loans to private sector are significantly higher • regulations for employment are more flexible • consequences : firing is easier, but also bigger chances for new employment business growth sibenik-toscana, 24.06.2005. Source: WB Doing Business in 2005

  14. What can we do? 1 • Give examples of good and bad practise to the Government • Ask for better quality of new and existing administrative regulations of doing business through: • Eliminate old-fashioned regulations • Estimate the impact of existing and new regulations on business environment • “administrative silence” – deadline in which public administration has to manifest itself regarding licences,etc. business growth sibenik-toscana, 24.06.2005.

  15. What can we do? 2 • To establish effectiveness of monitoring regulating mechanism • To establish practice of regular consultations with the private sector and with other stakeholders business growth sibenik-toscana, 24.06.2005.

  16. Why to eliminate barriers? • To make entrepreneurs’s life easier • To reduce corruption • 59./133 2003. • 67./145 2004. business growth sibenik-toscana, 24.06.2005.

  17. Contact • SME Policy Center - CEPOR Trg J.F. Kennedy 7/I HR-10000 Zagreb, Hrvatska telephone : +385 1 2305 363 fax: +385 1 2345 577 www.cepor.hr E-mail: cepor@zg.htnet.hr business growth sibenik-toscana, 24.06.2005.

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