Business Entry (Starting A Business)

Aspiring entrepreneurs often encounter barriers to entry into the formal economy. Where the rules are burdensome, resource-constrained entrepreneurs might not have the opportunity to turn their ideas into a business that benefits from a level playing field. Registered companies can receive a multitude of advantages, including the legal and financial services provided by courts and banks. Their employees enjoy social security protection. The economy benefits from positive spillovers: where formal entrepreneurship is high, job creation and economic growth also tend to be high.
Moreover, as more businesses formalize, the tax base can expand, enabling the government to spend on productivity-enhancing areas and pursue other social and economic policy objectives. There is evidence that higher costs for business startups are associated with lower business entry and lower levels of employment and productivity. Cumbersome regulations for business startup are associated with high levels of corruption and informality.
A simple business startup process is a positive factor for fostering formal entrepreneurship. Digital technology and transparency of information can encourage businesses to register and promote private sector growth. Digital public services can address the concerns of entrepreneurs by reducing the compliance cost of interacting with government authorities. Electronic business registration and electronic payments are among e-government initiatives used to encourage business formalization.
In addition, transparent and accurate data on registered businesses are an important building block of a good business environment because they give governments the tools to produce business statistics and design relevant policies and they give market participants the information they need to assess their risks and opportunities of investing or entering a market. Moreover, transparency of beneficial ownership helps safeguard the integrity and reputation of the business sector by making it unattractive to those intent on using its corporate structures for illicit purposes.

What the Indicator Measure

  • Quality of Business Entry Regulations

    Preregistration (for example, name verification or reservation, notarization)

  • Restrictions of Business Entry Regulations

    Does not include time spent gathering information

  • Registration in the economy's largest business city

    Registration in the economy’s largest business city

  • Interoperability of Services for Business Incorporation and Beginning of Operations

    Postregistration (for example, social security registration, company seal)

  • Availability of Information Online and Transparency of Information

    Obtaining approval from spouse to start a business or to leave the home to register the company

  • Time

    Obtaining any gender specific document for company registration and operation or national identification card

  • Cost

    Each procedure starts on a separate day (2 procedures cannot start on the same day)

Latest Reforms

Ghana is keeping pace with the rapid global transition to digital technologies, including in the realm of e-government where the country is regarded...

BRR has undertaken a nationwide capacity building and training of staff of Regional Coordinating Councils, Regional Managers of the Ghana Enterprises...

BRR Supported the development of a robust Land Digital Transaction System for online services at the Lands Commission. This has digitized the...