The purpose of this paper is to examine the relationship between easy doing business (EBD) and cost of business start-up procedures (CBSP) and start-up procedures to register a business (SPRB) in Africa. The study also investigated the relationship between EBD and gross national income (GNI). Finally, the study examined the relationship between EBD and new business registered (NBR). Data related to 53 African countries for annual 2019 were collected on World Bank web site. Pearson, and Speaman correlation were performed.
Entrepreneurial activities increase where business environment is beneficial. Developing easy doing business is among factors that can stimulate business creation in Africa. Private sector contributes in development through the creation of jobs, tax payment, increasing exports, and revenue distribution via salaries, and wages. Thus, countries with many and profitable companies are likely to increase its development.
Table of Contents
1. Introduction
2. Literature Review
3. Methodology
4. Data Analysis
4.1. Descriptive Statistics
4.2. Correlation Analysis
5. Conclusion
Research Objectives and Core Themes
The primary objective of this research is to analyze the relationship between the "Ease of Doing Business" (EBD) index and specific start-up parameters, including the cost of business start-up procedures (CBSP) and the number of procedures required to register a business (SPRB) within the African continent. Additionally, the study explores the correlation between the ease of doing business, gross national income (GNI), and the total number of new businesses registered (NBR), aiming to provide insights for policymakers to improve the regional entrepreneurial environment.
- Correlation between regulatory ease and business start-up costs.
- Impact of registration procedures on entrepreneurial activity.
- The link between business environment quality and economic growth (GNI).
- Analysis of new business registration trends in 53 African nations.
Excerpt from the Research
1. Introduction
Governments, development aid agencies and researchers around the world agree that entrepreneurship is essential to economic development, the creation of jobs and the improvement of people's living conditions in different societies (Ndofirepi, 2020). Most of African countries are characterized by extreme povery, hunger, high unemployment rate, higher fertility rate, higher population growth, low economic growth, etc. The estimated poor population because of the high rate of population growth in Africa was 330 million in 2012 (World Bank, 2016). Futhermore, Sub-Saharan Africa remains one of the weak-performing areas with an average score of 51.88 on the ease of doing business (World Bank, 2020).
According to the World Bank (W.B.) (2020) there is a causal association between economic freedom and growth of gross domestic product. While in the top performing easy doing economies there is no African countries, the bottom 20 economies are from the Sub-Saharan Africa region, only two African economies rank in the top 50 on the ease of doing business (W.B., 2020). According to this report, there is too much to do in Africa to improve easy doing business. Many countries are actively reforming their procedures in pursuit of making a better business environment. A great difference is observed in starting a business in in top-and bottom performing economies as indicated by the W. B. (2020). For instance, on average, it takes almost six times longer to start a company in economies ranked in the bottom 50 than in the top 20.
Summary of Chapters
1. Introduction: Outlines the significance of entrepreneurship for economic development in Africa and identifies the research gap regarding the relationship between business regulations and economic outcomes.
2. Literature Review: Synthesizes existing theories on entrepreneurship and previous empirical findings regarding the impact of regulatory environments and costs on firm creation.
3. Methodology: Describes the collection of secondary data from the World Bank for 53 African countries and explains the application of descriptive statistics, skewness analysis, and correlation tests.
4. Data Analysis: Presents the statistical findings, including the descriptive profile of the variables and the Pearson/Spearman correlation results regarding EBD and business parameters.
4.1. Descriptive Statistics: Provides the mean, median, skewness, and range for NBR, EBD, CBSP, SPRB, and GNI to characterize the dataset.
4.2. Correlation Analysis: Details the statistical relationships between EBD and the study's independent variables, confirming significant negative links with costs and procedures, and positive links with economic growth.
5. Conclusion: Summarizes the study's findings and suggests that reducing registration barriers and costs is crucial for improving the ease of doing business and stimulating economic prosperity in Africa.
Keywords
Doing Business, Registering, Start up, Entrepreneurial, Africa, World Bank, Correlation, GNI, Economic Growth, Regulatory Environment, Business Creation, Procedures, Costs.
Frequently Asked Questions
What is the primary focus of this research paper?
This paper focuses on investigating how the ease of doing business (EBD) relates to the costs and procedures required to register a business in 53 African countries.
Which specific variables are analyzed in relation to the ease of doing business?
The study examines the relationship between EBD and four key variables: cost of business start-up procedures (CBSP), start-up procedures to register a business (SPRB), gross national income (GNI), and the number of new businesses registered (NBR).
What is the central research question addressed by the author?
The core research aims to determine if there is a statistically significant correlation between the business environment (EBD) and factors such as start-up costs, registration complexity, and economic performance indicators in Africa.
Which scientific methodology was employed to conduct this study?
The author performed a quantitative analysis using secondary data from the World Bank (2019). The methodology included descriptive statistics and the use of Pearson and Spearman correlation coefficients to assess variable relationships.
What does the main body of the paper cover?
The main body covers the theoretical foundation of entrepreneurship in Africa, the methodology of data collection, a descriptive analysis of regional economic data, and a correlation analysis that tests the study's hypotheses.
Which keywords best characterize the scope of this work?
Key terms include Doing Business, Registering, Start up, Entrepreneurial, Africa, World Bank, Correlation, GNI, and regulatory environment.
What was the key finding regarding the relationship between EBD and business start-up costs?
The study found a negative and statistically significant relationship between EBD and the cost of business start-up procedures, implying that higher costs act as a barrier to an "easy" business environment.
How does the ease of doing business affect gross national income (GNI) according to the results?
The results show a positive and statistically significant relationship, suggesting that as countries improve their ease of doing business, their GNI also tends to increase.
- Arbeit zitieren
- Antoine Niyungeko (Autor:in), 2020, Easy Doing Business, Cost and Procedures of Business Registering in Africa. Investigation of the Relationship, München, GRIN Verlag, https://www.grin.com/document/981515
