The Doing Business report is the main publication of the World Bank. Your data helps to understand the business scenario in different regions and is therefore updated annually. Its evaluation of the regulations that 189 countries impose on small and medium-sized companies allows to identify countries where undertaking is easier or more complicated.
“The database and the report serve as tools to measure the impact of regulations on business activities around the world.”
Explains Laura Sagnori Diniz, operations analyst at the World Bank.
The specialist explains that the main purpose of the report is to encourage countries to improve processes. “The Doing Business report offers references on regulations and serves as a tool for academics, journalists, members of government, businessmen, researchers from the private sector and others interested in the business environment of each country,” he highlights.
Doing Business evaluates ease of entrepreneurship
The indicators are used to analyze economic results and identify the regulatory reforms that worked, identifying the reasons for success or failure. The methodology consists of analyzing 11 areas that affect the life of a company:
- Opening of companies
- Obtaining construction authorization
- Obtaining electricity
- Property registration
- Obtaining credit
- Protection of minority investors
- Tax payment
- Trade between borders
- Execution of contracts
- Insolvency resolution
- Regulation of the labor market
- Latin America according to Doing Business
We selected the following five insights from the World Bank report on the Latin American reality:
1. Chile is the best country in South America for small entrepreneurs
Chile occupies the first position among the countries of South America in the classification relative to the facility to do business and the 48th in the general ranking. Then comes Peru (50th) and Colombia (54th). The worst is Venezuela, which is only three places above the last place, Eritrea.
2. Colombia stands out in the improvement of regulations
Diniz explains that the structural reforms promoted by Colombia in recent years favored its rise in the ranking. “Colombia emerged as the country in Latin America and the Caribbean that implemented the largest number of reforms in its business regulation since the beginning of Doing Business 12 years ago,” he says.
“The country reduced from 70 to 11 the number of payments required to declare taxes and improved access to credit, expanding the range of assets that can be used as collateral, for example,” he adds.
3. Mexico favors obtaining credit
This country stands out for the ease with which its businessmen obtain credit. “Mexico is one of the five economies at the global level with the best ranking in terms of obtaining credit, thanks to a credit agency that covers the entire population and has relevant information to assess the creditworthiness of lenders” explains Diniz .
4. Brazil has repressed potential
Even though it is the largest economy in the continent, Brazil has weaknesses in the business world, occupying the 116th position in the general ranking. “Brazil must still move forward to make the business environment simpler and more efficient,” says the analyst.
“Areas such as taxes, opening of businesses and authorization for construction should improve, mainly in terms of the amount of paperwork and payments that a small company must make to achieve its objective,” he adds.
5. The payment of taxes lacks improvements in the continent
From the point of view of the payment of taxes, Venezuela and Bolivia occupy the last two positions in the global ranking. “The areas where the economies of Latin America and the Caribbean should improve a lot in property registration and tax payments,” says Diniz.
“In taxes, for example, the average time it takes a local entrepreneur to prepare, file and pay their taxes is 361 hours, compared to an average of 177 hours in the high-income economies of the Organization for Cooperation and Development. Economic Development (OECD), “he compares.