Ease Of Doing Business Essay

1421 Words6 Pages
The story of an entrepreneur is an evolving one. A costly problem that a start up faces may, over the years, become just another business activity that can easily be handed off to an employee at little expense. Today I went to one of the many of the government offices that engage with businesses. Even though I did my online research, I still visited the wrong, though one of many scattered all over Port of Spain, office. I then proceeded to the right office, collected the forms, and after two hours of going back and forth between offices and standing in a meandering line, it occurred to me- Am I costing this experience into my business?
The Ease of Doing Business in Trinidad and Tobago has been questioned by the corporate community repeatedly.
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The Ease of Doing Business Index was developed by the World Bank under the Doing Business Project. The index was developed to measure the ease at which small and medium businesses maneuver the regulations required by local law. There are 10 topics areas, but for the purpose and brevity of this article, we will only focus on three topics, with only some of the indicators being discussed. One should note, it is not the author’s intent to express Trinidad and Tobago in a poor light. In fact, for most indicators, Trinidad and Tobago outperformed other Latin American and Caribbean Countries. In aiming for first world status, however, it is only justified that comparisons be made with first world countries. Even without comparisons being made, the costs and time of regulatory processes are…show more content…
Compliance costs are mostly regressive – the larger your business the lower the cost per employee. Larger businesses have the capability to comply with regulations because of their specialized staff and other factors that allow for easier cost absorption. Small businesses do not benefit from these economies of scale (the spreading of cost that comes with a larger size). In addition, new business owners do not have the knowledge and capacity to easily approach the government offices. Some small companies also fail to factor in how costly red tape has been to their bottom
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