We cannot underestimate the significance of entrepreneurship as a means to supporting and enabling economic and social change. But we must also recognise that simply calling out from the side-lines, to encourage people to set up and grow businesses, is not enough.
What is Business Environment Reform?
To genuinely support enterprise creation and growth we need to understand and create the conditions and support infrastructure that are needed to drive success, both for the entrepreneurs and their businesses, and this is the difficult part, as solutions simply cannot be ‘die cut’. Every situation, every person involved, has their own unique starting point and set of needs, so building a business environment for the masses is highly likely to only fulfil the needs of the few. The only option, therefore, is wide-scale, deliberate and systematic changes to be made to the conditions in which businesses operate; this is ‘Business Environment Reform’, recognised by ICE as one of our priority strategic aims in pursuit of our vision to build better lives through driving and enabling economic and social change.
An element of Investment Climate Reform
Business Environment Reform is a key element of a broader ‘Investment Climate Reform’ agenda. Where Investment Climate Reform encompasses the overall environment in which businesses operate and invest, including factors like the business environment, political stability, infrastructure, and regulatory frameworks, Business Environment Reform focuses on improving the conditions for businesses to operate, such as reducing bureaucratic obstacles, improving regulatory efficiency, and promoting competition.
So, what does business environment reform look like?
Opportunities for reform are endless, and the changing business landscape means that they are also ever-changing. However there are some key areas to which business environment reform can be applied.
- Streamlining bureaucratic processes (often joining up disjointed processes that simply don’t work for business);
- Improving transparency, so entrepreneurs are able to recognise what support is available and who provides it;
- Reducing regulatory burdens and adapting regulatory frameworks that in turn can improve enterprises’ capacity to attract investments, and through making life a bit easier can actually encourage entrepreneurship as some of the unnecessary barriers to entry have been removed;
- Simplifying trade procedures to open up maximum opportunities and, again, reduce bureaucracy;
- Promoting and reframing innovation so it is understood to relate to every aspect of business competitiveness;
- Improving the accountability of governance to reduce the likelihood of corruption and system misuse.
However you’ve probably read this reform ‘wishlist’ before, so we need to go further this time; we cannot afford business environment reform to be a blunt instrument, risking any aspect of the system transforming into something different, yet still being ineffective. So, for that reason, another layer of insight is needed: context.
What next?
Business environment reform is a serious global challenge, and in many cases the knowledge and the ‘know how’ already exists. The quest now, therefore, is to ensure that this growing body of intelligence is recognised, understood and embedded across policy, regulation and institutional structures. This is where ICE comes in.
ICE’s contribution to business environment reform can be to:
- Provide thorough and current insights into the needs of entrepreneurs and their businesses;
- Develop and provide access to frameworks which have been founded on global best practice; and
- Deliver practical support and guidance to enable policy makers and institutions to effect change.
The goal of business environment reform must be to create a more favourable and competitive atmosphere in which businesses can start and grow, fostering economic growth and development. If done right, business environment reform should play a crucial role in shaping a dynamic, responsive, and supportive ecosystem that facilitates job creation, attracts foreign investments, and contributes to sustainable economic progress and so, in turn, social reform.
Now, therefore, is the time for action.
