Giving Compass' Take:

•  The World Bank’s 2018 “Doing Business” report found that across the globe, when business environments improve, so does job growth, strengthening the economy. 

• What are the main challenges for countries in political conflict to make progress on business environment growth? What is being done to address this?

• Read about entrepreneurship as a solution for the informal workforce in India. 

The World Bank’s 2018 “Doing Business” report finds a strong correlation between inclusive growth and the regulatory environment for business activities. The report, spanning 190 countries, uses 11 indicators that matter to entrepreneurship for the rankings, including newly expanded coverage of aspects relevant to the operations of private-sector business activity.

The link between the “Doing Business” ranking and inclusive, job-creating economic growth is straightforward:

When the ease of doing business improves and a country rises in the rankings, its economy is performing better mainly because of expanded small and medium enterprise (SME) business activity.

As an example, this year India reached 100 in the rankings (up from 130 the prior year). This rise is a result of improvements made across the board in the business environment. Improvements in the rankings are usually driven by strong job growth powered by the SME sector, and given that India has a million job seekers entering the labor market every year, regulatory reforms should help boost the overall economic growth in the country in the years to come.

Read the full article on inclusive growth by Hemant Baijal at Mastercard Center