Question

It is very easy to start a corporation in the United States. Take a look at how easy it is to start a corporation in Azerbaijan or China. Do you believe there is a link between ease of starting businesses and overall economic efficiency?

Answer 1

Answer:
It is quite easy to start business in China as well. Though it depends on the industries but for most of the industry if paper work is up to date and accurate, the process takes generally less time to start business in China as well.

Yes i believe there is a strong link between ease of starting business and overall economic efficiency. They are directly correlated to each other because of below mentioned reasons:

• The easier it is to start business in a country the better economic efficiency of the country will be.
• If ease of starting business is easy, more people will start doing business in formal sector which government can monitor and provide necessary infrastructire for the same to make it more efficient and help in development of the economy.
• Tax fraud would also be less, if more businesses are registered and follow the process properly instead of opening business without government knowing about it.
• Many foreign companies don't invest and open their unit in countries which son't have benifits and easy to start business which affect economy in negative way.
• Many individuals don't open corporations because of the time and energy it takes to start a business which also decreases the efficiency of the economy.
• Development of an economy cannot happen until business work with ease and givernment should provided necessary help in terms of infrastructure or proper environment to flourish and all of them can happen only if amount of effort which is needed to start a business is reduced.

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