When it comes to creating a business-friendly environment, there are certain key elements that need to be taken into account. This is especially true for countries like Trinidad and Tobago, which have seen their position in the World Bank's Doing Business ranking fall steadily over the past five years. To understand what makes a country business-friendly, it is important to consider the stringency of environmental regulations, compliance with environmental regulations, crime rates, an enabling legislative framework, and institutional strengthening.
Stringency of Environmental Regulations
- In terms of the stringency of environmental regulations, Trinidad and Tobago ranked 124th out of 136 countries.This means that the country has relatively lax environmental regulations, which can be beneficial for businesses in terms of costs.
Compliance with Environmental Regulations
- However, when it comes to compliance with environmental regulations, the country ranked 132nd. This means that businesses may not be following the regulations as closely as they should be, which could lead to fines or other penalties.Crime Rates
- High crime rates can also have an impact on businesses in Trinidad and Tobago. This is because crime can increase both business and household costs, as demand for security-related goods and services normally increases in that environment.Enabling Legislative Framework
- An enabling legislative framework is also essential for creating a business-friendly environment. Without the right legal framework in place, efforts to incentivize key sectors, encourage innovation and support small businesses will yield results that are lower than expected.Institutional Strengthening
- Finally, institutional strengthening is also a vital component of creating a business-friendly environment.Establishments such as registries, statistical offices and tax offices provide critical services to society in general and play an important role in determining how smoothly companies can conduct their businesses. Knowing how important a business-friendly environment is will likely help companies to grow and encourage investment, both of which are necessary for diversification. For these reasons, it is essential for countries like Trinidad and Tobago to create an atmosphere conducive to investment and business growth. Without this, they are doomed to suffer long-term economic hardship.
