Administrative barriers for start ups: what can and must be done?

business growth sibenik-toscana, 24.06.2005.

Administrative barriers for start ups:what can and must be

done?

Slavica SingerCEPOR


Can it be more simple?

If a foreign arch itect, engineer, or project documentation

Public discussion on main pro ject (if appropriate)

Decision and Contract for supervisor of construction

Contract constructors

Contract project leader

Contract implementer

Obtain study of the plot size

Report construction activities to local construction department

and inspection

Contract construction auditing

Obtain record from the cadastre office / land register certificate

Obtain construction plan Obtain technical description

Obtain geotechnical and technical studies

Obtain certificates on fire regulations, water and sewage

connections, traffic etc. Project documentation

Main Project

Technical project

List of expenditures

Cert ificate of mechanical durability

Cert ificate of quality control

Study on waste disposal

Implementation Project

Location Permit Description and project idea

Land purchase contract

Official translation project idea, main project and

implementation project

Specialist’s approval (nostrification)

Project audit

Report on project control

Approval of project audit

Media advertisement Municipal board advertisement

Technical cert ificates

Connection to electricity

Connection to utilities (water, sewage, gas etc.)

Environmental or cultural protection (if appropriate)

Statement of legal compliance of architect, engineer and project leader

Construction Permit

Construction certificates Mechanical stability

Noise protection

Energy savings Cert ificates for construction materials and equipment

Construction Situation draft (by a professional)

Approval of the situation draft at the local cadastre office

Supervisor’s final report

Technical inspection on-site Usage permit Land registered at court Use the building Request for technical inspection


How did World Bank reach the data?

Specific entrepreneur was supervised in his/her business operation, from the beginning till the end

Every step of the proccess was identified, with the needed time and costs

All relevant laws, regulations and price-lists are collected


The best 20 economies in regard to easiness of doing business –

World Bank, 2005

1 New Zealand 11 Switzerland

2 United States 12 Denmark

3 Singapore 13 Netherlands

4 Hong Kong, China 14 Finland

5 Australia 15 Ireland

6 Norway 16 Belgium

7 United Kingdom 17 Lithuania

8 Canada 18 Slovakia

9 Sweden 19 Botswana

10 Japan 20 Thailand


Doing Business in 2005, World Bank Good practise in Croatia

Cost of registering assets (% of asset value): Croatia 2.5 Slovenia 2.0 Saudi Arabia 0 min EU 15 6.1 max


Doing Business in 2005, World Bank “decent” practise in Croatia

Cost of collection by contract (% of debt value): Croatia 10.0 Slovenia 16.3 max Norway 4.2 min EU 15 12.4


Doing Business in 2005, World Bank Chances for reforms in Croatia

Cost of starting business (% income per capita):

Croatia 14.4 max Slovenia 12.3 Denmark 0 min EU 15 9.4


Doing Business in 2005, World Bank Chances for reform in Croatia

Time needed for registration of ownership (in days):

Croatia 956 max Slovenia 391 Norway 1 min EU 15 48


Doing Business in 2005, World Bank Chances for reform in Croatia

Percentage of return of assets in bankruptcy: Croatia 26.1 Slovenia 23.6 Japan 92.4 max EU 15 70.2 Romania 6.9 min


Which countries are eliminating barriers?

rich countries did implement three times more reforms in 2003. in the field of encouraging conditions of investments than poor countries

EU members are specificaly active in these processes


Which countries are eliminating barriers? ten leading countries in reforms (among 145

countries): Slovakia, Columbia,Belgium, Finland, India, Lithuania,

Norway, Poland, Portugal and Spain

effectiveness and flow of doing business (145 countries), 5 countries in the region are in first quarter: Lithuania, Slovakia, Latvia, Czech Republic and Estonia

Source: WB Doing Business in 2005


Slovakia 1 time needed for starting the business halved

consequences: number of registered companies is 12% higher

time needed for collection the debts is decreased for three quarters

new register to keep records of private loans is opened



Slovakia 2

reform of the loan insurance law (guarantees) consequences : loans to private sector are significantly

higher

regulations for employment are more flexible consequences : firing is easier, but also bigger chances for

new employment



What can we do? 1 Give examples of good and bad practise to the Government

Ask for better quality of new and existing administrative regulations of doing business through: Eliminate old-fashioned regulations Estimate the impact of existing and new regulations on

business environment “administrative silence” – deadline in which public

administration has to manifest itself regarding licences,etc.


What can we do? 2

To establish effectiveness of monitoring regulating mechanism

To establish practice of regular consultations with the private sector and with other stakeholders


Why to eliminate barriers?

To make entrepreneurs’s life easier

To reduce corruption 59./133 2003. 67./145 2004.


Contact SME Policy Center - CEPOR

Trg J.F. Kennedy 7/IHR-10000 Zagreb, Hrvatskatelephone : +385 1 2305 363fax: +385 1 2345 577www.cepor.hrE-mail: [email protected]

Administrative barriers for start ups: what can and must be done?

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