Importance of International Business and Globalization

Importance of International Business and Globalization

The Changing of International Business

Over one-hundred and eighty five economies are now making it easier for entrepreneurs to begin and thrive with their own businesses, Previous legal barriers that prevented people from getting jobs or starting businesses are coming down and releasing the potential for a world wide entrepreneur driven economic boom.

Entrepreneurs

In 2005, forty economies supported entrepreneurs enough that they could begin a business in just twenty days. By 2012, this number has more than double to one hundred and five. Utilizing the internet, it is now easier for potential businesses to find the information they need to being their journey to entrepreneurship. E-government incentives are also rising, making it easier to register your business, clear customs or file court documents. Over one hundred of the economies referenced make use of the rise in technological breakthroughs of the last couple of decades.

Gender

Gender remains one of the largest hurdles that potential entrepreneurs face is gender. Only 38 of 141 economies have equal working rights for women. However, from 2009 to 2011 thirty-nine economies made legal progress towards gender parity. These thirty-nine economies alone have led to new opportunities for over half a billion women. 232 million women live in economies where they may work, only if their husband permits it. If these barriers fell across the world, imagine the uprising businesses could have with the vastly expanded worker pool.

Regulations

Regulatory reforms for businesses have made a large effect in the world. Mexico, Colombia, India and Rwanda offer the best examples of how much a small change can help an economy. Mexico Simplified procedures at the state level and saw a 2.8 percent decrease in unemployment. Colombia created one-stop centers for business start-ups and saw a 5.1 percent rise in formal firm registration. India eliminated lengthy and useless bureaucratic red tape that was required to operate businesses; this caused a six percent rise in new firms being created. Most impressive however is Rwanda, they created one-stop centers for business registration and saw a three-hundred and eight percent rise in newly registered firms.

Global Economies

Despite other factors, Africa is still the most costly place to start and maintain a business. Although it costs more, forty-five out of forty-six sub-Saharan governments have improved the regulations for domestic businesses over the last eight years. Rwanda has improved the most over the last seven years. The Rwandan government has not only monitored their progress but has assessed challenges and calculated adjustments to ultimately improve business opportunities over time.

One hundred and eight economies had at least one positive reform from 2011 to 2012. Eastern Europe and Central Asia both had over an 80 percent of their economies make a positive reform. The Middle East, Africa, The European Union Central and South American all had more than a fifty percent rise, but less than the 80 percent others reached. South as well as East Asia and the Caribbean had higher than thirty percent, but less than fifty percent.