When entrepreneurs draw up a business plan and try to get under way, the first hurdles they face are the procedures
required to incorporate and register the new firm before they can legally operate. Economies differ greatly in how
they regulate the entry of new businesses. In some the process is straightforward and affordable. In others the
procedures are so burdensome that entrepreneurs may have to bribe officials to speed the process or may decide to
run their business informally.
Once entrepreneurs have registered a business, what regulations do they face in
operating it? To measure such regulation, Doing Business focuses on the construction sector. Construction
companies are under constant pressure; from government to comply with inspections and with licensing
and safety regulations and from customers to be quick and cost-effective. These conflicting pressures point
to the tradeoff in building regulation; the tradeoff between protecting people (construction workers, tenants,
passersby) and keeping the cost of building affordable.
