The Firms Speak: What the World Business Environment Survey Tells Us about Constraints on Private Sector Development

Listening to what managers and entrepreneurs say about the obstacles they face, especially through structured surveys, has proven to be an effective way to evaluate the constraints a particular business environment imposes. This information is important not only for the firms themselves but for the growth of the larger economy and the progress of society. If private enterprises are a critical path out of poverty through employment or ownership, then establishing conditions for their growth must be a key component of a poverty-reduction strategy. The enabling conditions for enterprise growth and operation are often referred to as the business environment. The World Bank’s World Business Environment Survey (WBES) offers important insights as to what is needed to improve the business environment, based on what businesses themselves say about conditions they need to grow and the impediments they face.