This indicator measures the proportion of businesses that were officially registered at the outset of their operations within a country,
reflecting the regulatory climate and ease of doing business. A higher percentage indicates a favorable environment for entrepreneurship, suggesting that entrepreneurs are more likely to comply with legal requirements from the outset. This metric not only highlights the
importance of formalization in contributing to economic stability and growth but also serves as an indicator of government effectiveness in facilitating business registration processes. By fostering a culture of compliance, countries can enhance transparency, attract investment, and ultimately promote sustainable economic development. Understanding this percentage is crucial for policymakers aiming to improve the business landscape for new enterprises.
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