November. ACCA comments World Bank’s 'Doing Business 2014’ survey
The World Bank’s latest report Doing Business 2014 shows how business regulations can either help or hinder small and medium sized enterprises (SMES), comments ACCA (the Association of Chartered Certified Accountants) today.
The report presents quantitative indicators on 11 areas of business regulation for 189 countries around the world, from starting a business to paying taxes to trading across borders.
Nataliya Vovchuk, head of ACCA Ukraine, comments: “Doing Business 2014 shows that the 10 economies improving the most across three or more regulatory measures include the Ukraine, alongside Rwanda, the Philippines and the Russian Federation. Ukraine was the top improver over the last year, implementing reforms in 8 out of 10 areas measured by Doing Business.”
ACCA says that SMEs represent collectively a highly significant element of the global economy, making up around 99% of all businesses in all countries.
Nataliya Vovchuk adds: “As a champion of SMEs, ACCA is keen to see how the barriers facing SMEs in international trade can be lifted. This was examined in a recent report from ACCA’s Global Forum for SMEs, called Tapping into SME international potential, which made recommendations for increasing SME presence in international trade.”
The World Bank’s annual research shows that countries with burdensome regulation have larger informal sectors, higher unemployment rates and slower economic growth. ACCA backs reducing unnecessary red tape for SMEs, while also supporting moves to a ‘smart’ – that is a targeted and high-quality – regulation agenda. It is important that transparency and accounting quality, as well as coherence between regulations are maintained.
Ms Vovchuk concludes: “ACCA knows that SMEs are an important source of innovation, and therefore an important component of economic growth. The findings of the Doing Business 2014 report highlight the importance of the SME sector in the development and international competiveness of global economies.
“Ukraine has now joined a collection of countries which show great promise not only for today, but which will play a central role in affecting future prosperity and global policy. While there is a common misconception that international trade is only for larger businesses, the reality is that many SMEs are successful in cross border activity. But some feel excluded from the opportunities that export and import can bring. This is why ACCA published its Tapping into SME international potential policy paper, calling on governments, policy makers, financial institutions and advisers to think small first to enable SMEs to think bigger.”