Simpler regulations 'will facilitate entrepreneurship growth' in country
Saturday, 22 November 2008
FE Report
Simpler regulations can facilitate entrepreneurship growth in Bangladesh, especially in the SME sector, which can create more employment opportunities in the country, said Apurba Kumar Biswas, chief executive officer (CEO) of Regulatory Reforms Commission (RRC).
He said, improper regulations are impediments to entrepreneurial growth in the country and entrepreneurs do not have any means to overcome such barriers. Regulatory Reforms Commission was established by the government on October 30, 2007 for creating a congenial atmosphere conducive to entrepreneurial growth by eliminating the redundant regulations.
The RRC is making recommendations constantly so that the cost of starting and operating a business is lowered reasonably. The recommendations deal with time, cost and procedures in registration and environmental clearance, the RRC official said.
Terming the existing business registration system a time-consuming and complicated process, he said, although an enterprise has to go through the process only once, empirical evidence shows that the cumbersome registration procedure can seriously hamper the growth of the country's private sector. A decrease in the cost of starting a business can lead to growth in entrepreneurship and job creation, he added.
Most of the SMEs are informal because of the complicated process of registration in the RJSCF. The RRC has recommended simplification of stamp duty payment procedure for registering companies with RJSCF(Registrar of Joint Stock Companies & Firms). This means that SMEs will be able to register themselves easily and enjoy the benefits of formal businesses like, better access to formal finance. Proper registration means businesses are less risky and this increases institutional longevity. This also helps the country, aside from job creation, by increasing the tax base.
The CEO put forward several examples stressing the impact of regulatory reforms on SME growth. Bangladesh offers a great scope for developing a number of entrepreneurial SME businesses related to hotels and restaurants. However, getting licence and renewing it becomes a hassle. The RRC has come up with specific recommendations like repealing Sarais Act, 1867 and amending Bangladesh Hotel & Restaurant Ordinance 1982 and Bangladesh Hotel and Restaurant Rules 1986 to reduce the hassles in doing business.
Simpler regulations can facilitate entrepreneurship growth in Bangladesh, especially in the SME sector, which can create more employment opportunities in the country, said Apurba Kumar Biswas, chief executive officer (CEO) of Regulatory Reforms Commission (RRC).
He said, improper regulations are impediments to entrepreneurial growth in the country and entrepreneurs do not have any means to overcome such barriers. Regulatory Reforms Commission was established by the government on October 30, 2007 for creating a congenial atmosphere conducive to entrepreneurial growth by eliminating the redundant regulations.
The RRC is making recommendations constantly so that the cost of starting and operating a business is lowered reasonably. The recommendations deal with time, cost and procedures in registration and environmental clearance, the RRC official said.
Terming the existing business registration system a time-consuming and complicated process, he said, although an enterprise has to go through the process only once, empirical evidence shows that the cumbersome registration procedure can seriously hamper the growth of the country's private sector. A decrease in the cost of starting a business can lead to growth in entrepreneurship and job creation, he added.
Most of the SMEs are informal because of the complicated process of registration in the RJSCF. The RRC has recommended simplification of stamp duty payment procedure for registering companies with RJSCF(Registrar of Joint Stock Companies & Firms). This means that SMEs will be able to register themselves easily and enjoy the benefits of formal businesses like, better access to formal finance. Proper registration means businesses are less risky and this increases institutional longevity. This also helps the country, aside from job creation, by increasing the tax base.
The CEO put forward several examples stressing the impact of regulatory reforms on SME growth. Bangladesh offers a great scope for developing a number of entrepreneurial SME businesses related to hotels and restaurants. However, getting licence and renewing it becomes a hassle. The RRC has come up with specific recommendations like repealing Sarais Act, 1867 and amending Bangladesh Hotel & Restaurant Ordinance 1982 and Bangladesh Hotel and Restaurant Rules 1986 to reduce the hassles in doing business.