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The World’s Best and Worst Places for Ease of Doing Business

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ease of doing business world map

The Best and Worst Places for Ease of Doing Business

The Chart of the Week is a weekly Visual Capitalist feature on Fridays.

When it comes to supporting new businesses, not all jurisdictions are created equal.

Whether it’s the basics, like hooking up electricity and registering the business, or more complex regulatory hurdles, your location can impact the success of your venture in a big way. What makes a country business-friendly, and where are the most hassle-free places to open up shop?

The Ease of Doing Business ranking, by World Bank, breaks countries’ complex regulatory ecosystems down into quantifiable components. The resulting index and ranking system is a global look at who’s making it easy to do business, and which countries are struggling.

A Global View of Doing Business

The visualization below looks at the score (0-100) of 190 economies around the world, as well as a spread between high and low scoring factors in the subindices. While two countries may have the same score, one might have a much wider “spread” which points to outlaying successes or serious challenges in their regulatory framework.

Luxembourg, for example, ranked number one in the Trading Across Borders factor, but 173rd in Getting Credit.

Note: click the graphic below of the full list to expand to a higher resolution.

ease of doing business chart data viz
View a high resolution version of this graphic.

Of the 190 economies covered in the report, New Zealand comes out on top for the third year in a row. Singapore and Denmark round out the top three.

The United States, whose ranking has been slipping in recent years, came in at 8th spot.

This ranking offers up some surprises, such as Macedonia and Georgia, which are both in the top 10. Georgia makes it easy to start a new business, and has the lowest number of procedures to get the process going.

Afghanistan had the biggest year-over-year score increase after making big strides in enhancing the legal framework for businesses.

Rwanda is ranked at a very respectable 29th place – the only low-income economy to crack the top 50.

Building the Index

The data for the ranking is compiled from over 12,500 expert contributors in 190 countries who deal with business regulations on a daily basis. The final score is based on the average of 11 factors:

  • Starting a business – Procedures, time, cost, and minimum capital to open a new business
  • Dealing with construction permits – Procedures, time, and cost to build a warehouse
  • Access to electricity – Procedures, time, and cost required to obtain an electricity connection for a new warehouse
  • Registering property – Procedures, time, and cost to register commercial real estate
  • Procuring credit – Strength of legal rights index, depth of credit information index
  • Protecting investors – Indices on the extent of disclosure, extent of director liability and ease of shareholder suits
  • Paying taxes – Number of taxes paid, total tax payable as share of gross profit, and hours per year spent preparing tax returns
  • Trading across borders – Number of documents, cost, and time necessary to import and export
  • Enforcing contracts – Procedures, time, and cost to enforce a debt contract
  • Resolving insolvency – The time, cost, and recovery rate (%) under bankruptcy proceeding
  • Labor market regulation – Flexibility in employment regulation and aspects of job quality

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Leadership

How Accountable Teams Drive Performance in Challenging Times

Roughly 80% of teams are seen as mediocre or weak. This graphic explores the strategies leaders can use to create accountable teams.

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The future of work is changing, and new rules are being written before our very eyes.

Teams are more important now than ever before, but many of them are struggling to step up and drive high performance when it matters most.

Creating a Culture of Accountability

Today’s infographic from the bestselling author Dr. Vince Molinaro demonstrates how leaders can create an environment where truly accountable teams can flourish, and employees are inspired to do their best work.

accountable teams infographic

>> Download Dr.Vince Molinaro’s How to Build an Accountable Team

Accountable Leaders Build Accountable Teams

Weak, mediocre teams demonstrate behaviors that can breed a toxic work environment, such as working in isolation or not demonstrating trust among other team members.

In order to combat mediocre teams, leaders must create a culture of accountability in their organization where individuals can step up and be accountable.

“No group ever becomes a team until they can hold themselves accountable as a team.”

—The Discipline of Teams, Jon R. Katzenbach and Douglas K. Smith

When teams take full responsibility for their actions, they manage most issues themselves rather than looking to leadership to solve problems.

Overall, accountable teams demonstrate two critical dimensions: team clarity and team commitment.

1. Team Clarity

Accountable teams should have full clarity about the business they operate in by having the ability to:

  • Anticipate external trends both in and outside of their industry.
  • Have clarity on the strategy and purpose of their organization.
  • Understand the expectations of their stakeholders and the interdependencies that exist with other parts of the company.
  • Know what needs to get done and how it needs to be done.

2. Team Commitment

Accountable teams also demonstrate a high degree of commitment needed to deliver results. They do so in the following ways:

  • Have a deep sense of commitment to driving success.
  • Invest time in working across the organization.
  • Work to make their team as strong as it can be.
  • Show a deep commitment to one another.

As a leader, these two dimensions are invaluable as a way of thinking about driving mutual accountability and sustaining high performance for their organization over the long-term.

Accountable Teams Drive Extraordinary Performance

Leaders who invest in leveling up their team and promote a culture of accountability can experience transformational benefits, such as:

  • Everyone is clear and aligned on what needs to get done.
  • Each team member is accountable, pulls their weight, and goes to great lengths to support one another.
  • Everyone feels safe challenging one another and confronting issues head-on without fear.
  • Team members leverage the unique capabilities of others.
  • Everyone works hard but also manages to have fun and celebrate success.

These benefits translate to strong results within organizations. In fact, research shows that high- performing companies have more accountable teams compared to average or poorly performing companies.

The Whole is Greater Than the Sum of its Parts

Whether it’s an executive team, a departmental team, a cross-functional team, or even a team made up of external partners, organizations have become increasingly reliant on teams to achieve success and guide them through uncertainty.

Given the importance of teams in today’s ever-changing world, it is clear we need to increase our efforts when it comes to building truly accountable teams.

As a leader, you are being counted on to demonstrate accountability and create high-performing teams. Are you stepping up?

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Business

Flowchart: Are You Working for a Toxic Boss?

Most people have had bad bosses, but is your boss toxic? This flowchart helps you discover if you have a toxic boss and what to do about it.

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Flowchart: Are You Working for a Toxic Boss?

The experience of less-than-ideal work situations are common, and the global pandemic has likely heightened challenges for bosses and employees alike. How can mediocre or outright hostile leadership impact your ability to work well?

This flowchart from Resume.io helps you figure out if you’ve got a toxic boss weighing you down. It covers seven archetypes of toxic bosses, and how to respond to each one.

The 7 Types of Toxic Bosses

Barbara Kellerman, a professor of public leadership at the Harvard Kennedy School identifies seven types of toxic bosses that can exist.

NumberToxic Boss TypeDescription
#1Incompetent BossUnable or unwilling to do their job well
#2Rigid BossConfuses inflexibility with strength
#3Intemperate BossLacks self-knowledge and self-control
#4Callous BossLacks empathy and kindness
#5Corrupt BossSteals or cheats to promote their own interests
#6Insular BossIs cliquish or unreachable
#7Evil BossCauses pain to further their sense of power and dominance

Some bosses simply don’t have the capacity to do their jobs, which makes it more difficult for their employees. Others can be corrupt or callous, creating a highly unmotivating work environment.

But how many people are in this situation?

To give a few quick examples, around 13% of all employees in Europe work under a toxic boss. In the U.S., a whopping 75% say they have left a job primarily because of a bad boss.

What’s so Bad about a Bad Boss?

Bosses can make or break your job experience. Having a toxic boss can cause your quality of work to suffer, which can then trickle down to impact your overall career.

In fact, Harvard Business Review found that a toxic work environment can lead to decreased motivation and employee disengagement. This has significant knock-on effects such as:

  • 37% higher absenteeism
  • 60% more errors in their work
  • 18% lower productivity

According to the same study, this can cause companies to have 16% lower profitability and a 65% lower share price over time.

The physical side effects are not to be underestimated, either. One Swedish study found that a bad boss who increases your job strain can, in tandem, increase your chance of cardiac arrest by 50%. Additionally, a study out of Stanford found that mismanagement in the American workplace and subsequent stress could potentially be responsible for 120,000 deaths per year.

Tips to Deal with a Toxic Boss

Bad bosses can hurt the company, the overall work environment, and can impact your professional growth and personal health.

So, what can you do about it?

NumberToxic Boss TypeSolution
#1Incompetent BossUse initiative
#2Rigid BossUse the power of persuasion
#3Intemperate BossLook for opportunities
#4Callous BossAsk for a 1-on-1 meeting
#5Corrupt BossFind co-workers who share your concerns
#6Insular BossOffer them opportunities to open up
#7Evil BossTake a stand

Different kinds of bosses require different approaches, and some simply aren’t worth putting up with. For instance, taking initiative with an incompetent boss is one relatively easy solution, but having a 1-on-1 with a callous boss takes more effort. An evil boss requires intervention from HR.

If you don’t have a toxic boss, consider yourself lucky. Here are two ways to keep your working relationship strong:

  • Take initiative
  • Keep up open communication
  • Ask for constant feedback so you know where you stand
  • Under-promise and over-deliver

What Can Bosses Do?

Toxic bosses can have disastrous consequences on employees and companies. According to one Gallup survey, at minimum, 75% of the reasons for voluntary turnover can be influenced by managers.

After looking at some of the ways employees can address toxic bosses, how can bosses ensure their work environment is healthy? Harvard Business Review recommends four main things:

  • Encourage social connections
  • Show empathy
  • Go out of your way to help
  • Encourage employees to talk to you—especially about their problems

The future of work may be changing, with remote work becoming more popular and feasible. This can pose problems in creating a strong work culture.

However, if bosses and employees can work together to foster a positive and healthy work environment, everyone, including the bottom line, will benefit.

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