MGT 2228: Global Entrepreneurship - Ease of Doing Business Report

This report compares the business environments of New Zealand and Somalia, focusing on the ease of doing business. It analyzes the political, social, cultural, and economic factors that influence entrepreneurial performance in each country, drawing on data from the World Bank's 'Doing Business' report. The report highlights New Zealand's favorable environment, including political stability, infrastructure, and business-friendly policies, contrasting it with Somalia's challenges such as political instability, poor infrastructure, and cultural biases. The analysis explores similarities and differences in hiring practices, economic policies, and the impact of cultural attitudes on entrepreneurship, particularly concerning women. The conclusion emphasizes the factors that contribute to a conducive environment for business growth and provides insights into the challenges and opportunities for entrepreneurship in both nations.

Global Entrepreneurship
Students Name
Institution

Ease of Doing business 1
Introduction
According to 2018 Doing business report 2018 done by the World Bank Group, New
Zealand provides a conducive environment for the growth of businesses. Unfortunately, the
disparities in entrepreneurial performance in the two countries can be attributed to the respective
political, social-cultural and economic factors present in each respective country. Noteworthy,
New Zealand political environment has been stable for a while .However, Somalia has
experienced a series of political unrests and rebel attactks. Undeniably, cultural attitudes have
also contributed to the performance of entrepreneurial activities in both nations. Remarkably,
Somalian cultural gender-based bias is in the process of changing thus bridging the gender
inequality gap at the workplace. Whereas New Zealand and Somalia share similar economic
policies, the economic outcomes in the two countries differs. Since the year 2018, the New
Zealand government has made further reforms to ease the business startup process, unlike
Somalia. Overall, Somalia struggles with political stability, poor infrastructure, inadequate laws
and institutions, less advanced technology, education and training, and other economic
challenges thus the poor performance on the global ease of doing a business index. Undoubtedly,
New Zealand has earned its position on the global ease of doing a business index due to the
enabling environment for small business to grow that it has provided.
Notably, there is a political governance system difference between New Zealand and
Somalia. Basically, New Zealand is a constitutional monarchy with a democratic parliament
(Common Wealth, 2019). Usually, good entrepreneurial environment is facilitated by favorable
government policies, technology, culture, education, training among other factors. Of equal
importance is political stability to development. Whereas New Zealand has enjoyed a stable
political environment over the years, Somalia has had a turbulent history with political stability.

Ease of Doing business 2
Despite the difference in entrepreneurship index, both countries share similar features on hiring
and working hours. However, Somalia has six working days while New Zealand has 7 working
days (World Bank Group, 2019). Notably, both countries have entered into regional economic
pacts and agreements to boost open markets for their entrepreneurs. Additionally, both countries
have implemented taxation systems on personal and corporate income. Remarkably, New
Zealand is far more developed than the Somalian business environment due to better policies,
peace, better technological advancements, online registration, payment and renewal systems for
entrepreneurs. Despite the similarities of policies between the two countries, the performance
differs due to respective country social political and economic factors. Overall, the political
stability in Somalia is likely to further the agenda of creating a business growth enabling
environment.
Currently, New Zealand has made progressive business reforms such as reduced
incorporation fees, online payment of fees and taxes and reduced electricity connection waiting
time among other reforms unlike Somalia (World Bank Group, 2019). Unlike New Zealand,
women entrepreneurship is encouraged rather than discouraged as opposed to Somalian women.
Due to the cultural attitudes towards the role of women in society, few Somali women are
encouraged to take up entrepreneurial opportunities but instead stay home and be homemakers
while the men work. Specifically, the New Zealand government was the first nation in the world
to grant women voting rights in the year 1893. However, more Somali women are taking up the
challenge and venturing into entrepreneurship despite the cultural bias (Sheikh, Hasaballah &
Ibrahim, 2014). Overall, more Somali women are breaking the gender biased approach to
entrepreneurship engineered by cultural attitudes by establishing and managing business
enterprises (International labor organization, 2014). Fortunately, positive cultural attitudes

Ease of Doing business 3
towards women are evolving globally thus the possibility of more female entrepreneurs
venturing into leadership and entrepreneurial roles in countries where there was gender bias
against women entrepreneurs. Notably, New Zealand is more liberal and inhibited economically
as compared to the Somali Republic hence contributing to the difference in the economic
development of the two countries on similar indicators.
Whereas New Zealand boasts of proper infrastructure, public management institutions
and mechanisms, effective monetary policies and massive national debt, Somalia isn’t as lucky
thus the limited entrepreneurial outcomes. Somalia struggles from poor infrastructure which is
unable to support the growth of small businesses be it through transport, communication thus the
poor performance in terms of ease to do business. Also, political instability has denied the
stability needed for businesses to flourish. On the other hand, New Zeland has good physical
infrastructure such as good transport system, online payment, registration, renewal systems for
businesses thus lessening the business environment. Additionally, New Zealand enjoys massive
open free markets and regulatory mechanisms in intellectual property unlike the Somalian
entrepreneurs (Department of International Trade, 2016). Inevitably, gender bias due to cultural
inhibitions has derailed the participation of women in entrepreneurship in the Somalian republic.
However, this negative cultural attitude is changing with time thus boosting the economic
outcomes of the Somali economy. Notably, New Zealand cultural attitude towards working
women has been evident since the year 1893 when women were first granted voting rights hence
a positive attitude towards working women as contrasted with Somalia which is so evolving
every single day with women being aggressive in making decisions directly affecting them.In
essence, Somalia is still biased against women working.

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Conclusion
Undeniably, New Zealand has earned its position as the easiest place to start a business
globally. Remarkably, the political, social and cultural elements of the New Zealand
environment are conducive for the start-up of small and middle-sized enterprises. Unlike New
Zealand, Somalia suffers from political unrest, poor infrastructure, poor public management
systems, and cultural bias against the female gender among other challenges while New Zealand
has start-up incentives for upcoming businesses, online forms and fee payment systems, proper
infrastructure, tax reduction tariffs on income and corporate revenue, advanced technology
among other enabling factors. Undeniably, political stability, established infrastructure, good
economic incentives such as favorable taxes, technological advancements are among the factors
that propel entrepreneurship. However, the Somalian government is still putting in place such
measures to boost entrepreneurial outcomes in the country. Overall, New Zealand is the best
environment in the world for the growth of upcoming business ventures.

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References
African Development Bank. (2019).Somalia economic outlook. Retrieved from
https://www.afdb.org/en/countries/east-africa/somalia/somali
a-economic-outlook/
Sheikh. A.A.Y, Hasaballlah, A.H.A & Ibrahim, S. (2014). Entrepreneurial Orientation and
Performance of Women Entrepreneurs in Somalia. Retrieved
from http://repository.sustech.edu/handle/123456789/10502
Commonwealth. (2019). New Zealand: constitution and Politics. Retrieved from
http://thecommonwealth.org/our-member-countries/new-
zealand/constitution-politics
Department for International Trade. (2016).Doing business in New Zealand: New Zealand trade
and export guide. Retrieved from
https://www.gov.uk/government/publications/exporting-to-
new-zealand/exporting-to-new-zealand
International labor organization. (2014). ILO to mark the Month of Women Entrepreneurs in
Somalia. Retrieved from
https://www.ilo.org/global/docs/WCMS_235797/lang--en/ind
ex.htm
Ministry of women affairs. (2010). CEDAW Report New Zealand’s seventh report on its
implementation of the United Nations Convention on the
Elimination of All Forms of Discrimination against Women.

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Retrieved from
https://women.govt.nz/sites/public_files/cedaw-2010.pdf
World Bank Group. (2019).Doing business 2019. Retrieved from
http://www.doingbusiness.org/content/dam/doingBusiness/co
untry/s/somalia/SOM.pdf
World Bank Group. (2019).Doing business 2019. Retrieved from
http://www.doingbusiness.org/content/dam/doingBusiness/co
untry/n/new-zealand/NZL.pdf