People start and run businesses in a setting of traditions, customs, rules and regulations. This business enabling environment (BEE) heavily influences business success. Even in the best of circumstances, business creation, development and operation is challenging, and a business environment that places too many burdens on businesses can stifle economic growth. However, a business environment that does not put undue burdens on business activity, and provides key support for such activity, plays a crucial role in income generation and economic expansion.
Good practices in the field of land tenure and property rights are important to the development of a robust BEE overall. These good practices include providing secure land rights so that land holders will be motivated to work hard and invest, making land rights transfers easy and transparent so that land can flow to those interested in using it, and having clear and predictable land-use regulations that minimize government obstacles to private action while advancing broad societal objectives (safety, planning, etc.). Other important practices include land tax policy that encourages compliance and keeping land in the formal economy, and methods for resolving land disputes that are quick, cost-efficient, and can be relied upon.
Photo Credit: Bobby Neptune for USAID