As youth unemployment drives a global protest movement, part of the problem is that the costs of starting a business impacts economic growth.
“It takes an entrepreneur 28 days to start a business in Spain but only 1 day to do so in New Zealand," writes Jamal Haidar in a new World Bank research paper.
Haidar demonstrates that the harder it is to start a business the more economic growth suffers in a country. In Yemen it takes 12 days to start a business but it takes 84 % of the average person’s income to finance the process. In Germany it takes 15 days, but only 4.6% of the average person’s income.
As youth look for jobs, it may be in countries' best interest to lower costs by reforming regulations. Haidar has found that "each business regulatory reform is associated with a 0.15 percent increase in growth rate of GDP." More jobs and increased GDP would be helpful for all parties involved.