Boosting Business in Regions

Businesses thrive when their surrounding environment supports entrepreneurship, investment and growth. This report examines two aspects of the regional business environment: regional institutional quality and access to debt finance, the primary source of financing for most firms. It explores how the two aspects influence firm performance across regions and how reducing administrative burdens or improving access to finance can affect output, employment and entrepreneurship across regions. Drawing on international evidence and OECD country practices, the report provides recommendations on how to improve the regional business environment through efficient regulations, digitalising and simplifying compliance processes, and targeted access to finance policies such as public development banks and credit guarantee schemes.