Business Environment in Latvia and Its Assessment in the Ratings of International Organizations

Abstract

The quality of business environment has important influence on the social and economical development of the state. In order to follow these processes in the business environment and to analyze them, it is important to research information about ratings that characterize this business environment, the method that is applied assigning these ratings, regulation of entrepreneurship and other issues. Globally business environment in each country is assessed by ratings assigned to by different international organizations. The most important ratings are the following: Business Environment Assessment Rating (The World Bank research Doing Business), Global Competitiveness Ranking, Index of Economic Freedom, Global Well-Being Index, Corruption Perceptions Index etc. The ratings (indices) that are assigned by these organizations from a very wide range of viewpoints assess the competitiveness, business environment, economical freedom, level of prosperity, corruption and other spheres. The annual analysis of international organizations reveals which administrative obstacles; bureaucratic barriers and regulating norms create problems for entrepreneurs. Analyzing the dynamics of index data it is possible to determine in which spheres the situation has improved and where is has deteriorated. This enables the assessment of the results of the measures that have been carried out and helps to identify new problems, where finding a solution the business environment in Latvia could be improved.