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Canada remains one of the top countries to start, run a business: report

Canada is open for business! (Thinkstock)
Canada is open for business! (Thinkstock)

Canada remains one of the top countries in the world to start and run a business, according to a new report from the World Bank Group.

The Great White North was just ranked 14th out 189 countries on the World Banks’ Doing Business 2016: Measuring Regulatory Quality and Efficiency rankings.Canada was ranked 13th last year, a drop of one spot. But, Rita Ramalho, manager of the Doing Business rankings and reports, said this drop is nothing to worry about.

A steady, strong reputation

“Short of a dramatic change it means nothing to drop one spot … it’s about the long-term trend,” said Walid Hejazi, an associate professor of international business with Rotman School of Management at the University of Toronto, in a phone interview with Yahoo Canada.

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While there was little significant change in the ease of doing business here, many developing countries implemented business reforms over the past year, which resulted in those countries rising in the rankings. For example, Macedonia jumped from 30 last year to move ahead of Canada in 12th place this time around.

“We should celebrate countries like Macedonia doing well because that means we can do increased trade with them,” said Hejazi, whose research focuses on Canadian competitiveness, multinational business strategies and globalization, in a phone interview.

Canada does not need to feel overly threatened by emerging economies, as we have long been known as a stable place to do business and that’s not likely to change, added Ramalho.

Some room to improve

According to the World Bank the top ten countries for doing business are: Singapore, New Zealand, Demark, Korea (Rep.), Hong Kong (SAR China), the United Kingdom, the United States, Sweden, Norway and Finland.

All 189 countries were assessed on ten pillars: starting a business, dealing with construction permits, getting electricity, registering property, getting credit, protecting minority investors, paying taxes, trading across borders, enforcing contracts and resolving insolvency.

If Canada would like to enter the top ten then it must focus on improving in the areas we did not rank very well on, including getting electricity and dealing with construction permits, said Ramalho. We should also focus on promoting the areas we were rated well in, which include making it easy for people to start businesses, and get credit and pay taxes, noted both Ramalho and Hejazi.

The dawn of a new era

The recent election of Prime Minister-designate Justin Trudeau could help Canada in the rankings next year, said the University of Toronto professor.

The change from a Conservative government led by Prime Minister Stephen Harper to a Liberal government led by Trudeau will likely “soften our international image … it will be helpful,” said Hejazi.

With our spot on the “very influential” Doing Business rankings only dropping one spot and the change in national leadership the professor is “very optimistic” about the future of Canada’s reputation on the world stage as a great place to start and run a business.