The DCED defines the business environment as a complex of policy, legal, institutional, and regulatory conditions that govern business activities (DCED, 2008). It is a sub-set of the investment climate. Business environment reform (BER) aims to reduce the costs and risks of business activity by improving poor government policies, laws and regulations, and by stimulating competition through new market entrants.
For more specific resources on adjusting BER programmes in response to the COVID-19 pandemic, please refer to the DCED knowledge pages on Adjusting PSD interventions in the short term, and Promoting economic recovery and resilience.
The DCED Business Environment Working Group have produced the following video introducing the approach:
Policy brief 
Summary
Four-page brief summarising the findings of a review of the theory and practice on MSE-oriented business environment reforms.
Four-page brief summarising the various models of preferential treatment of SMEs in public procurement as well as their impacts and lessons learnt.
Four-page brief exploring the ways that BER can contribute to labour productivity improvements as well as good practices and policies in this field.
Two-page summary of the DCED’s extensive review of experience and evidence in this area.
DCED members are working through the Business Environment Working Group (BEWG) to review experience and develop good practice guidance on key aspects of BER. A full list of DCED publications on BER is available here. This section lists the most recent publications produced by the BEWG, and the Top 5 most downloaded BEWG resources during the last year.
Recent publications:
- Policy brief: Using Business Regulation in Re-opening the Economy following the COVID-19 Pandemic, 2021
- Policy brief: Lessons Learned on the Role of Business Regulation in Economic Recovery from the COVID-19 Pandemic, 2021
- Research report: Public Private Dialogue (PPD) with the Use of New Technologies: A focus on feedback tools and their integration with data-driven policy reform, 2021
- Discussion paper: Business Environment Reforms in Fragile and Conflict-Affected Situations, 2020
- Summary note and case studies: Use of New Technologies in Regulatory Delivery, 2020. Also accompanying 7-page policy brief.
- Study report: Promoting Economic Transformation through Business Environment Reform, 2019. Also accompanying 8-page policy brief.
Top 5 downloads:
- Study report: Promoting Economic Transformation through Business Environment Reform, 2019
- Technical report: Creating Better Business Environments for Micro and Small Enterprises, 2018
- Working paper: How to create an enabling environment for inclusive business? Learning from experience and debates in private sector development, 2016
- Study report: Business Environment Reform and Investment Promotion, 2019
- Guidance: Supporting Business Environment Reforms. Practical Guidance for Development Agencies, 2008
- The enabling environment for private sector development. Donor spending and links to other catalytic uses of aid, Devinit, 2018
- What Works in Business Environment Reform in Sub-Saharan Africa and South Asia, BERF, 2017
- How Business is Done in the Developing World: Deals versus Rules, Hallward-Driemeier and Pritchett, 2015
- Is there a causal link between investment climate and growth? A review of the evidence, LASER, 2015
- Business environment reform and poverty: rapid evidence assessment, DFID, 2015
- Business Environment Reform and Investment Promotion and Facilitation: Rapid Evidence Assessment, DFID, 2015
Overarching tools and guidelines
General diagnostics and management guidelines
- Investment Climate Reform Toolbox, ICR Facility, 2021
- Business Environment Reform Guidelines, EC, 2020
- The Business Environment Reform Diagnostic (BERD) Process: Guidance for Consultants, BERF, 2016
Implementing BER in fragile and conflict-affected contexts
Integrating gender considerations into BER programming
- Business Environment Reforms to Support Women-Owned Businesses in ACP Countries: Legal, administrative and policy reforms to access finance and manage businesses, ICR Facility, 2021
- DCED webinar on Gender and Business Environment Reform, 2020
- Women, Business and the Law 2020, World Bank, 2020
- Scoping Study on Customary Law and Women’s Entrepreneurship, BERF, 2017
- Scoping Study on Gender Differences in Enterprise Surveys, BERF, 2017
- Business Environment Reform and Gender, Technical paper, DCED, 2016
Linking BER to the local political economy
- Political Economy Analysis of the Business Environment in 11 Middle Income Countries, Duncan and Kingsmill, 2018
- Adaptive programming in practice: shared lessons from the DFID-funded LASER and SAVI, DFID, 2016
- Delivering institutional reform at scale: Problem-driven approaches supported by adaptive programming, DFID, 2016
- The Political Economy of Business Environment Reform: An Introduction for Practitioners, DCED, 2011
Practical resources on key areas of business environment
- Legislative Guide on Key Principles of a Business Registry, UNCITRAL, 2019
- Business Registration: What do we know about the effectiveness of business registration support and reforms? Key studies referenced in the DCED Evidence Framework, DCED, 2017
- Formalisation of smallholder agriculture and agri-business, BERF, 2016
- Studies on business formalisation compiled by the World Bank Doing Business Initiative
- Enhancing the Effectiveness of External Support in Building Tax Capacity in Developing Countries, IMF, OECD, UN and World Bank Group, 2016
- Studies on paying taxes compiled by the World Bank Doing Business Initiative
- What’s happening in the missing middle? Lessons from financing SMEs, The World Bank Group, 2017
- Access to Finance for Small and Medium Enterprises in Africa, The World Bank and ACET, 2016
- Studies on access to credit and protection of minority investors compiled by the World Bank Doing Business Initiative
- Applying labour law to MSMEs: A comparative study of 16 countries, ILO 2020
- Business Environment Reform and Labour Productivity, DCED, 2017
- Barriers to Job Creation and Labour Market Access for Youth in Sub-Saharan Africa, BERF, 2017
- Working Conditions, Work Outcomes, and Policy in Asian Developing Countries, ADB, 2016
- The Impact of Land Property Rights Interventions on Investment and Agricultural Productivity in Developing Countries: A Systematic Review, Lawry et al., 2017
- Land Sector Reforms in Ghana, Kenya and Vietnam: A Comparative Analysis of Their Effectiveness, Narh et al, 2016
- Studies on registering property compiled by the World Bank Doing Business Initiative
- PublicPrivateDialogue.org (multi-agency website compiling practical guidelines, case studies and more)
- Making Business Membership Organisations Work for the Poor. Case Study of ENABLE Nigeria, The Springfield Centre and Adam Smith International, 2016
Methodological advice
- How to Measure Value for Money in DFID Business Environment and Investment Climate Reform Initiatives Delivered by the IFC: An Evidence and Learning Note, BERF, 2016
- Measuring Business Environment Reform, DCED, 2013. There is also an associated Sample list of indicators.
Evaluations
- Evaluation Study: Trends and Lessons Learned on Improving Framework Conditions for PSD in the Global South, Danish MoFA 2021
- ILO’s Strategy and Actions towards the formalisation of the Informal Economy, 2014-2018, Independent Evaluation, ILO 2019
- An Impact Assessment of OHADA Reforms; Uniform Acts on Commercial, Company, Secured Transactions, and Insolvency, IFC/OHADA, 2018
- External Review of Enabling the Business of Agriculture, ITAD/DFID, 2018
- An Independent Evaluation of World Bank Group Support to Reforms of Business Regulations, IEG, 2015
- World Bank Group Data Site on trade and competitiveness TCdata360 by the Macroeconomics, Trade and Investment Global Practice, 2018
- Business environment diagnostics and other studies in 14 countries are available on the DFID archive site for the Business Environment Reform Facility (BERF)
- Enabling the Business of Agriculture, The World Bank, 2017 (compares national laws and regulations for agribusiness)
- World Bank Doing Business Reports
- World Bank Enterprise Surveys
Photo credits: Simon Davis/DFID; Tran Viet Duc/Bronwyn Cruden, Global Affairs; UNSOM/ Somali Ministry of Trade dialogue with youth innovators, flickr.com; Canada DFID, solar energy, flickr.com