Here you can see the relationship between how hard it is to start a business and the unemployment rate. Do you want a high unemployment rate in your country? Make it hard to start a business.
Obviously unemployment rates depend on a variety of factors, but governments sincere about lowering their unemployment rates would great a great return from making entrepreneurship easier. (I argue incessantly that the task for policy makers in this new economy is to popularize entrepreneurship just as successful policy makers popularized knowledge work in the Information Economy.)
If you want to stymie economic growth in an Industrial Economy, make it difficult to attract or create capital. If you want to stall growth in an Information Economy, make education expensive and unattainable for large swaths of people. And if you want to frustrate growth in an Entrepreneurial Economy, make it hard to aspiring entrepreneurs to start a business. It certainly seems to work for countries like Italy, Greece, and Spain.
Data for the above graph.
| Hard to Start Biz | Unemployment | |
| Italy | 96% | 20% |
| Greece | 93% | 24% |
| Spain | 82% | 25% |
| Portugal | 80% | 16% |
| Lithuania | 72% | 13% |
| Latvia | 71% | 15% |
| Slovenia | 69% | 9% |
| Ireland | 69% | 15% |
| Romania | 68% | 7% |
| Slovakia | 68% | 14% |
| Cyprus | 67% | 12% |
| Bulgaria | 66% | 12% |
| France | 66% | 10% |
| Czech Republic | 61% | 7% |
| United Kingdom | 59% | 8% |
| Belgium | 58% | 8% |
| Croatia | 57% | 16% |
| Denmark | 54% | 8% |
| Poland | 52% | 10% |
| Netherlands | 49% | 5% |
| Hungary | 48% | 11% |
| Finland | 46% | 8% |
| Germany | 46% | 5% |
| Estonia | 44% | 10% |
| Austria | 43% | 4% |
| Luxembourg | 33% | 5% |
| Sweden | 25% | 8% |
| Malta | 21% | 6% |
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