Value Chain Glossary: Business Enabling Environment
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Business Enabling Environment
The business enabling environment (BEE) includes norms and customs, laws, regulations, policies, international trade agreements and public infrastructure that either facilitate or hinder the movement of a product or service along its value chain. At one end of the spectrum, conventions, treaties, agreements and market standards shape the global business enabling environment. Trade agreements, such as the Lomé Convention or Africa Growth and Opportunities Act (AGOA), can open opportunities for firms; simultaneously, complying with international standards such as GLOBALGAP and USDA’s Animal and Plant Health Inspection Service (APHIS) program can be expensive for small firms, precluding them from being competitive. The business enabling environment at the national and local level encompasses policies, administrative procedures, enacted regulations and the state of public infrastructure. Analysis of the BEE at these levels may need to be further broken down in terms of firm size since there may be constraints and opportunities distinctly facing micro and small enterprises (MSEs). In addition to these more formal factors, social norms, business culture and local expectations can be powerful aspects of the business enabling environment. BEE constraints can therefore be difficult to resolve—sometimes requiring considerable time, resources and political and social capital.
Related Articles
- Business Enabling Environment
- Briefing Paper: Business Enabling Environment
- Microlinks Enabling Environment Resources page
