Topic 4 – WAREHOUSING AND INVENTORYING FOR SMALL BUSINESSES
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Less Corruption
Countries with more stringent regulatory environments for setting up businesses and entrepreneurship often experience greater forms of corruption. For one, if the requirements of setting up a business are overtly burdensome for smaller entrepreneurs or businesses, they often turn to the informal sector to run their operations. This often has less protection for labor conditions, is more vulnerable to economic shocks, and often provides corruption loopholes that end up adding to the costs of doing businesses for them.