Factors Affecting Number of MSMEs in Different Countries

Abstract

This paper seeks to examine the impact of various factors like the number of startup procedures, the time required to get an electricity connection, availability of internet servers, judicial processes, lending rate, percentage of young population, corporate tax, and land administration processes on the number of MSMEs (per ten thousand inhabitants) in a country. We aim to develop a linear regression model showing the effect of the above-stated factors on the number of MSMEs. The results show that there is a relationship between all the independent variables and the dependent variable, excluding 2 independent variables which were dropped from the model. There was a positive relationship between the dependent variable which is the number of MSMEs, and the independent variables Internet servers, and land administration processes. There was a negative relationship of the dependent variable with the independent variables - number of Startup procedures, days required to get an electric connection, lending rate, and corporate tax.