The opportunity to find a job or develop one’s business idea is crucial for most people’s personal satisfaction. It creates a sense of belonging and purpose and can provide an income that delivers financial stability. It can raise people out of poverty or prevent them from falling into it. But what does one need to find a job or to start a business, especially if that job or business is in the private sector? Many things are needed, but well-functioning markets—that are properly regulated so that distortions are minimized are crucial.

Governments play a pivotal role in establishing these well-functioning markets through regulation. If the land registry is not required to provide reliable information on who owns what, for example, the efficacy of the property market is undermined making it difficult for entrepreneurs to acquire property, put their ideas to practice and create new jobs. Without well-regulated credit information sharing systems it is difficult for credit markets to thrive and be more inclusive. A properly functioning tax system is also key. Where the burden of tax administration is heavy—making it difficult to comply with tax obligations—firms will have an incentive to avoid paying all taxes due or may opt for informality, thereby eroding the tax base.