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The following are some of the ways that can limit enterprenurial development.
1- Taxations
Political regimes are always promising to do something to taxes and so if you believe regime may increase taxes on your area of business, you may may be less inclined to take risk in that area that would be consindered.
2- Political stability.
When there is no political stability opening and operating a business is expensive and risky in the region. When the country goes to war it decreases business and it can harm the quality of the currency exchange.
3- Level of corruption.
Identifies the level of dishonest, unethical and illegal practices that are imposed on people and businesses operating in a region.
Imagine that company pays the government to keep the competitor out. This prevents further economic development and can cause a monopoly that makes services very expensive.
4- Trade laws.
This are the local and international policies that impact the importations or exportations of goods.
Trade laws are political factors because government and politicians develop the policies regarding trade. Trade include tariffs, or fees taxes imposed on certain imports or exports.
5- Property right.
That is, what is the point of openning a successful business if the government, mobsters or competitors can just steal your ideas from you.
If you know as soon you come up with something, that you will be killed so that someone else can profit from it, that is pretty heavily negative influence.
misha254 answered the question on June 5, 2019 at 10:12
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