The current regulatory environment inBangladesh discourages the entry of innovativebusinesses.Entrepreneurs face a myriad of regulatorybarriers including an absence of laws and regulations thatclarify the rules of the game for new activities (regulatorygaps), and conflicting definitions and interpretations(regulatory ambiguity).Typically, rules and regulations areannounced without prior notice, consultation or impactassessment. As a result, they do not benefit from thepractical knowledge that businesses have. Even welldesignedrules and regulations cause problems if announced suddenlyand with immediate effect.There are inconsistencies and gapsin rules and regulations.Government agencies often imposetheir own rules and procedures without considering possibleconflicts with rules and procedures imposed by othergovernment agencies.Businesses find it difficult to findinformation on existing rules and regulations.Regulatoryofficials use undue discretion in dealing withbusinesses.Many regulatory areas lack an effective grievanceredressal system.Insecure property rights alsodis-incentivize businesses from makinginvestments.Regulatory unpredictability hampers businessentry and day to day business operations; however, thedegree depends on the size of the business.
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