As of now, the business environment in the country is anything but favourable. Too many rules and regulations have created bottlenecks of all sorts. Layers of approvals and clearances from different agencies make the process painfully slow. Regulations and over-governance have stifled innovation and creativity. Starting and running a business can be quite a nightmare in the country.
Recently, the Bhutan Chamber of Commerce and Industry (BCCI) identified 235 business-related policies that need reform. Licensing regulations, access to finance, tax regulations, and service delivery top the list of challenges.
Bhutan’s small market size adds another layer of difficulty. Businesses have little room to grow locally. Expanding into regional or global markets should be the answer, but Bhutan lacks the tools to compete. We do not have one globally recognised product or brand. And not a single local start-up has made it big internationally. Why?
This is not due to a lack of talent or ideas but because of the system.
A thriving private sector can drive growth, create jobs, and bring prosperity to the nation. But the private sector in the country, often touted as the “engine of economic growth”, is unfortunately riddled with a plethora of challenges.
Policies are designed with little understanding of business realities. And entrepreneurs are burdened by red tape and an environment that discourages success.
The mindset within the system needs a radical shift. Reforming the business environment requires bold action. Rules must be simplified. Approval processes need to be streamlined. Unnecessary regulations should be scrapped. A single-window system for clearances could cut through much of the red tape.
Foreign investment is essential for growth. To attract investments, we must create a stable and welcoming business climate. Investors look for clear rules, fewer hurdles, and the confidence that their ventures will succeed. Yet, the foreign direct investment policy has been stuck with the cabinet for months now. The government must take swift action wherever necessary.
Our entrepreneurs and start-ups must also look outward. Competing in regional and global markets demands superior products and effective marketing. That’s where the government must step in to support sectors with potential. That’s where the government can help develop the ecosystems, from infrastructure to financial incentives, to support their growth and expansion.
Technology can play a transformative role. By embracing innovation, we can modernise business processes and create a more dynamic economy. For instance, we need to develop reliable and efficient international payment gateways to facilitate trade. Yet, we talk about digital economy.
Collaboration between the government and the private sector is key. Business leaders understand the challenges on the ground and should have a seat at the table when policies are made. This partnership can ensure that reforms are practical and effective.
Continuing in the business-as-usual mode is no longer an option. Without immediate and meaningful reforms, we risk falling behind.
Going forward, we must strive to create an environment where businesses can thrive. This requires simplifying processes, supporting innovation, and fostering a culture that celebrates success. And this will only happen when policymakers think like entrepreneurs, not regulators.