Governments need to implement clear, transparent, and consistent regulations that oversee business operations. Having stable laws and policies minimizes uncertainty, which can be a major obstacle to investment. By providing predictable rules related to taxation, labor laws, environmental regulations, and trade, governments can foster a conducive environment for both domestic and international entrepreneurs.
## 1. **Regulatory Framework and Policy Stability**
Governments should establish clear, transparent, and consistent regulations that govern business activities. Stability in laws and policies helps reduce uncertainty, which is a significant deterrent to investment. By ensuring predictable regulations regarding taxation, labor laws, environmental standards, and trade, governments can create a business-friendly atmosphere that encourages both local and foreign entrepreneurs.
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