Meeting the Global Challenges of Doing Business in the Five Candidate Countries on the Road to Join the European Union

Abstract

The success of indigenous business firms is no longer exclusively an internal process given increasing competition and globalization. Achieving success under dynamic conditions requires active involvement of governments to provide proper environments for local businesses to survive global challenges. Many also want to attract foreign investors to start new businesses. The role of governments is no longer limited to providing preconditions for basic infrastructure needs but now also includes fortifying business environmental factors such as the Internet, legal systems, trained work forces, and equitable tax systems. The purpose of this study is to investigate the conditions in Albania, The Former Yugoslav Republic of Macedonia (FYROM), Montenegro, Serbia, and Turkey. Using the Enterprise Survey from the World Bank, this study evaluates these nations’ adaptation to the global challenges of doing business. These five nations were selected because of their status of potentially joining the European Union (EU). The findings indicate that there are problems and significant gaps among these nations. Suggestions include that national leaders develop policies that go beyond simply addressing the identified obstacles. Additionally, company managers can also use the insights from this study when evaluating these nations as potential EU members before entering these markets.