Even though an enterprise’s direct costs may appear to be manageable at first glance, the economic cost of difficulties in entering the market and, as a result, weaker competition should not be underestimated.
For example, studies indicate that the differences between the cost of entering the market in the USA and in the EU, though relatively small, could still account for 10% to 20% of the EU’s productivity shortfall. The costs of removing red tape are comparatively low and could help strengthen growth.