Doing Business in Peru 2020 —the first subnational Doing Business study in the country—assesses the regulatory environment for small and medium-size enterprises across 12 cities in Peru (Arequipa, Callao, Chachapoyas, Chiclayo, Cusco, Huancayo, Huaraz, Ica, Lima, Piura, Tarapoto, Trujillo). The study measures regulations relevant to four stages in the life of a small to medium-size domestic firm: starting a business, dealing with construction permits, registering property and enforcing contracts. In each of these areas, the study highlights good practices and opportunities for improvement.
- Lima is the city where it is easiest to do business in Peru. Among the 12 cities studied, Lima is the only one that ranks among the highest on three indicators; Huaraz, which has the second highest ranking, stands out on two. Arequipa, Callao, Huancayo, Ica, Tarapoto and Trujillo all perform well on at least one indicator.
- What regulations are in place and how these are implemented in different cities can make some aspects of doing business easier than others. The cities’ rankings on each of the four indicators in this study reveal opportunities to improve, as the same city may perform better in some areas than in others.
- The efficiency of specific procedures depends on the location. Although the regulatory framework is the same across all the cities, the times required to complete the procedures vary substantially from place to place.
- There are considerable performance gaps within Peru, primarily related to starting a business and enforcing contracts. However, across the four indicators the differences are even more significant when the results in the Peruvian cities are compared with those in other global economies.
- Doing Business in Peru 2020 is the first subnational study done in the country. The results highlight areas for improvement and point to local and international good practices that can guide reform initiatives as Peru moves forward with the priority goals it has laid out in its National Competitiveness and Productivity Plan.