Both land access and security of tenure are important for firm establishment and growth and for local economic development. All businesses require land to operate, whether for manufacturing facilities, shop space or offices. But the ease of land access depends on the supply and demand in the market as well as on government decisions. In developing countries where governments likely remain the biggest land owners, their decisions directly influence the success of firms’ land acquisition efforts. Leasing is a common way to acquire land for business. When a firm acquires a lease, its assurance of secure tenure is important. Without security, firms face higher risk and will have less motivation to expand.
The Access to Land/Security of Tenure Sub-index aims to measure the formal rights to business premises and the perceived security of tenure once land is properly acquired.
The higher overall index score along with the individual scores for sub-indices always refer to a better performance within the context of the BEI.