74666 Overview Mexico is a country open to international City represents Mexico in the annual Doing Aguascalientes and Chiapas. Colima imple- trade. It has already signed 11 free trade Business report, which compares 183 econo- mented reforms making it easier to do busi- agreements with 43 economies.1 The ad- mies worldwide. However, entrepreneurs ness in the 4 areas measured in the report vantages of Mexico as an open market are across Mexico face different regulations and climbed to first place for the first time. multiplied by the opportunities offered by and local practices depending on the state its internal market of more than 112 million and city where they do business. Therefore, It is still faster and cheaper to start a business people. Mexico is the 11th largest economy regulatory improvements require the coordi- in Guanajuato, while in Colima it is easier to worldwide in terms of gross domestic prod- nation of the 3 levels of government: federal, deal with construction permits. Registering uct and the second in Latin America.2 Since state and municipal, and the support of the property is easiest in Aguascalientes, and Mexico is not the only country promoting an legislative and judicial bodies, as well as key enforcing contracts is less complicated in attractive business environment, it is more stakeholders, such as notaries. In 2005, in Zacatecas than in any other state. important than ever that it continues to an effort to examine this regulatory diversity, Some states, such as Colima, Hidalgo and improve its competitiveness. A failure to do the Office of the President requested a study San Luis Potosí have a relatively consistent so would be a missed opportunity. Business that would go beyond Mexico City. This led performance across the 4 areas measured regulations are especially relevant because to the creation of the Doing Business in Mexico in Doing Business in Mexico 2012; others they are implemented by the government subnational series. Doing Business in Mexico are characterized by wide variation across and have an immediate impact. 2012 is the fourth report in this series. the indicators. For example, in Durango, Doing Business measures and tracks changes The results comparing 31 states and Mexico Quintana Roo and Tamaulipas it is relatively in the regulations as they apply to domestic City are presented here (table 2.1). It is easier and cheaper for an entrepreneur to small and medium-size companies. Mexico easiest to do business in Colima, followed by obtain a construction permit than it is in the other states, but more difficult to start FIGURE 2.1 For some states uneven performance across areas reveals potential for further improvement a business (figure 2.1). Differences across areas of business regulation provide an DURANGO Indicator with the lowest performance: opportunity for policy makers interested Ranks 32nd on Starting a business in regulatory reform. In addition, research Overall ranking in : Ranks 19th suggests that business regulation reforms Indicator with the highest performance: Ranks 4th on Dealing with construction permits may have a greater impact if combined with effective regulation in other areas. Ranking (1-32) Another measure used to determine how much has been achieved is to compare each state against its own past performance over time. Since 2006, each of the states has reduced the time it takes to start a business. Eighteen states and Mexico City reduced time by more than half (figure 2.2). Likewise, for COLIMA AGUASCALIENTES CHIAPAS GUANAJUATO SAN LUIS POTOSÍ SINALOA SONORA MICHOACÁN CAMPECHE COAHUILA HIDALGO ZACATECAS VERACRUZ TABASCO NUEVO LEÓN YUCATÁN QUERÉTARO STATE OF MEXICO DURANGO CHIHUAHUA JALISCO TAMAULIPAS NAYARIT OAXACA PUEBLA TLAXCALA QUINTANA ROO MORELOS BAJA CALIFORNIA MEXICO CITY BAJA CALIFORNIA SUR GUERRERO 23 states, administrative or digitalization im- provements in public registries have cut time by 32% on average, from 44 to 30 days be- tween 2006 and 2011 (figure 2.3). In Jalisco, Note: The figure illustrates the highest and lowest topic rankings per state for each of the 4 indicators in Doing Business in Mexico 2012. Quintana Roo, Sinaloa and Tamaulipas, time Source: Doing Business database. was reduced by almost 70%. OVERVIEW 11 TABLE 2.1 Where is it easier to do business in México? in states with less burdensome additional Overall Overall start-up procedures.7 Dealing with ranking Doing ranking Doing Starting a Registering Enforcing State construction Business in Business in Mexico business permits property contracts FEDERAL REFORMS Mexico 2012 2009* Colima 1 6 6 1 3 2 Aguascalientes 2 1 12 2 1 3 In August 2009, the Ministry of Chiapas 3 2 21 6 2 11 Economy launched the online one-stop Guanajuato 4 3 1 7 7 21 shop tuempresa.gob.mx. The site allows San Luis Potosí 5 8 8 9 9 13 entrepreneurs to obtain authorization for a Sinaloa 6 4 10 12 10 4 Sonora 7 12 18 8 8 19 company name and to make relevant pay- Michoacán 8 11 9 16 6 9 ments online; the entrepreneur has the option Campeche 9 9 17 23 4 8 to create a draft of the deed of incorporation Coahuila 10 7 22 10 22 7 and choose the notary. Finally, the notary Hidalgo 11 14 11 16 14 10 Zacatecas 12 5 28 16 11 1 files the deed of incorporation online with the Veracruz 13 17 5 27 5 22 Public Registry of Commerce and obtains the Tabasco 14 13 24 11 15 15 Federal Tax Registration (Registro Federal de Nuevo León 15 21 7 26 13 16 Contribuyentes). Today, starting a business in Yucatán 16 22 2 20 23 17 Querétaro 17 15 20 13 17 19 Mexico City requires 3 fewer procedures and State of Mexico 18 28 4 24 17 24 can be completed in 9 days (figure 2.5). This Durango 19 16 32 4 30 5 reform required the coordinated efforts of 13 Chihuahua 20 10 30 31 12 5 Jalisco 21 25 16 16 29 14 different offices at all 3 government levels: Tamaulipas 22 18 31 4 26 18 federal, state and municipal. The Asociación Nayarit 23 23 26 14 27 11 Mexicana de Secretarios de Desarrollo Económico Oaxaca 24 26 14 28 16 27 (AMSDE) —the institution that coordinates Puebla 25 19 15 25 19 26 Tlaxcala 26 24 19 15 20 30 the Economic Development Secretaries or Quintana Roo 27 20 27 3 31 28 its equivalent in the states— has been an Morelos 28 27 3 32 24 31 ally in implementing the new online system Baja California 29 31 25 29 21 23 tuempresa.gob.mx. Mexico City 30 32 12 20 32 29 Baja California Sur 31 29 23 22 28 32 Guerrero 32 30 29 30 25 25 In April 2010 the Ministry of Economy Note: Rankings for all states are current as October 2011. began to prepare a draft decree to amend *The overall rankings for Doing Business in Mexico 2009 are based on the 4 indicators measured and reflect data corrections. the company law (Ley General de Sociedades Source: Doing Business database. Mercantiles) to eliminate the minimum capital requirement for limited liability com- An analysis of Enterprise Surveys conducted may be forced to do business transactions panies. The reform, in force as of January 1 by the World Bank in 7 Mexican states3 shows only with people they know, limiting their 2012, enables entrepreneurs to freely deter- the correlation between the ease of enforc- dealings to a few businesses, curtailing com- mine the amount of initial capital in the deed ing a contract and productivity: in Coahuila, petition and deterring labor productivity. of incorporation. This amendment is aimed Jalisco and Nuevo León, where resolving a not only at placing Mexico at the level of commercial dispute is more efficient, labor Other studies show the relationship between countries like France, Germany or Malaysia, productivity for small and medium-size busi- regulatory burdens and economic informality but also at benefiting small companies for nesses is higher than in Mexico City, Puebla, in Mexico.5 Informality comes at a cost: firms whom complying with a minimum capital the State of Mexico and Veracruz, where in the informal sector grow more slowly, have requirement represented a burdensome commercial litigation is less efficient (figure poorer access to credit, weaker protection of entry barrier. The same reform also amends 2.4).4 The productivity of large companies the Foreign Investment Law (Ley de Inversión property rights and employ fewer workers — is not affected. Large companies have more Extranjera), which shifted the power to au- and their workers remain outside the protec- resources and are less prone to the adverse thorize company names from the Ministry of tions of labor law. Regulatory improvements effect of business deals delayed by pending Foreign Affairs to the Ministry of Economy. in Mexico have already had a significant litigation. Large companies can also afford This provision, which comes into effect in impact. The effect of improving the business June 2012, will concentrate all the procedures to seek justice through arbitration, which is faster, although more expensive. For a small start-up process with the enactment in 2003 required to start a business with the Ministry company, a long and costly trial could mean of the Sistema de Apertura Rápida de Empresas of Economy, in its capacity as manager of the difference between staying afloat or go- (SARE) increased the number of registered the online one-stop shop tuempresa.gob.mx ing under. When dispute resolution is less ef- business by 5% and employment by 2.2%.6 site and responsible of the Public Registry of ficient, small and medium-size entrepreneurs Likewise, the effects of SARE were greater Commerce. 12 DOING BUSINESS IN MEXICO 2012 FIGURE 2.2 Since 2006, 18 states and Mexico City reduced by the half the time it takes to start a business STATE AND MUNICIPAL REFORMS Time to start a business (days) The Federal Commission for Regulatory Guanajuato DB 2012 DB 2009 DB 2007 Aguascalientes Improvement (COFEMER, Comisión Federal de Michoacán San Luis Potosí Mejora Regulatoria) has actively participated Querétaro in the process of regulatory improvement. Nuevo León Mexico City As of today, 20 states have a Regulatory Coahuila Improvement Law (Ley de Mejora Regulatoria)8 Chihuahua Tamaulipas and 8 others have legal frameworks for eco- Sinaloa nomic promotion, with tools and strategies to Zacatecas Campeche foster regulatory improvement.9 Baja California Sur Chiapas Sonora Doing Business in Mexico 2007 reported that 9 Tabasco of the 12 states measured for a second time Durango Yucatán implemented reforms in at least one of the Baja California Jalisco areas. Two years later, the reform process ac- Hidalgo celerated and Doing Business in Mexico 2009 Puebla Tlaxcala showed that 28 of the 31 states made it easier State of Mexico for companies to start-up and operate. As of Nayarit Morelos this year’s report, and for the first time, Doing Guerrero Colima Business in Mexico 2012 shows improvements Quintana Roo in 100% of the states (table 2.2). Overall, the 0 10 20 30 40 50 60 70 80 Days State of Mexico was the state that most im- 15 days 36 days Average DB 2012 Average DB 2007 proved since 2009, climbing 10 places in the Note: The states of Veracruz and Oaxaca are not included, as the cities of Coatzacoalcos and Salina Cruz were replaced in Doing Business in ranking. Colima had the largest improvement Mexico 2012 by Veracruz and Oaxaca de Juárez, respectively. on starting a business and registering prop- Source: Doing Business database. erty; Michoacán in dealing with construction FIGURE 2.3 In the last 5 years Jalisco, Quintana Roo, Sinaloa and Tamaulipas reduced by half the time to permits; Chiapas and Yucatán in enforcing register property contracts.10 Time to register property (days) All of the states introduced reforms in at Aguascalientes DB 2012 DB 2009 DB 2007 least one of the topics: 18 states made Morelos Guanajuato reforms in 2 indicators —mostly in starting Zacatecas a business and registering property— and 6 Campeche Sonora states implemented reforms in 3 indicators, Baja California including dealing with construction permits Michoacán Nuevo León or enforcing contracts. One state, Colima, Guerrero Sinaloa improved in all 4 areas. Durango Yucatán Improvements in Colima are the result of a Tabasco Tlaxcala wide reform plan that began in 2009 with a Chihuahua Hidalgo program that sought to turn Colima’s govern- Chiapas ment into “the most efficient in Mexico.”11 San Luis Potosí Nayarit Each government office was required to send Coahuila their goals to the state government. From Querétaro State of Mexico these objectives, 60 high-impact “leading Colima Puebla projects” were initially chosen. Thereafter, Tamaulipas actionable items were identified, including Baja California Sur Mexico City designation of the responsible managers, as Jalisco well as final dates for completion. For exam- Quintana Roo 0 20 40 60 80 100 120 140 160 ple, one of the projects was aimed at granting Days 30 days 44 days free internet access to the entire population Average Average DB 2012 DB 2007 of the state. Another project’s goal was to Note: The states of Veracruz and Oaxaca are not included, as the cities of Coatzacoalcos and Salina Cruz were replaced in Doing Business in launch e-government to allow citizens and Mexico 2012 by Veracruz and Oaxaca de Juárez, respectively. businesses to complete procedures online. Source: Doing Business database. Different actors from the private and public OVERVIEW 13 FIGURE 2.4 Efficient courts are associated with Obtaining a construction permit has been COMPARING REGULATION ACROSS greater labor productivity for small simplified, especially the procedures for pre- THE 31 STATES AND MEXICO CITY and medium-size businesses construction approvals. The municipality of Labor productivity Colima no longer requires builders to provide Starting a business using either the federal additional information in separate proce- website tuempresa.gob.mx or the traditional 10.4 dures prior to filing a construction permit ap- method makes a significant difference: the 10.2 plication. Instead, the municipality consults number of procedures required to open a 10 their databases for the information. Nuevo company can range between 5 and 8. In 9.8 León and San Luis Potosí combined several Sinaloa a company can be created in 6 days 9.6 preconstruction procedures into one. Other using the website, while in Quintana Roo, 9.4 where the site is not used, it takes 49 days improvement strategies have enabled one- 9.2 stop shops to handle multiple construction- to start a business. The cost to open a busi- 9 related procedures, like in Sonora. It is now ness ranges from almost 6.0% of income Small and medium size Large companies per capita in Campeche, to 26.6% in Baja companies also possible to rely on electronic databases to locate properties and determine land use, California. This variation is mainly driven by Regions with more efficient courts according to the Doing Business ranking like in Yucatán, and other strategies include the notary fees and the registration fees at Regions with less efficient courts according to streamlining inspections by delegating the Public Registry of Commerce. the Doing Business ranking greater responsibilities to private architects Source: Doing Business database and Enterprise Surveys. and engineers. Obtaining approvals to build a warehouse and connect it to public utilities (water, sew- sector were involved in the implementation With regard to enforcing contracts, states age and telephone) is, on average, faster, of these reforms. In one instance, the public have mainly dealt with internal organization simpler and cheaper in Mexico than in other registry and the labor unions agreed on a issues by providing training for judges and Latin American countries. However there are collaboration framework to digitalize the incorporating technology to improve the considerable differences among Mexican property registry and reduce its backlog. As performance of judicial officers. These re- cities, where a builder may take 8 steps to a result of the reforms, starting a business in forms have focused on reducing the time for obtain a building permit in Colima or 16 in Colima now takes 50 days less than in 2009; notifying a lawsuit, considered a bottleneck in Chihuahua. Another source of wide variation notaries may complete all property registra- the proceedings. Campeche, Tamaulipas and between states is the time and cost involved tion procedures online in 5 days; obtaining a Yucatán created specialized offices for notify- to request and obtain water and sewage ser- construction permit is easier in Colima than ing officers, streamlining the notification pro- vices: from 7 days and MXN 19,765 ($1,430) anywhere else in Mexico, and enforcing a cess. These 3 states reduced on average the in Durango to 63 days and MXN 67,367 time to notify a complaint by 48%. Chiapas, ($5,260) in Nuevo León. contract is more efficient than it was 3 years Michoacán and Hidalgo strengthened their ago, due to reforms that improved the time oversight departments, improving the perfor- The number of procedures required to reg- for service of complaints. mance of judicial officers and the compliance ister property ranges from 4 in Campeche, Chiapas, Michoacán, Nuevo León, Sonora, with procedural deadlines. Hidalgo and Tlaxcala to 10 in Guerrero and Tamaulipas and Yucatán follow Colima FIGURE 2.5 Business start-up simplification gets a boost with the online one-stop shop tuempresa.gob.mx closely, having implemented reforms in 3 of Time to start a business in Mexico City (days) the areas measured. In Chiapas, for example, implementation of the electronic municipal 30 SARE in 2010 has allowed entrepreneurs 25 to start procedures and track their progress online. It is also the first state to create a 20 platform to connect municipal and federal Time cut from 28 to 9 days procedures under tuempresa.gob.mx, so that 15 in the future the process could be done fully online. The inspection system for new 10 constructions has been simplified through Procedures cut from 9 to 6 greater delegation of responsibilities and 5 tasks to the architect. Regarding contract 0 enforcement, the enactment of a new code in 1 2 3 4 5 6 7 8 9 2009 for the organization of the judiciary, has Before the reform After the reform Procedures (number) strengthened compliance with procedural Note: Data refers to Mexico City, which represents Mexico in the Doing Business global report. time limits. Source: Doing Business database. 14 DOING BUSINESS IN MEXICO 2012 TABLE 2.2 All states introdoced reforms in at least one area utilities, the city would rank first among 183 Dealing with economies, thanks to the combination of States Starting a business Registering property Enforcing contracts construction permits new technologies in government offices and Aguascalientes 3 3 reduced costs for the different procedures. It Baja California 3 3 would be simpler to register property in this Baja California Sur 3 3 hypothetical city, than in the United States, Campeche 3 3 Chiapas 3 3 3 and enforcing contracts would be more ef- Chihuahua 3 × ficient than in the Netherlands. Coahuila 3 3 Colima 3 3 3 3 States such as Sonora aspire to implement Durango 3 good practices to achieve the results of this Guanajuato 3 Guerrero 3 hypothetical city of Mejitlán de Juárez. In a Hidalgo 3 3 series of regular meetings, Sonora has already Jalisco 3 3 contacted 9 states to exchange information Mexico City 3 3 and learn about online procedures, one-stop Michoacán 3 3 3 Morelos 3 3 shops, the use of remote access technology Nayarit 3 and other programs that have been success- Nuevo León 3 3 3 ful in other states. The strategy worked. Oaxaca 3 Sonora implemented reforms in 3 of the 4 ar- Puebla 3 3 Querétaro 3 3 eas and jumped 5 places on the overall rank- Quintana Roo 3 3 ing. Other states, such as Guanajuato, sent San Luis Potosí 3 3 a working group to Aguascalientes to learn Sinaloa 3 3 about the construction permitting process Sonora 3 3 3 State of Mexico 3 3 and Hidalgo visited Puebla to learn about its Tabasco 3 3 one-stop shop. Hidalgo, Morelos, Puebla and Tamaulipas 3 3 3 Querétaro maintain constant communica- Tlaxcala 3 3 tions and try to meet every 2 months to share Veracruz 3 Yucatán 3 3 3 their experiences and improvement plans Zacatecas 3 (table 2.4). 3 Reform making it easier to do business × Reform making it more difficult to do business Notes: Reforms took place between July 2008 and October 2011. In Doing Business in Mexico 2012 the cities of Coatzacoalcos in Veracruz and Salina Cruz in Oaxaca were replaced by the cities of Veracruz and Oaxaca de Juárez, respectively. Source: Doing Business database. Yucatán. Differences are based on the num- 4 to 6 months longer. Likewise, the cost of ber of certificates and documents required litigation goes from 20.6% of the claim value to register property. Colima modernized and in Aguascalientes to 36.3% in Oaxaca. The digitalized its systems and reduced require- states that are faster are also the least costly. ments, cutting the time to only 5 days. In In the 16 states where contract enforcement Baja California Sur and Mexico City it takes is slower, the parties pay 4% more of the up to 44 and 74 days, respectively. And the claim value than in the other 16 states with cost may range from 1.7% of property value in more efficient contract enforcement. Chiapas to almost 6% in Morelos. These dif- LEARNING FROM EACH OTHER ferences are mainly caused by transfer taxes, registration and notary fees, and additional If a hypothetical city called “Mejitlán de taxes charged at a municipal and state level. Juárez” adopted the good practices of this report, it would rank 20 out of the 183 The number of procedures required for economies measured in Doing Business 2012, enforcing contracts is practically the same in 33 places ahead of Mexico’s ranking (table all the Mexican states; however, the time and 2.3). Mejitlán de Juárez would be ahead of cost required to solve a commercial dispute Colombia, Germany and Peru on the ease of can vary greatly. While in Chihuahua and starting a business. As regards the ease of Sinaloa it takes 290 days, the same case in complying with formalities to build a ware- Mexico City and in Morelos can take almost house and connect it to water and sewage OVERVIEW 15 TABLE 2.3 Good practices in Mexico compared internationally Global ranking (183 economies) Number of procedures to start a business: 33 Nuevo León, Sinaloa (5 procedures) Days to start a business: 17 Nuevo León, Sinaloa (6 days) Cost to start a business: 63 Campeche (6.0% of income per capita) Number of procedures to deal with constuction permits: 6 Colima (8 procedures) Days to deal with constuction permits: 3 Colima, Durango (27 days) Cost to deal with constuction permits: 21 Aguascalientes (17.6% of income per capita) Number of procedures to register property: 25 Campeche, Hidalgo, Tlaxcala (4 procedures) Days to register property: 10 Colima (5 days) Cost to register property: 34 Chiapas (1.7% of property value) Number of procedures to enforce a contract: Campeche, Coahuila, Colima, Durango, Jalisco, Nayarit, Sonora, Yucatán, Zacatecas (37 75 procedures) Days to enforce a contract: 7 Nuevo León (236 days) Cost to enforce a contract: 46 Aguascalientes (20.6% of the claim) Source: Doing Business database. 16 DOING BUSINESS IN MEXICO 2012 TABLE 2.4 States seeking to learn good practices Number of states Frequency State States contacted Areas covered contacted of meetings Starting a business Aguascalientes 5 Baja California, Colima, Guanajuato, Querétaro and San Luis Potosí Registering property Once a year Enforcing contracts Baja California 2 Jalisco and Sinaloa Starting a business Every 2 months Starting a business Chiapas 1 Guanajuato Once a month Enforcing contracts Starting a business Durango 5 Baja California, Colima, Chihuahua, Jalisco and Puebla Dealing with construction permits Every 6 months Registering property Dealing with construction permits Guanajuato 6 Aguascalientes, Chiapas, Guerrero, Jalisco, Querétaro and Quintana Roo Every 6 months Registering property Dealing with construction permits Hidalgo 6 Mexico City, Morelos, Puebla, Querétaro, State of Mexico and Tlaxcala Every 2 months Registering property Jalisco 4 Colima, Mexico City, Puebla and Querétaro Dealing with construction permits Once a month Starting a business Michoacán 4 Aguascalientes, Colima, Mexico City and Sonora Once a month Registering property Once a month or Morelos 7 Hidalgo, Jalisco, Mexico City, Puebla, Querétaro, Sinaloa and State of Mexico Starting a business every 6 months Starting a business Nuevo León 3 Jalisco, Sinaloa and State of Mexico Every 6 months Registering property Dealing with construction permits Puebla 6 Hidalgo, Mexico City, Morelos, Nuevo León, Querétaro and State of Mexico Every 3 months Starting a business Querétaro 7 Hidalgo, Jalisco, Mexico City, Morelos, Puebla, State of Mexico and Tlaxcala Dealing with construction permits Every 2 months Starting a business Quintana Roo 4 Campeche, Colima, Tabasco and Yucatán Once a month Registering property Starting a business Sinaloa 5 Mexico City, Nayarit, Sonora, State of Mexico and Tabasco Dealing with construction permits Once a year Enforcing contracts Starting a business Aguascalientes, Baja California, Campeche, Chiapas, Chihuahua, Durango, Dealing with construction permits Once a week, month Sonora 9 Guanajuato, Jalisco and Sinaloa Registering property or every 6 months Enforcing contracts Starting a business Tabasco 5 Baja California, Guanajuato, Querétaro, Sonora and State of Mexico Once a month Registering property Veracruz 1 Guanajuato Starting a business Once a year Starting a business Zacatecas 2 Colima and Nuevo León Dealing with construction permits Once a month Registering property Note: The information was obtained through surveys sent in October 2011 and answered by state government authorities. Source: Doing Business database. OVERVIEW 17 NOTES 1. Information available at: http://www. promexico.gob.mx/en_us/promexico/ Trade_agreements 2. Source: International Monetary Fund. 3. Enterprise Surveys provides the most com- prehensive databases of firm-level data in emerging economies. The data provides information on more than 130,000 firms in 125 economies. See: http://enterprisesurveys.org/ 4. Data on labor productivity and firm size were gathered from firm-level surveys performed between August 2009 and June 2010 in 7 Mexican states (Coahuila, Jalisco, Mexico City, Nuevo León, Puebla, State of Mexico and Veracruz). Labor productivity is defined as annual sales in the fiscal year 2009, divided by the number of employees having contracts for an indefinite term during the same period. Small and medium-sized enterprises are those with fewer than 100 employees. The states with the most efficient courts were identified as those above the median of the 7 states analyzed in accordance with the ranking of the contract enforcement indicator of Doing Business in Mexico 2009. Methodology details may be obtained at: http://www.enterprisesur- veys.org 5. Linz University, Austria. 2002. Featured in the workshop of the Australian National Tax Centre, Australia, July 17, 2002. 6. Bruhn, Miriam. 2011. “License to Sell: The Effect of Business Registration Reform on Entrepreneurial Activity in Mexico.” Review of Economics and Statistics 93(1): 382–86. 7. Kaplan, David S., Eduardo Piedra and Enrique Seira. 2007. “Entry Regulation and Business Start-Ups: Evidence from Mexico.” Policy Research Working Paper 4322. Washington, DC: World Bank. 8. Campeche, Chiapas, Colima, Durango, Guanajuato, Hidalgo, Jalisco, Morelos, Nuevo León, Puebla, Quintana Roo, San Luis Potosí, Sinaloa, Sonora, State of Mexico, Tabasco, Tamaulipas, Veracruz, Yucatán and Zacatecas. 9. Aguascalientes, Baja California, Baja California Sur, Chihuahua, Coahuila, Guerrero, Nayarit and Tlaxcala. 10. An improvement in the rankings results from the difference between the previous adjusted rank and the current rank, both on the overall ranking and on each indicator. 11. Presentation by the Governor of the State of Colima, Lic. Mario Anguiano Moreno, Bogotá, Colombia, December 2011.