Bureaucracy Index is a simple and transparent way to quantify the proverbial “red tape” — discussed daily in the media, yet rarely measured in concrete terms. It was introduced in 2016 in Slovakia by the Institute of Economic and Social Studies (INESS), with the goal of comprehensively mapping the bureaucratic burden facing SMEs and its real cost in time and money.

Our ultimate goal is to turn the Bureaucracy Index into an international tool for think tanks and advocacy groups focused on economic competitiveness.

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How It Works: The Core Methodology at a Glance

Bureaucracy Index identifies bureaucratic duties of two fictional model SMEs — a manufacturing company and a hotel — in two situations: starting a business and conducting business activities for one year. These duties are split into categories and each assigned a time cost. The sum of these partial time costs is the resulting index value.

1. Simple Number: Distils red tape into a single number that’s easy to communicate to media, policymakers, and the public.
2. Structured Database: Builds a database of bureaucratic duties for SMEs — useful for tracking regulatory change.
3. International Comparison: Enables direct comparison across countries using an identical methodology.

Value for Your Organization

The Index distils red tape into a single number that’s easy to communicate. The fictional SME framing makes abstract figures concrete and relatable. It gives you a structured database of bureaucratic duties for SMEs in your country — useful for tracking regulatory change and informing small business owners.

• It’s a networking tool: you can offer business leaders partnerships or involve them directly in creating and promoting the Index.
• It strengthens fundraising and can become the flagship of your competitiveness advocacy work.
• It enables direct international comparison — putting your country’s red tape burden in a broader context.

How to Get Involved?

Your organization will lead the creation of your national Bureaucracy Index — but you won’t be doing it alone. INESS will support you with methodological, communication, and strategic questions throughout.

Contact Martin Vlachynsky, Director of the Research Center for Competitiveness and Business Environment at INESS:

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