Abstract:
The business climate is one of the basic pillars of the development and advancement of a state under various aspects. Its analysis is extremely important for strengthening companies' capacities, which are the driving force behind the prosperity and economic growth of the state. For the Republic of Moldova, strengthening the business climate is a national priority and its analysis, as well as ways of developing and improving the business climate, play a crucial and extremely important role in changing the situation and overcoming barriers to entrepreneurial activity. The existing business climate is largely characterized by financial costs and unjustified costs, which have a direct impact on the economic growth of the state, and demolish the valorisation of the country's competitive and innovative potential. Key words: business climate, economic freedom index, small and medium enterprises, direct foreign investment.