The lack of adequate business-led development policy is negatively affecting the
development of free entry into more profitable business in Togo. Thus, this is negatively
affecting the external competitiveness of the country. This paper before evaluating the
correlation between State Business Relationship (SBR) and Gross Domestic Product (GDP)
has investigated and explored the weaknesses in the business environment of Togo. This
research has developed a formula for the calculation of SBR index and investigated the
relationship between SBR and GDP by using Eviews version 6. This research finds that
SBR is significantly contributing to GDP, hence strongly contributing to growth in Togo
from 1960 to 2010. However, poor governance, administration deficiencies, bad state of
infrastructure are the primary factors constraining business in Togo. Thus this requires the
formulation of good institutional framework to facilitate free entry into more profitable
business to enhance the development of Togo.