Time consuming and burdensome procedures for establishing a business are often cited as obstacles in business surveys on the investment climate in OECD and non-OECD countries alike. Requirements to acquire licenses for establishment and conduct of a business are used by all governments for a variety of reasons. However, amongst OECD members, data suggests that different countries use it to differing degrees: some administer a few hundred licences, while other, several thousand. There is a strong argument to reduce the burden on business caused by excessive use of licenses since they create barriers to new start-ups, hamper innovation and cause market distortions by creating an incentive to the investor to lobby regulators for anti-competitive practices. Transparency problems seem to be another key challenge faced by business confronted with overly burdensome licensing requirements.