Business Licensing Reforms: Insights From Selected Country Experiences

Business licensing is a key component of any country’s business environment because government licenses are often required to set up business activities and conduct operations. Licenses and other forms of ex-ante approvals typically impose on businesses a range of conditions and obligations while providing certain rights. If appropriately implemented, licenses can help regulators address market failures, monitor businesses that may pose risks to public goods, restrict entry to businesses failing to meet minimum regulatory standards, and allow the controlled use of valuable and scarce community resources.