One signal of a vibrant economic recovery is a high rate of business creation, and more businesses tend to be created when regulatory barriers are low.

Yet the growing number of licensing regulations in some occupations has created obstacles for entrepreneurs who want to start new companies or put new ideas into practice, according to the latest Entrepreneurship Policy Digest released by the Kauffman Foundation.

The Policy Digest reveals that almost 29 percent of jobs today require a license issued by the government. Forty years ago, only 10 percent of jobs needed such a license. These modern constraints lead to an environment in which there are fewer active entrepreneurs and a reduction in competing businesses.

The Policy Digest examines different types of occupational rules, notes the requirements to get a license and makes suggestions to diminish barriers to entrepreneurship, such as:

• Instead of licensing, institute a less burdensome form of regulation where public health is not acutely endangered.

• Provide larger representation to nonlicensed practitioners by reforming licensing boards.

• Assemble public committees to assess licensing boards, give independent scrutiny to newly suggested licensing requirements and supply lawmakers with business-friendly recommendations.

• Have states mutually recognize other state licenses in order to enhance the mobility of the workforce.

The Policy Digests from the Kauffman Foundation are intended to inform those who make official policy. To read the entire Policy Digest on occupational licensing and to sign up to receive subsequent digests, visit www.kauffman.org/policydigest.