Robert Litan, vice president for research and policy at the Kansas City, Mo.-based Kauffman Foundation, recently spoke to American City & County about how local governments can expand their economies and create jobs by preparing for, attracting and assisting entrepreneurs. The foundation focuses its grant making and operations on advancing entrepreneurship, and improving the education of children and youth.

In February, the foundation released two reports: "Startup Act for the States," which lays out an agenda for state-level policymakers to foster entrepreneurship, and "A License to Grow," which identifies barriers to entrepreneurship imposed by state and local governments. Among the recommendations, the reports suggest that governments should reduce the amount of paperwork, time and effort involved in establishing new businesses, and reform occupational licensing practices to reduce costs and obstacles for entrepreneurs seeking entry to the marketplace.