Drawing on the World Bank's surveys of over 30,000 firms in 53 developing countries and Doing Business indicators in 130 countries, this paper provide new insights into both the perceptions of local entrepreneurs about constraints they face, but also objective measures of infrastructure quality, regulatory burdens, crime, access to finance, and the security of property rights at the country level. Doing Business indicators give the costs of fully complying with various regulatory procedures. Together, the formal requirements and the actual experience of different types of firms illustrate the scope for investment climate improvements. The potential gains, in terms of increased productivity, investment and job growth are considerable. That smaller firms face costs that are up to a third higher underscores that improving investment climate conditions will disproportionately benefit small firms.