Business permit renewal made easier

by Kristine Servando, Newsbreak

Posted at Feb 19 2010 11:39 PM | Updated as of Feb 20 2010 07:39 AM

MANILA, Philippines – As perceived by managers in the Philippines, it’s generally easier to renew a local business permit nowadays compared to 3 years ago.

This is according to a 2009 Social Weather Stations Survey (SWS) on Enterprises and Corruption released this February.

The survey showed that a majority of enterprise managers in Davao (70%), Cagayan de Oro and Iligan City (67%) and Cebu (61%) think the annual renewal of local business permits and licenses is easier compared to 2006.

Almost half of managers in Cavite, Laguna and Batangas (48%); and Metro Manila (47%) agreed that renewing business permits has become easier.

The survey also found that a “majority of managers find transparency in local government procedures.”

Managers surveyed by the SWS also think the business climate in 2009 was better than 2008.

At least two-thirds or 66.7% of managers said they do not use intermediaries in local business permit renewals.

Survey sample

The SWS survey was conducted from November 3 to December 5, 2009 using face-to-face interviews with 550 top and middle-level managers.

Random sampling was used.

The respondents comprised of 366 small and medium enterprise managers and 184 managers from large corporations.

The enterprises chosen in the study were randomly drawn from 5 areas: 200 businesses from Metro Manila, 100 from Cebu, 100 from Davao and 75 from Cavite, Laguna, Batangas and Cagayan de Oro.

The survey has a ±4% margin of error.

‘Red tape’

Local government units have varying rules and procedures in securing and renewing business permits and licenses.

A 2008 study conducted by the International Finance Corporation and the World Bank found that dealing with a Philippine city to start a business takes an average of 18 procedures and 35 days.

The tedious process also costs 27% of income per capita, the study found.

Long procedures and bureaucratic delays in securing and renewing business permits are considered to hamper the entry of new businesses and investments.

Several city treasuries and licensing offices (especially in Metro Manila) have computerized the process, making it easier for businessmen to renew permits.

According to the SWS survey, managers and the public consider a business-friendly climate as the third most important priority when choosing the next president. Report by Kristine Servando, Newsbreak.