CHAPTER II
REVIEW OF RELATED LITERATURE STUDIES
Various studies have already been done to assess
business permits and licensing systems in the country. An
example of this is the World Banks Doing Business
project, a report on the effectiveness of business
regulations in 183 countries. Working on the fundamental
premise that economic activity requires good rules, Doing
Business measured business regulations and implementation
based on 10 indicator sets. These indicator sets are
starting a business, dealing with construction permits,
employing workers, registering property, getting credit,
protecting investors, paying taxes, trading across
borders, enforcing contracts and closing a business.
According to Business 2010 report, the Philippines ranked
144 out of 183 countries based on the 10 indicators
studied. This ranking gives us an idea of how we stand in
terms of having a business-friendly environment for
investors. The findings of the Doing Business report
regarding one of its indicators, Starting a Business,
would be helpful in providing a background for the study.
According to Business Registration Process Quality and
Management Survey 2011, National Competitiveness Council
in partnership with Ateneo School of Government
researched on the business registration process in the
country and found out that in the City of Manila,
businesses have to go through 15 procedures and wait for
52 days before acquiring a business permit. This result
is relatively higher than the average number of
procedures and days needed to start a business in the
East and Asia Pacific region. The cost of starting a
business, computed as a percentage of the economys
income per capita, is also relatively higher compared to
the cost of starting a business in the region.
According to Locality International 2010 Business is
important in gauging the countrys competitiveness as
compared to other countries, there are also studies that
focused more on the challenges of implementing business
registration processes within the Philippine context.
The handbook Good Practices: Streamlining Business
Registration in Local Government Units, published by the
Bureau of Small and Medium Enterprise Development
(BSMED), German Technical Cooperation Small and Medium
Enterprise Development for Sustainable Employment Program
(GTZ SMEDSEP) and The Asia Foundation (TAF) in
cooperation with DTI; is one such example. The handbook
gave an overview of the problems faced by applicants
during business registration. These problems were
identified as difficulties in procedures, requirements,
customer orientation and proximity of offices. More than
listing the problems however, the handbook also provided
solutions to these problems by sharing good practices
done by different LGUs to improve their business
registration processes.
But does improving ones business registration process
really encourage more businessmen to register in LGUs? A
reference document entitled, Streamlining the Business
Permit and Licensing System, published by the Private
Sector Promotion Program of SMEDSEP in July 2008, seems
to prove this. Results of a study in Iloilo City showed
that 53% more businessmen renewed their permits after the
LGUs streamlined their BPLS.
According to BPLS 2009, The studies mentioned tackled
regulations, procedures and challenges of the business
registration processes. Combined, they give us an idea of
why there is a need to streamline BPLS in LGUs. Based on
these observations therefore, the next step is to develop
and implement projects that would improve the business
registration system in different areas across the
country.
Answering this need for improving BPLS, are several
international organizations who worked with local
institutions and LGUs to streamline business registration
processes. One such initiative is the cooperation between
the International Finance Corporation and the Ateneo
School of Government.
According to System Developers and Automations in 2008 at
the local government units of Manila, Mandaluyong,
Marikina and Quezon City. The project aimed to streamline
business registration processes by training the municipal
staff and developing a new process design for the BPLS of
the four LGUs.
With various regulatory assessments, process
recommendations and actual streamlining already
undertaken to improve business registration processes;
the final step is to validate if the projects initiated
by the different institutions are indeed successful from
the viewpoint of the businessmen. In this light, this
research could be seen as an effort to Business
Registration Process Quality and Management Survey
National Competitiveness Council in partnership with
Ateneo School of Government
Business Permits and License System
There is a great deal of interest within both
the public and private sectors in encouraging all
Business Sectors to migrate from paper based record to a
system that stores information electronically and employs
computer aided decision support system. In parts, this
interest is due to a growing recognition that a stronger
Information Technology (IT) infrastructure is integral to
addressing such national concerns as the need to improve
the safety and quality health care, rising business
costs, and matters of homeland security.
LOCAL
Business Management System
Portal V Dynamics has developed a Business
Management System that will simplify computerization of
Business records and procedures. It has feature that will
enhance performance, technology advancement and
professionalism. It develops Business confidence and
increase Business operation more efficiently and
reliably. System is simple and easy to use Managers
doesnt need to be pre-occupied with operating their
computer instead of giving.
