Launching our little business last month has been an eye-opening experience. It has broadened my mind about the dynamics of being an entrepreneur in this country. I am bound to agree with the observations of some people (including foreigners) that the environment for doing business in the Philippines is poor and discouraging. But first of all, President Arroyo should crack the whip on agencies who are “good on paper” but are actually NO GOOD in what they do.
For example, how does DTI Secretary Peter Favila and his staff explain the more than one month wait in the approval of business names? I am asking this because the DTI even goes to the extremes of spending millions for advertising their Business Name Registration Service (DTI BNRS is supposedly a frontline service for the registry of sole proprietorships). The last time, I saw their half-page ads in the Inquirer.
More than one month of waiting for government approval of a business name is just inexcusable. It certainly doesn’t speak of the prompt delivery of service and efficiency of the DTI. My fellow applicants and I have been in touch through cellphone and they told me that they haven’t received their certificates from DTI as well. We applied on the second week of May. DTI BNRS promised to process our applications in two weeks, and they were supposed to mail our papers to us.
Another question that begs to be answered is: have DTI services deteriorated? I remember opening an eatery eight years ago, and I got my approved business name on the same day at the main DTI office in Buendia. The establishment of satellite offices (now in Hi-Way 54, Park & Ride Lawton, and Kalookan City) is supposed to make their work easier, but look at what’s happening. Does the DTI have no computer software to search for any duplication in business names? If they are doing investigation as well, they probably shouldn’t promise two weeks , when what they actually mean is TWO YEARS.
I am worried about the shortcomings in DTI’s services. An approved business name is, after all, the first step in obtaining a business license. Without it, nothing else moves. The very slow approval process actually encourages corruption as some people would certainly be tempted to hire a broker or a fixer to facilitate things. But corruption is the least that a small business owner/ entrepreneur with very little capital would like to experience and encounter.
Now, do we still have to wonder why it’s better to do business online, or engage in the underground economy? High taxes, red tape, corruption and DTI’s big-time registration PHAIL make it all possible.
*END OF RANT*
My related post on Barrio Siete: Mag-monkey business na lang tayo
You tell ’em! Did they provide you with contact information, or a case or request number, to follow the progress of the order? How much did you pay DTI for the licensing? I seem to recall that they were quite prompt in requesting you file with them.
Shame they can’t offer the same sort of alacrity when THEY have to do some work. Ugh.
I agree with Mr. Z. Shame on this government agency. ^_^
how true!
at nasa DTI ka pa lang, nyan! you haven’t reached BIR, Mayor’s permit, Sanitary, Fire Department (where they will sell you fire extinguisher), Zoning, etc. etc.
the business environment here is not really very ‘friendly’ for newbies
kaya nagba-blog na lang ako 🙂
i hate to make comparisons pero here in the US, they do everything for small businesses to flourish and start business kasi small businesses are the biggers employers here.
in the philippines, hirap nang empleo and yet, small businesses can certainly help, kaso they are very unfriendly when it comes to small businesses, leche ingungudngud ka muna sa lupa bago ka makapag start and the government agencies are almost inutile
Mr. Z at Snow, guess what? DTI called this morning to say they are sending me my certificate soon. What a coincidence??! They finally acted, just in time for the release of this blog post 😀
Roy, kaya nga Step 1 pa lang, mamumuti na mata mo. How much more the rest of the process? If they are like this, they’re encouraging the DVD pirates and the rest of the underground economy to flourish..including Mamang Fish Balls 😛
Reyna, I laughed over your tales of setting up a business in the Philippines. We really should follow the US system, this time around 😉
thats what im saying, philippines is not a business friendly aside from so many ek ek,red tapes, si meyor pa nandyan, si gov naman magpapalakas ky tongresman at si kapitan 3 asawa at pati si brgy tanog gustong umepal sinu ba namang gaganahan magbisnes?thats the reason why i backed out dun sa bisnes na plan ko,magkakayod nalang muna ko dito e sila lang bubuhayin ng bisnes ko kung nagkataon
I agree Lee. These politicos, err, public servants should see the bigger picture. Encourage entrepreneurship by not being brazen and cutting the process , instead of discouraging small business by giving us the great run-around.
Now, when I hear about how the government’s helping “small and medium enterprises” on TV and the papers, natatawa na lang ako.:D
i’m glad you finally got your certificate from DTI.
i can just imagine ang hirap at stress na dinanas mo.
baka naman naghihintay lang ng under the table fee? maraming ganyan sa government offices eh para umusad ang papel mo.
eh kaso yun na nga small business ka and you are just starting. wala ka pang pera maglalagay ka na agad. di ba, masyado namang unfair!
Sakto! Nice points! I was able to experience also dealing with the government before. It was with the Register of Deeds processing transfer of titles, mortgage, etc. I think it is the home of the most corrupt officials in the government.
I don’t know but hopefully there are still hope for our country to lessen if not totally eliminate corruption.
Mga kabayan.. walang magandang balita tayong maasahan sa lintak na gobyerno ng kawawang inang bayan, hangat gutom at ganid ang mga nasa posisyon sa pera, walang katapusan na pahirap sa mga
pinoy na patuloy na gumagapang mabuhay ng marangal mag hanap buhay..I have experienced so many
disappointing situation from the simplest and top govt. official, it is so hopeless to wish that one day they may change somehow.. mga adik sa pera ang lahat ng nasa DTI at lahat ng sangay ng gobyerno, konyari may problema papers mo, un pala, pera lang ang hanap, para mapadali daw? how can we respect a license, if the license process itself is loaded with nasty shooooot… wake up crocodiles, tamaan sana kayo ng sampong kidlat..
hello business leaders,
these are some shortcomings of our government agencies, but if you want to make it a little bit easier to you you may hire an accountant or bookkeeper to process the pain task taking of getting a legal business permits to start a business.
For those who resides in Sta.Rosa Laguna with a business you may contact me at cell#09175824746 and I might help you in processing business related documets specially BIR monthly mandatory reportorial reports.
thanks and have a nice day a head!