B.E. Assessment

Business Licensing Procedures in Bocolod and Ormoc, Philippines, GTZ SMEDSEP, 2005

    Description
    The Small and Medium Enterprise Development for Sustainable Employment Program (SMEDSEP) of the GTZ, in partnership with the Department of Trade and Industry (DTI) and the Technical Education and Skills Development Authority (TESDA), aims to establish favorable business condition in the Philippines. A major component of the program, Enabling Business Environment, intends to develop and implement policy proposals for the improvement of the business climate at the national, regional and local levels in cooperation with the private sector.

    This study intends to assist Local Government Units in the improvement of their business licensing and procedures by (1) conducting an assessment of two selected cities' business licensing procedures through a time and motion study that will also reflect customers satisfaction; (2) recommending ways of improving the current licensing procedures to achieve client satisfaction; and (3) present the lessons learned to selected LGUs to encourage similar
    streamlining and systems improvement efforts.

    Methods for info gathering
    The research primarily used the time and motion study as the major approach in data gathering, supplemented by interviews and validation workshops. For Bacolod City, a total of 14 applications were tracked and observed during the study period. Around 20 people composed of the Bacolod City business licensing one stop shop frontliners and officials and around 14 clients were interviewed. Twenty representatives of small and medium scale enterprises participated in the validation workshop held in February 15, 2005. For Ormoc City, a total of 19 applications were tracked during the study period. Around 15 people composed of Ormoc City employees and officials and clients were interviewed. Fifteen representatives of small and medium scale enterprises participated in the validation workshop held in February 14, 2005.

    Summary of results
    Based on the data obtained from the time and motion study done in Bacolod City, there are 21 steps needed to complete a cycle of business licensing, which is inconsistent with Bacolod's nine (9) step BOSS standard. The applicants used around 19 forms and at least 25 signatures are required for clearance. It takes 9-15.8 working days to acquire a business license in Bacolod City. Based on the data obtained from the time and motion study done in Ormoc City, there are at least 14 steps for renewing business registrants and 17 steps for new business applicants needed to complete a cycle of business licensing, which is inconsistent with Ormoc's five linear step BOSS standard for both applicants. It takes 2-17 working days to acquire a business license in Ormoc City.

     
    Associated Activities and Documents
    B.E. Assessment
    »Policy Review and Tools, GTZ SMEDSEP Philippines, 2004-
    Project Design
    »GTZ Philippines SME Development for Sustainable Employment Program Design, 2004
    Implementation
    »Cities Competitiveness Ranking, GTZ Philippines, 2004
    »Cairo Conference Session 1.4: Improving the Business Environment at the Sub-National Level: What Local and Provincial Governments Can Do (2005)
    »Improvement of licensing procedures in the cities of Bacolod and Ormoc, Philippines, GTZ 2006