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Thursday, November 28, 2024

Gatchalian urges more aid to small businesses

By Joel E. Zurbano

Senator Sherwin Gatchalian urged the government to create a way to help micro, small, and medium enterprises (MSMEs) and startups begin their businesses quickly. 

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The lawmaker is concerned that bureaucratic red tape is still slowing down investments.

“We would like to request the Anti-Red Tape Authority (ARTA) to submit a proposal on how we can assist MSMEs and startups in starting their businesses,” Gatchalian stated during a recent Senate deliberation regarding ARTA’s budget for the upcoming year.

Gatchalian pointed out that despite the enactment of Republic Act 11032, known as the Ease of Doing Business and Efficient Government Service Delivery Act, the country still lags behind many economies in terms of business ease.

Local business groups are continually urging for additional measures to ease and lower the costs of doing business in the Philippines, the senator noted. “These concerns impact the country’s reputation, so we need to support our MSMEs through ARTA or in collaboration with other departments,” he emphasized.

Gatchalian also suggested that the country needs to establish a single platform for startups to launch their respective businesses. “We must empower MSMEs and startups so they can contribute to economic growth moving forward.”

ARTA is currently working on a memorandum of agreement with the Department of Trade and Industry (DTI) and the Department of Information, Communications, and Technology (DICT) to streamline processes and reduce regulatory burdens for MSMEs, aiming to create a digital one-stop-shop platform for business permits and licenses. This initiative is expected to shorten the required steps and facilitate quicker transaction times for permits and licenses, thereby minimizing bureaucratic obstacles for MSMEs.

At present, only 112 local government units have fully implemented the Electronic Business One Stop-Shop (eBOSS) system. Under Republic Act 11032, all local government units were mandated to establish eBOSS by June 2021.

The eBOSS system aims to consolidate the various steps into a unified online platform, streamlining processing and reducing redundant requirements.

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