An ordinance enacted by the city government of Biñan, Laguna providing for perks and incentives for small entrepreneurs has proved once again the LGU’s “business-friendly” climate.
Data from the Business Permit and Licensing Office (BPLO) of Biñan City, Laguna shows that over 80 percent of businesses in the city belong to the so-called micro, small and medium enterprise (MSME) sector.
Yet many of these MSMEs were often forced to operate outside the boundaries of the law. Some of them have to resort to literal “fly-by-night” tactics during periodic inspections by BPLO staff.
This is due to one simple fact: many of them can’t afford registering their businesses with the local government.
“Marami na po kaming nae-encounter na mga maliliit na negosyante na nagpaparehistro sa DTI [Department of Trade and Industry], tapos pagdating sa BPLO, hindi na tumutuloy sa pagpaparehistro. Bakit? Hindi po kasi nila kaya yung regular fees na kailangan nilang bayaran para maipa-rehistro ang kanilang mga negosyo sa lungsod,” City Councilor Christopher “Toppe” Alba recounted in an interview with OpinYonLaguna.
This inspired Alba – with the support of the city government under Mayor Arman Dimaguila and BPLO head Atty. Edward Vange Arriba – to enact City Ordinance No. 16-2022, giving benefits and perks to what the city called the Barangay Micro-Business Enterprises (BMBEs).
This ordinance, among others, has gained for the city government the Presidential Recognition for Outstanding Development Partners on Improving Business Climate at the 2024 Presidential Awards for Outstanding Micro Small and Medium Enterprises and the Presidential Recognition for Outstanding Development Partners held last July 10.
But more than the recognition itself (which was presented to the city government personally by President Ferdinand “Bongbong” Marcos, Jr.), city officials said the move has given small businesses in the city the chance to contribute to the city’s economic growth through legitimizing their establishments.
"Sa pamamagitan po ng ordinansa na ito ay nagiging legal ang negosyo ninyo. Alam naman po natin ngayon na yung mga maliliit na negosyo gaya ng tindahan, karaniwan ay less than P50,000 ang puhunan. So binabaan po natin ang registration fee na babayaran para mas ma-entice ang mga negosyante natin," as Mayor Dimaguila himself put it in a live social media broadcast last July 11.
Legitimizing MSMEs
In an interview with OpinYon Laguna, BPLO head Arriba lamented the fact that the bulk of those apprehended by his office staff during their periodic inspection include MSMEs.
“The bulk of number ng mga nahuhuli naming walang business permit ay napakaliliit. Yung mga negosyong alam natin na less than P100,000 yung puhunan. At karamihan ng mga ito, yung mga fishball vendor, yung mga sari-sari store na ang mga nagpapatakbo ay mga lola, yung mga nasa garahe lang ng bahay ang pwesto nila,” he explained.
“So kapag pinilit natin silang magpa-rehistro, wala, malulugi na sila, abonado pa sila sa loob ng isang taon. Luckily, ito naman po ang tinugunan agad ni Councilor Toppe Alba sa ating executive-legislative agenda (ELA) session noong 2022.”
Councilor Alba also pointed out that there was already a law – Republic Act No. 9178 (Barangay Micro Business Enterprises Act of 2002) – that mandates LGUs and government agencies to provide incentives for BMBEs.
"Hindi pa po masyadong naipapaalam sa publiko ang naturang batas, pero napakaganda po nito. So tinanong ko na po agad si Mayor Dimaguila kung maaari pa po tayong magbigay ng additional incentives sa mga BMBE,” he explained to OpinYon Laguna.
“Fortunately, sinusugan naman po ito ng ating mga kasama, at lalo na po si Vice Mayor Gel Alonte na chairperson ng Sangguniang Panglungsod. Para kay Vice Gel, welcome na welcome ang naturang ordinansa dahil accommodating siya, matulungin, at naiintindihan niya na ito ay makakatulong ito sa mga pinakamaliliit nating mga negosyante,” Alba added.
Lower fees
Under City Ordinance No. 16-2022, which was enacted in December that year, new business registrants with a capital of P100,000 or below would only have to pay P1,000 for a business permit, while businesses with P200,000 capital will only pay P2,000.
BMBEs, according RA 9178, are defined as business enterprises “with an asset size of not more than P3 million including those arising from loans but not the land where the plant and equipment are located, and engaged in production, processing or manufacturing of products or commodities including agro-processing trading and services.”
The BMBE ordinance, coupled with the new online registration portal the BPLO had implemented Business Permit and Licensing System (BPLS) Online portal that the city government launched in 2021, has made it very easy for small "mom-and-pop" entrepreneurs to register their businesses, Arriba added.
"Marami po tayong registrants na online, house based ang kanilang pwesto; actually, mas madali po dahil bahay nila yun, halos kumpleto na po sila ng requirements at same po ng babayaran. Ang kagandahan po sa BMBEs, dahil po ito ay isang national na batas, ay hindi lang po sa BPLO ang inyong tax incentive pati po sa national tax na BIR kasama po, basta kayo po ay BMBE registrant,’ he explained.
Long-lasting effects
The effect of the BMBE ordinance was immediate: over 2,500 BMBEs are now registered with the BPLO, according to Arriba.
"Dati po, nilalangaw po yung business registration po kasi naiintindihan ko nga po na wala silang pambayad. Pero nung na-implement na po natin yung BMBE, kahit hindi po season ng pagkuha ng business permit, pumipila po sila talaga dito lahat," he reminisced.
The mere fact that BMBEs can now register their businesses with the local government has had an added "psychological effect" on the small business owners, Arriba also pointed out.
The ordinance meant that these small businesses can now be rest assured that they are protected under the law, he noted.
"Alam ko po yung feeling na kinakabahan ka, natatakot ka, kapag nag-iikot yung mga taga-BPLO, kasi wala ka ngang permit. Ayaw ko pong maramdaman iyon ng ating mga maliliit na negosyante. Gusto ko po, nakikita nila kami as partner for development," the BPLO head pointed out.
This added level of trust between the BPLO and BMBEs have also resulted in higher collections earned by the city government in the past years, which in turn will enable the LGUs to push forward with its projects and programs.
“Lagi po naming sinasabi na iyong binabayad po ninyo sa atin ay nagpapaaral sa mga Iskolar ng Lungsod ng Biñan, ang nagbibigay po ng pension sa ating mga lolo at lola, ang nakakapagtayo ng mga mahahalagang imprastraktura gaya ng annex ng Ospital ng Biñan,” Arriba emphasized.
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