by Alex Roldan
A small group of displaced broadcasters in Davao City wanted to put up a small business, and what came immediately to their minds is a radio station. This is an obvious choice as they know well the ins-and-outs of this business. Just like any ordinary would-be entrepreneur, the best choice should be a venture which is closer to your heart, you have a passion for it and most importantly you have at least the important basics in running the business.
This group has a lot of potentials. They are not the ordinary ACDC (attack and collect, defend and collect) guys. They have been through thick and thin in running the radio station of a larger network. Everybody knows that broadcast networks make the bigger part of the operation of each local station autonomous. Either you sink or swim. But in this case this group has proven for the past 12 years that it can excel in listenership ratings. In fact it became the second highest revenue earner of the entire network’s stations nationwide. But why did the group decide to leave the network and establish its own station is another story.
The group’s experience in setting up the business is something that government agencies and local governments should look closely into if the national policy is to encourage entrepreneurship, particularly for community organizations with very little capital to address the unemployment problem. I am specifically concerned here about the validity of registration papers issued by government entities to ordinary people who bond themselves for the common cause of addressing the livelihood problems among the members.
What is really the meaning of juridical personality for the purpose of legally engaging in business? The group was surprised when it was denied a business permit for the reason that the entity is only an association. The group was registered with the Department of Labor and Employment through the Bureau of Rural Workers Office. One of the purposes of the group is to engage in livelihood activities which, after scrutiny, pass the criteria of DoLE to assist displaced workers. But, the business bureau at first insisted that the group should register with the SEC or the Cooperative Development Authority to be able to legally operate a business. It was frustrating to the group which already used a part of their meager capital to complete the documents required by the local government to operate their dream business. If at this point in time they change their personality into either a cooperative or a corporation, this is not just a waste of time and resources, but an insult to the issuing agency whose instruments are reduced to a useless scrap of paper. Everything that they’ve accomplished will be for nothing, such as lease documents and legal agreements made with other parties that bear the name of the association.
However, the group insists that it cannot find any reason why DoLE’s registration cannot be recognized by another government office. The group decided to stand on the legality of their registration to be rightfully recognized as a juridical personality, and therefore should not be disqualified from obtaining a business permit. With some muscle flexing through contacts, remember these were former broadcast journalists, the local government agency accepted the group’s application and recognized the error from the point of view of a legal opinion issued by the City Legal Office a few years back. That brings instant relief as they can now proceed with the necessary preparations to become the newest station in town soon.
But what about those ordinary community organizations who desperately want to find ways to alleviate their living conditions? Are our rules really that stringent that options for them to operate legally are very slim? In truth, many newcomers to the business have already lost considerable resources even before their businesses can start to earn because of questionable government processes, procedures and regulations.
The fact is that getting, or even attempting to get, a business permit is already a gesture that the applicant wishes to operate legally and is willing to abide with the laws, including legal obligations? I am not referring only to Davao City but to all LGUs and government agencies that are tasked to process permits for any individual or organizations who want to operate a business. We should bear in mind that a tedious and complex process before anybody can start to operate not only discourages people to go into business but encourages them to go underground.
Studies on the time needed to start a business have shown that the Philippines rank miserably among Organization for Economic Co-operation and Development (OECD) countries. Complying with very complex and tedious processes promotes corruption and discourages entry of new investments.
Why can’t we make it simple and give the starters a temporary permit while completing other government requirements? Meaning, let them start to earn so that they will have no reason for not complying. This will make our government system more business friendly.
We simply can’t continue to use “job mismatch” as a doormat for high unemployment in this country. People don’t grumble for lack of job opportunities if they see other options for them, such as entrepreneurship. But first, the government should make the system supportive of those who choose the path.
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