image from Bloomberg
After reading this piece, I was inspired to write my own thoughts on the matter. Credits to Mr. Abrugar and Business Tips.
With the very convincing win of Davao City Mayor Rodrigo Duterte, small business owners are eager to see what his new administration will bring. The good mayor has promised a reduced crime rate in three to six months which is a very welcome scenario. But aside from that, business owners have been wanting some changes to happen in the way they do business. Here are other changes we’d like to see in the upcoming months and years.
LESS RED TAPE
Since I was a small child, I have been hearing about red tape on TV. I didn’t know what it was. I just knew the everyone was complaining about it. Fast forward to over 20 years later, it hasn’t changed. Sure, I now know what red tape is. There have been some laws passed to fight red tape. But sadly, the problem remains.
BETTER TAX SYSTEM
When I first found out how much tax small businesses pay the BIR, I was shocked. And that’s not exaggerating the matter. I did some quick math and realized that if small businesses pay their taxes completely, honestly and on time, there is very, very little profit left for them. That is, if there’s a profit left at all. It’s no wonder that I hear of merchants abusing loopholes and paying less than what they should. And there are even some who wouldn’t pay at all.
I realize that taxes are necessary to keep the government and the country running. I agree that we should all pay our taxes. But there has to be a better way to do this without crippling or totally paralyzing business owners.
I have also heard of aspiring entrepreneurs who are reluctant to quit the rat race and chase their dreams because of the additional cost of doing business due to high taxes.
BIR transactions are no picnic either. The sheer number of forms a merchant has to deal with is dizzying. Couple this with the lack of immediately available information and small- and micro-businesses who shouldn’t have the need for bookkeeping services are forced to shell out extra money just to they don’t have to deal with all the trouble themselves.
FASTER, MORE RELIABLE AND MORE AFFORDABLE INTERNET
Unlike ten years ago, the Internet is an important part of ALL businesses today. In this day and age, some smaller shops can survive with no landline phone; but a fast and reliable Internet connection is a must. This is because the Internet has changed the way we communicate.
For many businesses, the Internet is a crucial way of communicating with their clients, colleagues and fellow merchants. There are businesses whose products and services are purely digital and thus rely on the Internet heavily for their sales.
Sadly, the Philippine telecom industry is way, way behind in Internet connectivity from most of the world in all aspects. Internet here is slow, expensive and unreliable.
How about you? What do you want to see under the new administration?