Perception about the Implementation of Business Permit to the

Selected Sari-Sari Store Owners in San Pablo City

A Research Paper presented to the

School of Accountancy Business Management (ABM)

ACLC College San Pablo

In partial fulfillment

Of the requirements for the subject of

Practical Research

Pardo, Vann Lexter G.

Alinea, Aaliyah Stephanie Nicole M.

Dela Cruz, Lea Danica C.

Monique, Medalla J.

Castillo, Hanshien

Mr. Nestor Kevin B. Dungo

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 CHAPTER I

THE PROBLEM AND ITS BACKGROUND

INTRODUCTION

Sari-sari store is a small local store found in some neighborhoods here in the

Philippines, where it provides daily consumption's and needs. A business permit is a key

to lawfully operating and doing business in the locality where it is registered and is

granted a business permit, which is an Essential compliance document. To put it briefly,

a business permit is like a “license to operate” in that particular location (Dimayuga,

L.,2023). All businesses in the Philippines must obtain a business permit or mayor's

permit from the local government unit. (Mallari, 2021)

There are various obstacles in the way of sari-sari store owners implementing

business permits. The licensing and permit granting procedure is hampered by several

factors, including inadequate and ineffective local institutions, vendors’ attitudes and

knowledge, urban politics and dynamics, and the impact of social groups

(SCISPACE,2023).

Obtaining a business permit can be a challenging and time-consuming process.

All business owners must comply with legal regulations. It is well known that obtaining

a business permit can be very difficult. Due to the time consumption and interactions

across agencies processing in the Philippines might take days or possibly stretch out to

weeks the less glamorous aspects of starting a business include waiting in lines and

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filling out paperwork, but one of your main responsibilities as an entrepreneur is

maintaining close track of legal paperwork both thinking and doing would be required to

obtain permissions it can be tiresome, and business owners frequently send a

representative to complete the work because of this (according to BMPlus 2018).

Furthermore, it is frequently difficult for owners of sari-sari stores to manage

their finances and obtain loans due to their lack of financial means. Another prevalent

characteristic among sari-sari shop owners is financial illiteracy, which may make it

more challenging for them to make prudent financial decisions. Additionally, as sari-sari

store owners may use different approaches, training and seminars are necessary to help

them improve their marketing strategies. Owners of sari-sari stores may find it difficult

to achieve commercial success as a result of their operational, financial, and marketing

issues (SCISPACE, 2023).

The "Perception and the implementation of business permit to selected store

owners" study aims to find out how store owners view the application and

implementation processes for business permits, as well as any problems or areas where

the current system needs to be improved. This might entail looking at things like how

simple it is to apply, how clear the rules are, and how it affects businesses operate.

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STATEMENT OF THE PROBLEM

General Question:

1. What perception of sari-sari store owners on the implementation of business permits?

2. How does the implementation of business permits impact the operations and

profitability of the sari-sari store in San Pablo City?

Specific Question:

1. What are the challenges faced by sari-sari store owners in San Pablo City when

applying for a business permit?

2.What are the positive impacts of having business permits in San Pablo City?

HYPOTHESES

Null (H0) - There is no significant effect on the Implementation of Business Permit to

the selected Sari-Sari Store owners in San Pablo City.

Alternative (H1) - There is a significant effect on the Implementation of Business

Permit to the selected Sari-Sari Store owners in San Pablo City.

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CONCEPTUAL FRAMEWORK

Independent Variables Dependent Variables

* Implementation of Business

Permits * Perception about the Implementation

of business permits of Sari-Sari store

* Positive Impacts of having

business permits

In this study, the focus is to know the Perception of Implementation of Business

Permits in Sari-Sari Store Owner in San Pablo City. The independent variable

Implementation of Business Permits, Obtaining business permits, and Positive Impacts

of having business permits will serve as factor to understand what is the effects,

requirements and impact of having business permit in a business. As for the dependent

variables, it will serve as factor to understand the Perception of Sari-Sari store owners

about the Implementation of business permits.

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SCOPE AND LIMITATION OF THE STUDY

Scope of the study

This study aims to investigate the perceptions of seventy-five (55) selected Sari-

Sari store owners in San Pablo City about the implementation of business permits. The

scope focuses on understanding how these small business owners view the process of

obtaining and maintaining a business permit, including their, challenges faced, and

perceived benefits.

Limitation of the study

Limitations San Palo City Laguna

1. This study only covered a specific area in the Philippines which is San Pablo

City Laguna and may not be applicable to other Sari-Sari store owners.

2. Population and sampling: The study made use of a small purposive sample from

Sari-Sari store owners only without due consideration for the variety in

experience/and perceptions that may be obtainable amount city vendors.

3. The study reflects experience-based perceptions over the past one year, and

likely does not capture long-run trends or changes in ease of doing business

permit process.

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 4. External Factors: Factors such as changes in local government policies,

economic conditions, or enforcement practices during the study period may

affect the perceptions of store owners and are beyond the control of the research.

SIGNIFICANCE OF THE STUDY

This study lies in its purpose of exploring the lived experiences of sari-sari store owners

in San Pablo City and to know the challenges they will face. This study would also help in

business owners upon getting business permits, it provides insights into the overall process of

starting business and the requirements of getting business permits.

This study will significantly affect and help the following:

1. Owners of sari-sari stores: This study will tell sari-sari store owners about the

requirements they need in having business permits, as well getting the strategies they

need to improve their business and how to start business in a effective way.

2. Community: This study will help them generate income, give many households a

way of subsistence, and gather data about customers.

3. Government: The money paid for this business permit in order for it to be

authorized will be used as taxes to finance city projects.

4. Future Researchers: This work will provide the foundation for future researcher

to help and give additional knowledge about this topic.

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DEFINITION OF TERMS

The following are definition of terms:

Business Permit - also known as a mayor's permit, is a government license secured

from your local government unit (LGU). It allows you to operate your business legally

within the area of your LGU.

Sari-Sari Store - A sari-sari store, anglicized as neighborhood sundry store, is a

convenience store found in the Philippines. The word sari-sari is Tagalog meaning

"variety" or "sundry".

Perception - the ability to see, hear, or become aware of something through the senses

and a way of regarding, understanding, or interpreting something; a mental impression.

Implementation - the execution or practice of a plan, a method or any design, idea,

model, specification, standard or policy for doing something.

Requirements - something that's mandatory or necessary—it's something you need to

have or need to do. Requirement is most often used in official contexts in which

achieving a certain status requires you to perform certain actions or have certain things,

such as documents.

Experience - the fact or state of having been affected by or gained knowledge through

direct observation or participation.

Strategy - a general plan to achieve one or more long-term or overall goals under

conditions of uncertainty.

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 CHAPTER II

REVIEW OF RELATED LITERATURE AND STUDIES

This chapter contains the conceptual and research literature relevant to the current

inquiry. This allows the research to enrich and categorize the various thoughts, ideas,

help to gain more knowledge.

LOCAL

LITERATURE

The article shows that marketing is a crucial part of a business process,

especially in small retail businesses like the sari-sari store where competitors are almost

in every corner. In an article by Caldwell (2019), aside from applying some marketing

strategies, owners should also focus on monitoring their revenues and expenses, as this

helps in identifying and monitoring the growth of their business. Practicing these

strategies, sari-sari store owners can determine the business' success and come up with a

solution to improve the status of their business. The article suggests that to be an

efficient business owner requires proper managing skills that can help keep the business

ongoing. The Lived Experiences of Sari-sari store owners in Cebu City consist of

different positive and negative experiences. These experiences are significant as it

affects how the owners manage their respective business operations. The studies to be

reviewed and analyzed critically are important for the development of the study. These

studies will enable the researcher to gather and use the knowledge as the research

progresses.

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LOCAL

STUDIES

According to (BMPlus, 2018), all business owners must comply with legal

regulations. It is well known that obtaining a business permit can be very difficult. Due

to the lengthy lines and interactions across agencies, processing in the Philippines might

take daysor possibly stretch out to weeks. The less glamorous aspects of starting a

business include waiting in lines and filling out paper work, but one of your main

responsibilities as an entrepreneur is maintaining close track of legal paper work both

thinking and doing would be required to obtain permissions. It can be tiresome, and

business owners frequently send are presentative to complete the work because of this.

In Mcmenemy (2019) study, postulated that legal compliance assures that a

business owner abides by the intricate rules, procedures, and laws that govern

commercial activity in a given country. It shows the owners dedication to following the

law and safe guard the company from possible fines or legal problems. Knowing and

comprehending the laws that apply to the organization is only one part of compliance,

the organization must also be able to show that the firm and all of its subsidiaries are

compliant at all times.

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 According to Martinez (2020) stated that failure to comply with regulation will

result in fines or penalties that must be paid, or even shutdown before the owner begins

any project, set up a business, buy a property, etc. To prevent further cost and other

consequences, it is beneficial toinvestigate the permits the owner needs. This is evidence

that the business is legitimate, has no fraudulent operation, and pays all required taxes.

According to (Murray,2020) the acquisition of licenses and permits is one of the

first duties for any new business. All business owners are expected to abide by a number

of federal laws, some of which call for licenses and permits. The owner of the company

should research the zoning and building regulations of the city.

A study by Mallari (2021) stated that all businesses in the Philippines must

obtain a business permit or mayor's permit from the local government unit. The

following items must be present in order to obtain a business permit or mayors permit a

certificate of business name registration from the department of trade and industry,

barangay business clearance, a letter of authorization from the owner accompanied by

identification, a contract of lease (if the business leased), a certificate of title or tax

declaration (if the business is owned), a sketch of the business location, and occupancy

permit, a community tax certificate (ctc or cedula), public liability insurance.

According tp Tukhtasinovich (2021) postulated that on the basis of the

applicant’s application, which is attached and includes a copy of the founding

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documents, the license is granted. The application unnecessary paper work must be

submitted within 30 days after the decision to grant a license. The state bodies whose job

it is to control shall exercise expertise as needed in making the judgment necessary to

issue a license if all necessary paper works is provided within 15 days of the end of the

examination, the decision will be made no later than 60 days from the time application

was received in this scenario, the candidate is responsible for the exam’s cost.

As discussed in Zoleta (2022), processing and obtaining business permit needs

takes time and effort. The owner may not currently have these documents in their

possession, therefore, the owner should obtain them right away. The owner should also

make sure that they have the following documents before applying for a business permit

in the nation. A certified photocopy of the SEC and the articles of incorporation or

partnership should be submitted by corporation, partnership, and cooperative. The owner

must submit a company tax certificate and pay the approximately 200 peso barangay

clearance cost.

According to (Corrales, 2022) to encourage greater foreign direct investment in

thenation, President Ferdinand Marcos will sign an executive order requiring federal,

state, and municipal government to reduce the time it takes to issue business license or

licenses. Give the relevant government agencies the authority to set requirements for the

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granting of permitsand license, including the handling of problems with strategic

investments

Some companies may merely need to register their business with the state in

order to pay taxes and open a business bank account; not all companies must obtain a

business license from the state. The meaning benefits and drawbacks the owner will

experience if they do need a business license before acquiring an official license,

proprietors of some sort of businesses, such as restaurants and liquor stores, may have to

spend weeks, months, or even years on a waiting list according to (Balle, 2023).

To protect themselves from both personal and business risk, the owner can set up

a limited liability company, partnership, or any other type of firm. Business owner must

pay anominal charge to submit their retail licensing application. The owner might have

to pay nonresident charge if they don’t live in the state or location. Some organization

demand insurance before granting a license according to (Applegate, 2023).

FOREIGN

STUDY

A study by Growth Finance Incorporation (2023), any firm, whether it is a sole

proprietorship, partnership, corporation or cooperative, needs a business license, which

must be renewed annually. The customary window for renewing a business permit or

mayors permitis from January 1 to January 20 of each year. No matter when a business

was registered with the department of trade and industry, the securities and exchange

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commissions, or the cooperative development authority, the deadline still applies some

local government units extend their deadlines under certain situations, as when their

authority is expanded getting a business permit from be a difficult process to complete.

However, it is crucial to any firm since it can protect owner from potential legal, tax, and

financial issues. There are hundreds of thousands of local, country, municipal, township,

and specialdistrict governments in the united states, and each has its own unique criteria

for business license and permit.

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References:

Dimayuga, L. (2023, December 19). Business permit in the Philippines.

https://cloudcfo.ph/blog/corporate/business-permits-in-the-philippines-what-you-need-to-know

Mallari, J. (2021, May 11). How to get a business permit in the Philippines.

https://www.securitybank.com/blog/how-to-get-a-business-permit-in-the-philippines/

Cabus, J. (n.d.). INTRO PRAC 1. Scribd.

https://www.scribd.com/document/681941285/INTRO-PRAC 1?

fbclid=IwAR2eSLV6obl0y4UFmpfh5gsnj47J2hgYRMlIo22s7T2wpy_utvJFy9tg-yk

Studocu. (n.d.). 1A.Livedexperiencesofsarisaristoreownersincebucity - LIVED

EXPERIENCES OF SARI-SARI STORES OWNERS IN - Studocu.

https://www.studocu.com/ph/document/titay-national-high-school/advanced-control-

systems ii/1alivedexperiencesofsarisaristoreownersincebucity/50124803?

fbclid=IwAR3qom_3RVNjj8_YOra0TtDsUYvncYVn_JuDStF_V6zYcim-

Uvpt_W1JJGw

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