Local governments as catalysts for business-friendly reform

AT THE HEART of every thriving regional economy are communities of micro, small, and medium enterprises (MSMEs). In Western Visayas, they account for the overwhelming majority of registered businesses — a statistic that underscores their key role in job creation, local innovation, and poverty alleviation.

During the recent “What’s Up Western Visayas 2025” conference held in Iloilo City, speakers from both the private sector and government echoed a common theme: collaboration is key to unlocking the region’s full potential. And rightly so. But for this synergy to translate into real, on-the-ground impact, local government units (LGUs) must take a more active role as enablers — not just regulators — of business.

While national policies on the Ease of Doing Business Act and the Go Negosyo Law set the tone, it is at the LGU level where entrepreneurs encounter the most friction — in the form of bureaucratic delays, outdated procedures, redundant requirements, and unclear processes. For many MSMEs, especially those in smaller towns, the first obstacle to growth is not the market, but the municipal hall.

To truly empower small businesses, LGUs in Western Visayas must commit to concrete reforms in business registration, permitting, and compliance processes. The digitalization of local government services is no longer a luxury — it is a necessity. Some localities in the region, such as Iloilo City, have made headway with online business permit renewals and integrated systems. These should be scaled and replicated across the provinces.

Moreover, LGUs must reduce — if not eliminate — unnecessary red tape. The implementation of one-stop shops, standard checklists, and transparent timelines for business transactions can dramatically improve the business climate. Doing so not only encourages more entrepreneurs to formalize their operations but also builds trust in public institutions.

The conference featured discussions on innovation, infrastructure, and workforce development, but the foundation for all these is a regulatory environment that allows businesses to breathe. MSMEs will never grow if they are trapped in a web of fees, delays, and outdated procedures.

This is where LGUs can shine — by crafting localized ordinances that simplify requirements, offer tax incentives for startups, create MSME support centers, and institutionalize consultation with local business groups. A small sari-sari store or home-based food business should not need to jump through the same hoops as a corporation. Policy must be proportionate, fair, and facilitative.

Western Visayas has no shortage of entrepreneurial talent. What it needs is a public sector that recognizes MSMEs not as mere taxpayers but as partners in progress. If the spirit of partnership championed at “What’s Up Western Visayas 2025” is to mean anything, it must result in actionable, localized, and sustained reforms.

LGUs are laboratories of innovation and platforms of empowerment, not just administrative units. They should take on that role — boldly, decisively, and with the small business owner in mind.

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