The 2011 Doing Business Report was prepared by the World Bank together with the International Finance Corp. It was based on indicators that included ease in starting and closing a business, ease in acquiring construction permits, access to credit, protecting investors, enforcing contracts, trading across borders, and paying taxes. The report noted improvements in processing business permits in this country, with some local governments setting up one-stop shops to reduce the time by 15 days, as well as computerized Customs procedures.
Well, I know it's just hearsay but I've heard that some foreigners who wish to do business here just transfer to other countries since some of our politicians ask for unreasonable 'corruption money' so that they can do business here. So instead of paying a hefty fee, they'd rather bring their investment to a more hospitable country! Of course, we never get to identify who that politician is, no foreign businessmen would bother leak this information out to our media or even to our influential business clubs.
As for local businessmen like me, the most common lament would be the lack of credit facility. Banks ignore SMEs like my business so I had to build my business relying on the Bombay, or on rich friends who are willing to loan me capital without collateral, but with very high interest rates. I just watched 'The Social Network', and I sometimes wished we had VCs (venture capitalists ) here who could offer a little start up money for small businesses.
Yes, I did loan from an organization specializing on SMEs, but lately, their requirements have become more stringent - too much hassle for petty amounts of P30,000. I'm sure it has turned off a lot of other possible SME owners but as I say, if they really need it, they will find a way to complete all the requirements.
The only silver lining to all of this, is that, we've learned to self-capitalize! To save our earnings, and then, plow them back to the business, or a new business venture. It's a very slow process but it makes us more prudent in our decisions and minimizes risk for huge debt payments.
Well, I know it's just hearsay but I've heard that some foreigners who wish to do business here just transfer to other countries since some of our politicians ask for unreasonable 'corruption money' so that they can do business here. So instead of paying a hefty fee, they'd rather bring their investment to a more hospitable country! Of course, we never get to identify who that politician is, no foreign businessmen would bother leak this information out to our media or even to our influential business clubs.
As for local businessmen like me, the most common lament would be the lack of credit facility. Banks ignore SMEs like my business so I had to build my business relying on the Bombay, or on rich friends who are willing to loan me capital without collateral, but with very high interest rates. I just watched 'The Social Network', and I sometimes wished we had VCs (venture capitalists ) here who could offer a little start up money for small businesses.
Yes, I did loan from an organization specializing on SMEs, but lately, their requirements have become more stringent - too much hassle for petty amounts of P30,000. I'm sure it has turned off a lot of other possible SME owners but as I say, if they really need it, they will find a way to complete all the requirements.
The only silver lining to all of this, is that, we've learned to self-capitalize! To save our earnings, and then, plow them back to the business, or a new business venture. It's a very slow process but it makes us more prudent in our decisions and minimizes risk for huge debt payments.
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