BETWEEN REFORM AND REALITY: ASSESSING THE IMPLEMENTATION OF JMC 2021 IN LOCAL BUSINESS PERMITTING SYSTEMS IN THE PHILIPPINES

Business

This study evaluates the implementation of Joint Memorandum Circular (JMC) No. 1, Series of 2021, among local government units (LGUs) in Surigao del Sur, Philippines, with a focus on business registration and renewal processes for small and medium enterprises (SMEs). Using a descriptive-evaluative research design, data were collected from SME owners across diverse sectors to assess local compliance with national regulatory reforms. The province’s business profile is characterized by Filipino-owned microenterprises, primarily single proprietorships engaged in wholesale and retail trade, with most operating for less than five years—underscoring the importance of localized, streamlined permitting systems.Findings indicate moderate LGU adherence to JMC 2021 standards, with progress in frontline service delivery and form simplification but persistent inefficiencies in procedural steps and signatory requirements. Customer satisfaction is high, particularly in clarity and responsiveness, though lower satisfaction levels are noted in processing speed and fee transparency. Significant differences in satisfaction and perceived challenges emerge across business sectors and classifications, suggesting that sector-specific procedural adaptations are needed. Conversely, no significant relationship is found between challenges encountered and satisfaction levels, implying that satisfaction may be shaped more by client–staff interaction and service expectations than by procedural friction alone. The study concludes that while JMC 2021 has generated positive outcomes, deeper reforms centered on workflow reengineering, differentiated support for microenterprises, and participatory service design are essential to fully realizing inclusive, efficient, and business-friendly local governance.

This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.