EXPERIENCES OF SARI-SARI STORE OWNER ON THE IMPLEMENTATION OF

BUSINESS PERMIT IN KADINGILAN

A Research Proposal
Presented to SHS Faculty of San Andres National High School
San Andres, Kadingilan, Bukidnon

In Partial Fulfillment of the requirements for

Practical Research
JAMES CABUS
JOHANIE CLARION
A.J CADENAS

JUNE 2023
 INTRODUCTION

Background of the Study

Doing a Business is very popular currently. Business owners have their own struggles

and challenges in doing a business, such as, financial problem, physical problem, and even in

social problem. Specially when business owners obtain a business permit. Business permit is

the most important requirements for all business owners. This requirements can help the

owners to legalize their business. It serves as a license in their business. This help regulates

safety, structure, and appearance of the business community. It can also help the business to

grow faster. Business permit is often also referred to as the mayor’s permit in the country.

Business permit can benefit the owner by allowing them to collect revenue and

regulates Ok seetheir business. However, a business license is also advantageous for small

business like sari-sari store business. Licensing in certain sectors can also be used as a

competitive advantage, where licensed business can demonstrate of licenses at their

customer. Every country imposes different business license requirements and regulations, and

failure to comply can have a litany of consequences , including fines, late fees, penalties and

denial of operation. Therefore, It is essential to identify which licenses and permits the

owners need before opening the doors, to the public. That way the owners can make sure

compliance is in order and avoid the additional expenses and delays of fixing things later.

Permit on businesses can vary wildly across different states , cities and industries, so

pinpointing which specific licenses that the owner need can be challenging.

( Schooley, 2023 ), stated that industry professionals have identified some of the most

common business licenses required to get started, but it is crucial to seek legal counsel to

determine which ones apply in the business. Each municipality have regulations for which
businesses can operate in specific areas, so it must be verified in the city in which business

owners operate in zoned for the specific business type. If it is not, owners must apply for a

zoning variance and prove that the business will not significantly disrupt the community.

A building permit verifies that the building in which owners operate is up to code, a

necessary component of applying for business insurance. Buildings that lack occupation

permits may have structural problems or be at risk of flood or fire. If owners plan to operate

the business from home, a home occupation permit can allow the owner to do so in some

instances. The business permit process also helps ensure that businesses are paying their taxes

and due to the local government office in the area in which the business is registered and

operating. It is more important to note that all registered businesses in the Philippines, unless

they are availing of an applicable exemption, are required to apply for and obtain a business

permit for their business.(Chron Contributor, 2021 ).

Permits or license are required to ensure that the standards are met and that business

complies with the specific requirements of the business locale. The perspective of the

business, the obtaining of a business permit will illustrate that the business is properly

registered and entitled to operate within the LGU. This can be a source of legitimacy and

reputability for customer seeking to engage that business. It can also be a common request

when setting up commercial relationships, partnerships or account with various third parties

such as banks, payments gateways, online subscription on supplier/vendor engagements

(Biber & Ruhl , 2014 ) .

It has been mandated that the business permit of Local Government unit ( LGUs ) in

Kadingilan, Bukidnon that the business owner acquired business permit.Thus, this study

taken to identify the needed requirements, steps getting business permit and the experiences

of business owner upon getting business permit.

Statement of the Problem

Specially, this study sought to answer the following questions :

1.What are the needed requirements to get business permit?

2.What are the steps to get business permit?

3.What are the experiences of business owner upon getting business permit?

Research Objective

This study aim to discover the requirements, steps and experiences of sari-sari store

owner on getting business permit by focusing on the following objectives:

1. determine the needed requirements to get business permit.

2. Identify the steps to get business permit; and

3. Elucidate experiences of business owner upon getting business permit?

Theoretical Framework

The study is anchored to the theory of Regulatory Compliance Theory ( Etzioni,

2018 ), is one of the most commonly used theory. This theory suggests that business permits

are regulatory tool used by governments to ensure that businesses comply with certain rules

and regulations. Business permits typically require business to meet certain standards related

to health and safety, environmental protection, zoning laws, and other requirements. This
theory assumes that businesses are not necessarily motivated by a desire to comply with these

regulations, but are instead motivated by a desire to avoid penalties or fines for non-

compliance. Therefore, the theory suggests that the main purpose of business permits is to

provides a mechanism for enforcing these regulations and ensuring that businesses meet the

required standards.

The Seigenthaler Theory ( John, 2014 ), states that the licenses required carefully

crafted legislation and administrative regulations to ensure that their impingement upon

guaranteed rights is minimized. While the promotion of targeted public policies is

maximized. Licensing powers are concurrently exercised in the United States by federal state,

and local governments. The licensure of business operations through permits is traditionally a

state or local power, while regulation of corporate activities is primarily a federal power

based on the commerce clause. The licensing of expressive acts, however, must be carefully

reviewed.

The Resource Dependence Theory ( Pfefer & Salancik, 2018 ), suggest that

organizations, including small businesses, are dependent on external resources to survived ad

succeed in the case of obtaining business permit, the small business way depend on the

government to provide the permit, and may need to navigate the bureaucratic process to

obtain it. This means that a firms competitiveness is determined by the way they deal with

the external resources. This theory also believes that this is , more important than the internal

resources.

Conceptual Framework

The main concept of this study focuses on the experiences of the sari-sari store owner

in the implementation of business permit.

 Needed requirements
Implementation of
Business Permit in Steps of getting business
Kadingilan, permit
Bukidnon
Experiences upon getting
business permit

The figure shows the implementation of business permit in Kadingilan, Bukidnon has

different experiences and steps in getting business permit.

Significance of the Study

This study would help business owner upon getting business permit, it provide

insights into the overall process of starting a business in a particular location. Understanding

the challenges, barriers and opportunities that business owner’s face when obtaining a

business permit. This will also assist the business owner on what are they needed

requirements and steps on getting business permit.

Researcher, the findings of this study will aid the problem of business owner on

getting business permit, it also provide a sense of security and legitimacy to the business and

can also help avoid any legal problems or penalties down the line.

The experience of obtaining a business permit can be a valuable learning experience

for a business owner, helping them to navigate the legal and regulatory landscape and set a

strong foundation for the business.

Scope and Limitation

 This research will utilize qualitative data collection in Pinamangguan, Kadingilan,

Bukidnon. Pinamangguan is one of the most successful Barangay in terms of business, but

many of business owner have different experiences in getting a business permit. The

participants of this study was limited to 10 sari-sari store owner of Pinamangguan,

Kadingilan, Bukidnon.

Definition of Terms

The following terms were defined according to how they are used in this study:

Business , this refers to a persons regular occupation, profession, or trends.

Experience, this refers to direct observation of or participation in events as a basis of

knowledge.

Implementation, this refers to an act or instance of implementing something and the

process of making something active or effective.

Law, this refers to a rule of conduct or action prescribed or formally recognized as

binding or enforced by a controlling authority.

Legitimacy, this refers to the quality or state being legitimate and conforming to the

law or to rules.

License, this refers to a permission granted by competent authority to engage in

a business or occupation or in an activity otherwise unlawful.

Requirements, this refers to something essential to the existence of occurrence of

something else.
 REVIEW OF RELATED LITERATURE

This chapter proffers the review on related literature and studies after the through in

depth forage done by the researchers the literature review is taken in the internet and article

based on the experience of the sari- sari store owner on the implementation of business

permit.

Business Permit

Obtaining a business permit is a crucial step in starting and operating a

business. The process of gating a business permit varies from country to country, state to

state an even from city to city.

Requirements of obtaining a business permit

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

study found that the process of obtaining a business permit can take up to 234 days in some

countries. Moreover, the process may involve various stages, such as obtaining approvals

from different government agencies, paying fees, and filling out paper work.(according to a

study by the world bank 2019)

 Compliance management (2020 ) suggested that regulatory compliance is when a

company complies with all applicable local national and international rules and regulation.

The particular requirements can differ mostly dependent On the sector and nature of the

business.contrarily, compliance with company policies and procedure entails adhering to

internal guidelines establilshed by the organization. However,both support fostering

accountability at work.

A study by ( Mallari, 2021 ) stated that all businesses in the Philippines most obtain a

business permit or mayors permit from the local government unit. The following items most

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 to ( Zoleta, 2022 ) processing and obtaining business permit needs takes

time and effort. The owner may not currently have this 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 the

nation, 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 granting of permits

and license ,including the handling of problems with strategic investments.

In 2020, Martinez 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 to

investigate the permits the owner needs. This is evidence that the business is legitimate ,has

no fraudulent operation ,and pays all required taxes.

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 a

nominal 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 ( Applegate, 2023 ).

Steps on getting business permit

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

study found that the process of obtaining a business permit can take up to 234 days in some

countries. Moreover, the process may involve various stages, such as obtaining approvals

from different government agencies, paying fees, and filling out paper work.(according to a

study by the world bank 2019)

The permit must include the following information :the name and address of legal

entity or person carrying out business activities , registration number ,date ,and term of the

license .the permit is issued in duplicate ,signed by the person responsible for issuing the

document ,stamped by the issuing authority, and one copy is given to the applicant .the

licensing institution has the right to revoke the business owner usage of the permit if they
break the terms of the permit or any applicable laws as will as participate in actions that

jeopardized the lives of the general public. ( Bakhritdinovich et al., 2021)

Mcmenemy (2019 ) postulated that legal compliance assures that a business owners

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 safeguard 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.

Tukhtasinovich ( 2021 ) postulated that on the basis of the applicants

application ,which is attached and includes a copy of the founding documents, the license is

granted .the application unnecessary paper work must be submitted with in 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.

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 days

or 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 a

representative to complete the work because of this.

In 2020, Jean Murray 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

According to ( World Bank, 2022 ), the simplest and quickest business procedures are

use for business registration in established governments like Canada . Every nation has a

uniform process for policing commercial application for generating cash the initiative , which

as a component for a larger strategy to liberalize the corporate sector and promote firm

development, requires enterprises to get a permission before founding and operating a

business Numerous parallel initiative to divide local authority budget have somewhat damage

the efforts to simplify company licensing.

According to ( Balle, 2023 ), 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 it they do need a business license before acquiring an

official license, proprietors of some sort of businessess,such as restaurants and liquor stores ,

may have to spend weeks ,months , or even years on a waiting list.

Challenges on Obtaining a Business Permit

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 permit

is 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 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 hundred of thousand of local , country , municipal , township , and special

district governments in the united states , and each has its own unique criteria for business

license and permit . Meeting the needs and obstacles of business license compliance can

include keeping track of deadlines , investing important time in understanding the

requirements for applications, and communicating with several federal , state , and local

office. Just understanding where and how to start their search to determined what business

licenses they need is one of the difficulties that businesses face when attempting to apply for

a business license .it is understandable that the owners would not know where to start because

licensing is complicated and will vary greatly depending on a lot of things ( CSC, 2019 ).

According to ( Ayala, 2023 ), stated that both the regulation of business licenses and

the severity of enforcement action against license infractions are rising the difficulty of

upholding compliance may also due to additional difficulties non compliance with license

requirements may have severe repercussions .financial penalties and disruptions in business

operations and obvious negative self management often function best when aided by

sophisticated business licensing software because its necessitates your active participations in

maintaining compliance .

According to ( iFranchise Philippines, 2020 ),Its never simple to obtain a license or

certificate of business registration from the government , especially in our nation

additionally , there is no set deadlines by which the owner has complete the first stage .one of
the main challenges that the beginning entrepreneur has is talking chance .to savor the sweet

taste of success , it requires a lot of determination , patience , and hard work before the owner

might actually become a successful business person ,there are difficulties and preparing for

potential outcomes is crucial to overcoming them so that you don’t experience failure at the

start of your firm.

CHAPTER 3 METHODOLOGY

This chapter presents the research design, sampling design, research locale,

respondents of the study , the instrumentation and validation , data gathering procedure,

trustworthiness of the study and analysis of data.

Research Design

The researchers will use the qualitative method of research to gather data about the

said topic and to interpret these data by analyzing the answers of the respondents during the
interview. This method was also used because this put emphasis on the present status of a

certain phenomenon, describes a current situation, person or process.

Crossman(2019) emphasize qualitative research as a type of social science research

that collects and works with non-numerical data and that seeks to interpret meaning from

these data that help us understand social life through the study of targeted population or

places.

Sampling Design

The researchers will use purposive sampling technique. The purposive sampling is a

sampling technique that qualitative researchers use to recruit participate who can provide in-

depth and detailed information about the phenomenon under investigation. This is a blanket

term for several sampling techniques that choose participants deliberately due to qualities

they posses. It is also called judgmental sampling, because it relies on the judgement of the

researcher to select the units. This sampling will be use to ensure that each participant must

meet to be considered for the research study.

Research Locale
 The study will be conducted at Pinamangguan, Kadingilan, Bukidnon. Pinamangguan

has a total population as determined by the 2020 census was 2,121. Pinamangguan is located

7°29’ North, 124°52’ East, and 545.3 feet above sea level. Pinamangguan represented 6.29%

of the total population of Kadingilan. Around 30% of its population had doing business.

Pinamangguan is one of the most successful Barangay in Kadingilan, Bukidnon in terms of

business and most of that business is the sari-sari store .

Map:

Respondents of the Study

 The respondents in this study are the sari-sari store owner of the Pinamangguan,

Kadingilan, Bukidnon. A total of 10 Business owner respondents the survey. The respondents

will be sari-sari store owners since the owners are the one who are affected by the factors

mentioned. Aside from the study the topic being related to business. The researcher also want

to tell business owner dealing with a variety of challenges on getting business permit.

The Instrumentation and Validation

The survey questionnaire will be the research instrument that will be used by the

researchers. This strategy will be employed by the researcher to prove and reinforce the

study. The survey questionnaire will be self made by the researcher based on the study’s topic

and issue description. To get input from respondents, the researcher will employed a

questionnaire.

The first section of the survey questionnaires deals with the requirements of business

owner in getting business permit. The second section of the survey questionnaire is the steps

that was encountered by the business owner. The researcher made a personal interest

declaration in the third section of the questionnaire. The researcher produce statement

concerning the experiences of business owner in getting business permit in the concluding

section of the survey questionnaire.

Data Gathering Procedure

The first thing that the researcher will do to make a letter of consent for the

respondents. The researcher will ask the research teacher to check the letter of consent. The
researcher will make sure that the letter of consent will be constructed thoroughly and

secured first to be read and given us permissions to the respondents during the gathering of

data.

Second, the participants will be chosen based on the availability and willingness to

participate. The researcher will make sure that the people who chosen will be have an

understanding above the topic under examination and will answer all of the question

completely( Creswell).

Third, the study’s main objective and the procedure design for data collection will be

explained to the participants clearly.

The fourth step involved an in-depth interview by the researcher. Researcher will ask

the participants if they can use an audio recorder while conducting the interview to become

more reliable and valid the researcher will welcome the participants and will explain the goal

of the study. Also the reason why researcher choose to conduct the study.

Trustworthiness of the Study

The researcher will take into account the participants responses to ensure

dependability and accuracy when gathering data. The researcher will adhere to Lincoln and

Guba’s (1985), which Shenton(2005) cites as saying that a research study’s credibility is

crucial to analyze the value of it. To ensure that the analysis, queries, and arguments

supporting the conclusions were outlined by Stracess and Myburgh(2001). Lincoln and Guba

(1985) base their evaluation of trustworthiness on four broad standards. They are credentials

trustworthiness, transferability, dependability, as well as conformability.

 Credibility ensure that rigor was properly observed during the data collection

especially during the interviews, wherein researcher avoided drawing conclusion from the

interviews but based everything on factual data , directly from the participants .Researcher

saw it that no relevant data was excluded and no irrelevant data was included .this is

supported by suter (2012) that credibility refers to the confidence of the believability of the

findings , which is enhance by evidence such as confirming evaluation of conclusions by

research participants , convergence of multiple sources of evidence such as interview

transcripts , reflective field notes and investigator Triangulation (Dewet ,2010) are

used .these strengths the study.in this study the researcher use data triangulation ,iterative

questioning (Shelton ,2008 ) and member checking as researcher will be using the in-depth

interview as our method of data collection .

Further as cited by (Wachembere 2014 ) iterative questioning is about using probers

to collect detailed data. Researchers return to topics previously posed by informants and

extract relevant data through rephrased question .in both cases were desparity occur .false

noods are revealed and researchers can decide to discard questionable data. Also, the

research will ensure the sufficiency and relevance of the gathered information by also using

the research questions.

Moreover, member checking will be used in the context of this study it is about

returning data. Analytical classifications, interpretations and findings to member of the

groups from which data was obtained it improves the data especially because researcher and

participants view the transcript of their interview may improve data accuracy it can be used to

allow participants to reconstruct their narrative by illuminating portions that they believe no

longer represent their experience or present them in a poor light ( Birt et al. , 2016)
Analysis of Data

Prior to evaluating the data from this qualitative investigation, all information

obtained through interviews, including in-depth interviews, will be secured by researchers.

To keep meticulous and comprehensive information, the collected data will be analyzed,

synthesized, and documented . After the formal data gathering period has ended, analysis will

start.

Every piece of information that will be gathered, together with the responses in the in-

depth interviews that will be conducted with research participants will be recorded. To names

of participants will be likewise be coded as IDI-01 through IDI- to ensure confidentiality.

Thirty for IDIs ( in-depth interview ). The results will therefore be documented. In line with

the research guiding questions. Since it includes what the transcription procedure will help

the understanding of the events as they are researcher in creating a complete understanding of

the data obtained.

The qualitative data will be analyzed using a thematic approach. Data sets will be

pattern by themes that are important to the description of a phenomenon and are related to a

research topic( Daly et al., 1997) . This necessities grouping related data segments into

categories or themes.

Statements that are pertinent to the topic will be separated into “key ideas” that

sparked specific thought after a thorough analysis. The responses of participants will be

grouped into major themes that brought attention to the phenomenon varied

aspects( Creswell,2013) . Major concepts that will be found will be explained and backed up

by relevant reference.
 A SURVEY QUESTIONNAIRE ON EXPERIENCES OF SARI-SARI STORE
OWNER ON THE IMPLEMTATION OF BUSINESS PERMIT IN KADINGILAN

Name(optional): __________________________________ Age:______

General Objectives:
Part I : Determining the requirements of business owner in getting business
permit
Directions: Read each statement in the survey depends on your
personal opinion. There are no wrong or right answer. Your answer will be strictly
confidential.
1. What documents are required to obtain a business permit?
______________________________________________________________
______________________________________________________________
______________________________________________________________
______

2. Do you need to register your business with any specific government agencies
before applying for a business permit?
______________________________________________________________
______________________________________________________________
_________________

3. Are there any health and safety regulations that need to be met to obtain a
business permit?
______________________________________________________________
______________________________________________________________
____________
 4. Are there any educational or professional qualifications required to obtain a
business permit?
______________________________________________________________
_____________________________________________________

5. Are there any zoning or location requirements for obtaining a business

permit?
______________________________________________________________
___________________________________________________________
Part II: The steps in getting business permit.
Directions: Read each statement in the survey depends on your personal
opinion. There are no wrong or right answer. Your answer will be strictly confidential.
1. How do you start the process of getting a business permit?
______________________________________________________________
______________________________________________________________
___________________.

2. How long does it typically take to obtain a business permit?

______________________________________________________________
______________________________________________________________
__________

3. Are there any fees associated with applying for a business permit?
______________________________________________________________
______________________________________________________________
_____________________

4. Are there any specific regulations or restrictions related to operating a home-

based business?
______________________________________________________________
______________________________________________________________
___________________________

5. What are the general steps involved in obtaining a business permit?

 ______________________________________________________________
______________________________________________________________
_____________________________

Part III: The experiences upon getting business permit.

Directions: Read each statement in the survey depends on your personal
opinion. There are no wrong or right answer. Your answer will be strictly confidential.
1. What are the benefits of having a business permit?
______________________________________________________________
______________________________________________________________
________________________.

2. What are the common challenges or obstacles faced during the business
permit application process?
______________________________________________________________
______________________________________________________________
______________________________________________________________
______

3. Are there any restrictions or regulations that come with a business permit?
______________________________________________________________
______________________________________________________________
______________________________________________________________
_____

4. What are the consequences of operating a business without a proper permit?

______________________________________________________________
______________________________________________________________
___________________________________________.
5. How does obtaining a business permit affect the taxation or legal obligations
of a business?
______________________________________________________________
______________________________________________________________
______________________________________________________________
__________________________________.