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Abuyog Community College

Abuyog, Leyte

BUSINESS PERMIT SYSTEM

(LGU Abuyog, Leyte)

CAPSTONE PROJECT PROPOSAL

Adrian O. Salomon

Aiza S. Camposano

Jovie G. Estopia

Mr. Mark Castaňas


Thesis Adviser
Chapter I

INTRODUCTION

Business Permit refers to the procedures followed by cities and municipalities in

processing business permits (more commonly known as Mayor’s Permit) which must be

secured by businessmen to operate legally in a locality.

Business permits regulate safety, structure and appearance of the business

community. They act as proof that your business follows certain laws and ordinances.

Requirements vary by jurisdiction, and failure to comply often results in fines or even

having your business shut down.

In local government units, Mayor’s Office is the regulating and monitoring division

that assesses from small scale, medium and large scale businesses within the area of

responsibility. Pertinent laws are implemented to regulate businesses and monitoring is

regularly done by the office. However, there are still businesses that operate without proper

permission from the authority. This problem is difficult to trace in the mayor’s office lists

of businesses that are permitted and not permitted to operate due to the fact that their files

are stored in a manual storage facilities. It also observed that, the office has a manual list

of corresponding amount of fees per business.

(iNetTutor.com (March 7, 2016) Business Permit and Monitoring System


Background of the Study

The target area of the proposed system is the Municipality of Abuyog, specifically

focused on the automation of Business Permits System under the Business Permits and

Licensing Office (BPLO) department. The BPLO is in-charge of tracking the records of

each businesses. New and old business information were kept in filing cabinets, thus

accessing those records took time. The proponents proposed a computerized Business

Permit System that will help the BPL Office as well as the people they served in.

A survey was done in Barangay Loyonsawang Abuyog, Leyte located in the Local

Government Unit (LGU) Municipality of Abuyog, BPLO Office.

In the Municipality of Abuyog, Leyte, The issuance of business permit is handled

by the BPLO and is renewed every year. The head of BPLO in the issuance of business

permits is Maria Marly A. Tisado. There are still operates illegally and tracing them is a

big problem since the data is stored in the filing cabinet.

The proposed system will reduce the time-consumed in accessing records they

stored. The system will be effective in maintaining, searching, and storing of information.
Statement of the Problem

A personal interview was conducted by the proponents at the BPL Office. The

proponents find out that the information of registered businesses is difficult to track since

the data is stored in the filing cabinet. The list of active and in-active business especially

the expired business licenses were also difficult to monitor. Due to this process, it causes

delay in releasing new application or renewal that took a week.

OBJECTIVES OF THE STUDY

The study aims to design and develop an automated business permit system for the

BPL Office that will speed-up the process in recording, retrieval, and issuance of licenses

to businesses in the locality of Abuyog, Leyte.

Specifically, the propose system will be able to:

 Properly register all types of businesses in the municipality.

 Monitor expiring business permits and give notification.

 Reliably store data and secure information of businesses.

 Implement a unique control number in order to avoid the duplication of

business permit.

 Increase efficiency in managing application, certification of requests, and

computerize the assessment of taxes and other fees.


 Generate the following reports:

a. List of active and in-active businesses

b. Application form

c. Business permit.

Significance of the Study

The study assures to unfold a system that is more reliable, faster and accurate than

the manual system of gathering information and computation. It will allow the LGU to

streamline its operation at the forefront of revenue generation by monitoring the conduct

of operation of businesses. Their time of transaction for releasing business permits will be

minimized and will be able to pay the exact amount of bills in the right time.

The system will benefit the following stakeholders:

Local Government Units (LGUs). The BPLS will give way to the

realization of the e-LGU program of putting the LGUs in an innovation by

using information technology based system in their offices. Aside from that,

uplift the quality of service being rendered to the public can be attained

which is one of the main goal of LGUs.

LGU Officials. The persons leading a certain LGU will be profited as

the system is implemented for its assurance of solving the problems

encountered in business permit and licensing applications.


Business Permits and Licensing Office (BPLO). The generated reports

from the system can improved the strategic plans of the office and can lead to

efficient service to the applicants. BPLO can render accurate and faster process on

business application.

Business Permit Applicants/Owners. The BPLS would provide shorter

time of processing of the business permit applications and accurate computations

of taxes.

Researchers. This proposal will be the researchers’ first step in practicing

their field as Information Technology students. Through the overall phases they’ve

come across with, they will learn the innovative ways of improving such design and

further on implementing a computerized system.


Scope and Limitation of the Study

The proposed system will track or monitor business permit in the locality of

Abuyog, Leyte. The system is intended for licensing of business establishments only and

will not include vehicle licenses and any other transactions not related to BPLO. It will be

implemented in a Local Area Network (LAN).

CONCEPTUAL FRAME WORK

Releasing -The constituents get the approved papers.

Approval - The constituents’ application will be signed by the signee.

- The personnel or person in charge store data or information in the database.


Database

BPLO Personnel -The constituents is assisted by the BPLO personnel and make sure
that no other necessary papers will be forgotten.

Application/Renewal -The constituents must follow the procedure during process.

Constituents

This figure shows the flow of propose computerized business permit system where

the constituents undergone the process of obtaining fully registered business permit.
THEORITICAL FRAME WORK

RDBMS

Is the basis for SQL, and for all modern database system like MS SQL Server, IBM

DB2, Oracle, MySQL, and Microsoft Access? A Relational database management system

(RDBMS) that is based on the relational model as introduced by E.F. Codd

MySQL

MySQL is an open-source relational database management system (RDBMS) and

the most widely used open-source client server model RDBMS.

MySQL is a popular choice of database for use in the web application, and is central

component of the widely used LAMP open-source web application software stack (and

other “AMP” stacks).

GRAPHICAL USER INTERFACE (GUI)

Is a form of user interface that allow users to interact with electronic devices

through graphical icons and visual indicators such as secondary notation, instead of text-

based user interface, typed command labels or text navigation.


Definition of Terms

Business Permit

-A legal document that offers proof of compliance with certain city or state

laws regulating structural appearances and safety as well as the sale of products.

Local Government Unit (LGU)

-It is the part of the Government closest to the people and is in charge of the

delivering basic services and facilities to its constituents. They are considered

independent from the national government: each LGU has the right and the power

to regulate its affairs- political, economic, social and administrative- in its given

territory, consistent with the national policies.

Business Permit Licensing Office (BPLO)

-Business Permit and Licensing Office, primarily regulate the entry and

operation of all business establishments in the city. In the fulfillment of this

mandate, it undertakes issuance of business permit, monitoring and imposition of

mandatory standards to ensure compliance with applicable laws, rules and

regulation in order to protect the interests of the public and to promote commercial

activity for the general welfare of the City.


IDE (Integrated Design Environment)

-It is a software application that provides comprehensive facilities to

computer programmers for software development. An IDE normally consists of a:

Source code editor, Compiler and /or interpreter, Build automation tools and

debugger.

Software

-Computer software is general term used to describe a collection of

computer programs, procedures and documentation that perform some task on a

computer system.
Chapter II

REVIEW OF RELATED LITERATURE

Various studies have already been done to assess business permits and licensing

systems in the country. An example of this is the World Bank’s Doing Business project, a

report on the effectiveness of business regulations in 183 countries. Working on the

fundamental premise that economic activity requires good rules, Doing Business measured

business regulations and implementation based on 10 indicator sets. These indicator sets

are starting a business, dealing with construction permits, employing workers, registering

property, getting credit, protecting investors, paying taxes, trading across borders,

enforcing contracts and closing a business.

According to Business 2010 report, the Philippines ranked 144 out of 183 countries

based on the 10 indicators studied. This ranking gives us an idea of how we stand in terms

of having a business-friendly environment for investors. The findings of the Doing

Business report regarding one of its indicators, ‘Starting a Business’, would be helpful in

providing a background for the study.

According to Business Registration Process Quality and Management Survey

2011, National Competitiveness Council in partnership with Ateneo School of Government

researched on the business registration process in the country and found out that in the City

of Manila, businesses have to go through 15 procedures and wait for 52 days before

acquiring a business permit. This result is relatively higher than the average number of

procedures and days needed to start a business in the East and Asia Pacific region. The cost
of starting a business, computed as a percentage of the economy’s income per capita, is

also relatively higher compared to the cost of starting a business in the region. According

to Locality International 2010 Business is important in gauging the country’s

competitiveness as compared to other countries, there are also studies that focused more

on the challenges of implementing business registration processes within the Philippine

context.

The handbook Good Practices: Streamlining Business

Registration in Local Government Units, published by the Bureau of Small and

Medium Enterprise Development (BSMED), German Technical Cooperation – Small and

Medium Enterprise Development for Sustainable Employment Program (GTZ –

SMEDSEP) and The Asia Foundation (TAF) in cooperation with DTI; is one such

example. The handbook gave an overview of the problems faced by applicants during

business registration. These problems were identified as difficulties in procedures,

requirements, customer orientation and proximity of offices. More than listing the

problems however, the handbook also provided solutions to these problems by sharing

good practices done by different LGUs to improve their business registration processes.

But does improving one’s business registration process really encourage more

businessmen to register in LGUs? A reference document entitled, streamlining the

Business Permit and Licensing System, published by the Private Sector Promotion Program

of SMEDSEP in July 2008, seems to prove this. Results of a study in Iloilo City showed

that 53% more businessmen renewed their permits after the LGUs streamlined their BPLS.
According to BPLS 2009, the studies mentioned tackled regulations, procedures

and challenges of the business registration processes. Combined, they give us an idea of

why there is a need to streamline BPLS in LGUs. Based on these observations therefore,

the next step is to develop and implement projects that would improve the business

registration system in different areas across the country.

Answering this need for improving BPLS, are several international organizations

who worked with local institutions and LGUs to streamline business registration processes.

One such initiative is the cooperation between the International Finance Corporation and

the Ateneo School of Government.

According to System Developers and Automations in 2008 at the local

government units of Manila, Mandaluyong, Marikina and Quezon City. The project aimed

to streamline business registration processes by training the municipal staff and developing

a new process design for the BPLS of the four LGUs.

With various regulatory assessments, process recommendations and actual

streamlining already undertaken to improve business registration processes; the final step

is to validate if the projects initiated by the different institutions are indeed successful from

the viewpoint of the businessmen. In this light, this research could be seen as an effort to

Business Registration Process Quality and Management Survey.


Business Permits and License System

There is a great deal of interest within both the public and private sectors in

encouraging all Business Sectors to migrate from paper based record to a system that stores

information electronically and employs computer – aided decision support system. In parts,

this interest is due to a growing recognition that a stronger Information Technology (IT)

infrastructure is integral to addressing such national concerns as the need to improve the

safety and quality health care, rising business costs, and matters of homeland security.

LOCAL

Business Management System

Portal V Dynamics has developed a Business

Management System that will simplify computerization of Business records and

procedures. It has feature that will enhance performance, technology advancement and

professionalism. It develops Business confidence and increase Business operation more

efficiently and reliably. System is simple and easy to use – Managers doesn’t need to be

pre-occupied with operating their computer instead of giving.

(Chapter II Bplo thesis, Jino (June 20, 2017)

https://www.scridb.com/document/351751973/Chapter-II-Bplo-thesis)

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