Tag: economics

I’ve always been interested about starting my own business. But for lack of certain things, it’s more daydreaming ;) than a real intent at this point. But out of curiosity, I’ve been trying to look for the procedure for starting a business. I’ve asked a few friends, read some articles, and today I stumbled on Doing Business which has, among other things, a ranking of the ease of doing business in various countries. The Philippines ranks a dismal 144 in the list of 183 countries!!!

The difference between the procedures to start at business in the Philippines and starting one in Singapore, which ranks 1,  is telling. No wonder comparatively few attempt to start a business here and even fewer succeed. But I guess there’s a wicked Darwinian mechanism in place here: if you are persistent, determined, and I guess lucky enough to get through all the red tape then you have an excellent chance at succeeding with your business. That’s the government working for you!

My boss mentioned that the level of economy is proportional to the level of trust. Thinking about it, it does make sense. For every business transaction, you would add the cost of contracts, lawyers, and the risk premium to cover for the probability of your partner not meeting his obligations. Not only would this cost you money (but definitely enrich those lawyers) but this would also cost you time. Is this why this country lags behind its neighbors? I remember when I went to Thailand, Migs and I encountered this tailor and we decided to have 3 shirts each made. After picking the cloth and style and having our measurements taken, we paid. But he said he doesn’t give a receipt. Just his business card. We were taken aback but we decided to say the heck with it and paid. I wrote it off already but that night, the shirts were actually waiting back at the hotel. Amazing.