Do Regulatory Compliance Costs Hinder Growth among Small and Medium Enterprises in the Philippines?

J. P. Francisco, J. P. Flaminiano, Joshua Uel Abad, J. G. Santamaria
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引用次数: 1

Abstract

Do burdensome regulatory environments inhibit firm growth? In this paper, we analyzed the effects of regulatory compliance in terms of time and money costs on the probability that a Small and Medium Enterprise (SME) can grow. We also tested whether the relationship between regulatory compliance and firm growth is affected by firm age. Using a sample of 590 SMEs in Metro Manila, Metro Cebu, and Metro Davao in the Philippines, we found that while additional time spent on regulatory compliance decreased the probability of growth among SMEs in general, additional monetary costs in proportion to total business costs spent on regulatory compliance decreased the probability of growth among younger firms with less than five years of operations. Additionally, SMEs that were more familiar with new developments in the regulatory environment and were able to take advantage of recent technological improvements in regulatory procedures were more likely to have grown than those that were not able to take advantage of such. Our findings suggest that the government must continue to work towards easing the burden of regulation on firms, especially younger, smaller businesses whose potential as engines of economic growth and job creation is undermined by time and money costs of compliance.
监管合规成本是否阻碍了菲律宾中小企业的发展?
繁重的监管环境是否抑制了企业的成长?在本文中,我们从时间和金钱成本的角度分析了法规遵从对中小企业(SME)成长概率的影响。我们还检验了法规遵从与企业成长之间的关系是否受到企业年龄的影响。通过对菲律宾马尼拉大都会、宿务大都会和达沃大都会的590家中小企业进行抽样调查,我们发现,虽然在合规上花费的额外时间总体上降低了中小企业增长的可能性,但在合规上花费的与总业务成本成比例的额外货币成本降低了运营不到五年的年轻企业的增长可能性。此外,更熟悉监管环境的新发展并能够利用监管程序中最近的技术改进的中小企业比那些不能利用这些改进的中小企业更有可能获得增长。我们的研究结果表明,政府必须继续努力减轻企业的监管负担,尤其是年轻、规模较小的企业,它们作为经济增长和创造就业机会引擎的潜力被合规的时间和金钱成本所削弱。
本文章由计算机程序翻译,如有差异,请以英文原文为准。
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