DTI Cebu: New biz registrations up by 21.9%

Business names registered by the Department of Trade and Industry in Cebu in the first nine months of 2017 grew 21.9 percent, buoyed by the rising business activity.

Official data showed DTI Cebu registered a total of 14,436 single proprietorship businesses from January to September from 11,838 during the same period in 2016.

Registered businesses during the nine-month period reached a total capitalization of P2.38 billion and generated 20,569 jobs.

The capitalization was down 29.8 percent from P3.39 billion in 2016.

Although employment generation rose by 8.76 percent from 18,912 in 2016.

In the third quarter this year, the number of business names registered in Cebu increased 30 percent to 5,148 from 3,960 during the same period last year.

Of this, 4,612 were new applications while 536 were renewals.

The most number of business names registered in Cebu during the third quarter are engaged in the food sector, followed by general merchandise, and transportation.

In terms of capitalization, the transportation sector topped the list followed by real estate and construction.

DTI Cebu has attributed the increase in business name registration to the mandatory submission of DTI business registration as a pre-requisite for enterprises applying for mayor's business permit in almost all local government units in Cebu.

In 2016, DTI registered a total of 15,588 business names, up 4.5 percent from 14,920 registered in 2015

Business name registration is also seen to further pick up this year as more negosyo centers are eyed to be opened in Cebu.

A business name lasts for five years and has to be renewed if the enterprise is to be continued.

The negosyo center can register business names, offer advisory to aspiring entrepreneurs, and help existing enterprises link their products to potential markets, among others.

Republic Act 10644 or the Go Negosyo Act mandates the creation of negosyo centers across the country to help grow the micro, small and medium enterprise (MSME) sector which accounts for around 99 percent of registered businesses in the Philippines. The law says that negosyo centers must facilitate ease of doing business in the country and access to services for MSMEs.

Aside from accounting for most registered businesses, MSMEs also make up for most jobs created in the country.