Direct Regulatory Control Policies and their Role in Small Enterprise Development in the Philippines: Analysis and Recommendations

Abstract

The study described in this article details some specifications about the consequence of direct regulatory control policies of the government affecting small enterprises that contravene promotive policies for the development of small enterprises.  Too many regulatory laws are passed that non-compliance becomes the mode of response by the firms.  Enterprises must then contend with the balancing of the costs of legal compliance with the costs of avoiding such penalties.  The firm loses in many respects while total productivity of the small enterprise sector suffers.

Some proposals for alleviating the situation are indicated.