The finding was released by leading accounting and tax advisory firm Punongbayan & Araullo (P&A), the local member firm of Grant Thornton International, as part of the latter’s International Business Owners Survey (IBOS).
In the Philippines, 34 percent of SMEs surveyed viewed regulation and red tape as a major problem. However, the more important roadblock for local business owners is the cost of finance, with 42 percent of respondents citing it as the most significant constraint to their business growth.
Singapore, on the other hand, has become a model of expediency, mainly due to government efforts to provide every encouragement to entrepreneurs, as only eight percent of respondents said red tape hinders their business growth.
Lack of a skilled workforce is the second most significant constraint to business. Ben Punongbayan, chairman and CEO of P&A noted that as the world economy slows, he expects to see a loosening of the pressures caused through a lack of skilled workforce in the West, but it will continue to rise in emerging markets such as India.
The survey also revealed that the average payment period worldwide has remained constant between 46 to 47 days since 2003. In the Philippines, the average days for payment of sales invoices is 49 days.