Davao City reviews business outlook

Subscribe Now January 22, 2016 at 08:36am

More businesses here closed down last year than in 2014, with the business survival rate declining to 88% from 92.91%, but the number of new applications at the start of 2016 is higher than in January 2015.

The decline in the number of establishments that renewed their permits this year is partly attributed to the merging of businesses by some owners.

“Some establishments’ business permits have merged with other business entities, which explains why they no longer renewed their permits,” Davao City Investment Promotion Center Chief Ivan C. Cortez said.

The city’s average survival rate from 2009 to 2013 was 83.83%, based on data from the Business Bureau.

“There is a very vibrant business environment in the city, especially in the real estate sector which is not only cornered by Manila-based investors but also by home-grown investors,” Mr. Cortez said.

The total capitalization for registered businesses went up 1.4% to P214 billion in 2015 from P211.9 billion the previous year.

Meanwhile, the number of applications for new businesses submitted from Jan. 3 to 11 this year was 18,949, higher than the 16,802 submitted in the same period last year.

“There is an increase of more than 2,000 applications for business permits,” said Lawrence D. Bantiding, Business Bureau chief.

He added that they are projecting about 13,000 more applications before the Jan. 20 deadline.

The city’s Business Bureau expects a revenue of at least P74 million for this year’s permit fees.

Source: bworldonline.com

« Davao City to allot P60M for El Nino Davao power supply worsens »