ESP-3919

Published

2025-11-24

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Vol. 10 No. 11 (2025): published

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Research Articles

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Copyright (c) 2025 Gretchen Yarra L. Erno, James Q. Grefalde, Rudyard Ryann T. Verano, Jason V. Chavez

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How to Cite

Gretchen Yarra L. Erno, James Q. Grefalde, Rudyard Ryann T. Verano, & Jason V. Chavez. (2025). Entrepreneurial Attrition: Red Tape and other Inefficient Practices from the Lens of New Business Owners. Environment and Social Psychology, 10(11), ESP-3919. https://doi.org/10.59429/esp.v10i11.3919

Entrepreneurial Attrition: Red Tape and other Inefficient Practices from the Lens of New Business Owners

Gretchen Yarra L. Erno

Department of Business Management, College of Business and Management, North Eastern Mindanao State University, Tandag City 8300, Surigao del Sur, Philippines

James Q. Grefalde

Department of Business Management, College of Business and Management, North Eastern Mindanao State University, Tandag City 8300, Surigao del Sur, Philippines

Rudyard Ryann T. Verano

Department of Hospitality Management, College of Business and Management, North Eastern Mindanao State University, Tandag City 8300, Surigao del Sur, Philippines

Jason V. Chavez

University Center for Environmental Studies and Sustainable Development, University of Warsaw, Warsaw, Poland


DOI: https://doi.org/10.59429/esp.v10i11.3919


Keywords: Entrepreneurship; red tape, bureaucratic inefficiencies; business registration; entrepreneurial attrition; MSMEs; Philippines

Abstract

This research examines bureaucratic and administrative hindrances to entrepreneurial attrition in the Philippines, with particular reference to experiences of recently founded business owners. Employing qualitative methodology, it was informed by in-depth interviews with 20 entrepreneurs across diverse industries in Surigao del Sur, Philippines. Results indicate that too much red tape, ambiguous requirements, and non-responsive government service delivery frequently hold up business operations and impose tremendous emotional and financial stress. Most interviewees indicated that they contemplated postponing or scrapping their business plans because of these barriers. A noteworthy discovery is the disproportionate experience of entrepreneurs. Entrepreneurs with personal contacts or insider help experienced fewer delays, which underlines systemic disparities in access to public services. Meanwhile, most entrepreneurs were subjected to inconsistent information, document resubmission, and insufficient online support. These issues validate earlier research on institutional inefficiency, with this work offering a people-oriented account from the Philippine experience. To remedy these problems, suggested solutions are process simplification, enhanced staff training, and creating inclusive, user-friendly online platforms. This research supports immediate policy and administrative changes for better efforts to create a more supportive and equitable environment for entrepreneurship. Ultimately, enabling entrepreneurs is not just critical for economic recovery and innovation but also for making progress in inclusive development in the nation.

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