Administrative Simplification in the Granting of Operating Licenses for SMES in Peruvian Municipalities

Abstract

This article addresses the issue of the lack of administrative simplification in the process of obtaining operating licenses for micro and small enterprises (MSEs) in the district of El Porvenir in Peru. Despite the existence of regulations aimed at improving the issuance of these licenses, citizens and businesses often encounter undue charges, unnecessary requirements, and lengthy procedures in municipalities, leading to cases of informality in the MSE sector. The article emphasizes the importance of administrative simplification and its impact on local economic development. Various laws and legal provisions supporting administrative simplification are mentioned, such as the Administrative Simplification Law, the Framework Law for the Growth of Private Investment, the Law of General Administrative Procedure, and the Organic Law of Municipalities.bTo address this issue, the implementation of methodologies to simplify administrative procedures is proposed. The selection of the procedure to be improved, description of the current status of the procedure, analysis of the procedure, proposal of a new simplified procedure, and design, approval, and implementation of the new procedure are highlighted. The article emphasizes the need to promote administrative simplification in municipalities and foster a favorable environment for economic development. The importance of reducing bureaucratic barriers and obstacles to facilitate business establishment and formalization is mentioned, which would contribute to job creation and wealth generation at the local level. In conclusion, this article highlights the importance of administrative simplification in the process of obtaining operating licenses for MSEs in the El Porvenir district in Peru. It proposes the implementation of methodologies to simplify administrative procedures and emphasizes the need to promote a favorable environment for local economic development.