Osmeña Colleges

College of Criminal Justice Education

Osmeña Street Masbate City

Evaluating the effectiveness of Barangay Ordinance No.

005-016 in requiring clearance for business / residential
activities in Barangay Curvada, Cataingan, Masbate.

Submitted to:
Ledesma A. Verallo
Research Instructor

Submitted by:
Laurio Angelo F.
Laurio Dave Angelo A.
Lecciones, Noel C.
Legaspi, Arhon C.
Legaspino, Ryle D.

2025
 CHAPTER 1

THE PROBLEM AND ITS BACKGROUND

Rationale

Barangay ordinances serve as the foundation for the smooth

operation of local governance, playing a crucial role in promoting

community development, economic activity, and social welfare at the most

local level. These regulations, such as Barangay Ordinance No. 005-016,

which mandates that businesses and residential activities in Barangay

Curvada, Cataingan, Masbate, obtain a clearance, are designed to

maintain order, safety, and community progress. However, questions

remain regarding the implementation and implications of this ordinance,

particularly concerning its effectiveness in benefiting the community and

its intended objectives.

Barangay ordinances are essential to local governance as they

regulate activities that directly impact the community's well-being. As the

smallest administrative units in the country, barangays serve as the most

accessible point of government services for the people. Barangay officials

interact regularly with the community through their decisions and

regulations, making them pivotal in addressing local concerns. Local

ordinances address various issues, such as public safety, environmental

protection, business regulation, and revenue generation for local

1
development programs. The success of these ordinances depends on their

proper implementation and their ability to meet the specific needs of the

community.

Barangay Ordinance No. 005-016, which requires the clearance of

all business and residential activities, is crucial for maintaining safety,

transparency, and order within Barangay Curvada. It supports community

development by regulating economic and residential practices, generating

revenue, and improving accountability through local record-keeping.

While this ordinance has the potential to promote a safer, more organized

community, challenges such as implementation difficulties, financial

burdens on businesses, and varying levels of community acceptance must

be addressed.

In many countries, the enforcement of local ordinances has become

integral to managing urbanization and environmental sustainability.

According to Posner (2019), local ordinances in USA are more likely to be

obeyed, and citizens are more likely to engage with governance when

ordinances are consistently applied.

This principle holds true in the Philippines, where barangay

ordinances are foundational to local governance. However, ordinances in

the Philippines often face challenges due to resource limitations, low

public awareness, and weak enforcement mechanisms. Atienza (2020)

notes that the effectiveness of barangay ordinances hinges on their

2
alignment with local needs and the capacity of barangay officials to enforce

them.

Studies by Brillantes and Fernandez (2022) on barangay governance

emphasize the importance of involving the local community in the creation

and enforcement of ordinances. They argue that ordinances should not be

imposed from the top down but should incorporate local input to ensure

legitimacy and effectiveness. This participatory approach enhances the

relevance of ordinances and fosters greater community acceptance.

Given the diverse social, economic, and cultural conditions across

the Philippines, ordinances such as Barangay Ordinance No. 005-016

must be tailored to the specific needs of each barangay. In rural areas,

where economic and social dynamics differ from urban settings,

ordinances must be designed to reflect local conditions. Research on the

implementation of such ordinances is essential for evaluating their

effectiveness and providing recommendations for improvement.

This study focuses on Barangay Ordinance No. 005-016, which

requires the clearance of business and residential activities. While the

ordinance reflects the barangay’s commitment to regulating local

operations for safety and order, its successful implementation involves

multiple factors, such as the clarity and accessibility of the process.

Business owners and residents may perceive the clearance process as

3
burdensome, which could lead to non-compliance or dissatisfaction with

local governance.

Clear communication between barangay officials and the

community is crucial for the effective implementation of this ordinance.

Williams et al. (2020) highlight that the likelihood of compliance increases

when community members understand the expectations and benefits of

an ordinance. Conversely, lack of awareness often leads to resistance or

disregard for regulations.

Furthermore, the process of obtaining clearance involves

document submission and payment of fees, which some business owners

and residents may find burdensome. Murtaza et al. (2021) found that

local ordinances aimed at improving regulatory practices may

unintentionally burden small businesses, particularly in rural areas

where resources are limited. Despite these challenges, revenue generated

from clearance fees is essential for funding local development programs,

including infrastructure, social services, and disaster preparedness.

The success of Barangay Ordinance No. 005-016 depends on how

effectively it fosters compliance and equitable enforcement. Cruz et al.

(2020) discuss the importance of aligning revenue generation processes

with community interests to ensure that the funds are used for public

benefit. However, the limited financial resources of rural barangays often

hinder the full implementation of ordinances. Additionally, insufficient

4
training for barangay officials and community resistance further

complicate enforcement.

According to Agustin and Gulle (2022), ordinances will only be

effective if barangay officials are adequately trained in regulatory

processes, conflict resolution, and public engagement. Strengthening

partnerships with local businesses and community organizations can also

foster a cooperative culture, ensuring that the ordinance benefits the

broader community.

Community participation and acceptance are crucial for the success of

Barangay Ordinance No. 005-016. Public perception, especially in terms

of fairness and relevance, significantly influences the success of an

ordinance. Smith and Johnson (2023) found that citizens are more likely

to support and comply with regulations that they perceive as fair and

relevant to their needs.

In conclusion, Barangay Ordinance No. 005-016 aims to promote

safety, transparency, and revenue generation, but its implementation

faces several challenges. This research will explore the communication

strategies, community engagement, and capacity-building efforts

necessary for the ordinance's success. By assessing its effectiveness, this

study will provide insights into improving local governance practices in

Barangay Curvada and contribute to the realization of sustainable

development in the community.

5
Theoretical Framework

Becker’s Regulatory Compliance Theory explains how individuals

and businesses adhere to regulations based on the perceived benefits of

compliance and the consequences of non-compliance. This theory is

relevant to understanding how business owners in Barangay Curvada

comply with the barangay ordinance in terms of business clearance,

revenue obligations, and safety compliance. If the ordinance provides

clear incentives and deterrents, businesses are more likely to follow the

regulations.

The Public Choice Theory by Buchanan & Tullock highlights the

role of individual and collective decision-making in shaping public

policies. This theory applies to the residents of Barangay Curvada, as it

examines how they respond to the ordinance concerning information

dissemination, monitoring, and mandatory clearance requirements. The

study will assess whether ordinance aligns with the needs of the residents

and if it effectively engages them in the regulatory process.

The Deterrence Theory by Gibbs suggests that people comply with

laws when they perceive a high likelihood of detection and punishment for

violations. This theory is relevant to evaluating how enforcement,

violations, and sanctions impact compliance among the public in

Barangay Curvada. The study will explore whether penalties and strict

6
implementation of the ordinance influence compliance levels and deter

non-compliance.

The Stakeholder Theory by Freeman emphasizes the need to

consider the interests of all affected parties in decision-making. In this

study, it applies to understanding how business owners, residents, and

local authorities perceive and interact with the ordinance. The study will

analyze whether ordinance balances the interests of all stakeholders and

propose recommendations to improve its effectiveness and inclusivity.

Conceptual Framework

This study aims to evaluate the effectiveness of Barangay

Ordinance No. 005-016 in governing business and residential activities

within Barangay Curvada, Cataingan, Masbate. It is based on the

following legal foundations: Republic Act No. 7160 (Local Government

Code of 1991), which empowers local government units to regulate

activities for community welfare; Republic Act No. 9485 (Anti-Red Tape

Act of 2007), which aims to improve the efficiency of business and

residential processes; and Barangay Ordinance No. 005-016, which sets

guidelines for business clearance, residential regulations, safety

compliance, and revenue generation.

The study will use the Input-Process-Output (IPO) Model. The inputs

include the demographic profile of the respondents such as age, gender,

7
educational attainment, and involvement in business or residential

activities. It will also look at the knowledge and awareness of the

respondents regarding Barangay Ordinance No. 005-016.

The process involves collecting data through a survey questionnaire

that will measure the perceptions of business owners, residents, and the

public. Business owners will be asked about business clearance, revenue,

and safety compliance. Residents will share their views on information

dissemination, monitoring practices, and mandatory clearance

requirements. The public will give their opinions on the enforcement,

violations, and sanctions related to the ordinance.

The output of the study will include an analysis of the survey

responses using frequency counts, percentages, rankings, and weighted

means. Based on the results, recommendations will be made to enhance

the implementation and effectiveness of Barangay Ordinance No. 005-016,

ensuring better governance of business and residential activities.

8
 Figure 1. Conceptual Paradigm

Figure 1 shows the research paradigm of the study using the Input-
Process-Output (IPO) model.

9
Statement of the Problem

The study aims to answer the following questions:

1. How effective is the barangay ordinance to the business owners of

Barangay Curvada in terms of?

A. Business clearance.

B. Revenue; and

C. Safety compliance

2. How effective is the barangay ordinance to the residents of Barangay

Curvada in terms of?

A. Dissemination of information.

B. Monitoring; and

C. Mandatory clearance

3. What is the degree of effectiveness of the barangay ordinance to the

public as to?

A. Enforcement.

B. Violation; and

C. Sanctions

4. What are the possible suggestions/recommendations the researcher

can extend regarding the study?

Assumptions of the Study

This study assumes the following:

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 1. Improved Compliance with Ordinance – Business owners and

residents in Barangay Curvada will exhibit a high degree of

adherence to the barangay ordinance due to effective

dissemination of information and enforcement mechanisms.

2. Streamlined Business Operation – Ordinance will result in clearing

business operations through expediting clearance, ensuring to

meet safety and accountability conditions for the business

enterprises.

3. Highest Community Awareness – The awareness of the policy of

governance among the residents will, without doubt, improve

significantly based on monitoring and compliance awareness.

4. Effective Measures of Compliance and Sanctions – Implementation

of measures or sanctions based on the ordinance to ensure

inhibition of violations or compliance; fewer disputes shall be

established.

5. Improved Safety and Increase Revenue – The ordinance is going to

positively impact both public safety and revenue collection in

Barangay Curvada, thus benefitting the local government and its

people.

Scope and Delimitation of the Study

This study limits itself to Barangay Curvada, Municipality of

11
Cataingan, Masbate, excluding other barangays or municipalities. The

12
participants were business owners and residents of Barangay Curvada

who were selected via convenience sampling to ensure a practical

collection of data. The proposed study will collect data from at least one

hundred (100) respondents for the reliable and representative findings.

Specifically, it assesses the Barangay Ordinance No. 005-016 in

terms of its effectiveness in business clearance, revenue generation, and

compliance with safety requirements for entrepreneurs. It also looks at

information dissemination, monitoring, and mandatory clearance

compliance of residents and the enforcement, violations, and sanctions as

perceived by the public.

The study is restricted by self-reported data with response biases or

inaccuracies in the way respondents recall information; furthermore, it

only assesses the current implementation of an ordinance and does not

have any account for outcomes such as long-term applicability or the

possibility that identical ordinances may be applicable in different locales.

Significance of Study

The output of the study will be beneficial for the following stakeholders:

Business owners will know and understand how the ordinance can

affect their operations, whether it is on compliance, safety, or revenue

that will help them adapt properly to the regulation.

13
Residents will have a better understanding of how ordinance impacts

safety in the community, monitoring efforts, and overall governance,

thereby fostering participative involvement in local efforts.

Local Government Units (LGUs) will have a reliable source of reference

to perfect the crafting and implementation of ordinances that would result

in greater compliance, better public service, and effective revenue

collection.

Community members – By enhancing the safety of people and the public

awareness resulting from the implementation of this ordinance, it will add

towards a harmonious and more organized community environment.

Policymakers and Researchers – The study can be helpful to

policymakers and researchers to produce evidence-based policies, in

addition to further research that could be conducted on the barangay

ordinances' effectiveness in other settings to foster sustainable and

inclusive governance.

Definition of Terms

To ensure clarity and enhance comprehension, the following key terms

used in this study are defined as follows:

Barangay Curvada, Cataingan, Masbate. A barangay (village) located

within the municipality of Cataingan, in the province of Masbate, where

14
the implementation and evaluation of Barangay Ordinance No. 005-016

takes place.

Barangay Ordinance No. 005-016. Referring to the local law enacted by

Barangay Curvada, Cataingan, Masbate, requiring clearance for both

business and residential activities conducted within the barangay.

Business/Residential Activities. Includes any commercial operations or

residential establishments in Barangay Curvada that require approval or

permits under Barangay Ordinance No. 005-016 for their proper

regulation.

Clearance. An official authorization or permit required for the

establishment or operation of business and residential activities,

ensuring compliance with safety, revenue, and legal standards set by

Barangay Ordinance No. 005-016.

Effectiveness. The degree to which Barangay Ordinance No. 005-016

achieves its intended purpose of regulating and ensuring the proper

conduct of business and residential activities in Barangay Curvada.

15
 CHAPTER 2

REVIEW OF RELATED LITERATURE

This chapter aims to give a review of literature and relevant

studies that may inform the investigation into whether Barangay

Ordinance No. 005-016 is effective in requiring clearance for business

and residential activities in Barangay Curvada, Cataingan, Masbate. This

literature review synthesizes literature on local governance, policy

implementation, compliance, and community involvement with gaps in

knowledge and reasons for the current study.

Foreign Literature

The Space of Rules and Rules of Space: Reflecting on Local

Ordinances in Italy (Franco and Pacchi, 2024), local ordinances play a

crucial role in shaping urban planning and community welfare. The study

highlights the importance of local regulations in regulating business and

residential activities. These ordinances ensure that community spaces

adhere to safety, legal, and environmental standards. The research

underscores how local ordinances contribute to creating a balanced

environment for both business and residential development by enforcing

rules that align with public welfare. The findings from this study align with

the need for effective regulation in ensuring public safety and economic

stability within the community.

16
Counting Regulations and Measuring Regulatory Impact: A Call for

Standardization in USA (Stuart and Shapiro, 2023) emphasizes the need

for a standardized framework to evaluate the effectiveness of local

regulations, including ordinances that govern business and residential

activities. The authors argue that clear and measurable metrics are

essential for assessing the success of regulations such as business

clearances and compliance with safety standards. By using frequency

counts, percentages, and rankings, local ordinances can be evaluated on

how they influence public awareness and compliance.

Legal Frameworks for Sustainable Urban Development: Analyzing

the Efficacy of Zoning Regulations (Bansal, et.al. 2022), In India, the role

of local ordinances in fostering sustainable urban development is explored

in this study. The research highlights how zoning regulations and other

local ordinances are vital in managing residential and business activities

to promote public health, safety, and environmental sustainability. The

study suggests that ordinances can contribute to managing growth while

ensuring that businesses and residences comply with necessary safety

and legal requirements. India's zoning laws aim to regulate both

residential and business operations for community benefit, making it a

useful reference in this research study.

In a 2020 publication “Local Business Regulations and Compliance

in Australia” by the Australian Government Department of Industry,

17
Science, Energy, and Resources, the role of local ordinances in regulating

business and residential activities was explored. The study found that

ordinances requiring businesses to obtain clearances before starting

operations are crucial for maintaining safety and public health.

Businesses that adhere to these regulations contribute to the local

economy by meeting tax requirements and ensuring the community’s well-

being. The research emphasizes the importance of clear communication

between local authorities and businesses to ensure compliance with such

ordinances, and the positive effects on public trust and safety.

A study conducted by Canada’s Federation of Canadian

Municipalities in 2020 explored the effectiveness of local business

ordinances in ensuring compliance with public safety regulations. The

study found that clearances required for business operations help local

governments ensure that businesses meet the necessary safety

standards, contributing to the overall well-being of the community. In

addition, the research pointed out that ordinances promoting business

compliance with environmental and safety regulations had a positive

impact on public health and the local economy.

In Germany, local governments play a pivotal role in ensuring the

compliance of businesses with public safety regulations. A 2021 study by

the German Institute of Urban Affairs which is The Effectiveness of Local

Ordinances in Business Regulation: A German Case Study examined

18
ordinances that mandate businesses to obtain clearances before

commencing operations. The study found that local ordinances helped

improve the safety and order of urban areas by reducing business-related

violations, including zoning and safety breaches. Furthermore, ordinances

that regulated residential areas were found to improve overall living

conditions and ensure compliance with building codes.

Local Government Regulations on Business Compliance in South

Korea, A 2020 study published by Korean Local Government Research

Institute explored the impact of local ordinances on business compliance,

focusing on clearances and permits for businesses. The study concluded

that local ordinances that required businesses to meet certain safety,

environmental, and revenue standards helped reduce violations and

promote community well-being. The study also emphasized the

importance of continuous monitoring and enforcement to ensure

businesses remain compliant with the regulations.

In Singapore, the Urban Redevelopment Authority conducted a

study in 2021 on the effectiveness of local ordinances in regulating

business operations. The study found that local regulations requiring

businesses to obtain clearances significantly improved the safety of

urban areas, as they ensured that businesses complied with building

codes, health, and environmental regulations. Furthermore, the

study

19
emphasized the importance of integrating business clearance procedures

with urban planning efforts to foster a safer community.

In Japan (2023), local governments implement ordinances to

regulate business activities, ensuring compliance with national laws and

local standards. A comprehensive guide published by the Japan External

Trade Organization (JETRO) outlines the legal requirements for

establishing businesses in Japan, including registration procedures, tax

obligations, and compliance with local ordinances. The guide emphasizes

that businesses must adhere to zoning laws and obtain necessary permits

from local authorities to operate legally. These regulations are designed to

maintain public safety, environmental standards, and harmonious urban

development.

In New Zealand (2022), local councils enforce regulations that

govern the operation of businesses within residential properties. An article

by Sprintlaw discusses the importance of adhering to council-specific rules

when running a business from home. These regulations are designed to

ensure that home-based businesses do not disrupt residential

neighborhoods and comply with zoning laws, health and safety

standards, and environmental considerations. The article highlights that

understanding and complying with local ordinances is crucial for the

legal operation of home-based businesses.

20
Local Literature

The Provincial Government of Bataan (2023) has enacted multiple

ordinances aimed at improving business regulations and public welfare.

Among them, SP Ordinance No. 15 ensures a drug-free workplace, which

is vital in maintaining ethical and legal business operations. Additionally,

SP Ordinance No. 16 institutionalizes the "Linggo ng Kabataan" every

August, fostering youth engagement in community leadership. SP

Ordinance No. 17, on the other hand, introduces the "1Bataan Barangay

Resilience Awards," recognizing barangays that implement disaster-

preparedness strategies. These initiatives highlight how local governance

can enhance economic stability, safety, and public participation.

To streamline property identification, the Municipality of Solsona,

Ilocos Norte (2020), implemented an ordinance requiring standardized

numbering for all business establishments, residential houses, and

commercial buildings. This regulation enhances government efficiency in

managing tax collections, business permits, and emergency response

coordination. By establishing a uniform system, local authorities improve

public service delivery and promote accountability among business and

residential property owners.

In 2024, Surigao City passed a comprehensive zoning ordinance

that regulates land use to balance economic development and

environmental sustainability. One of its key provisions includes the

21
Fishery Refuge and Sanctuary Sub-Zone, which protects marine

ecosystems by controlling fishing activities. This ordinance demonstrates

how local governments address urban expansion while ensuring

environmental conservation. By setting clear zoning laws, the city

facilitates structured business growth and safeguards natural resources.

To assist business owners in compliance with local regulations,

Bacolod City passed City Ordinance CO-877, which extended the deadline

for business permit applications and tax payments to February 28, 2019.

This adjustment provided relief to entrepreneurs, reducing financial

burdens and avoiding penalties for late registrations. The ordinance played

a crucial role in fostering economic resilience, especially for small and

medium enterprises (SMEs).

The Department of Public Works and Highways (DPWH) released

revised Implementing Rules and Regulations (IRR) of the National Building

Code in 2019 to strengthen safety standards for all buildings. This update

introduced stricter regulations for fire safety, structural integrity, and

environmental impact assessments, benefiting both business and

residential developments. The revised code aligns with modern

urbanization trends and climate resilience strategies, ensuring

sustainable infrastructure growth in the country.

In response to the challenges of bureaucratic inefficiencies, the

Department of the Interior and Local Government (DILG) on 2019, released

22
guidelines for local government units (LGUs) under the Ease of Doing

Business Act. This initiative reduced the number of days required for

business registration, making it more convenient for entrepreneurs. By

minimizing red tape, the government enhanced local economic activities

and encouraged more investors to establish businesses in the country.

To reinforce disaster preparedness, the Bureau of Fire Protection

(BFP) updated the Fire Code of the Philippines' Implementing Rules and

Regulations (IRR) in 2019. This update introduced stricter fire

prevention measures, such as requiring more accessible fire exits,

regular safety inspections, and the mandatory installation of modern fire

suppression systems in business and residential buildings. The revised

IRR ensures public safety and protects lives and properties from fire

hazards.

The signing of RA 11659 by former President Rodrigo Duterte in

March 2022 amended the Public Service Act, allowing 100% foreign

ownership in certain sectors, including telecommunications. This

legislative reform aims to foster competition, improve service quality,

and lower costs for consumers. The law is expected to modernize

business operations, attract more investments, and create a more

business-friendly environment in the country.

President Ferdinand Marcos Jr. signed a new tax reform law in

2024 to attract foreign investors. The reform includes lowering corporate

23
income tax rates and providing fiscal incentives for qualified

businesses. This

24
initiative positions the Philippines as a competitive destination for foreign

direct investment (FDI) by making business operations more cost-effective.

Across the country (2020), various barangay ordinances have been

passed to regulate business operations and residential compliance. These

ordinances typically focus on business clearances, revenue generation,

sanitation requirements, and disaster preparedness. Local governments

play a vital role in ensuring that businesses and homeowners comply

with these regulations, thereby fostering a safer and more organized

community. Barangay-level governance continues to evolve to address

emerging societal and economic challenges.

Foreign Studies

In the United States, several states have enacted laws restricting

foreign ownership of real estate and agricultural land. A 2024 analysis by

Clifford Chance highlighted that these regulations often require foreign

entities to obtain specific clearances before acquiring property, aiming to

protect national interests and maintain local control over critical

resources. While these laws intend to safeguard domestic assets, they have

also raised concerns about potential deterrence of foreign investment and

the complexities introduced into the property acquisition process.

In India, the Centre for Policy Research's 2019 report "Policy

Challenges 2019-2024" discussed the rapid urbanization and the

25
accompanying need for regulatory frameworks to manage business and

residential expansions. The report emphasized that local ordinances

requiring clearances are essential to address environmental degradation

and declining agricultural productivity. However, it also noted that overly

stringent regulations could impede economic growth and development,

suggesting a balanced approach to policy implementation.

In the United Kingdom, businesses expanding overseas must

navigate complex legal landscapes. A 2024 article in Business Law Today

highlighted the importance of understanding local regulations, including

the necessity of obtaining appropriate clearances for business

operations. Failure to comply with these requirements can lead to legal

challenges and operational disruptions, underscoring the critical role of

thorough legal due diligence in international expansions.

In Australia in the year 2022, the government has implemented

policies to monitor and regulate foreign investments in residential real

estate. These regulations require foreign investors to obtain clearances

before purchasing property, aiming to ensure that such investments align

with national interests and do not adversely affect housing affordability for

local residents. While these measures protect domestic markets, they have

also sparked debates about their impact on foreign investment inflows.

In Canada (2021), local municipalities have introduced bylaws

necessitating clearances for certain business activities, particularly those

26
with potential environmental impacts. These regulations are designed to

safeguard public health and the environment. However, businesses have

expressed concerns about the administrative burdens and potential delays

associated with obtaining the necessary permits, highlighting the need for

streamlined processes to balance regulation with economic vitality.

Urban planning regulations require developers to secure

clearances before initiating residential projects in Germany (2020).

These measures aim to ensure that new developments are in harmony

with existing urban landscapes and infrastructure capacities. While these

regulations maintain urban coherence, developers have noted that the

approval processes can be time-consuming, potentially affecting project

timelines and costs.

Local governments enforce ordinances that mandate clearances for

businesses operating in specific sectors, such as food services and

entertainment in Japan (2023). These regulations are intended to uphold

public safety and order. Business owners, however, have reported

challenges in navigating the complex application procedures, suggesting a

need for more transparent and accessible regulatory frameworks.

In Brazil (2021), environmental regulations require businesses,

particularly those in agriculture and mining, to obtain clearances before

commencing operations. These ordinances aim to protect the country's

rich biodiversity and natural resources. While environmentalists support

27
these measures, industry representatives argue that the lengthy and

complex clearance processes can hinder economic development, calling for

reforms that balance environmental protection with economic interests.

Municipal regulations necessitate that businesses obtain zoning

clearances to operate in designated areas. These ordinances are designed

to organize urban development and prevent land-use conflicts. However,

entrepreneurs have highlighted that the rigidity of zoning laws can stifle

innovation and limit business opportunities, advocating for more flexible

approaches to urban planning in South Africa (2020).

In Singapore (2022), the Urban Redevelopment Authority requires

developers to secure planning clearances for both business and residential

projects. These regulations ensure that developments align with the city-

state's master plan and sustainability goals. While these measures have

successfully maintained orderly urban growth, developers have noted that

the stringent requirements can increase project costs and complexity,

suggesting a need for periodic reviews to adapt to changing economic

conditions.

Local Studies

A study conducted in 2019 examined the ordinance passed in Barangay

San Lorenzo, Makati City, which increased fees and charges for the

issuance of certifications, including business clearances. This ordinance

28
aimed to enhance local revenue generation while ensuring businesses

complied with regulations. The adjustment in fees reflected administrative

costs and was intended to support barangay services.

Barangay clearance requirements were also reinforced in 2020

through an ordinance in Makati City, mandating cooperatives to secure

clearances before operating. This measure was implemented to ensure that

cooperatives adhered to local regulations and actively contributed to

community development. By requiring barangay clearances, the

ordinance promoted transparency and accountability among

cooperatives.

The Quezon City Council, in 2021, approved an ordinance designating art

expression walls in each of its 142 barangays. While primarily focused on

promoting public art, the ordinance required individuals or groups to

secure barangay clearances before using these spaces. This ensured that

artworks aligned with community standards and did not contain

inappropriate content.

Business clearance procedures were given flexibility in 2022 when

the Muntinlupa City government extended the deadline for business

permit renewals and local tax payments without penalties. This ordinance

acknowledged the economic challenges faced by businesses, particularly

during the pandemic, while still enforcing the requirement for barangay

clearances. The measure aimed to balance regulatory enforcement with

29
economic relief.

30
 Legislative adjustments in 2023 led Pasig City to create additional

permanent positions for various departments, necessitating stricter

barangay clearance requirements for new businesses and residential

projects. These regulatory updates ensured compliance with evolving local

government policies and supported administrative efficiency.

Clearance processes for residential projects were further refined in 2024

when Calamba City approved ordinances granting preliminary approval

and locational clearances for subdivision developments. Barangay

clearances were a prerequisite to ensure that these projects aligned with

urban planning and community standards.

In 2019, the Department of the Interior and Local Government

(DILG) issued Memorandum Circular No. 2019-177, providing guidelines

for integrating the issuance of barangay clearances into the permitting

processes of cities and municipalities. This directive aimed to

standardize procedures and reinforce the authority of barangays in

business regulation, ensuring that no city or municipality could issue a

business permit without first requiring a barangay clearance.

A 2023 study in Angadanan, Isabela, focused on the centralized

issuance of barangay clearances and the collection of corresponding fees.

Municipal Ordinance No. 2023-336 prescribed a streamlined process,

reducing bureaucratic delays and enhancing efficiency in the issuance of

31
clearances for business-related transactions and building permit

applications.

In 2024, the Municipality of Solana, Cagayan, enacted Ordinance

No. 171, Series of 2024, which detailed the barangay clearance fee

structure. This ordinance aimed to provide clarity on the fees associated

with obtaining barangay clearances, ensuring transparency and

consistency in the application process.

Research conducted in 2024 highlighted the legal basis for barangay

clearance issuance, emphasizing its role in the regulatory framework for

businesses. The study underscored the necessity of obtaining barangay

clearances as a prerequisite for securing business permits, aligning with

national laws and local ordinances to promote orderly development and

compliance with community standards.

A 2024 analysis of the City Business Permit and Licensing Office

(CBPLO) in General Trias City examined the application process for new

Local Government Unit (LGU) integrated permits, which include the

Mayor’s Permit, Barangay Business Clearance, and Sanitary Permit. The

study highlighted efforts to streamline procedures through hybrid online

and face-to-face transactions, aiming to enhance efficiency and

accessibility for business owners.

In 2024, the City of Imus outlined requirements for obtaining a business

permit, emphasizing the necessity of securing a barangay clearance as

32
part of the process. The guidelines provided a comprehensive list of

prerequisites, including the barangay clearance, to ensure that businesses

comply with local regulations and contribute positively to community

development.

Santos and Mendoza (2019) have done research on the

implementation of local ordinances and its impact on public safety in

residential areas. The findings are that the clearance ordinances of

residential areas are essential to ensure that the housing developments

made are safe and comply with the fire safety, structural integrity, and

health standards.

Javier and Santos researched the influence of local regulations on

local development in provinces in a 2021 study. Their results indicated

that clearance requirements ensure the residential constructions meet

the health and safety standards that reduce risk associated with informal

settlements to contribute to improved living conditions.

In 2024, the Municipality of Maria Aurora, Aurora, listed the

barangay clearance as a key requirement for the Electronic Business

Permits and Licensing System (eBPLS). This inclusion aimed to facilitate

a more efficient and transparent process for business permit

applications, reducing processing times and improving compliance rates

among local enterprises.

33
Brief Summary of Literature

Local ordinances play a vital role in regulating business and

residential activities across different countries. Studies highlight how

these regulations promote public welfare, safety, and environmental

sustainability. In Italy, Franco and Pacchi (2024) emphasize the

significance of local ordinances in shaping urban planning and community

welfare. In the USA, Stuart and Shapiro (2023) stress the need for

standardized frameworks to assess regulations' effectiveness. Bansal et al.

(2022) explain how India's zoning rules support sustainable urban

development.

Equally, comparable studies in different nations like Australia,

Canada, Germany, South Korea, Singapore, Japan, and New Zealand

show that permits and clearances are necessary to provide safety, adhere

to zoning rules, and achieve economic development. These laws ensure

public health and business adherence, enhancing quality of life and safer

communities.

Provincial ordinances in the Philippines also showcase comparable

objectives. Ordinances in Bataan, for instance, in Solsona, Surigao City,

Bacolod, and elsewhere, govern commercial operations and the welfare

of people, covering protection from accidents and fires, prevention of

pollution and conservation of environment, and measures for disaster

emergency. The Department of Public Works and Highways (DPWH) and

34
others also revised ordinances to meet present urbanization requirements

and safety specifications.

Together, these studies show that effective local regulations are essential

for balancing economic development, public safety, and environmental

sustainability, fostering a well-organized and thriving community.

Brief Summary of Studies

Foreign studies show that several countries, including the United

States, India, the UK, Australia, and Canada, have implemented

regulations requiring foreign entities to obtain clearances before

purchasing property or engaging in business activities. These measures

aim to protect national interests, manage urbanization, and ensure

environmental and public safety. However, they have raised concerns

about their potential to hinder foreign investment and complicate property

acquisition processes (Clifford Chance, 2024; Centre for Policy Research,

2019; Business Law Today, 2024).

In other countries like Germany, Japan, Brazil, South Africa, and

Singapore, similar regulations have been introduced to balance urban

development, business activities, and environmental protection. While

these regulations help manage economic and public concerns, they often

present challenges in maintaining a balance between economic growth and

regulatory compliance (GenerisOnline, 2020; LGCPlus, 2023).

35
 In the Philippines, local ordinances at the barangay and municipal

levels mandate clearances for various activities, such as business

operations and property developments. For example, Barangay San

Lorenzo in Makati City raised fees for business clearances to increase local

revenue, while cities like Quezon, Muntinlupa, Pasig, and Calamba have

streamlined clearance processes to improve administrative efficiency and

address public safety. National directives like DILG's Memorandum

Circular No. 2019-177 further emphasize the importance of clearances for

ensuring compliance with urban planning, safety, and public health

standards (Scribd, 2019; Quezon City Council, 2021; Muntinlupa City,

2022; DILG, 2019).

36
 CHAPTER 3

METHODOLOGY

This chapter discusses the research methods applied in this study. This

chapter provides an in-depth description of the research locale, the

instruments used for data collection, the vicinity map of the study area,

the procedure followed for gathering data, and the statistical tools used

to analyze the data effectively.

Research Method Used

Research methods are systematic plans that enable researchers to

address specific research objectives. This study employs a quantitative

approach with a descriptive survey design to ascertain the perceptions

and responses of barangay dwellers toward Barangay Ordinance No.

005-016 and its effects on local governance and community

development.

Quantitative research focuses on gathering numerical data to

describe characteristics, find correlations, or assess hypotheses.

According to Bhandari (2020), quantitative research involves collecting

and analyzing numerical data to identify patterns, make predictions, and

generalize results to broader populations.

37
 Quantitative research focuses on gathering numerical data to

describe characteristics, find correlations, or evaluate hypotheses.

According to the Economic and Social Research Council (ESRC),

quantitative research involves the systematic examination of social

phenomena, using statistical models and mathematical theories to

develop, accumulate, and refine the scientific knowledge base.

Descriptive research aims to accurately and systematically

describe a population, situation, or phenomenon without manipulating

variables. As noted by McCombes (2019), descriptive research is

appropriate when the goal is to identify characteristics, frequencies,

trends, and categories.

Descriptive research aims to accurately and systematically

describe a population, situation, or phenomenon without manipulating

variables. As noted by the National Center for Biotechnology

Information (NCBI), a descriptive study is designed to describe the

distribution of one or more variables, without regard to any causal or

other hypothesis.

Local of the Study

The study focuses on evaluating the Effectiveness of Barangay

Ordinance No. 005-016 in Requiring Clearance for Business/Residential

Activities in Barangay Curvada, Cataingan, Masbate.

38
 Barangay Curvada is one of the barangays in the municipality of

Cataingan, which is in the province of Masbate, the Bicol Region of the

Philippines. According to the 2020 Census, the population of Barangay

Curvada was recorded at 2,245, representing approximately 4.43% of the

total population of Cataingan.

The largest population group in the census conducted in 2015 of

Barangay Curvada is 314 that corresponds to the ages from 5-9. On the

other hand, the age group with the smallest population was 80 years old

and above, comprising only 13 individuals.

Demographically, Barangay Curvada consists of: Youth

Dependents (ages 14 and below): 2.34% (51 individuals), Economic

Working Population (ages 15 to 64): 92.68% (2,015 individuals) and

Senior Citizens (65 and above): 4.98% (109 persons). This population

profile of the barangay shows a concentration in an economically working

population as well as how important that age group is to govern the

barangay and implementation of policies. The median age in Barangay

Curvada is 24; half of its population are younger than that age and the

other half older than that age.

Being primarily driven by a working-age population, the barangay

also has both residential and business activities that might be affected

by Ordinance No. 005-016. Because the regulation would control both

business and residential activities within the place to preserve order and

39
prevent danger, the effective study of Ordinance No. 005-016 on the

barangay development would be critical.

FIGURE 2: Vicinity Map

Figure 2. Shows the map of Barangay Curvada, Cataingan, Masbate

where the study will be conducted.

40
Data Gathering Instrument

The primary tool used for data collection in this study was a

researcher-developed survey questionnaire. This instrument aimed to

assess the effectiveness of Barangay Ordinance No. 005-016, which

requires clearance for business and residential activities in Barangay

Curvada, Cataingan, Masbate.

The questionnaire consisted of variables aligned with the study’s

objectives, each containing ten (10) indicators. Respondents were asked

to rate these indicators using a 5-point Likert scale, as follows:

5 - Strongly Agree

4 - Agree

3 - Neutral

2 - Disagree

1 - Strongly Disagree

This structured tool facilitated the evaluation of ordinance

implementation, compliance levels, and its impact on businesses,

residential activities, and community development, ensuring reliable

and valid data for analysis.

41
Data Gathering Procedure

To effectively conduct this study, the researchers followed a

systematic data collection process.

The first step involved designing a survey questionnaire tailored to

gather specific data relevant to the study. The questionnaire was

carefully structured to ensure clarity, relevance, and comprehensiveness

in addressing the research objectives. To enhance its quality and

effectiveness, the researchers consulted their thesis adviser, who

provided valuable recommendations and insights for improvement.

After incorporating the adviser's suggestions, the finalized

questionnaire was printed to ensure uniformity and accessibility for all

respondents. This step guaranteed that the survey tool was ready for

efficient data collection.

Before administering the survey, the researchers secured official

approval from relevant authorities. Communication letters detailing the

study’s objectives, methodology, and ethical considerations were

prepared and submitted to the thesis instructor for review and approval.

Upon receiving the instructor’s endorsement, the researchers proceeded

to seek permission from the Barangay Chairman of Barangay Curvada,

Cataingan, Masbate, where the target respondents were located.

Presenting the official letter, the researchers formally requested

42
authorization to conduct the study within the community, ensuring

adherence to ethical guidelines and securing local support.

Once permission was granted, the researchers distributed the

survey questionnaires to the identified respondents. They were given

ample time to complete the survey, with clear instructions provided to

ensure accurate and thoughtful responses. Participation was entirely

voluntary, and respondents were assured of strict confidentiality and

anonymity in handling their data.

Upon completing the data collection, the researchers carefully

organized and secured the gathered information. Proper storage and

backup methods were implemented to maintain data integrity and

security. The collected data were then analyzed using appropriate

statistical tools, allowing for meaningful interpretation and reliable

conclusions.

By following this structured process—from questionnaire

development and approval to data collection and analysis—the

researchers ensured the validity and credibility of the study. The findings

served as a strong foundation for evaluating the effectiveness of

Barangay Ordinance No. 005-016 and its impact on the community.

43
Statistical Treatment of Data

To ensure accurate analysis and interpretation of the data

collected through the survey questionnaires, the researchers utilized the

following statistical tools and methods:

Ranking. This method was employed to arrange data in a specific order,

either ascending or descending, to identify the most and least significant

responses. Numerical or ordinal values were replaced by their

respective ranks upon sorting.

Percentage. This tool was used to determine the proportion of

respondents' answers relative to the total population. The formula

applied for this computation is:

The formula for computing the percentage is as follows:

Percentage (%) = Mn x 100

where:

P = is the percentage

Mn = is the mean score

N = is the total score

44
Frequency Count. Frequency count was applied to display the number

and percentage of observations for each response category. This method

provides a clearer view of data distributions for each survey item.

(Soriano, et al., 2021)

Weighted Mean. According to Bluman (2019), the weighted mean was

employed to assess responses where values have differing levels of

importance. This statistical method allowed the researchers to evaluate

the perception of respondents effectively. The formula used is:

The formula for computing the weighted mean is as follows:

where:

w1, w2, . . ., wn = weights

X1, X2, . . ., Xn = values

N = Total number of frequencies

45
Data Analysis and Interpretation

After the respondents’ responses were tallied and tabulated, the

data were analyzed based on the sub-problems identified in Chapter 1.

Various statistical tools were used to ensure an accurate interpretation

of findings.

Sub-Problem 1: Profile of the Respondents

The demographic profile of respondents, including age, gender,

educational attainment, and role in the community (e.g., resident,

business owner), was analyzed using the following statistical tools:

Frequency Count: Determines the number of respondents per category.

Percentage: Shows the proportion of each group relative to the total

respondents.

Ranking: Identifies the most prominent categories in terms of

representation.

This analysis provides a basis for understanding the diversity of

respondents and their perspectives on the ordinance.

Sub-Problem 2: Effectiveness of Barangay Ordinance No. 005-016 in

Regulating Business and Residential Activities

The effectiveness of the ordinance was assessed in three key areas:

46
Awareness Campaigns: Evaluates the effectiveness of information

dissemination.

Compliance with Guidelines: Measures of adherence to ordinance

provisions.

Monitoring and Enforcement: Assesses the barangay’s ability to

implement and enforce the ordinance.

The data were analyzed using weighted mean and ranking, with

results interpreted according to the following scale:

Scale Scale Limit Descriptive Equivalent Abbreviation

5 4.20 – 5.00 Highly Effective HLE

4 3.40 – 4.19 Effective HLE

3 2.60 – 3.39 Moderately Effective MLE

2 1.80 – 2.59 Less Effective LLE

1 1.00 – 1.79 Not Effective at All NLE

Sub-Problem 3: Overall Effectiveness of the Ordinance

To determine the ordinance's overall effectiveness, aspects such as

community participation, monitoring mechanisms, and penalty

enforcement were analyzed using weighted mean and ranking. The

interpretation follows this scale:

47
Scale Scale Limit Descriptive Equivalent Abbreviation

5 4.20 – 5.00 Highest Level of Effectiveness HLE

4 3.40 – 4.19 High Level of Effectiveness HLE

3 2.60 – 3.39 Moderately Level of Effective MLE

2 1.80 – 2.59 Less Level of Effectiveness LLE

1 1.00 – 1.79 No Effectiveness at All NLE

This analysis provides an overview of how effectively the ordinance

regulates business and residential activities.

Sub-Problem 4: Recommendations to Enhance Ordinance

Effectiveness.

Based on the analyzed results, recommendations were formulated

to enhance the ordinance’s impact, including:

Strengthening awareness campaigns to improve public understanding.

Enhancing monitoring and enforcement strategies.

Addressing compliance challenges and improving penalty

implementation.

These recommendations aim to improve the ordinance’s

implementation and ensure its long-term effectiveness in the community.

48
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