Businesses in Peru: Uncertified

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A large portion of the businesses in two different regions in Peru are operating with out licenses say the government. The local government says that many of these businesses are working towards getting their licenses and that many a pending. Those businesses that have not become the process were being advised on how to get a certificate. The Chief of business development says that the policy is to work on getting business formalized instead of shutting them down. The areas which have the highest rate of uncertified businesses are in the Gamarra, Central Market and Roundtable areas. To prevent the rising number of uncertified businesses the government needs to have more officers checking licenses and paperwork according to local businesses experts. In a few cases businesses have been closed for security measures.

                I chose this article because it gives a very different insight into many different levels of Peruvian culture. The thing that jumped out at be first was how both the government and the local paper did not seem very concerned about this issues. This is very surprising to me because in the U.S. all business have to register before they open up. In America when you walk inside any company one of thing if you look for it is the license for the community allowing them to operate and to hear that a large number of businesses are operating with any license is strange. On of the ideas that this article seems to be touching on is that there is very low government oversight into businesses in Peru. This could be because that the government just does not have the manpower to keep up with all the businesses. It also probably has to do with the government wanting the economy to grow through more local businesses. As someone who is use to living where the government has lager oversight, I feel as though the government is being lazing and is not protecting its people.

                The article also lets you see a little bit in to the life of some of the Peruvian people. Many of these people need these businesses for money and their income depends on it. To spend time waiting in government permits and paperwork is time that is wasted when you need money to buy food. Since the people need jobs many will open businesses and then try to get the permit later after they have some money. Another one of the interesting things in the article was when they were talking about the closing of businesses. Many of these businesses where being closed for security reasons as their exits were blocked with goods. With the world economy how it is it, the way people are edging the line on what is legal and illegal is not very surprising.

Kevin Whaley