Eliminating bureaucratic barriers in Peru

Barriers peru

Entrepreneurs and small business owners in Peru now have an easier time overcoming obstacles to success as a result of a new monitoring system that tracks bureaucratic barriers. Asociación de Contribuyentes del Peru’s (ACP) Bureaucratic Barriers Observatory (BBO) provides a database to Peruvians of official limitations that impede market processes and has already led to the removal of additional restrictions on the free movement of goods and services.

With better access to information and a champion to confront policymakers, Peruvian entrepreneurs are more easily able to pursue economic independence with confidence.

ACP, an Atlas partner based in Lima, Peru, teamed up with Asociación de Eliminación de Barreras Burocráticas (ADEB) to for the Bureaucratic Barriers Observatory initiative. Building on ADEB’s existing online platform, ACP launched a monitoring service for barriers to business faced by entrepreneurs. By working together with ADEB and local business owners, ACP was able to identify and report further barriers in the space, leading directly to the elimination of 29 official—and unnecessary—procedures. Three practices were completely removed.

“The main bureaucratic barrier that was successfully eliminated,” explained José Ignacio Beteta, President of ACP, “was one that obliged small retail establishments to purchase no less than four security cameras with certain specific features, even if the area was clearly small (under 50 square meters) and there was no need of such a system. Two local governments were applying this requirement, affecting thousands of small enterprises including little markets, grocery stores, bakeries, barber shops, and more.”

Thanks to ACP and ADEB’s efforts, those looking to start or expand these small enterprises can do so with fewer constraints.

The Bureaucratic Barriers Observatory initiative also included a public- and government-facing campaign. Through social media, video production, and media appearances, ACP was able to reach tens of thousands of individuals and spread the importance of access to entrepreneurial opportunities.

ACP has a demonstrated interest in the well-being of Peru’s entrepreneurs. Prior to the success of the BBO, ACP successfully petitioned the government for tax reform for businesses. They also introduced a simple tax calculator so business owners can figure out what they owe. With these updates to the tax code and the system of payment, Peruvian entrepreneurs are now freed to focus their attentions away from bureaucratic obstacles and toward developing their businesses and strengthening their communities.

Those directly affected by these changes are pleased with the way access to information is affecting their bottom line. “The Peruvian State sometimes pushes us to obey the most irrational and absurd requirements, and to pay some unfair and onerous taxes,” remarked Pio Pantoja, president of the Peruvian Bakers Association. “We think Contribuyentes and ADEB’s partnership will generate a wave of conscience among taxpayers and citizens about their right to receive quality public services and a fair treatment from public officers and public entities.”

Reducing barriers and creating awareness for barriers that are already eliminated allows entrepreneurs easier access to the market and opens doors to success. With the support of ACP, business owners have the freedom to realize their full capability.