Factors Influencing the Non-Registration of Online Businesses in Cabanatuan City, Nueva Ecija

This study assessed the factors influencing the non-registration of online businesses in Cabanatuan City, Nueva Ecija. Specifically, it described the profile of unregistered online business owners, determined their level of awareness and understanding of business registration requirements, identified the factors influencing their decision not to register, examined the perceived impacts of non-registration on business operations, and proposed strategies to encourage registration and compliance. The study employed a quantitative descriptive research design using a cross-sectional survey approach. A total of seventy-four (74) unregistered online business owners participated in the study through snowball sampling. Data were gathered using a validated questionnaire and analyzed using frequency, percentage, weighted mean, and ranking. The findings revealed that most respondents were engaged in retail or reselling, operated micro-scale businesses, had few or no employees, and were mainly involved in retail trade. Results further showed that while respondents generally recognized the legal protections and benefits of registration, they had limited knowledge of registration procedures and low awareness of government programs for registered businesses. Among the factors influencing non-registration, perceived costs of registration emerged as the leading factor, followed by socio-economic constraints, administrative challenges, and personal attitudes and beliefs. The respondents also agreed that non-registration affects business operations, particularly market credibility and customer trust, eligibility for government support, business growth and sustainability, and access to financial services. The study concludes that economic, procedural, and informational barriers continue to discourage online business owners from formalizing their businesses. Thus, simplified registration processes, strengthened information campaigns, accessible assistance programs, and capacity-building initiatives are recommended.