Dupouy Méndez Abogados

SMEs & Entrepreneurship

Permitting red tape and the uneven playing field: who helps the entrepreneur going it alone?

Permitting red tape and the uneven playing field: who helps the entrepreneur going it alone?
Rodrigo Dupouy Bunster
Rodrigo Dupouy Bunster

February 19, 2026 · 2 min read

Key takeaways

  1. 1Administrative red tape disproportionately affects small entrepreneurs compared to large companies.
  2. 2The lack of technical guidance in municipal procedures turns the dream of a own business into a dead-end maze.
  3. 3Leveling the playing field so the system guides entrepreneurs instead of just rejecting their applications is urgent.

While large mining companies and ports have elite legal teams to navigate permitting red tape, the small entrepreneur usually faces the administrative maze entirely alone. Cases like family bakeries watching their provisional permits expire without ever obtaining the definitive one reflect a system that punishes a lack of technical 'backing.'

An unequal contest

It isn't always about municipal negligence, but rather an unbridgeable technical gap. A civil servant can't bend the rules, but the entrepreneur has no team of experts to interpret every circular or requirement from the Public Works Department (DOM). This disparity turns regulatory compliance into a trap for those risking their family's assets.

Beyond digitalization

To reactivate the economy, simplifying procedures on a screen isn't enough. We need a paradigm shift where the system acts not only as a gatekeeper, but as a guide. The goal should be for entrepreneurs to comply with the rules, by making the technical path easier so human-scale investment can thrive.

Our commitment to SMEs

At Dupouy & Méndez we believe strategic advisory shouldn't be exclusive to large corporations. We help entrepreneurs and family businesses professionalize their legal management, anticipate critical municipal bottlenecks, and ensure their business keeps operating with legal certainty.

How we can help

Our team is ready to advise you on your most complex legal challenges.

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