This paper talked about how the enabling environment can be improved to promote MSME development. Earlier efforts to increase the level of business dynamism reflect unsatisfactory results and proof of that was the continued decline in the competitiveness ranking in the global arena. Bearing this in mind, the Municipality of San Jose de Buenavista, identified the cumbersome business permit and licensing system as a very important growth constraint. Reforms were performed and effected a much simpler and more efficient system evidenced by reduction in the number of documents used, removal of unnecessary steps, faster processing time and less cost in time and money for businesses. Further, there was an increase in the number of business registrants and in turn increased the revenue of the LGU that accompanied these reforms. In sum, improving the enabling environment specifically the LGUs business permits and licensing system eased doing business, contributed to the increase in registered MSMEs and manifested better LGU service delivery.