<![CDATA[The growth of coffee shops in Kendari City demonstrates the dynamics of an increasingly competitive urban economy. However, the business legalization process still faces obstacles in coordination, regulatory understanding, and suboptimal institutional support. This situation raises questions about how collaborative governance can accelerate business legalization while simultaneously boosting coffee shop business performance. This study aims to analyze the role of collaborative governance in accelerating business legalization and its impact on coffee shop business performance in Kendari City. The study used a qualitative approach with a phenomenological design. Data were collected through in-depth interviews, observations, and documentation with purposively selected informants, then analyzed using the Miles and Huberman model. The results show that collaborative governance plays a significant role in streamlining the business legalization process through actor involvement, inter-agency communication, forms of administrative support, and institutional responsiveness. Coffee shop operators understand business legality as a formal status that provides a sense of security, strengthens regulatory compliance, and opens access to business opportunities. The findings also show that legality contributes to increased customer trust, competitiveness, sustainability, and business development. The implication is that local governments need to strengthen licensing services that are more integrated, responsive, and mentored so that business formalities can drive sustainable business performance.]]>
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