It seems to me there are 2 parts to this story.
#1 is the part about this person applying without proper licenses. I would definitely report him. I have done this several times and will continue to do so. At first I didn't but eventually I realized nothing would change if I didn't. These persons were not going to stop out of good conscience and the homeowner's were going to turn them in or stop because they feel like they are getting a service "cheaper" than someone who is properly licensed. There is nothing "Sticky" about this. You are the only one who will report him and it is the clear cut right thing to do.
#2 is the part about the other services (legitimately I assume) that this person is performing. You mention he is doing business in your neighborhood and it peeves you. If he obtained the business in an legal and ethical manner I don't see what your problem is other than personal pride. You can't expect to get all the work everywhere.