Program and

Policies on
Enterprise
Development
What is Enterprise?

- Is a business or Company

- Is a business oriented organization formed

specifically to pursue entrepreneurial
endeavors for profit.
What are the legal forms of a business?
The most common forms of business are:

- Sole Proprietorship

- Partnership

- Corporation
What is an Enterprise Development?

- Is defined as the act of INVESTING

TIME and CAPITAL in helping people
establish, expand or improve business
10 ways to spend Enterprise Development
are:

1. Provision of training or mentoring by suitably qualified entities

or individuals to SMME's which will assist the SMME's to
increase their operational or financial capacity.
2. Investments in beneficiary entities (SMME's);
3. Loans made to beneficiary entities;
4. Guarantees given or security provided on behalf of
beneficiaries;
5. Direct costs incurred by a measured entity in assisting
and hastening development of beneficiary entities;

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6. Contributions made to settling service costs relating to the
operational or financial capacity or efficiency levels of
beneficiary entities;
7. Relaxed security requirements or absence of security
requirements for beneficiary entities unable to provide security
for loans;
8. Settlement of accounts with beneficiary entities over a shorter
period of time in relation to the measured entity's normal
payment period, provided the shorter period is no longer than
15 days;
9. Providing training or mentoring to beneficiary communities by a
measured entity;
10. Payments made by the measured entity to suitably qualified
and experienced third parties to perform Enterprise
Development on the measured entity's behalf.
WHY ARE LAWS IMPORTANT IN BUSINES?

 If you imagine doing business without any

legal means to protect your best interests,
you'll understand why the rule
of law is important to business.
 The rule of law gives everyone a framework
for how to act and operate.
 It holds people, businesses and government
accountable for their actions.
What is the importance of entrepreneurship
in the Philippines?

 In the Philippines, entrepreneurship is

viewed as important to empowering the poor,
enhancing production, and as an
impetus(force or energy) to innovation.

 The 1987 Philippine Constitution

recognizes entrepreneurship as an engine of
economic growth.
Why entrepreneurial activities are important to
social development and economic progress?

 Entrepreneurial activities are important to

social development because these help the
people to have an improved quality of life,
greater morale and economic freedom. The
pioneering and innovative activities by
the entrepreneurs bring creation of new goods
& services which causes new employment.

- Economic Freedom is the fundamental right of every human to control his or her
own labor and property. In an economically free society, individuals are free to
work, produce, consume and invest.
POLICIES AND PROGRAM FOR
ENTREPRENEURSHIP DEVELOPMENT
 Are to promote economic development by
accelerating the process of industrialization,
generate employment and increase income by
encouraging the establishment of micro
enterprise, increase the share of the industrial
sector in the state domestic product (SDP)
make nature – economics centric development
and make agro.
HOW DOES THE GOVERNMENT POLICIES
AFFECT ENTREPRENEUR?
 Government get money to spend from
taxation. Increase spending requires
increase in taxes of borrowing. Any tax
increase will discourage investment
specially among entrepreneurs who take
the risk of starting and managing
businesses.
HOW CAN THE GOVERNMENT HELPS
ENTREPRENEURS?

 Governments can assist in this are by encouraging

local banks to work with start-ups and small
businesses by providing loans or investment.

 JULY 18, 2019 – Duterte signs law providing

incentive for start-ups.

 Has signed into law a measure seeking to provide tax

breaks and remove barrier to the funding of start-up
companies. RA no. 11337 or INNOVATIVE START
UP ACT, lead by DICT & DIT create by DOST.
WHAT ARE THE ROLE OF GOVERNMENT IN
ENTREPRENEURSHIP DEVELOPMENT?

 To develop and nurture the entrepreneurial sector, the

support of the government is crucial. which aims at
providing guidelines for skill development of
employees, management and entrepreneurs in
addition to resolving many other issues.

 The national science and technology entrepreneurship

board promotes entrepreneurship development
through science and technology.
Benefits of Entrepreneurship Development Program:

1. Business Guidance
2. Access to funding
3. Access to Infrastructure
4. Access to Specialists
5. Access to Markets
Importance of Entrepreneurship Development

1. Increase National Income

2. Create Social Change
3. Create of job Opportunities
4. Increase Innovation Opportunities
5. Promotion of Research and Development
6. Promotes Economic Growth
7. Enhances Standard of Leaving
8. Helps in Community Development
How does Magna Carta define small and medium
enterprise?

“Magna Carta for Micro, Small and Medium

Enterprises (MSMEs)”, a landmark legislation
that defines the current national policy to promote,
support, strengthen and encourage the growth and
development of MSMEs.

Guide to the Magna Carta for Micro, Small and Medium

Enterprises (RA 6977, as amended by RA 8289, and
further amended by RA 9501)

Magna Carta for Micro, Small and Medium Enterprises

(Republic Act 6977, as amended by RA 8289 and further
amended by RA 9501)
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SECTION 1. Title. – This Act shall be known as
the “MAGNA CARTA FOR MICRO, SMALL and
MEDIUM ENTERPRISE (MSMEs)

SEC. 2. Declaration of Policy. — Recognizing that

MSMEs have the potential for more employment
generation and economic growth and therefore can help
provide a self-sufficient industrial foundation for the country,
it is hereby declared the policy of the State to promote,
support, strengthen and encourage the growth and
development of MSMEs in all productive sectors of the
economy particularly rural/agri-based enterprises. To this
end, the State shall recognize the specific needs of the
MSMEs and shall undertake to promote entrepreneurship,
support entrepreneurs, encourage the establishment of
MSMEs and ensure their continuing viability and growth
and thereby attain countryside industrialization BY:
by:
a. intensifying and expanding programs for training in
entrepreneurship and for skills development for labor;
b. facilitating their access to sources of funds;
c. assuring to them access to a fair share of government contracts and
related incentives and preferences;
d. complementing and supplementing financing programs for MSMEs
and doing away with stringent and burdensome collateral
requirements that small entrepreneurs invariably find extreme
difficulty complying with;
e. instituting safeguards for the protection and stability of the credit
delivery system;
f. raising government efficiency and effectiveness in providing
assistance to MSMEs throughout the country, at the least cost;
g. promoting linkages between large and small enterprises, and by
encouraging the establishment of common service facilities;
h. making the private sector a partner in the task of building up
MSMEs through the building up MSMEs through the promotion and
participation of private voluntary organizations, viable industry
associations, and cooperatives; and
SECTION 3. Micro, Small and Medium
Enterprises (MSMEs) as Beneficiaries. — SMEs
shall be defined as any business activity or
enterprise engaged in industry, agribusiness and/or
services, whether single proprietorship, cooperative,
partnership or corporation whose total assets,
inclusive of those arising from loans but exclusive of
the land on which the particular business entity’s
office, plant and equipment are situated, must have
value falling under the following categories:

Micro : not more than P3,000,000

Small : P3,000,001 - P 15,000,000
Medium : P15,000,001 - P100,000,000
What is Barangay Micro Business
Enterprise?

Barangay Micro Business Enterprise (BMBE)

A BMBE is defined under the BMBE Law, RA.
9178 Act of 2002 as “any business
enterprise engaged in production, processing,
or manufacturing of products, including agro-
processing, as well as trading and services,
with total assets of not more than P3 million.
How to apply for the BMBE Certificate of
Authority for the first time:

Go to your nearest Negosyo Center,

accomplish and submit BMBE
application form together with a copy of
your DTI Business Name (for sole
proprietorships), SEC (for corporations), or
CDA (for cooperatives) Registration
Certificate.
BMBE beneficiary

If you are thinking of applying, here are some benefits your

business enterprise may get upon being accredited as a BMBE:

 Tax exemption. Accredited enterprises are waived of paying

income taxes arising from their operating expenses. This,
however, does not include the exemption in transaction taxes
such as value-added tax (VAT) and other percentage taxes,
among others. Furthermore, BMBE-accredited enterprises are
still required to regularly file their regular income tax returns.
 Minimum wage exemption. BMBE-registered enterprises
are also allowed to pay below the statutory minimum wage
which is otherwise not permitted by law. However, they are
still required to pay for their employees' benefits such as
PhilHeath, SSS, and HMDF.
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 Credit priority. Financial institutions are
given incentives in providing loans to
BMBE-registered business enterprises.
They are also required to provide a special
credit window for BMBEs.
 Growth assistance. To provide technical
support, the government has allotted funds
to agencies supporting BMBEs such as DTI
Negosyo Centers, UP Institute for Small
Scale Industries (UP-ISSI), and the
Department of Science and Technology
(DOST).
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