MODULE 1

Introduction to Enterprise
Development Programs and Policies
 EVOLUTION OF
ENTERPRISE
DEVELOPMENT AND
POLICIES

REPORTERS:
AXEL HAGOSOJOS
SHERYL PANUGA
 Evolution of Enterprise Development
and Policies
Entrepreneurship policies are the plans or courses of action, established by government in order to
influence and enhance entrepreneurial decisions and actions.
WHAT IS ENTERPRISE DEVELOPMENT POLICY?
Enterprise (SME) Development Policy, which focused only on Small and Medium-sized
Enterprise. The EDP supports entrepreneurship, innovation, and enterprise growth at all stages of
the enterprise growth lifecycle, from start-ups to existing micro, small, and medium-sized
enterprises.
ENTREPRENEURSHIP has existed in the Philippines since the interaction of early Filipinos with
Foreign traders, especially in the neighboring countries like: Malaysia, Indonesia, China. They
started business transactions through the barter system where in goods and services were means of
exchanges.
SMEs- The small and medium enterprises (SMEs) became the embodiment of
entrepreneurship in the country
1935 - The SMES development regulatory framework and policies started in 1935, when the
1935 Philippine constitution first recorded the national commitment to economic success
through Industrial and technological growth.
1950 -Since the 1950s, the Philippines has adopted strategies ranging from import-substitution
to export-orientation to bring about fundamental changes in the economic structure.
Economic Liberalization
(1960s-1970s)
* The 1960s saw a shift toward export-oriented industrialization. The country began to open
up to foreign investment and trade.
Privatization and Deregulation
(1980s-1990s)
*The Philippines implemented privatization and deregulation policies in various sectors,
including telecommunications and power.
1987 - The 1987 Philippine Constitution reinforced the commitment for the development of the
private sector and provided for a wide range of government reforms and reorganization.
1991 - The Magna Carta for Small enterprises is the landmark legislation which reflects the
current government policy to foster a dynamic SME sector.
REPUBLIC ACT NO. 6977
* An act to promote, develop and assist Small and Medium scale Enterprise Development
(SMED) Council, and the rationalization of government assistance programs and agencies
concerned with the development of Small and Medium Enterprises, and for the other purposes.
RA. 7882
*The Act Providing Assistance to Women, recognizes the special role in development and
supports women entrepreneurs who are enged in the manufacturing, processing, service and
trading businesses.
Philippine SME Development Strategy (1998)
* It hinged on sound partnership between the government and the private sector, the
complementarity ensured by three governing bodies on enterprise development:
1. Export Development Council (EDC)- which oversees the implementation of Philippine
Export Development Plan
2. Industry Development Council (IDC)-which implements the Philippine Industrial
Development Plan and develops enterprises with high technology requirements; and
3. Small and Medium Enterprise Development Council(SMEDC)-which oversees
policies and programs on SMEs and coordinates with both EDC and IDC in drawing-up its
priority industries.
(Early 2000s)
SULONG PROGRAM (May 17, 2001)
SULONG is a unified lending program designed to support the National SME Development
Plan. Under this program, all participating Governtment Financial Institutions shall apply
simplified and standardized lending procedures and guidelines to evaluate loan application
of SMEs.
RA 9178 : BMBE Act of 2002
* The “BMBEs Act of 2002” encourages the formation and growth of Barangay micro business
enterprises by granting them incentive and other benefits. The Act was signed into law by
President Gloria Macapagal-Arroyo on 13 November 2002.
2004 - 2010
* The most recent SME Development Plan in 2003-2004 acknowledges that the Philippine SMEs
have to play in a global terrain. The general aim is to have a vibrant SME sector that provides a
strong domestic supply base for globally competitive industries.
Accomplishment Report of SMEDP 2004-2010
● The BFAD was able to complete 70% of the BFAD Integrated Information System (BIIS) which
is an automated system in licensing establishments and registering products.
● The SEC has set up the i-register System to put an end to the previously cumbersome and time
consuming process of data retrieval at the SEC.
MSMED Plan 2011-2016
*The goals of the MSME Development Plan 2011-2016 will be achieved by focusing SME
development around the four identified outcome portfolios, namely: Business Environment,
Access to Finance, Access to Markets, and Productivity and Efficiency, government
agencies, in partnership with private sector SME enablers can intensify their coordination,
delivery and monitoring programs and services to SMEs.
ENTERPRISE DEVELOPMENT POLICY (2016)
R.A. No. 9501: Magna Carta for Micro, Small and Medium Enterprises (as amended, R.A.
No. 6977, R.A. No. 8289)
An Act that promotes, supports, and encourages entrepreneurship through providing
program assistance.
R.A. No. 9178: Barangay Micro Business Enterprises (BMBEs) Act of 2002
An Act promoting the establishment of Barangay Micro Business Enterprises (BMBEs)
R.A. No. 10644: Go Negosyo Act
An Act promoting job generation and inclusive growth through the
development of micro, small, and medium enterprises, mandating the
establishment of Negosyo Centers in all cities, municipalities, and
provinces.
R.A. No. 10679: Youth Entrepreneurship Act
An Act promoting entrepreneurship and financial education among
Filipino youth.
R.A. No. 11032: Ease of Doing Business Act (as amended, R.A. No.
9485)
An Act to improve efficiency in the delivery of government service to
the public by reducing bureaucratic red tape, preventing graft and
corruption, and providing penalties therefore.
COVID-19 Pandemic
* The government implemented several measures to help MSMEs
endure and survive the tough times. For example, the Department of
Finance (DoF), Bureau of Internal Revenue (BIR) and Social Security
System (SSS) have issued Joint Memorandum Circular No. 001-2020
and 002-2020 providing for the Small Business Wage Subsidy (SBWS)
program granting a wage subsidy of P5,000 to P8,000 to the eligible
employees of small business employers affected by any form of
quarantine.

Bayanihan to Heal as One Act (Republic Act No. 11469)

require covered institutions to implement a minimum 30-day grace
period for loans due during the quarantine period.
The Department of Trade and Industry (DTI) also issued
Memorandum Circular No. 20-12 which provides a 30-day grace period
on commercial rent of MSMEs that have ceased operations due to the
ECQ without incurring interest, penalties, fees and other charges. No
eviction for failure to pay rent due may be enforced within the 30-day
period after the lifting of the ECQ.
Philippine Economic Zone Authority (PEZA) Memorandum
Circular No. 2020-023 - authorizes the deferment of rental payments
for locators in certain public ecozones for April and May of 90 days
from the due date.
2022
The Department of Trade and Industry (DTI) and the
International Labor Organization (ILO) have signed a
memorandum of understanding (MOU) for a Japan-supported
project aimed at supporting the recovery of micro, small and medium
enterprises (MSMEs).
* Enterprise development policies evolve over time in order to meet
the ever-changing demands of the entrepreneurial landscape. These
policies are changes to ensure that the support and incentives
provided to entrepreneurs remain relevant and effective.
SIGNIFICANCE OF POLICIES
IN FOSTERING
ENTREPRENEURSHIP

REPORTERS:
ARGILYN DEBLOIS
MAVECK ALAMO
 7 Ways Government can foster
Entrepreneurship

1. Provide access to funding

- Governments can help by providing funding through grants, loans, and other
financial incentives for investors who provide funding to start-ups.

2. Reduce bureaucratic red tape

- Governments can reduce this burden by simplifying and streamlining the process
of starting and running a business.
3. Invest in education and training
- Government can invest in education and training programs to help entrepreneurs acquire
the knowledge they need.

4. Encourage Innovation
- Governments can promote innovation by investing in research and development and by
providing tax incentives for companies that invest in new technologies.

5. Create a supportive legal framework

- Create a favorable legal environment for entrepreneurs by simplifying the business
registration process, protecting intellectual property rights and enforcing contracts.
6. Foster a culture of entrepreneurship
- Governments can promote entrepreneurship by creating a culture that values and
supports it.

7. Stimulate networking and collaboration

- Government can foster networking and collaboration by creating opportunities for
entrepreneurs to meet and exchange ideas.
ROLE OF GOVERNMENTAL
& NON-GOVERNMENTAL
ORGANIZATIONS

Reporters:
Sophia Anne A. Dichoso
Jumilyn Diolata
Regulatory Role of Government in
Business

■ Setting and enforcing standards for fair competition and

protecting consumers from fraudulent or deceptive business
practices.
•Policy Framework
•Environmental and Social Responsibility
Promoter Role of Government in
Business
■ Governments are responsible for promoting economic growth and
development through fiscal and monetary policies.
■ The Government also provides support to businesses through various
programs and initiatives.
•Access to Finance
•Support for Innovation
•Research and Development
•Market Support
Government as an Entrepreneur

■ Government can also be an entrepreneur itself by investing in new

businesses or industry sectors. This can help to create jobs and grow the
economy.
■ Education and Skill Development
•Government can also act as an entrepreneur by providing tax incentives,
grants, and other forms of assistance to businesses.
■ Market Access and Trade
•The ability of entrepreneurs to gain access to markets and to engage in
international trade through government-provided support and services.
Role of Government as a Planner

■ The role of the Government as a planner is to ensure that

businesses can operate in an efficient and effective manner.
■ The Government must also assist businesses when needed.
PHILIPPINE GOVERNMENT PHILIPPINE GOVERNMENT
AGENCIES PROGRAMS

1.Department of Trade & Industry 1.Negosyo Center

(DTI) 2.KAPATID MENTOR ME
2.Securities & Exchange Commission 3.Pondo sa Pagbabago at Pag-Asenso
(SEC) (P3)
3.Bureau of Internal Revenue (BIR) 4.Go Lokal!
4.Various Local Government Units 5.Small and Medium Enterprise
(LGU) Roving Academy (SMERA)
ROLE OF NON-GOVERNMENTAL
ORGANIZATIONS
■ Non-Governmental Organizations (NGOs)
• Promoting economic growth, developing society, improving
communities and promoting citizen participation. NGOs are particularly
critical to the socioeconomic development of countries where
government capacity and revenues are limited.
• Provide access to micro credit or micro finance facilities, positively
impacting micro enterprises as well as enabling individual households to
start income-generating activities.
• Provide micro loans without requiring any collateral or mortgage with
the aim of assisting the less privileged in society.
Non-governmental organizations (NGOs) play a
crucial role in enterprise development programs and
policies in various ways such as follows:

■ Capacity Building and Training — NGOs often provide training and capacity-
building programs for entrepreneurs and small business owners.
Ex:
•GSAC Training and Seminar Workshops for Farming and Handicrafts
•People Development Program (KINAYA Profollow
■ Access to Finance — NGOs facilitate access to microfinance and small business
loans for aspiring entrepreneurs who may not have access to traditional banking
services.
Ex:
•Private Lending and Funding Organizations like PALFSI, CardBank,
OnePuhunan etc.
■ Policy Advocacy — NGOs engage in advocacy efforts to influence
policies that support entrepreneurship. They work to create a more
favorable regulatory environment for businesses, advocating for reduced
bureaucracy and fair competition.
Ex:
•Amnesty International Philippines
•The Nationwide Association of Consumers, Inc. (NACI)
•Caucus of Development NGO Networks, Inc. (CODE-NGO)
■ Networking and Collaboration — NGOs create platforms for
entrepreneurs to network, share experiences, and collaborate. These
networks can lead to partnerships, investment opportunities, and
knowledge sharing.
Ex:
•Caucus of Development NGO Networks, Inc. (CODE-NGO)
•Foundation for Sustainable Development, Inc.
■ Innovation and Research (Research and Data Collection) — NGOs often
conduct research and pilot innovative business models. They identify
emerging trends and opportunities, which can inform government
policies and business strategies.
Ex:
•IBON Foundation
•Amnesty International Philippines
•Andres Soriano Foundation, Inc.
■ Social Entrepreneurship — Some NGOs focus on social
entrepreneurship, supporting enterprises that have a positive social or
environmental impact.
Ex:
•ChildHope Asia Philippines
•Direct Aid Program
•TUKLAS KATUTUBO
■ Market Access (Market Linkages) — NGOs assist entrepreneurs in accessing
new markets, both domestically and internationally. They help enterprises
expand their customer base and increase sales.
Ex:
•Technoserve
•Foundation for Sustainable Development, Inc.
■ Skills Development — NGOs offer specialized training and skill development
programs tailored to the needs of specific industries or sectors, enhancing the
competitiveness of local businesses.
Ex: •Tuklas Katutubo
■ Community Development — By promoting entrepreneurship, NGOs
contribute to community development and poverty alleviation. Successful
enterprises create jobs and stimulate economic growth in communities.
Ex: •Bukas Palad Foundation
•Feed The Children Philippines, Inc.
•Gawad Kalinga (GK)
•Caucus of Development NGO Networks, Inc. (CODE-NGO)
•Technoserve
■ Monitoring and Evaluation — NGOs often play a role in monitoring the impact of
enterprise development programs and policies, ensuring that resources are effectively
utilized and outcomes are achieved.
■ Technical Assistance — NGOs provide technical expertise and guidance to
entrepreneurs, helping them improve their product quality, production processes, and
overall business operations.
Ex:
•Advocates of Science and Technology for the People
•Andres Soriano Foundation, Inc.
•Asian Alliance Of Appropriate Technology Practitioners, Inc.
■ Environmental Sustainability — Some NGOs focus on promoting environmentally
sustainable business practices, encouraging enterprises to adopt eco-friendly
technologies and practices.
Ex:
•Bantay Kalikasan (ABS-CBN Foundation)
•Mother Earth Foundation
•Haribon Foundation
■ Conflict Resolution (Support for Vulnerable Populations) — In regions affected by
conflict or instability, NGOs may facilitate peace-building efforts through enterprise
development, promoting economic stability as a means to reduce conflict.
Ex: •Global Peace Foundation Philippines
■ In summary, NGOs serve as important intermediaries between
governments, businesses, and communities, working to foster
entrepreneurship, reduce poverty, and promote economic
development through various programs and policy advocacy
efforts. Their role is particularly crucial in supporting small
enterprises and marginalized groups in the pursuit of economic
growth and sustainability