By Danilo P. Padua, PhD
All progressive countries have one thing in common: their economy is dominated by micro, small and medium industries. That means, more of their people are into businesses.
The Philippine setting is a bit different. Ours is lorded over by big, big companies. When a business grows to a certain size, they are gobbled up by existing giants. If the small business hesitates, sometimes the big one will find a way to make the small one suffer until it will capitulate.
A more pressing concern, however, is how to start a business or improve it. There are now a lot of people who want to have their own businesses. And they must have all the help that could be given. If they are aided, the local economy is also propped up. More jobs will be created. And hopefully there will be less of our “kababayans” seeking jobs abroad.
Many are clueless but way back in 2002, Republic Act 9178 (Barangay Micro Business Enterprises Act of 2002) was signed into law by then president Gloria Macapagal-Arroyo. This law was supposed to address the widening gap between the rich and the poor. Unfortunately this was not vigorously pursued. It hibernated. A check with some officials in two barangays in La Trinidad, show that this is so. They were not even aware of it, until very recently only.
This is a classic case of a good piece of legislation that is not given its due course. Of course, this is not an isolated case. It’s almost the norm.
Another law, R.A. Republic Act 10644, (Go Negosyo Act), kindred to the above law, was signed by former president PNOY in July, 2014. It is an act promoting job generation and inclusive growth through the development of micro, small and medium enterprises. This was designed therefore to strengthen micro, small, and medium enterprises (MSMEs) to create more jobs in the country. One of the main features of this law is the establishment of Negosyo Centers in all cities, municipalities and provinces in the Philippines. It has a plethora of functions—-all for the strengthening of MSMEs.
The Go Negosyo Act brings together DTI, DILG/LGU, DILG/LGU, DOST, DA, NEDA, DOF, TESDA, CHED, PIA, financing institutions, academe and other private groups. DTI is the lead agency. On paper, this grouping should provide more than sufficient support to make community businesses flourish. Presently though, the ball is largely in the hands of DTI. The role of the different agencies needs to be clarified.
But let us see. The Negosyo Center should be the hub of activities under the law. There are now established NCs in many cities and municipalities. The one in La Trinidad, was put up last June, 2016. It is very accessible since it is located at the 2nd floor of the Old Market building in km 5. Looking at their logbook however, one can see that not so many people visited the center since its inception. But visitors included those from Baguio, Tarlac, Pangasinan and Nueva Vizcaya. NCs are supposed to cater to everyone, regardless of point of origin
People thinking of putting up a business or those already in business, might find the NCs very useful. Why? Because the NCs are tasked to provide: a) Business registration assistance; b.)Business advisory services; c.) Business information and advocacy, and d.) Monitoring and evaluation.
The NCs, in coordination with other agencies, provide free trainings related to business as requested. Among others, it will provide assistance to MSMEs in the availment of technology transfer, production and management training programs, and marketing assistance. They will also link the entrepreneur to possible fund sources.
The Barangay Micro business Enterprises are also served by the NCs. Just to make it clearer (per DTI hand-outs), BMBE is any business entity or enterprise engaged in the production, processing or manufacturing of products or commodities, including agro-processing, trading, and services (whether single proprietorship, cooperative, partnership or corporation) whose total assets, excluding land, shall not be more than PhP3 million. Such assets shall include those arising from loans but not the land on which the plant and equipment are located
BMBEs can register their businesses, free of charge, at the Negosyo Centers. Registered BMBEs can avail of government incentives such as: a.)exemption from the payment of income tax for income arising from the operation of the enterprise; b.)exemption from the coverage of the minimum wage law; c.)special credit window of government financing institutions that will service the needs of BMBEs; d.)technology assistance, and e.)marketing assistance
The great tasks of the NCs necessitates really the support of the agencies so identified. For them to be successful and sustainable, they have to rely on innovations and technologies developed especially by higher education institutions. This is an opportunity for HEIs to have their researches translated into successful businesses, directly helping the community raise their economic status. Along this line, it would be best for the DTI and HEIs to craft specific memoranda of agreement for a workable partnership.
It would be a happy day when MSMEs/BMBEs are strengthened, able to compete, and shielded from the rapacious intentions of giants. By the way, there is a successful homegrown “giant”, TiongSan Supermarket, which is now helping MSMEs in La Trinidad and adjacent municipalities. Per DTI, it is graciously providing space for MSMEs willing to display their products without any fee. Only a minimal mark up for the store. **
