Law Summary
Declaration of Policy and Local Economic Development
- State policy aims to foster national development, inclusive growth, and poverty reduction through MSME promotion.
- Emphasis on working with Local Government Units (LGUs) and public-private partnerships for local economic development.
- Coordination among agencies to avoid duplication and foster MSME entrepreneurship.
Establishment and Management of Negosyo Centers
- Negosyo Centers shall be set up under MSMED Council supervision in all provinces, cities, and municipalities.
- A multi-phase plan for Negosyo Centers must be approved within 180 days of Council reconstitution.
- Plans consider MSME needs, LGU capacities, management, and supervision structures.
- Public-private partnerships encouraged in establishing and managing centers.
- LGUs may lead and coordinate with DTI, DILG, and LGA for integration into local development plans.
- Existing SME Centers and NERBAC may be converted or utilized as Negosyo Centers.
- Functions of Negosyo Centers include:
- Business Registration Assistance: accepting new registrations and renewals, coordinating with LGUs, unified registration via Philippine Business Registry.
- Business Advisory Services: regulatory assistance, building support networks, facilitating access to financial aid, mentoring programs.
- Business Information and Advocacy: training, financing, marketing assistance; information databank; supporting ease of doing business; promoting youth and women entrepreneurship.
- Monitoring and Evaluation: business process improvements and feedback mechanisms.
- Other MSMED Council-assigned functions.
Registration of MSMEs and Barangay Micro Business Enterprises
- Unified business registration form developed and updated by DTI, available electronically and in Negosyo Centers/LGUs.
- Business permits must be processed within 15 calendar days, else MSME deemed registered for 1 year; revocation allowed within 30 days if requirements not met.
- DTI issues Certificate of Authority for BMBEs, renewable every two years, with fees capped at P1,000.
- Philippine Business Registry Databank established to serve as business information repository.
Eligibility and Start-up Funds for MSMEs
- MSME eligibility defined per RA 9178, including asset limits.
- MSMED Council to allocate and govern Start-up Funds sourced from MSME Development and BMBE Funds to support priority sectors.
Technology Transfer, Training, and Marketing Assistance
- Negosyo Centers provide technology transfer, production, management training, and marketing assistance.
- Coordination with agencies like DTI, DOST, UP-ISSI, CDA, TESDA.
- MSMED Council may issue a Manual of Operations clarifying roles.
Composition and Functions of the MSMED Council
- Council includes Secretaries of Trade and Industry (Chair), Agriculture, Interior and Local Government; representatives from MSME sectors, women, youth; and Chairman of Small Business Corporation.
- Advisory Unit comprises S&T Secretary, Bangko Sentral ng Pilipinas Governor, presidents of Land Bank and Development Bank, NEDA Director General, labor and private banking representatives, microfinance NGO representative, UP-ISSI, and Credit Information Corporation President.
- Council acts as coordinator and supervisor of Negosyo Centers, monitors progress, issues compliance guides in accessible language, conducts research and policy formulation on women entrepreneurship, and promotes entrepreneurial education.
Public Information Dissemination
- Philippine Information Agency, with DTI and DILG, ensures wide dissemination of RA 10644 content and benefits.
- Use of electronic media, websites, social media, leaflets, and brochures including FAQs for effective reach.
Appropriations
- Initial funding for implementing the Act comes from DTI's current budget.
- Subsequent funding to be included in General Appropriations Act, including support for Negosyo Center operations at local levels.
Amendments to the IRR
- Proposed amendments to be submitted by BSMED to the Secretary of Trade and Industry for approval.
Transitory Provisions
- Current MSMED Council to continue policy and program functions until full reconstitution within 60 days of IRR approval.
- Philippine Commission on Women and National Youth Commission to submit designated representatives.
- Advisory Unit members retain roles until terms are set by the MSMED Council.
Final Provisions
- IRR takes effect 15 days after publication following Secretary of Trade and Industry's approval.
- Separability clause ensures invalidation of part of IRR does not affect rest.
- Repealing clause supersedes inconsistent provisions in previous MSME-related laws and rules.
This detailed summary outlines the essential provisions, scope, organizational structures, procedural rules, funding, and mechanisms for promoting MSMEs under the Go Negosyo Act and its Implementing Rules and Regulations.