MSME Overview and Support Programs

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Questions and Answers

What percentage of total establishments do MSMEs account for?

36.7%

85.7%

99.5% (correct)

61.6%

What is the primary objective of the P3 funding program?

To assist in exporting products overseas

To support microenterprises with alternative financing (correct)

To enhance market access for SMEs

To provide training for large enterprises

Which financial barriers do MSMEs face?

Declining labor force participation

Poor access to finance and high interest rates (correct)

Increased competition from large corporations

High operational costs and low market demand

What is an aim of the SME Roving Academy?

To provide continuous learning for MSME competitiveness Signup and view all the answers

What is the required allocation of loans for micro and small enterprises as of June 2008?

At least 8% Signup and view all the answers

What is the main focus of the 'Mentor Me Program' by DTI?

To offer coaching and mentoring for MSMEs Signup and view all the answers

What is the contribution of MSMEs to the total added value to the economy?

36.7% Signup and view all the answers

Which act focuses on the Magna Carta for Micro, Small, and Medium Enterprises?

R.A 9501 Signup and view all the answers

What primary objective does microfinance aim to achieve in addition to financial gains?

Promoting self-employment opportunities Signup and view all the answers

Which institution is recognized as the pioneer of modern microfinance?

Grameen Bank Signup and view all the answers

What notable recognition did Muhammad Yunus and Grameen Bank receive in 2006?

Nobel Peace Prize Signup and view all the answers

Which of the following is NOT a benefit of microfinance?

High interest rates compared to moneylenders Signup and view all the answers

What was the historical significance of the Irish Loan Fund system introduced by Jonathan Swift?

To improve conditions for impoverished citizens Signup and view all the answers

How does group lending in microfinance function?

Multiple individuals collectively apply for a loan Signup and view all the answers

What major issue does microfinance aim to address in local communities?

Eliminating informal moneylenders Signup and view all the answers

What aspect of microfinance supports socio-economic development?

Enhancing educational and community development opportunities Signup and view all the answers

What percentage of adults aged 25 and above are employed?

39% Signup and view all the answers

Which model is associated with solidarity group lending?

Grameen model Signup and view all the answers

What is one of the main challenges due to financial exclusion?

Poverty trap Signup and view all the answers

Which of the following financial education goals is emphasized for consumers?

Consumer protection Signup and view all the answers

How does financial inclusion support economic development?

Through broad-based economic growth Signup and view all the answers

What percentage of adults aged 25 and above did not reach college?

28% Signup and view all the answers

What is one method proposed to empower financially excluded individuals?

Providing alternative credit scoring Signup and view all the answers

Which statement best describes the role of credit bureaus?

To assist in lending decisions Signup and view all the answers

What is a key distinguishing feature of the Grameen Bank?

It emphasizes lending to women and the poorest of the poor. Signup and view all the answers

What type of lending structure do solidarity groups in microfinance typically use?

Peer group lending schemes where members support each other. Signup and view all the answers

Which of the following is NOT typically included in microfinance services?

Providing large business loans Signup and view all the answers

What were some of the reasons for the failure of Directed Credit Programs (DCP)?

Corruption and failure to reach target clientele. Signup and view all the answers

Which microfinance institution is the oldest existing microfinance institution?

Bank Raykat Indonesia Signup and view all the answers

In which country was the Grameen Bank founded?

Bangladesh Signup and view all the answers

Which of these entities is NOT a typical provider of microfinance services?

Commercial banks exclusively. Signup and view all the answers

What primary purpose does microfinance aim to serve?

To support disadvantaged populations excluded from traditional banking. Signup and view all the answers

What was one of the principal goals of microfinance organizations?

Providing services to the poor Signup and view all the answers

What is defined as providing credit to one client without requiring others to act as guarantors?

Individual lending Signup and view all the answers

When was the first microcredit initiative launched in Washington?

1997 Signup and view all the answers

Which of the following years marked the integration of the microfinance department into a larger group?

2012 Signup and view all the answers

What percentage of female borrowers was reported in microfinance statistics?

33% Signup and view all the answers

How many microfinance institutions served customers in 2014 according to the data?

1,045 Signup and view all the answers

What is the potential GDP boost predicted for emerging countries by 2025 due to the digitalization of financial services?

$3.7 trillion Signup and view all the answers

What was the main goal behind the first loan issued to microfinance institutions in 1989?

To grant loans to microfinance institutions Signup and view all the answers

What is the primary focus of a movable collateral registry?

To enhance acceptance of movable assets as collateral for loans Signup and view all the answers

Which of the following is NOT a benefit of financial inclusion?

Decreased access to financial services Signup and view all the answers

How can an individual demonstrate financial health?

By managing existing debts and accessing potential resources Signup and view all the answers

What does microfinance primarily provide?

A broad range of financial services sustainably Signup and view all the answers

Which of the following areas was NOT reached by the EFLP in 2016?

Cebu City Signup and view all the answers

What indicates that an individual has achieved effective financial planning?

They balance income with expenses and prioritize savings Signup and view all the answers

What was the main purpose of the National Retail Payment System?

To enhance the framework for industry cooperation in electronic payments Signup and view all the answers

When did Card Bank Inc. officially commence its banking operations?

September 1, 1997 Signup and view all the answers

Study Notes

Week 1

MSME Categories: Micro (up to 3,000,000), Small (3,000,001-15,000,000), Medium (15,000,001-100,000,000). MSMEs account for 99.5% of establishments.
MSME Contributions: Employ 61.6% of the total labor force, contribute 36.7% to the added value, and 59% are exporters.
Negoso Centers: Provide assistance with business registration, advisory services, and information.
ASENSO Program: A funding program (2011-2015) aimed at providing micro/small business loans.
SME Roving Academy: A learning program to increase MSME competitiveness and contribution to GDP.
Mentor Me Program: DTI coaching and mentoring program to support MSMEs.
Industry Clustering: Efforts to boost industry competitiveness and exports.
Shared Service Facilities (SSFs): Provide machinery, equipment, and other resources for MSMEs.
Laws Supporting MSMEs: RA 9250/6977(Magna Carta), RA 9178 (Barangay Micro Business Enterprises Act), and RA 10644 (Go Negosyo Act).
Specific Provisions: Exemption from income tax, Special credit window, Start up fund for MSMEs.

Week 2

Microfinance: Financial services for low-income individuals lacking access to traditional banking.
Microfinance Objectives: Cheaper credit for communities, women's participation, and economic development for low-income.
Microfinance Models: Individual entrepreneurs (relationship), or groups' application.
Microfinance Benefits: Inclusion to the financial system, start-up opportunities, lower interest rates compared to local lenders, self-employment.
History of Microfinance: Earliest forms since the 18th century, with the Irish Loan Fund and Jonathan Swift, to the modern form in the 1970s, and notable examples like Grameen Bank (1976) and the later Nobel Peace Prize recipient Muhammad Yunus.

Week 3 & 4

Microcredit: Small loans particularly to the poor and/or unprivileged lacking access to collateral.
Grameen Bank: Notable for not requiring collateral.
Microfinance services: Credit, Savings, Investments, Money transfers, Remittance, or insurance.
Microfinance Target Groups: Unemployed/low income individuals, women. Major types are Uganda, Indonesia, Philippines, Serbia, Bangladesh, India, Nepal and Honduras.
Microfinance Companies: 51Give, Bank Raykat Indonesia, BRAC, Grameen Bank, Kiva, and San Francisco.

Week 5

Group Lending: Lending schemes where members pool resources for loan approval.
Microfinancing Products: Individual or business loans, housing loans, etc.
Key Dates: Key milestones such as the 1st microloan offered, creation of a microfinance department, and integration into the mainstream sector.

Week 6

Financial Exclusion Problems: Lack of credit access, poverty traps, and national/economic crises.
Financial Inclusion: Effective access to financial services for all Filipinos, as defined by the BSP.
Financial Inclusion Benefits: Increased access to FS, Better financial planning, Opportunities for wealth creation, and Improved economy.
Financial Health: Ability to meet obligations and recover from financial shocks.

Week 7

Microfinance: A viable, sustainable method of offering financial services and products to those lacking access to traditional banking.
Partnerships in Microfinance: Flow of funds from donors to NGOs, to local partners, and finally to beneficiaries.
Card Bank Inc.: Established in the Philippines on Sept 1, 1997 to provide wide range of financial products (e.g. deposits, loans,and treasury services).

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Description

This quiz covers essential information about Micro, Small, and Medium Enterprises (MSMEs), including their categories, contributions to the economy, and various support programs. Understand the impact of programs like the ASENSO Program and Mentor Me on MSME development. Test your knowledge about laws supporting MSMEs and available resources.