SME Roving Academy Program Overview

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Questions and Answers

What is the primary goal of the BMBE Act of 2002?

To eliminate micro businesses from the economy

To impose higher taxes on micro businesses

To encourage the formation and growth of Barangay micro business enterprises (correct)

To regulate large enterprises only

Who signed the BMBE Act of 2002 into law?

Benigno Aquino III

Duterte

Ferdinand Marcos

Gloria Macapagal-Arroyo (correct)

Which Act serves as the statutory foundation for SME development along with RA 9178?

RA 8472

RA 1987

RA 6977 (correct)

RA 1234

What is one of the key incentives for micro enterprises under the BMBE Act?

Exemption from corporate income taxes for 4-8 years Signup and view all the answers

Which plan recognizes the role of SMEs in the global market?

SME Development Plan 2003-2004 Signup and view all the answers

What does the BMBE Act of 2002 aim to achieve within the SME sector?

Encourage graduation of micro and small enterprises to higher business levels Signup and view all the answers

Which law provides exemptions for specific exporting industries?

RA 8424, Tax Reform Act Signup and view all the answers

What does the Investment Priorities Plan (IPP) provide for selected enterprises?

Incentives for preferred areas of investment Signup and view all the answers

What is the main purpose of the Kapital Access for Young Agripreneurs?

To attract youth to key roles in agricultural economics Signup and view all the answers

Which program is designed to enhance the entrepreneurial skills of youth?

KiNAYA Entrepreneurship Development Program Signup and view all the answers

What type of financial support do NGOs typically provide to entrepreneurs?

Access to microfinance and small business loans Signup and view all the answers

What does the policy advocacy role of NGOs aim to influence?

Support reduced bureaucracy for businesses Signup and view all the answers

What aspect of entrepreneurship do NGOs help facilitate through networking?

Experience sharing and partnership opportunities Signup and view all the answers

What type of innovation do NGOs participate in to support entrepreneurs?

Pilot innovative business models and research Signup and view all the answers

Which of the following is NOT a specific service provided by the GSAC Training and Seminar Workshop?

Normative policy research Signup and view all the answers

What is a primary goal of the KiNAYA Entrepreneurship Development Program?

To solve community problems through entrepreneurial solutions Signup and view all the answers

What is the primary role of NGOs in relation to entrepreneurship?

To serve as intermediaries between governments, businesses, and communities Signup and view all the answers

What is a key strategy of the SME Roving Academy (SMERA)?

Integration of business development services for SMEs at various levels Signup and view all the answers

What do entrepreneurship policies aim to influence?

Entrepreneurial decisions and actions Signup and view all the answers

Which of the following is NOT mentioned as a partner agency for SME Roving Academy (SMERA)?

Healthcare organizations Signup and view all the answers

Which of the following is an example of a policy that encourages entrepreneurial activities?

Exempting agro allied businesses from tax during early operations Signup and view all the answers

What crucial role do NGOs play in socioeconomic development?

Promoting citizens' participation and improving communities Signup and view all the answers

What does the Enterprise Development Policy specifically support?

Entrepreneurship, innovation, and enterprise growth across all stages Signup and view all the answers

How did early trade occur in the Philippines?

Using a barter system for goods and services Signup and view all the answers

How do NGOs facilitate micro enterprises?

By providing micro finance facilities and loans without collateral Signup and view all the answers

What primary service do NGOs offer to entrepreneurs and small business owners?

Capacity building and training programs Signup and view all the answers

Which of the following reflects a characteristic of entrepreneurship in the Philippines?

Historical interaction with foreign traders Signup and view all the answers

What is a significant impact of the work done by NGOs in under-resourced areas?

Enabling income-generating activities for individual households Signup and view all the answers

What aspect does the Enterprise Development Policy NOT address?

Focusing solely on indigenous industries Signup and view all the answers

Which of the following correctly describes the establishment of Entrepreneurship Development Networks?

Creating a collaborative framework for business development at different levels Signup and view all the answers

Which economic structure did the Philippines transition to after the barter system?

Money economy Signup and view all the answers

What is the focus of the inclusive promotion program mentioned in SME strategies?

Integrating marginalized groups into economic development Signup and view all the answers

What is the primary objective of the Barangay Micro Business Enterprises (BMBEs) Act 2002?

To promote the establishment of Barangay Micro Business Enterprises Signup and view all the answers

What does R.A. No. 10644, also known as the Go Negosyo Act, mandate?

The creation of Negosyo Centers in all municipalities Signup and view all the answers

What is the goal of the Youth Entrepreneurship Act (R.A. No. 10679)?

To promote financial education among the youth Signup and view all the answers

What was a key focus of the Ease of Doing Business Act (R.A. No. 11032)?

To reduce bureaucratic red tape in government services Signup and view all the answers

Which document provides guidelines for processing business permits in cities and municipalities?

Joint Memorandum Circular No. 1 Series of 2011 Signup and view all the answers

What type of assistance was provided by the government to MSMEs during the COVID-19 pandemic?

Small Business Wage Subsidy program Signup and view all the answers

What relief was mandated for loans during the quarantine period as per the Bayanihan to Heal as One Act?

Grace period of at least 30 days Signup and view all the answers

What must lenders avoid during the grace period as per the Bayanihan to Heal as One Act?

Charging additional interest or fees Signup and view all the answers

Study Notes

SME Roving Academy (SMERA)

Continuous learning program for Micro, Small & Medium Enterprises (MSMEs)
Aims to help MSMEs become competitive in domestic and international markets
National and Local level integration of Business Development Services (BDS) is a key strategy
Provincial, Regional, and National Entrepreneurship Development Networks are also established
Encompasses an inclusive promotion program

Partner Agencies

Business Development Service (BDS) Providers
Local Government Units (LGUs)
Training institutions, chambers, academe, and financial institutions
Trade & Industry Associations
Government and Non-Government Organizations (NGOs)

Role of Non-Governmental Organisations (NGOs)

NGOs play a vital role in promoting economic growth, societal development, community improvements and citizen engagement
Particularly important for socio-economic development in countries with limited government capacity and revenue
Some NGOs provide access to microfinance facilities, positively affecting micro-enterprises and enabling households to generate income
Others provide microloans without requiring collateral or mortgages, targeting less privileged communities
NGOs offer opportunities for individuals to develop initiatives in business or agriculture to generate income and offset debt
NGOs are crucial to enterprise development programs and policies

How NGOs Contribute to Enterprise Development

Capacity Building and Training:
- Training and capacity building programs for entrepreneurs and small business owners
- They offer workshops, mentorship, and resources
- Examples: GSAC Training and Seminar Workshop for Farming and Handicrafts, GUBAT St. Anthony Cooperative and the People Development Program (KiNAYA Program)
- KiNAYA Entrepreneurship Development Program: a scalable virtual entrepreneurship program aiming to hone the youth's entrepreneurial skills
- Topics covered in KiNAYA: Innovation of Products and Services, Marketing, Operations Management, Financial & HR Management
Access to Finance:
- NGOs facilitate access to microfinance and small business loans for aspiring entrepreneurs
- They bridge the financial gap for small businesses
- Examples: Private Lending and Funding Organizations like PALFSI, Cardbank, OnePuhunan etc.
Policy Advocacy:
- NGOs engage in advocacy efforts to influence policies supporting entrepreneurship
- They create a more favorable regulatory environment for businesses by advocating for reduced bureaucracy and fair competition
- Examples: 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.
- Networks can lead to partnerships, investment opportunities and knowledge sharing
- Examples: Caucus of Development NGO Networks, Inc. (CODE-NGO) and the Foundation for Sustainable Development, Inc.
Innovation and Research:
- NGOs conduct research and pilot innovative business models
- They identify emerging trends and opportunities, which can inform government policies and business strategies.
- Examples: IBON Foundation, Amnesty International Philippines, Andres Soriano Foundation, Inc. and Global Peace Foundation Philippines

Evolution of Enterprise Development Policies in the Philippines

Definition of Enterprise Development Policy: Plans, courses of action, and rules established by government to influence and enhance entrepreneurial decisions and actions
Focus on SME Development: The SME Development Policy focuses on supporting entrepreneurship, innovation, and enterprise growth for all stages of the enterprise lifecycle (from start-ups to large enterprises)
Historical Context:
- Entrepreneurship has existed in the Philippines since interactions with foreign traders (Malaysia, Indonesia, China)
- The barter system was initially used for business transactions
- Transition to a money economy with various forms of currency
- Colonial influences from Spain, Japan, and America shaped structures of society, economy, education, and the political system

Key Legislation for SME Development

Republic Act No. 9178 (BMBE Act of 2002): Encourages the formation and growth of Barangay Micro Business Enterprises (BMBEs) by providing incentives and benefits
SME Development Plan 2002-2010: Aims to make the SME sector a key factor in the country's economic growth
Republic Act No. 6977 (Magna Carta for Small Enterprises): Provides statutory foundations for SME development
Republic Act No. 8269: Amends the Magna Carta
Republic Act No. 9178 (Barangay Micro Business Enterprises or BMBE Act): Provides incentives and other purposes
Republic Act No. 10644 (Go Negosyo Act): Promotes job generation and inclusive growth through MSMEs, mandates the establishment of Negosyo Centers in all cities and municipalities
Republic Act No. 10679 (Youth Entrepreneurship Act): Promotes entrepreneurship and financial education among Filipino youth
Republic Act No. 11032 (Ease of Doing Business Act): Improves efficiency in the delivery of government services by reducing bureaucratic red tape, preventing corruption, and providing penalties
Joint Memorandum Circular No. 1 Series of 2011: Implemented standards in processing business permits and licenses in all cities and municipalities.
Joint Memorandum Circular No. 1 Series of 2016: Revised standards in processing business permits and licenses, enhanced the Business Name Registration System for online registration and payment

Government Support During the COVID-19 Pandemic

The government implemented measures to help MSMEs during the pandemic.
The Department of Finance (DoF), Bureau of Internal Revenue (BIR) and Social Security System (SSS) issued Joint Memorandum Circular No. 001-202 and 002-2020 to provide the Small Business Wage Subsidy (SBWS) Program.
The SBWS Program provides a wage subsidy of ₱5,000 to ₱8,000 to eligible employees of small business employers affected by quarantine restrictions.
The Bayanihan to Heal as One Act (Republic Act No. 11469) introduced several relief measures, including a minimum 30-day grace period for loans.
Lenders are prohibited from imposing interest, fees, and other charges on future payments or amortization of individuals, households, MSMEs, and corporate borrowers.
No documentary stamp tax will be imposed on relief measures.

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Description

This quiz explores the SME Roving Academy (SMERA) program designed to support Micro, Small, and Medium Enterprises (MSMEs). It highlights the role of various partner agencies, including NGOs, in fostering economic growth and competitiveness. Test your knowledge of this comprehensive initiative aimed at enhancing entrepreneurial development.