Module 1 - Introduction to Enterprise Development Programs and Policies PDF

**Module 1 -- INTODUCTION TO ENTERPRISE DEVELOPMENT PROGRAMS AND POLICIES** **Introduction** Programs on enterprise development are designed to support the growth, sustainability, and competitiveness of businesses, especially small and medium-sized enterprises (SMEs). These programs are typically...

**Module 1 -- INTODUCTION TO ENTERPRISE DEVELOPMENT PROGRAMS AND POLICIES** **Introduction** Programs on enterprise development are designed to support the growth, sustainability, and competitiveness of businesses, especially small and medium-sized enterprises (SMEs). These programs are typically implemented by governments, international organizations, NGOs, and private sector entities to stimulate economic development, create jobs, and promote innovation Policies on enterprise development are strategic frameworks and regulations implemented by governments and other institutions to create a conducive environment for businesses, particularly small and medium-sized enterprises (SMEs), to start, grow, and thrive. These policies are designed to address various challenges that businesses face, such as access to finance, regulatory hurdles, market access, and innovation. Enterprise development refers to the initiatives, strategies, and programs aimed at fostering the growth and sustainability of businesses, particularly small and medium-sized enterprises (SMEs). These programs and policies are often implemented by governments, non-governmental organizations (NGOs), and private sector entities to stimulate economic growth, create jobs, and promote innovation. *This module will cover the following topics* 1\. Significance of policies in fostering entrepreneurship 2\. Role of Governmental and Non-governmental Organizations 3\. Evolution of enterprise development policies Enterprise Development programs aims to help entrepreneurs and small business thrive by providing resources, training and financial assistance.. Defining Enterprise Development Policy Enterprise Development (ED) refers to initiative by the public and private sector to help to develop small -- or medium-sized companies. Investing in enterprise development helps entrepreneurs to develop, scale and improve these businesses, which stimulates the economy and catalyzes positive social change. Enterprise Development means monetary and non-monetary contribution carried out for beneficiaries, with the objective of contributing to the development, sustainability and financial and operational independence of those beneficiaries. **II. Objective of Enterprise Development** The enterprise development policy aims to unlock the potential of entrepreneurs and small businesses by providing vital resources, promoting and encouraging innovation, and aiding businesses in expansion and growth. Let's dive deeper into the objective of EDP: **1. Unlock the potential entrepreneurs** The primary objective of EDP is to unlock the potential of entrepreneurs and small businesses by providing them with vital resources. **2. Innovation** EDP encourages innovation and support businesses in bringing new and unique ideas in the market. **3. Growth** EDP helps entrepreneurs and small businesses grow by providing them with access to resources and opportunities. **WHAT IS POLICY** Policy is a law, regulation, procedure, administrative action, incentive, or voluntary practice of governments and other institutions. Henceforth, enterprise development policies are a set of deliberate measures and strategies formulated by governments or relevant authorities to facilitate and support individuals embarking on entrepreneurial endeavors. These policies are crafted with the overarching goal of fostering an environment conducive to entrepreneurship, thereby stimulating economic growth and prosperity. **III.** **SIGNIFICANCE OF POLICIES IN FOSTERING ENTREPRENEURSHIP** **7 ways governments can foster entrepreneurship** Entrepreneurship plays a vital role in driving economic growth and job creation. It is the engine that propels innovation, generates new businesses and brings fresh products and services to the market. Starting and running a business can be challenging. Entrepreneurs often struggle with access to funding, navigating complex regulations and acquiring the necessary skills and knowledge. This where governments come in. They have an important role to play in fostering entrepreneurship and creating and environment that supports and encourages it. There are seven ways that governments can promote entrepreneurship and make a positive impact on the entrepreneurial environment. **1. Provide access to funding** One of the biggest facing entrepreneurs is access to capital. Many entrepreneurs have great ideas but lack the financial resources to turn them into reality. Governments can help by providing funding through grant, loans and other financial incentives. For example. The Philippine government has extended several kinds of loan opportunities to help Filipinos get back on track, especially those affected by the pandemic. One such program is Bayanihan CARES, under the Department of Trade and Industry (DTI) and small Business Corporation (SB Corp), which aims to help MSMEs, OFWs, hospitals, and others affected by the pandemic. 2\. Reduce bureaucratic red tape Entrepreneurs often struggle to navigate complex regulations and paperwork. Governments can reduce this burden by simplifying and streamlining the process of starting and running a business. For example, the BNRS of DTI -- where businesses can register at their fingertips. 3\. Invest in education and training Entrepreneurs need a wide range of skills to succeed, from business management to product development. Government can invest in education and training programmers to help entrepreneurs acquire the knowledge they need. For example, DTI has the Small Medium Enterprise Roving Academy (SMERA), a continuous learning program for the development of MSMEs in the Philippines. SMERA is a partnership and mentorship with the DTI, where business owners them on training and business development services they need. 4\. Encourage innovation Entrepreneurship is closely tied to innovation and governments can promote innovation by investing in research and development and by providing tax incentives for companies that invest in new technologies. For example the DOST-PCIEERD Startup Grant Fund Program, the 14 startups were selected for their innovative solution that are aligned with the overall theme, "Jumpstarting the economy in the new normal". 5\. Create a supportive legal framework A supportive legal framework is essential for entrepreneurship to flourish. Governments can create a favourable legal environment for entrepreneurs by simplifying the business registration process, process, protecting intellectual property rights and enforcing contracts. For example, RA No. 8293 an Act Prescribing the Intellectual Property Code and Establishing the Intellectual Property Office. Providing For its Powers and Functions, and for other Purposes lays down the rules and regulations that grant, and enforce patents in the Philippines. **6. Foster a culture of entrepreneurship** Governments can promote entrepreneurship by creating a culture that values and supports it. This can be done through public awareness campaigns and by recognizing and celebrating the contributions of entrepreneurs. For example, Global Entrepreneurship Week is an annual event that brings together entrepreneurs, investors and experts from around the world to exchange ideas and showcase the latest innovations. **7. Stimulate networking and collaboration** Entrepreneurs often need to network and collaborate with other entrepreneurs, investors and experts to succeed. Governments can foster networking and collaboration by creating opportunities for entrepreneurs to meet and exchange ideas. For example, accelerators and incubators are programmers that provide mentorship, training and resources to early stage start-ups. They also provide a network of entrepreneurs, investors and experts that can start-up grow and succeed. In conclusion, governments have a crucial role to play in fostering entrepreneurship. By implementing the strategies, such as providing access to funding, reducing bureaucratic red tape and creating a supportive legal framework, government can positively impact the entrepreneurial landscape and drive economic growth and job creation. Entrepreneurs is not just about starting a business. It's about creating opportunities, driving innovation and fostering economic development. **IV. ROLE OF GOVERNMENTAL AND NON-GOVERNMENTAL ORGANIZATIONS** **1. Regulatory Role of Government in Business** a\. Setting and enforcing standards for fair competition and protecting consumers from fraudulent or deceptive business practices. - Policy Framework - Environmental and Social Responsibility b\. The Government's regulatory role ensures that businesses operate fairly and transparently without engaging in deceptive or unfair practices that could harm consumers. c\. The Government also sets standards for safety, quality, and environmental protection to ensure that businesses protect the public interest. d\. The Government also provides support to businesses through various programs and initiative. **2. Promoter Role of Government in Business** a\. Governments are responsible for promoting economic growth and development through fiscal and monetary policies. b\. It creates and environment conducive to business activity and provides the necessary infrastructure for business operations c\. The Government also provides support to businesses through various programs and initiatives. - Access to finance - Support for innovation - Research and development - Market support **3. Government as an Entrepreneur** a\. Government can also be an entrepreneur itself by investing in new businesses or industry section. This can help to create jobs and grow the economy. **4. Education and Skill Development** \* Government can also act as entrepreneur by providing tax incentives, grants, and other forms of assistance to businesses. - The government can provide access to business financing - The government can also encourage entrepreneurship through public-private partnership. **5. Market Access and Trade** 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 AGENCIES | PHILIPPINE GOVERNMENT PROGRAMS | +===================================+===================================+ | 1\. Department of Trade and | Negosyo Center | | Industry (DTI) | | | | KAPATID MENTOR ME | | 2\. Securities and Exchange | | | Commission (SEC) | Pondo sa Pagbabago at Pag-aasenso | | | (P3) | | 3\. Bureau of Internal Revenue | | | (BIR | Small and Medium Enterprise | | | Roving Academy (SMERA) | | 4\. Various Local Government | | | Unit (LGU) | | +-----------------------------------+-----------------------------------+ **Government agencies** 1\. The Department of Trade and Industry (DTI) serves as the primary coordinative, promotive, facilitative, and regulatory arm of government for the country's trade, industry, and investment. DTI ensures a safe consumer environment with quality and safe products, and reasonable prices, by undertaking programs that support informed and vigilant consumers and cooperative and self- policing businesses. 2\. The Securities and Exchange Commission (SEC) or the commission is the national government regulatory agency charged with supervision over the corporate sector, the capital market participants, and the securities and investment instruments market, and the protection of the investing public. The SEC's mission is to protect investors; maintain fair, orderly and efficient markets; and facilitate capital formation. The agency is responsible for identifying and investigating criminal activity in the securities industry. 3\. The Bureau of Internal Revenue is mandated by law to assess and collect all national internal revenue taxes, fees and charges, and to enforce all forfeitures, penalties and fines connected therewith, including the execution of judgements in all cases decided its favour by the Court of Tax Appeals. 4\. The relationship between LGUs and the business sector should be symbiotic, not adversarial. While it is the duty of the LGUs to safeguard the interests of their constituents through regulations, it is equally important to ensure that these regulations are not counterproductive. **Programs** 1\. The Negosyo Center Program is responsible for promoting ease of doing business and facilitating access to services for Micro, Small, and Medium Enterprises (MSMEs). [Republic Act No. 10644 otherwise known as the "Go Negosyo Act,"](https://www.dti.gov.ph/wp-content/uploads/images/NegosyoCenter/pdf/RA10644andDTIDAONo14-5.pdf) seeks to strengthen MSMEs to create more job opportunities in the country. The Program started in 2014, with 5 Centers established in the islands of Luzon, Visayas, and Mindanao. Since then, more Centers have been set up nationwide bringing ease of doing business closer to MSMEs in all regions. Negosyo Centers help stimulate entrepreneurship development as MSMEs contribute substantially in driving the Philippine economy. Negosyo Centers are found in strategic areas convenient for the existing and would-be entrepreneurs, such as DTI offices, Local Government Units (LGU), academe, Non-Government Organizations (NGOs), and malls. 2\. The Kapatid Mentor ME (KMME) has been implemented since 2016 as a 10-module mentorship program that optimizes weekly face-to-face interactions between the mentors and the mentees with the key goal of boosting the entrepreneurial capacity through improved access to Mentorship, Money & Market (i.e., the 3Ms). Project KAPATID is an initiative of the DTI and the Philippine Center for Entrepreneurship (PCE) to help the country's micro and small enterprises (MSEs) through three key components: - The Mentor ME (micro-entrepreneurs) program, a coaching and mentoring approach where large corporations teach MSEs on different aspects of business operations - The Adopt-an-SSF (Shared Service Facility) program, which aims to help micro-entrepreneurs by providing them access to SSFs in their community - The Inclusive Business (IB) model where MSEs are linked into large companies' value chains 3\. Bilang tugon sa stratehiya ng Small Business Corporation (SBC) na maiparating sa publiko at maintindihan ng mga magiging benepisyaryo ang pangunahing layunin ng programang Pondo sa Pagbabago at Pag-asenso (P3), gumawa ang Communications Department ng listahan ng mga kadalasang tanong kaugnay ng programang P3. 1. **Ano ang Pondo sa Pagbabago at Pag-asenso?**Ang programang Pondo sa Pagbabago at Pag-asenso ay isang inisiyatibo ng pamahalaan upang matulungan ang mga pinaka-maliliit na negosyante sa buong bansa sa pamamagitan ng pagbibigay ng murang pautang na mayroon lamang 2.5% na interes kada buwan. 2. **Sinu-sino ang mga benepisyaryo ng P3? **Layon ng programa na magpa-abot ng tulong sa pamamagitan ng pautang sa mga micro entrepreneurs na kadalasang umuutang sa mga 5-6 na nagpapautang gaya ng mga market vendors, sari-sari store owners, stall owners, at iba pa. 3. **Saan pwedeng lumapit ang mga maliliit na negosyante para makahiram ng P3? **Upang maipa-abot sa kalayunan ang programa, nag-accredit ang Small Business Corporation ng mga micro financing institutions (MFIs) o mga kooperatiba na magsisilbing daanan ng pondo para mas maging madali ang proseso ng pagkuha ng mga pautang. (Tingnan ang listahan ng mga MFI) 4. **Magkano ang maaaring mahiram? **Ang isang micro entrepreneur ay maaaring makahiram mula P5,000 hanggang P200,000 depende sa laki at kakayahang magbayad ng isang negosyante. Para naman sa mga negosyong mayroong isang (1) manggagawa, maaari silang makahiram ng hanggang P200,000. Ang mahihiram na kapital ay maaari lamang gamitin sa pagpapalaki ng o pandagdag ng mga supply ng negosyo. 5. **Anu-ano ang mga dokumentong kailangan? **Ang mga dokumentong kakailanganin ay:\ a.Loanapplication\ b. Business registration/DTI Business Name Registration/Valid ID/Barangay Clearance 6. **Saan maaaring dumulog para sa iba pang impormasyon? **P3 hotline (02) 651.3333 4\. SME Roving Academy (SMERA) is a continuous learning program for the development of micro, small and medium enterprises (MSMEs) to become competitive in the domestic and international markets. Its main strategies contain: - Integration of the business development services for small and medium enterprises (SMEs) at the national and local levels - Establishment of the Provincial, Regional, and National Entrepreneurship Development Networks - Management of an inclusive promotion program **Partner Agencies:** ** ** - Business Development Services (BDS) Providers - Local Government Units (LGUs) - Training institutions, chamber, academe, and financial institutions - Trade and Industry Associations - Other government and non-government organizations (NGOs). 4\. SME Roving Academy (SMERA) is a continuous learning program for the development of micro, small and medium enterprises (MSMEs) to become competitive in the domestic and international markets. Its main strategies contain: - Integration of the business development services for small and medium enterprises (SMEs) at the national and local levels - Establishment of the Provincial, Regional, and National Entrepreneurship Development Networks - Management of an inclusive promotion program **Partner Agencies: ** - Business Development Services (BDS) Providers - Local Government Units (LGUs) - Training institutions, chamber, academe, and financial institutions - Trade and Industry Associations - Other government and non-government organizations (NGOs) **The Non-Governmental Organization** Non-Government Organization (NGOs) play an important role in promoting economic growth, developing society, improving communities and promoting citizens participation. NGOs are particularly critical to the socioeconomic development or countries where government capacity and revenues are limited. Some NGOs provide access to micro finance facilities, positively impacting micro enterprises as well enabling individual households to start income generating activities. Other NGOs provide micro loans without requiring any collateral or mortgage with the aim of assisting the less privileged in society. They offer opportunities for people to develop initiatives in business or agriculture that generate earnings offsetting the debt over time. Non-government organizations (NGOs) play a crucial role in enterprise development programs and policies in various ways such as follows: 1\. Capacity building and Training -- NGOs often provide training and capacity building programs for entrepreneurs and small business owners. They offer workshops, mentorship, and resources to help individuals develop the skills needed to run successful enterprise. *\* GSAC Training and Seminar Workshop for Farming and Handicrafts* *GUBAT St. Anthony Cooperative* - People Development Program (KINAYA Program) WHAT IS THE KAPITAL ACCESS FOR YOUNG AGRIPRENEURS? A loan facility that aims to attract the younger generation of Filipinos to be key players in attaining a food-secure Philippines with prosperous farmers and fishers by financing the capital requirements of the entrepreneur's start-up or existing farm/fishery business ***KiNAYA Entrepreneurship Development Program (KINAYA)** is a scalable virtual entrepreneurship program aiming to hone the youth's entrepreneurial skills. Through this program, you would be given the opportunity to solve community problems and turn solutions into a livelihood!* - *An expert in high-impact skill-based training. The following topics will be covered by their mentors and trainers in the program: **Innovation of Products and Services, Marketing, Operations Management, **and** Financial & HR Management*** 2\. Access to finance -- Many NGOs facilitate access to microfinance and small business loan for aspiring entrepreneurs who may not have access to traditional banking services. They help bridge the financial gap for small businesses. Ex. \* Private Lending and Funding Organizations like PALFSI, Cardbank, OnePuhunan etc. 3\. Policy advocacy -- NGOs engage in advocacy efforts to influence policies that support entrepreneurship. They work to create a more favourable 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) 4\. Networking and Collaboration -- NGOs create platforms for entrepreneurs to network, share experience, 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. 5\. Innovation and Research (Research and Data Collection) -- NGOs often conduct research and pilot innovative business models. They identify emerging trends and opportunities, which can perform government policies and business strategies. Ex. - IBON Foundation -Amnesty International Philippines -Andres Soriano Foundation, Inc. 6\. Social Entrepreneurship --Some NGOs focus on social entrepreneurship, supporting enterprises that have a positive social environmental impact. They help these businesses grow and achieve their social missions. Ex. -- Child-Hope Asia Philippines - Direct Aid Program - TUKLAS KATUTUBO 7\. 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. 8\. 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 9\. 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 Children Philippines Inc. - Gawad Kalinga - Caucus of Development NGO Networks, Inc. (CODE-NGO) - Technoserve 10\. 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. 11\. 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. 12\. Environmentally 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 13\. 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. **V. Evolution of Enterprise Development Policies** Entrepreneurship policies are the plans or courses of action, established by government in order to influence and enhance entrepreneurial decisions and actions. Government policies in the sense, refers to rules and regulations that enable the startup and viability of entrepreneurial activities. some policies are targeted to specific businesses while others affect entrepreneurs directly. For instance, in Nigeria, agro allied businesses are often exempted from tax during the first five years of operation. Some businesses are also being subsidized while small businesses enjoy tax exemption. Also, policies implemented to discourage the importation of manufactured goods often indigenous industries and encourage entrepreneurial activities. 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 lifecycle, from start-ups to existing micro, small, and medium-sized enterprises 9MSMEs) and large enterprises. With enterprise policies you can manage the policies for all the organization owned by your enterprise. To help you enforce business rules and regulatory compliance, policies provide a single point of management for all the organizations owned by an enterprise account. 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 wherein goods and services were means of exchanges. Then countries moved towards money economy when people used different forms of money to pay for the goods that they bought. The Spain, Japan, and America colonized the Philippines for hundreds of years. They changed the structure of the society, the economy, education and political system. We became a predominantly family -- centered, Catholic, capitalistic, and democratic country. After independence, the Philippine Government realized the importance of entrepreneurship to individuals, society and country, and how it contribute to the nation's economic development. SMEs The small and medium enterprise (SMEs) became the embodiment of entrepreneurship in the country. - 1935 The SME 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. Notable policies included the Export incentives Act of 1967. - Privatization and Deregulation (1980s-1990s) The Philippines implemented privatization and deregulation policies in various sectors, including telecommunications and power. The 1991 Local Government Code decentralized governance. - 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 enterprise is the landmark legislation which reflects the current government policy to foster a dynamic SME sector. Particularly rural and agricultural -- based manufacturing ventures. REPUBLIC ACT NO. 6977 An act to promote, develop and assist Small and Medium scale Enterprise Development agencies concerned with (SMEED) Council, and the rationalization of government assistance programs and agencies concerned with the development of Small and Medium Enterprises, and for the other purposes. - 1995 R. A. 7882, the Act Providing Assistance to Women, recognized the special role in development and support women entrepreneurs who are engaged in the manufacturing, processing, services and trading businesses. Under this program, Government Financing Institution (GFIs0, like the Landbank of the Philippines (LBP) Development Bank of the Philippines (DBP) are Mandated to provide assistance to: 1\. Non-government organization (NGO) engaged in developing women's enterprises up to Php 2 million, provided the non-government organization has a minimum operating track record of 1 year. 2\. Existing women enterprises to the upper limit of Php 50,000. 3\. Potential women entrepreneurs with sufficient training up to a limit of Php 25,000.. There is no doubt that the government through the Department of Trade and Industry and its attached agencies and bureaus recognizes that promotions of entrepreneurship demand a holistic integrated. And strategic set of intervention in order to hasten the economic development of the Philippine sin the midst of this globally competitive environment. To implement these plans, significant enabling laws, policies, and programs were instituted by the government organizations, and the private sector. - **Philippine SME Development Strategy (1998)** It hinged on sound partnership between the government and the private sector, complementarity ensured by three governing bodies on enterprise development. 1\. The Export Development Council (EDC), which oversees the implementation of Philippine Export Development Plan; 2\. The industry Development Council (IDC) which implements the Philippine Industrial Plan and develops enterprises with high technology requirements, and 3\. The 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 9May 17, 2001) SULONG is a unified program designed to support the National SME Development Plan. Under this program, all participating Government Financial Institutions shall apply simplified and standardized lending procedures and guidelines to evaluate loan application of SMEs, e.g., loan purpose, fee structures, interests rates, application forms, financial ratios, and other lending parameters. This unified lending scheme is in addition to the existing financial services of the participating GFIs. From 2004 to April 2010, Government Financial Institution (GFIs) on the MSME Unified Lending Opportunities for National Growth (SULONG) program released about Php 197.818 Billion loans to MSMEs (Table 1). The funds released under the program supported 178,094 enterprises (Table 2) and 2.893M jobs (Table 3) all over the country. For January to April 2010, the SULONG program released Php 10.487B to 11,739 enterprises, supporting 138.417 jobs. RA 9178: BMBE Act of 2002 The "BMBEs Act of 2020" 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. - 20024-2010 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. This shall be achieved through graduating micro and small enterprises to higher levels of business undertakings, up\[grading their productivity and value-added capabilities, and strengthening of 20 accessible SME Centers nationwide. SME Development Plan 20024-2020 presents the integrated efforts to strengthen and stimulate the SME sector so it can contribute significantly to the country's development. The Plan aims to make the SME sector a key factor in the country's economic growth by 2010. The statutory foundations for SME development are set by Republic Act no. 6977 (\*Magna Carta for small Enterprises\*) as amended by RA no. 8269, and RA No. 9178 (\*Barangay Micro Business Enterprises or BMBE Act\*) Incentives for Enterprises Special incentives have been made available by legislation to promote business activities. These include - Exemption from corporate income taxes (4-8 years), national and local taxes, duties and taxes on machineries, spare parts, materials and supplies, tax credit for imports and import substitution of capital equipment and for breeding stock and genetic materials (RA 7916 and RA 7227, Special Economic Zones Act and Clark and Subic Special Economic and Freeport Zone). - Exemption from value-added tax for certain exporting industries, excise taxes on locally produced products and lowered taxes on spirits made from indigenous materials (RA 8424, Tax Reform Act) - Incentive under preferred areas of investment in the Investment Priorities Plan (IPP) I(Executive Order 226, Omnibus Investment Code) - Incentives for specified locations such as the Registered Economic Zones (RA 7916). Less Developed Areas. (RA 7844) and those granted by Local Government Units under the Local Government Code. - Incentives for investors for tax and duly exemptions, loan assistance and technical support to starting-up and improved SME technologies (RA 7459 programs on science and technology. Investors and Invention Incentives Act) **SMEs and the Regulatory Environment** Paperwork and unfamiliarity with regulations are addressed by attempts like the SME. Center and Business One-stop Shops. On-line systems, new systems, new laws and other developments continuously help untangle the complicated compliance and overlapping jurisdictions. **Accomplishment Report of SMEDP 2004-2010** - The BFAD was able to complete 70% of the BFAD Integrated Information System (BIIS)which is automated system in licensing establishments and registering products. The BIIS is intended to simplify and eventually, completely decentralize the process for MSMEs. A fast lane system was also set up in each regional Center for Health Development to process the license to operate applications of MSMEs. - The SEC has set up the i-register System to put and end to the previously cumbersome and time consuming process of data retrieval at the SEC. The system has enabled applicants to download forms for free 24 hours a day 7 days a week, allowing for transfer registering and lower cost of doing business. - 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: 1) Business Environment Access to Finance, 2) Access to Markets, 3) Productivity and 4) Efficiency, government agencies, in partnership with private sector SME enablers can intensify their coordination, delivery and monitoring programs and services to SMEs. Under the Benigno Aquino Administration, **the Go Negosyo Act** was approved foster national development, promote inclusive growth, and reduce poverty by encouraging the establishment of micro, small and medium enterprise (MSMEs) that facilitate local job creation, production and trade in the country. - 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, and strengthening a balanced and sustainable development to MSMEs. **R.A. No. 9178: Barangay Micro Business Enterprises (BMBEs) Act 2002** An act of promoting the establishment of Barangay Micro Business Enterprises (BMBEs)., allocating incentives, benefits, and other purposes. **R.A. No. 10644: Go Negosyo Act.** An act of 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, which shall be responsible for promoting ease of doing business and facilitating access to services for MSMEs. **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 of 2011ureaucratic red tape, preventing graft and corruption, and providing penalties therefore: **Joint Memorandum Circular No. 1 Series of 2011** Guidelines in implementing the 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 in all cities and municipalities enhanced Business Name Registration System provides ease of registering and paying business name registration online. - **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. 001-202 and 002-2020 providing the Small Business Wage Subsidy (SBWS) program granting a wage subsidy of P 5,000 to 8,000 to the eligible employees of Small business employers affected by any form of quarantine. Additionally, the implementing Rules and Regulations of Section 4 (AA) of the 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. It requires lenders not to impose interest on fees and other charges to future payments or amortization of individuals, households, MSMEs and corporate borrowers. No additional documentary stamp tax (DST) will be imposed as a consequence of this relief granted. 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 ECQ without incurring interest, penalties, fees and other changes. 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** also authorizes the defement of rental payments for locators in certain public ecozones for April and May of 90 days from the due date. PEZA will not charge interest or penalties during the grace period. Payments for public ecozone utilities, including electricity, water, and wastewater treatment, will be deferred for 30 days with no interest or penalties. - 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). Components of this support measure include capacity-building on occupational education for MSMEs and informal businesses. 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. They undergo continuous assessment and refinement to align with emerging market trends, technological advancements, and shifts in economic priorities. This approach not only accommodates the evolving needs of the enterprise sector but also reinforces the government's commitment to fostering an adaptive and innovative entrepreneurial ecosystem, thus contributing to sustainable economic growth and competitiveness.