The Philippine’s growing economy provided the public a glimpse of a future golden age in entrepreneurship and this encouraged more people to have a better outlook when it comes to starting their own enterprise.
However, there are several dozens of problems that an aspiring entrepreneur faces even just in deciding initial plans for a business. Questions like, “Where should I start?”, “Where will I get financing?” or even the very knowledge of how to fulfill government regulations in business applications and registrations can appear to be intimidating.
These problems and obstacles can somehow discourage future businesses from developing but some don’t realize that the biggest names in the world of entrepreneurship were once small-scale trades.
A vision of a more positive perspective when entering the business world does not only provide entrepreneurs a financially successful future but it also contributes to the development of a society that considers job availability as one of the stepping stones to a better life.
Such enthusiasm convinced the government that they, too, should make their move to help out aspiring enterprises through the Republic Act 10644 or the Go Negosyo Act passed and signed just last year.
Here are 12 things that entrepreneurs should know about the ‘Go Negosyo Act’:
1. RA 10644’s mission
The said law has the goal to support micro, small and medium enterprises (MSMEs) for the creation of better job opportunities in the country.
Former President Benigno S. Aquino III signed its bill into law on July 15, 2014 and was implemented the following year on January 13, 2015. In addition, the Implementing Rules and Regulations (IRR) was already issued by the Department of Trade and Industry (DTI).
2. Availing the services offered by the Negosyo Centers
Under this law, any person, natural or judicial, who have the qualifications defined in Section 3 c) of the Republic Act No. 9178 may enjoy their services.
3. Job creation and trade production policies
One of the highlights of the law is to nurture the country’s national development as well as reduce poverty through developing MSMEs responsible for creating local jobs. It also aims to promote inclusive growth as well as production and trade in the Philippines.
4. Nationwide ‘Negosyo Centers’
In all provinces, ‘Negosyo Centers’ will be established and will accommodate cities and municipalities. One of the main goals of these centers is to provide accessible services for the MSMEs. This will enable enterprises to complete hassle-free transactions.
5. Scope/ Coverage of services
Each ‘Negosyo Center’ assigned on a particular area will only cater to that area alone. In other words, services can only be done for MSMEs within its jurisdiction.
6. Perks and other Benefits
In order to fully support MSMEs, their knowledge of technology and skills should be updated. The government, under this law, will provide production and management trainings. In addition, marketing assistance will also be given to qualified members. More importantly, a technology transfer to teach members new and relevant business methods.
7. Registry Databank
Under the Department of Trade and Industry (DTI), a specialized Philippine Business Registry Databank will be established for the sole purpose of serving MSMEs. This database will include information of all business enterprises in PH.
Under the RA 10644, a type of financing will help in the development as well as promotions of new MSMEs. This start-up fund will focus on the economy’s priority sectors and will be sourced from the MSME Development Fund.
9. Restructuring of the MSME council
The new law marked a restructuring of the MSME Development Council. The changes will be handled through the creation of additional functions in the organization.
10. Managing ‘Negosyo Centers’
The public-private partnerships (PPPs) are expected to lead in the management and initial establishment of the centers. This is possible through coordinating with the Local Government Units (LGUs) and other concerned government agencies. However, duplications of roles should be avoided. Thus, proper communication and coordination are encouraged between the center and the LGU.
11. On old Business Assistance Centers
It is understood that before the passage of the ‘Go Negosyo Act’, there was already the existence of business centers in most localities. According to DTI, these centers will continue to operate and will be considered as Negosyo Centers. However, they are subject to the new provisions of the act and should also follow the Implementing Rules and Regulations.
12. Specific functions of ‘Negosyo Centers’
- Business centers are expected to accept as well as facilitate new registrations and even the renewal of applications of all MSMEs under its jurisdiction. This service will also cover applications for Barangay Micro-Business Enterprise (BMBE).
- ‘Negosyo Centers’ are also obliged to coordinate with their local government and communicate with concerned government agencies in processing the duly accomplished forms provided by the MSMEs.
- One important role of the center is to pursue an integrated process for business registration. They are encouraged to use automated systems like the Philippine Business Registry (PBR).
- The centers are also expected to assist enterprises in making sure that they meet regulatory requirements needed to continue their businesses.
- It is also important that they establish local support networks and build market linkages for entrepreneurs through the Micro, Small and Medium Enterprise Development (MSMED) Council and DTI.
- One way of having easier access to financial assistance is coordinating with a business center in your area.
- Lastly, ‘Negosyo Centers’ should start projects for the development of business in every region of the country. These programs should be aligned with the improvement plan set for MSMEs.
This effort by the government particularly the DTI is expected to take full effect in the coming years. Although it will be a long yet productive process, the country’s MSMEs should look forward to a brighter and more successful future ahead of them.
However, as entrepreneurs, it is also important to feel a sense of responsibility in helping out other business owners and sharing your knowledge and acquired skills to the community. Committing to this social duty will not only help your locality but will also promote a promising economy for the country.
Combining both the efforts of the government and local entrepreneurs, we can say that everything that MSMEs needs to grow are already accessible. It is now up to them to make use of these resources.