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Also, the matters contained in the following were written in accordance with the law, rules, and jurisprudence prevailing at the time of writing and posting, and do not include any future developments on the subject matter under discussion.
AT A GLANCE:
The second week of July of every year shall be declared as the “Micro, Small, and Medium Enterprise Development Week” in order to institute continuing awareness of the primacy of small business in nation-building and in people empowerment, and to celebrate and espouse the firm commitment of the State in the promotion, growth and development of small business. (Section 16, R.A. No. 6977 or the Magna Carta for Micro, Small and Medium Enterprises, as amended by R.A. No. 9501)
Republic Act No. 9501, enacted on May 23, 2008, amended Republic Act 6977 into the “Magna Carta for Micro, Small and Medium Enterprises (MSMEs)”.
The State recognizes the potential of Micro, Small and Medium Enterprises (MSMEs) as a tool for generation of employment and growth of the economy. The State aims to promote, support, strengthen and encourage the growth and development of MSMEs in all productive sectors of the economy particularly rural or agriculture-based enterprises. The law says:
“SEC. 2. Declaration of Policy. — Recognizing that MSMEs have the potential for more employment generation and economic growth and therefore can help provide a self-sufficient industrial foundation for the country, it is hereby declared the policy of the State to promote, support, strengthen and encourage the growth and development of MSMEs in all productive sectors of the economy particularly rural/agri-based enterprises. To this end, the State shall recognize the specific needs of the MSMEs and shall undertake to promote entrepreneurship, support entrepreneurs, encourage the establishment of MSMEs and ensure their continuing viability and growth and thereby attain countryside industrialization by:
“a) intensifying and expanding programs for training in entrepreneurship and for skills development for labor;
“b) facilitating their access to sources of funds;
“c) assuring to them access to a fair share of government contracts and related incentives and preferences;
“d) complementing and supplementing financing programs for MSMEs and doing away with stringent and burdensome collateral requirements that small entrepreneurs invariably find extreme difficulty complying with;
“e) instituting safeguards for the protection and stability of the credit delivery system;
“f) raising government efficiency and effectiveness in providing assistance to MSMEs throughout the country, at the least cost;
“g) promoting linkages between large and small enterprises, and by encouraging the establishment of common service facilities;
“h) making the private sector a partner in the task of building up MSMEs through the promotion and participation of private voluntary organizations, viable industry associations, and cooperatives; and
“i) assuring a balanced and sustainable development through the establishment of a feedback and evaluation mechanism that will monitor the economic contributions as well as bottlenecks and environmental effects of the development of MSMEs.” (Section 2, R.A. No. 6977 or the Magna Carta for Micro, Small and Medium Enterprises, as amended by R.A. No. 9501)
To effect the above policy of the State, R.A. No. 9501 amended R.A. No. 6977 to include a “Micro, Small and Medium Enterprise Week”. The law says:
SEC. 19. New sections to be numbered as Sections 16, 17 and 18 are hereby inserted after Section 13 of the same Act, as amended, to read as follows:
“SEC. 16. Micro, Small, and Medium Enterprise Week. — In order to institute continuing awareness of the primacy of small business in nation-building and in people empowerment, and to celebrate and espouse the firm commitment of the State in the promotion, growth and development of small business, the second week of July of every year shall be declared as the “Micro, Small, and Medium Enterprise Development Week”. The MSMED Council, the Department of Trade and Industry, and the SB Corporation shall be jointly responsible in organizing activities for the event.”
“SEC. 17. Presidential Awards for Outstanding MSME. — Presidential awards for outstanding MSMEs and good MSME practices, consisting of rewards in cash or in kind shall be granted to one hundred percent (100%) Filipino-owned companies and development partners during the MSME development week.”
xxx (Section 19, R.A. No. 9501)
Read also: Are Micro, Small and Medium Enterprise (MSME) exempt from payment of income tax?
Alburo Alburo and Associates Law Offices specializes in business law and labor law consulting. For inquiries regarding taxation and taxpayer’s remedies, you may reach us at info@alburolaw.com, or dial us at (02)7745-4391/0917-5772207.
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