Micro, small and medium enterprises increase income for poor households and build both business equity and personal assets over a period of time.

Under Republic Act No. 9178 or the Barangay Micro Business Enterprises (BMBE’s) Act of 2002, accredited enterprises who have a total asset value of not more than Three Million Pesos (PhP3,000,000.00) are exempted from payment of income tax. This exemption from income tax, however, does not equate to exemption from payment of value-added tax (VAT) and percentage taxes.

The Magna Carta for Micro, Small and Medium Enterprises classifies an enterprise as a Micro Enterprise if it has total assets amounting to not more than Three Million Pesos (PhP3,000,000.00).

A Small Enterprise is classified as such if it has total assets amounting to more than Three Million Pesos but not more than Fifteen Million Pesos (PhP3,000,001 to PhP15,000,000).

A Medium Enterprise is classified as such if it has total assets amounting to more than Fifteen Million Pesos but not more than One Hundred Million Pesos (PhP15,000,001 to PhP100,000.00)

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.

Republic Act No. 9178, or the Barangay Micro Business Enterprise (BMBE) Law aims to help MSME by giving them certain benefits such as assistance in establishing their business, and tax exemptions, among others.

The week beginning the fourth Sunday of October of every year is declared as “Barrio Farmers’ Week” by virtue of Proclamation No. 76, series of 1954.