Micro-biz enterprise law revised to serve purpose

The Department of Finance (DoF) has announced the revision of the Barangay Micro Business Enterprises (BMBE) law, in order to make the program meet its real purpose.

The BMBE law was implemented in 2002, but up to this time, only a handful enterprises or individuals had been able to benefit from the law, because of its stringent requirements, and Local Government Units' (LGUs) inactive participation to implement the program.

Instead of asking tall order of requirements from interested entrepreneurs who may like to avail of the program, the government, through DoF has revised the documentation requirements, and reduced it to two main required documents.

Department of Trade and Industry Cebu Provincial Office (DTI-CPO) division head Elias Tecson said this new DoF Department Order number 31-05 signed by finance secretary Margarito Teves, would at last make use of the BMBE Law that has been described as another "white elephant" program.

Small business operators could now take advantage of the BMBE law through the LGU, with only two requirements, the business name, and Mayor's permit.

Businesses with P300,000 below total asset can easily avail of this program, which is available credit from the government, and conduit financing institutions.

BMBE offers exemption from income taxes, exemption from the coverage of minimum wage law, and certificate holders of BMBE shall be given priority in the special credit window by financial institutions, and special guarantee window by Quedan Corporation and SB Corporation, among other benefits.

Any business that has less than P300,000 total assets are qualified to avail of this program. This incentive initiated by DTI no longer requires an ordinance for implementation.

If the BMBE were properly introduced, the barangay-based micro entrepreneurs should not have been this helpless today, some are blaming the government's empty pronouncements.

Under the BMBE law, employers should ask the treasurers to give them the BMBE certificate in order to immediately avail of the incentives enumerated, and that after 15 days, even without an ordinance, all entrepreneurs shall be automatically entitled of the incentives in the BMBE.

Among other incentives to be given to micro entrepreneurs under the BMBE law include provision of technology transfer, production and management training and marketing assistance; BMBE Development Fund with an endowment of P300,000; setting-up with One Stop Business Registration Center; and Trade and Investment Promotions.

Under the law, every municipality is required to create a BMBE office of SME assistance desk to facilitate applications' on a daily basis. Entrepreneurs on the other hand, are urged to insist on the establishment of an SME assistance desk in their respective municipality, if ever there is none.