With several new provisions, the new Magna Carta for micro, small and medium enterprises (MSMEs) is seen to bolster capability of the sector to do trading in the country.
In a consultative workshop held recently at the Parklane International Hotel, the Department of Trade and Industry (DTI) provided MSMEs a venue to clarify issues and concerns regarding the Act with the aim of drafting its implementing rules and regulations (IRR).
On May 23, 2008, President Gloria Macapagal Arroyo signed the Republic Act 9501 otherwise known as the “Magna Carta for small enterprise” which promoted entrepreneurship by strengthening the development and assistance program on micro, small and medium scale enterprises.
This act provides the strengthening of the micro, small and medium enterprises development council (MSMED) which was formerly known as the SMED Council.
It also mandates a 10 percent allocation of credit resources for a period of ten years to the sector, eight percent of which is attributed to the micro and small enterprises and two percent for the medium enterprise.
The act also strengthens the operations of the Small Business Guarantee and Finance Corporation (SB Corporation) by increasing its authorized stock capitalization of P10 billion.
In an interview, with SB Corporation’s new chairman and chief executive officer Virgilio R. Angelo, he said that the new Magna Carta for MSMEs allows the government to provide more resources to the sector which composes a great majority of the country’s total enterprises.
He said that with their increased budget, they will already be able to put up regional offices that can be part of their active move to provide greater assistance to the sector.
“The great importance of the charter is its capacity-building aspect as it now provides us added resources to put focus on financing, which is one of the great needs of the sector,” said Angelo. — Rhia de Pablo