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    Posted February 12, 2014 by

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    Strengthening MSMEs in Phl proposed

    AMID statistics showing an increase in the Philippines’ unemployment rate, a lawmaker on Wednesday urged Congress to fast track the approval of a measure that seeks to further strengthen the micro, small and medium enterprises (MSMEs) sector.
    Rep. Mark Villar (Lone District, Las Piñas City) said House Bill 3729 would develop the MSMEs sector and would promote the reduction of poverty.
    "Providing this sector with better incentives and benefits, more access to focused support for enhanced business performance, promoting support to key growth industries and facilitating financing support programs that are much-needed for growth will help improve the design and implementation of the nation's MSMEs sector," Villar said.
    He said the bill has the potential to assist MSMEs to integrate themselves in the formal economic market, which will bring forth more job opportunities and the enhanced growth of the nation's economy.
    In filing the bill, the lawmaker cited the declared policy of the State to foster national development, promote inclusive growth and reduce poverty by encouraging the establishment of micro, small and medium enterprises (MSMEs) that facilitate local job creation and production in the country.
    Villar said micro enterprises comprised 91.6% of the total number of MSMEs while small and medium enterprises accounted for 8% and 0.4%, respectively.
    The lawmaker said in terms of employment generation, MSMEs provided a total of 3,532,935 jobs in 2010 or 62.3% of the total jobs generated by all types of business establishments. Large enterprises generated 2,136,362 jobs and among the MSMEs, micro-enterprises created 1,729,100 jobs while small and medium enterprises generated 1,417,672 and 386,163 jobs, respectively.
    "As the backbone of the Philippine economy, the MSME sector comprises about 99.6% of all registered firms nationwide, employs 62.3% of the labor force and contributes 32% to the economy," Villar said.
    Villar said the measure also promotes more participation from the private sector in the MSME Development Council.
    Under the measure to be known as the "Go Negosyo (Business) Act of 2014," a "Negosyo Center" shall be established in all provinces, cities and municipalities under the supervision of the Micro, Small and Medium Enterprises Development (MSMED) Council.
    The MSMED Council shall encourage public-private partnerships in the establishment and management of Negosyo Centers. It shall perform oversight functions and shall assign personnel to fulfill the functions of the Negosyo Centers.
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