FinDefense-Panel 7

Republic of the Philippines
City of Taguig
Gen. Santos Avenue, Central Bicutan, Taguig City
Taguig City University 1
Chapter 1
THE PROBLEM AND ITS BACKGROUND
Introduction
The Department of Trade and Industry is the government agency in charge
for the programs in support of Micro Small and Medium Enterprises (MSMEs),
most especially in financial aspects to enhance the newly existing businesses in
the countryside. . This agency is the key government institution for the MSME’s
to achieve its full potentials in the field of entrepreneurial practitioner and become
prosperous as the Philippines increases its Gross Domestic Product (GDP) in the
coming years. Moreover, with the development of the MSMEs in the country,
more employment and job Opportunities for the least fortunate members of our
society, much less to our barangay.in particular. This is the researcher’s
aspirations and objective for this study for future implementation and
references with the support of the Department of Trade and Industry .
The researcher would like to know better and assess if what extent of
support the Department of Trade and Industry (DTI) can offer to the startup
Micro, Small and Medium Enterprises in Barangay Central Signal, in terms of
finances, skills training and monitoring in the said barangay. This is in relation to
the efforts of the Philippine government under President Gloria Macapagal
Arroyo who passed the R.A. 10644 Go Negosyo Act under of this Sec.10 or R.A.
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9501 also known as The Magna Carta, An Act to promote Entrepreneurship by
Strengthening Development and assistance Programs to Micro, Small and
Medium Enterprises. (MSMEs)
Background of the Study
The Department of Trade and Industry (DTI) has announced its newly launched
programs for Micro Small and Medium Enterprises (MSMEs) A ” More Inclusive and
Prosperous Philippines with Employment and Income Opportunities for all.” The three
strategic initiatives which was implemented by DTI on 2017 were: Brand Equity
Development Program (BED), Industry Cluster Enhancement Program (ICE) and the
Kapatid Mentor Micro Entrepreneurs Program (KMME).
Philippine President Duterte is inclined to “double or triple” government assistance
to the development of local small businesses and improvement of their competitiveness.
The President has promised to increase support for Micro, Small and Medium
Enterprises. (MSMEs)
The Micro, Small and Medium Enterprises (MSMEs) are the number one
solutions to the problem of our country in terms of unemployment, poverty and
thus generate new jobs in the national economy; thereby positively contributing
employment to our generation. Thereby, showing solutions to the poverty
reduction programs and thus become rooted in the value chain of larger business
and industry in the country towards improving their own productivity and
performance for global competitiveness. .

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The growth and advancement of the MSMEs sector was developed in
consultation with various stakeholders from the private sector, academia, and
government agencies. It is aligned with the Philippine government’s goal of
boosting employment, business, and livelihood or
“Trabaho, Negosyo, Kabuhayan” translating to “Malasakit”, “Pagbabago”, at
“Patuloy na Pag-unlad” of the Philippine Development Plan (PDP) 2017-
2022. The key inputs to the Plan’s formulation were also taken from the Ten-Point
Agenda for Development presented by President Rodrigo R. Duterte at his first
State of the Nation Address on 25 July 2016. It was also developed in
accordance with AmBisyon Natin 2040, the long-term mission and vision
statement for Philippine development formulated by the National Economic and
Development Authority (NEDA) in March 2016.
The Plan envisions for “more globally competitive MSMEs that are
regionally integrated, resilient, sustainable and innovative thereby performing as
key drivers of inclusive Philippine economic growth.” It had focused areas,
namely: business environment, business capacity, and business opportunities
with the strategic goals: improved business climate; improved access to finance;
enhanced management and labor capacities; improved access to technology and
innovation; and improved access to market.
This study will determined the Assessment on Department of Trade and
Industry (DTI) support enhancement among the Micro, Small and Medium
City of Taguig
Enterprises in Central Signal, Taguig City. This would be a basis for Government-
Industry Support Enhancement.
Theoretical Framework
This study used onion model theories, knowledge and concepts with regard
to the subject of the study. This includes different memorandum orders or alike as
well as rules on the MSMEs enterprises assistance of the government.
The DOF Department Order No. 17-04 provides that, an enterprise can
only qualify for registration if it is not a branch, subsidiary, division or office of a
large scale enterprise and its policies and business modus operandi are not
determined by a large scale enterprise or by persons who are not owners or
employees of the enterprise (i.e., franchises). So if you are a franchisee, you are
not eligible to register as a BMBE.
In other words, a business or activity may be eligible to register as BMBE if
they meet the following criteria; the business enterprise is engaged in production,
processing, or manufacturing of products, including agro-processing, as well as
trading and services; The business enterprise has total assets of P3 million or
less including those arising from loans but excluding the land on which the plant
and equipment are located; the business enterprise or service provider, in
connection with his or her exercise of profession, is not a professional who is

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duly licensed by the government after having passed a government licensure
examination (e.g. accountant, lawyer, doctor, etc.); the business enterprise is not
a branch, subsidiary, division or office of a large scale enterprise or it is not a
franchisee.
The Philippines has two operational definitions of small and medium
enterprises. Based on employment which is the most commonly used definition
in the country, the different size categories are classified as follows: Micro
enterprises: 1-9 employees Small enterprises, 10-99 employees Medium: 100-
199 employees Large: 200 or more employees. In terms of number of
establishments; micro, small, and medium enterprises (MSMEs) dominate the
economy and account for almost 99.6% of the total number of establishments in
2008. With a share of about 92%, micro enterprises are more predominant than
small and medium enterprises which account for only 8% of the total number of
establishments.
The researcher uses the Onion Model for Micro Small and Medium
Enterprises by Mike Clayton, September 2011. This model is a graph-based
diagram template for describing an expanding or extending relationship between
several concepts. The name is a metaphor of the layered shells that become
visible when you cut open an onion. The outer layers in the model typically add
size or complexity incrementally to the central layers and shown in figure below.
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Figure 1. Onion Model for Micro, Small and Medium Enterprises
The variables in the above figure are Business Environment, Personal and
Professional Network, Enterprise Characteristics and Entrepreneur
Characteristics which stands for the help expected from the government to the
MSMEs in Central Signal, Taguig City through the Department of Trade and
Industry means of finance, Technology, Skilled Labor, Trainings, Market Access,
and Market In. Furthermore, this would be shown by the output of the actual
variables used in this study which are: Reducing the regulatory burden on
smaller firms; Promoting enterprise cluster to enhance MSMEs performance and
competitiveness; Implementing the MSMEs initiatives and reforms; and providing
financial support.
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Government policy initiatives should take account of regional and local
factors which affect entrepreneurship and build on these particularities to foster
small-firm partnerships. Policies should use local institutions, groups of industries
and inter-firm linkages to create and strengthen the micro-level bonds which can
underpin global competitiveness. Building on local strengths, MSMEs policies
need to address the new dynamics of entrepreneurship and small-firm clusters to
meet the challenges posed by globalising economies as emphasized by
Organization for Economic Cooperation and Development (OECD) in 2018.
Small firms need to upgrade their management skills, their capacity to
gather information and their technology base. Governments need to improve
MSMEs access to financing, information infrastructures and international
markets. Providing regulatory, legal and financial frameworks conducive to
entrepreneurship and micro and small firm start-up and growth is a priority.
Fostering public-private partnerships and small-firm networks and clusters may
be the most expeditious path to a dynamic MSMEs sector. Grouped in local
systems of production, MSMEs can often be more flexible and responsive to
customer needs than large integrated firms. They can pool resources and share
the costs of training, research and marketing. Clustering facilitates exchange of
personnel and diffusion of technology and creates new possibilities for efficiency
gains. Importantly, these local networks and support systems can help MSMEs
meet the challenges of globalisation. Whether alone or in clusters, MSMEs are

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seeking international opportunities through strategic alliances, franchising and
joint ventures.
To this end, governments are now fostering the development of secondary
stock markets to allow easy entry and exit for venture investors; easing taxes on
capital gains and other dividends; and allowing greater use of stock options as
compensation in small firms. Governments are also fostering business angel
networks which bring together small companies and prospective investors (sun,
2017). This is to consider the following: reducing the regulatory burden on
smaller firms; promoting enterprise cluster to enhance MSME performance and
competitiveness; implementing the MSME initiatives and reforms; and, providing
financial support.
The researcher also uses verses from Republic Act 9501 also known as
“Magna Carta for Micro, Small and Medium Enterprises (MSMEs). These are:
intensifying and expanding programs for training in entrepreneurship and for
skills development for labor; facilitating their access to sources of funds; assuring
to them access to a fair share of governments contracts and related incentives
and preferences; 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;
instituting safeguards for the protection and stability of the credit delivery system;
raising government efficiency and effectiveness in providing assistance to

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MSMEs throughout the country, at the least cost; promoting linkages between
large and small enterprises, and by encouraging the establishments of common
service facilities; 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 assuring a
balance 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.
Conceptual Framework
As McGaghie et al. (2001) put it: The conceptual framework “sets the stage”
for the presentation of the particular research question that drives the
investigation being reported based on the problem statement. The problem
statement of a thesis presents the context and the issues that caused the
researcher to conduct the study. This will guide the researcher towards realizing
the objectives or intent of the study.
The concept expresses a paradigm consisting of three (3) columns namely:
Input (First Column), Process (2 nd Column) and Output 3rd (Column). The
demographic profile of the respondents and the level of government support
among the small and medium enterprises are indicated in the input box. Data
Gathering, Data Tabulation, Analysis, Interpretation of Data, Survey

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Questionnaires and Interview (process box) should be done so as to
achieve Reforms and programs of MSMEs for Government-industry partnership
enhancement (output box).

Input Process Output
1. Demographic Profile of the  Interview Assessment on

respondents in terms of:
a) Age
 Survey
Department of Trade
b) Sex Questionnaires
c) Civil Status  Data Gathering,
d) Type of Business and Industry among
e) Monthly Income tabulation,
f) Educational Attainment
analyses and Micro, Small and
2. The level of government interpretations Medium Enterprises
support among the small
and medium enterprises
in terms of: (MSMEs) for
2.1 reducing the Government-

regulatory burden
on smaller firms
Industry Support
2.2 promoting
enterprise cluster Enhancement.
to enhance
MSMEs
performance and
competitiveness
2.3 implementing the

MSMEs initiatives
and reforms
2.4 providing financial

support.
Feedback
Figure 2. Research Paradigm
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The paradigm of the study shows the Reforms and programs of MSMEs
for Government-industry partnership enhancement. Altogether, the findings of
the study will become the basis of recommendation which can be added to the
Government-industry partnership enhancement.
Statement of the Problem
This study aimed to assess the level of government support among the
micro, small and medium enterprises in Barangay Central Signal, Taguig City.
The findings of this study would become basis of the government industry to
enhance its support to the MSMEs.
Specifically, it sought to answer the following questions:
1. What is the demographic profile of the respondents in terms of:
1.1. Age;
1.2. Sex;
1.3. Civil Status;
1.4. Highest Educational Attainment;
1.5. Type of Business; and
1.6. Monthly Income;
2. What is the enhancement of government support among the micro, small
and medium enterprises in Central Signal, Taguig City as perceived by the
respondents according to:

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2.1. Reducing the regulatory burden on smaller firms;
2.2. Promoting enterprise cluster to enhance MSMEs
performance and competitiveness;
2.3. Implementing the MSMEs initiatives and reforms; and
2.4. Providing financial support;
3. Is there a significant difference on the perceptions of the assessment
of Department of Trade and Industry support in Central Signal, Taguig
City, MSMEs when grouped according to their profile?
4. What are the problems encountered by the MSMEs owners that needs
help from the City Government?
Hypotheses
There is no significant difference on the perceptions of the Assessment of
Department of Trade and Industry support to Central Signal, Taguig City Micro,
Small and Medium Enterprises as grouped to their profile
Scope and Delimitation
This study focused on the level of assessment of Department of Trade and
Industry Support to Central Signal, Taguig City Micro, Small and Medium
Enterprises as grouped to their profile. Samples were be selected using a non-

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random purposive technique from 100 owners of MSMEs in Central Signal,
Taguig City.
Significance of the Study
This study was important because it provided a foundational framework of
understanding about the importance of DTI through assessed by the City
Government and other government agency, support to MSMEs in Central
Signal, Taguig City. This would help in gaining insights into the problems faced
by the programs. The profile and experienced of MSMEs are important
information to be obtained through this study.
This study focused with the assessment of DTI Support among the
micro, small and medium enterprises in Central Signal, Taguig City. The
outcome of this study was deemed significant to the following groups of
people and/or organization, to wit:
MSMEs Owners - This study would make them aware of the Government
programs and reforms for their business. They would also be well-informed
that the government is willing to be a partner in business.

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The City Government of Taguig - This will make the local government to
determine the problems of MSMEs in the City and will also make them
responsive to the situation.
Department of Trade and Industry - The said office would be able to decide
which applicants would be qualified in particular to enjoy their MSMES
programs and reforms.
Department of Science and Technology - They be able to locate which
MSMEs would be part of their SET UP programs.
Researcher - The researcher would be able to widen and enrich her
knowledge about MSMEs partnership between the government and the
Industry.
Future Researcher - This will serve as a reference of future researcher about
Micro, Small and Medium Enterprises.
Definition of Terms
The following terms was operationally or carefully defined.
Financial Supports are monetary support of the government to the Micro,
Small and Medium Enterprises that may be in terms of loan. Medium
Enterprises refer to a business with total assets stated above will amount to
P3,000,000 or less, they can be considered micro businesses. If ranging from

City of Taguig
more than P15,000,000 to P100,000,000, they can be considered as medium
enterprises.
Small Enterprises as any enterprise or business activity engaged in the major
sectors of the economy whether single proprietorship, cooperative, partnership
or corporation whose total assets, inclusive of those arising from loans but
exclusive of the land on which the particular business entity’s office, plant and
equipment are situated, are ranging from more than P3,000,001 to P15,000,000.
Regulatory Burden also called a Compliance burden, is the administrative cost
of a regulation in terms of dollars, time and complexity. It can refer to the specific
processes, budgets and manpower the organization initiates in order to meet
requirements as well as the potential legal punishment and monetary fines for
violating a compliance regulation.
MSMEs Competitiveness is the most important condition for overall business
prosperity. The area of micro, small and medium enterprises (MSMEs), having
extraordinary potential for flexible adaptation to the economic circumstances in
the country and changing market conjuncture.
MSMEs Initiative a joint financial instrument of two groups which aims to
stimulate SME financing by providing partial risk cover for MSME loan portfolios
of originating financial institutions.

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MSMEs Performance is one of the main tools the European Commission uses
to monitor and assess countries' progress in implementing the Small Business
Act (SBA) on a yearly basis.
MSMEs Reforms are enhancing the growth of micro, small and medium
enterprises sector to create jobs and boost the economy, as the Ministry of
Labor launches 68 initiatives to stimulate private sector investment, according to
several economy experts.

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Chapter 2
REVIEW OF RELATED LITERATURES
This chapter contains the related literature and studies after the thorough
and in-depth search done by the researcher. Information’s were taken from
books and internet.
Foreign Literature
There is quite a large gap, however, between the intentions of
governments and their understanding of the needs and challenges MSMEs face.
Galilee et.al (2019) Stated that “Even” before there is a business to
support, when professionals are just considering whether or not to take the risk
and embark on the journey, they are likely to back out if they are unsure whether
the government will mitigate some risks and whether they will receive any
support. "There is quite a lot that governments can do to support SMEs," says
Moti Blau- an entrepreneur, international marketer and lecturer for our SMEs
programmes. "There are operational/ financial challenges as well as
marketing/business challenges that they all face. Governments do have the
ability to ameliorate both." We spoke to him to understand how.

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Operational/Financial Challenges
Normally the challenges most felt when establishing and developing an
MSME are the financial ones. It is very difficult for them to receive loans, for
example, as SMEs constitute a financial risk for funding institutions.
Governments could assist in numerous ways, including providing collateral,
creating and supporting specific loans to SMEs or grants to those that achieve
certain goals, like improving productivity or hiring additional personnel. They
could also favour them in their taxing policies.
Often governments wish to encourage doing business with SMEs, but they
themselves do not do enough business with them. Their tenders frequently
demand financial requirements that are rarely realistic for SMEs, leaving them
out of the game. Barriers could be in some specific cases. Additionally,
governments often delay payments, which might be tolerable to big business but
could be disastrous for some SMEs.
Ford et.al (2018) mentioned, Industry Canada uses the term SME to refer
to businesses with fewer than 500 employees while classifying firms with 500 or
more employees as "large" businesses. Breaking down the SME
definition, Industry Canada defines a small business as one that has fewer than
100 employees (if the business is a goods-producing business) or fewer than 50
employees (if the business is a service-based business). A firm that has more
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employees than these cut-offs but fewer than 500 employees is classified as a
medium-sized business. A micro-business is defined as a business with fewer
than five employees. In its ongoing research program that collects data on
SMEs in Canada, Statistics Canada defines an SME as any business
establishment with 0 to 499 employees and less than $50 million in gross
revenues.
On the other hand different major types of business are: service type of
business provides intangible products (products with no physical form). Service
type firms offer professional skills, expertise, advice, and other similar products.
Examples of service businesses are: salons, repair shops, schools, banks,
accounting firms, and law firms:
Merchandising this type of business buys products at wholesale price and
sells the same at retail price. They are known as "buy and sell" businesses.
They make profit by selling the products at prices higher than their purchase
costs. A merchandising business sells a product without changing its form.
Examples are: grocery stores, convenience stores, distributors, and other
resellers. And
Manufacturing Business, Unlike a merchandising business, a
manufacturing business buys products with the intention of using them as
materials in making a new product. Thus, there is a transformation of the

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products purchased. A manufacturing business combines raw materials, labor,
and factory overhead in its production process. The manufactured goods will
then be sold to customers: but, Hybrid businesses are companies that may be
classified in more than one type of business. A restaurant, for example,
combines ingredients in making a fine meal (manufacturing), sells a cold bottle
of wine (merchandising), and fills customer orders (service). Nonetheless, these
companies may be classified according to their major business interest. In that
case, restaurants are more of the service type – they provide dining services.
These are the basic forms of business ownership: Sole Proprietorship is a
business owned by only one person. It is easy to set-up and is the least costly
among all forms of ownership. The owner faces unlimited liability; meaning, the
creditors of the business may go after the personal assets of the owner if the
business cannot pay them. The sole proprietorship form is usually adopted by
small business entities; Partnership is a business owned by two or more
persons who contribute resources into the entity. The partners divide the profits
of the business among themselves. In general partnerships, all partners have
unlimited liability. In limited partnerships, creditors cannot go after the personal
assets of the limited partners and a corporation is a business organization that
has a separate legal personality from its owners. Ownership in a stock
corporation is represented by shares of stock. The owners (stockholders) enjoy
limited liability of directors, an elected but have limited involvement in the

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company's operations. The board group from the stockholders, controls the
activities of the corporation. In addition to those basic forms of business
ownership, these are some other types of organizations that are common today:
Limited Liability Companies (LLCs) in the USA, are hybrid forms of
business that have characteristics of both a corporation and a partnership. An
LLC is not incorporated; hence, it is not considered a corporation. Nonetheless,
the owners enjoy limited liability like in a corporation. An LLC may elect to be
taxed as a sole proprietorship, a partnership, or a corporation. and Cooperative
is a business organization owned by a group of individuals and is operated for
their mutual benefit. The persons making up the group are called members.
Cooperatives may be incorporated or unincorporated. Some examples of
cooperatives are: water and electricity (utility) cooperatives, cooperative
banking, credit unions, and housing cooperatives.
Van de Vrande et.al (2017) argue that most SMEs face challenges that are
related with organizational and cultural issues to deal with the increased
external contacts. These challenges include venturing, customer involvement,
external networking, research and development (R&D) outsourcing, and
external participations. Moreover, SMEs in developing countries face different
challenges from the SMEs in developed countries. They suggest that, in
developing countries, a government agency using innovation hubs, could help

City of Taguig
SMEs to connect, communicate and collaborate with independent inventors and
other parties to jumpstart innovation practices.
Wynarczyk (2017) argue that in the international competitiveness, SMEs
are highly dependent on two key internal components – R&D capacity, and
managerial structure and competencies, and two external factors – open
innovation practices and the ability of the firm to attract government grants for
R&D and technological development.
Albors-Garrigós et.al (2016).Open innovation has appeared as an
alternative method for providing SMEs with R&D outsourced services as a
strategically focused approach. A study over UK technology-based SMEs
identified that these firms are quite different from policy makers’ perceptions.
Consequently, many public policies are not supportive to them.
Csath et.al (2016) argues that embracing open innovation is essential for
SMEs to grow internationally and they need an educational system which
encourages and appreciates creativity, criticism, self-discipline, self-motivation,
desire for knowledge and life-long learning, openness, and cooperation.
Hemert et al. (2015) claimed that policy makers may not be aware of the
importance of various networks for SMEs. Innovation support schemes from the
public actors are useful to sensitize SMEs towards open innovation practices
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(Kamp and Bevis 2015). Kim et al. (2015) suggested that team size, perceived
uncertainty, and fostering outbound openness are pivotal for the success of
open innovation policy. They argue that effective medium team size is
appropriate to provide public support for the cooperation and collaboration. Eco-
innovation is increasingly becoming an integral part even for SMEs. SMEs may
embrace informal, systematic, and open innovation approaches for eco-
innovation.
McAdam et al. (2015) argue that policy should devise to integrate SMEs in
network support programs to encourage the initiation and development of such
networks. They believe that in many countries public funding is provided to
university and company R&D centers to act as a catalyst for open innovation
whereas public funding should focus towards the needs of SMEs. They
suggested that public policy initiatives differentiating from networking strategy
are better to facilitate open innovation in service SMEs. It was found out that the
existing public policy needs to improve significantly to accelerate open
innovation in SMEs.
Foreign Studies
Klonowski et.al (2019) had a study which was to provide a comprehensive
evaluation of the government assistance programmes to small and medium-size
enterprises (SMEs) in Poland and to assess the effectiveness of these

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programmes in stimulating development of the SME sector. There are three
main conclusions from the study. First, the Polish government support
programmes are poorly structured, fragmented and untargeted. Second, the
programmes do not meet the actual needs of the sector and, hence, are poorly
used. Third, there is strong evidence to confirm the existence of liquidity gaps in
financing the SME sector.
Xiang et.al (2018). The government financial assistance helps SMEs
improve performance over and above the effects of conventional financing. They
also find than the implicit guarantee effect signaled by a firm receiving
government financial assistance suggests firms are more likely to obtain
nongovernment finance in the future. Control factors that significantly affect SME
performance and finance availability include business size, the level of
innovation, business objectives and industry. Nearly all of the responses in the
original survey data are qualitative, so we are unable to assess how the strength
of these relationships varies by the levels of assistance, income and profitability.
The measure of government financial assistance of the authors is also general
in that it includes grants, subsidies and rebates from any Australian Government
organization, so we are unable to comment on the impact of individual federal,
state or local government programs. Government financial assistance helps
SMEs improve both immediate and future performance as measured by income
and profitability. This could be because government financial assistance quickly

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overcomes the financial constraints endemic in SMEs. Government financial
assistance also helps SMEs obtain nongovernment finance in the future. The
authors conjecture that this is because it overcomes some of the information
opaqueness of SMEs. Few studies focus on the impact of direct government
financial assistance compared with indirect assistance as typical in credit
guarantee schemes. The authors use a very large and detailed data set on
Australian SMEs to undertake the analysis.
Organization for Economic Cooperation and Development (OECD, 2017).
This study provides a synthesis of the current state of knowledge about small
and medium-sized enterprises (SMEs) and their contributions to economic and
social well-being. It describes the diverse characteristics of SMEs and the
opportunities and challenges they face in a globalized and digital economy. It
also identifies areas where knowledge or data gaps exist and where more
analysis is needed. The document presents the case for launching the future
development of an OECD Strategy for SMEs, to help Members and Partner
stake a coherent approach to policies which impact and/or target SMEs,
including across levels of government; enhance policy synergies; and address
potential trade-offs. The future development and implementation of an OECD
Strategy would help governments level the playing field for SMEs and enable
them to enhance their contributions to inclusive growth in different economic and
social contexts. SMEs are essential for delivering more inclusive globalization
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and growth. In many countries, and in particular OECD countries, governments
are facing the challenges of low growth, weak trade and investment, and rising,
or persistently high inequality (OECD, 2016).
Foreman-Peck J., Makepeace G. and Morgan B. (2015) Growth and
profitability of small and medium-sized enterprises: some Welsh evidence,
Regional Studies 40, 307–319. Policy-makers throughout the Organization for
Economic Co-operation and Development (OECD) are keen to promote the
development of small and medium-sized enterprises (SMEs) by a wide variety of
means. The present study of over 1600 Welsh SMEs casts doubt on the
effectiveness of doing so by grants, by encouraging trade associations, by
pursuing current initiatives in training or by stimulating innovation as defined by
SME management. On the other hand, it finds that support for selective
Information Technology investment and for marketing planning could be
beneficial. Additional results that might be addressed by policy are short-
termism by older managers – preferring current to future profits more than
younger managers – signs that fixed costs of tax compliance bear substantially
more heavily on the profitability of smaller SMEs, and evidence for a substantial
partnership and sole trader ‘risk premium’ between SMEs, suggesting
considerable entrepreneurial risk aversion.

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Local Literature
(DTI, 2019). SME Roving Academy (SMERA) is a continuous learning
program for the development of micro, small and medium enterprises (MSMEs)
to become competitive in the domestic and international markets. Its main
strategies contain: Integration of the business development services for micro,
small and medium enterprises (MSMEs) at the national and local levels;
(Gonzales, 2019). Micro-, small- and medium-sized enterprises (MSMEs)
are businesses employing less than 200 workers or those with an asset size of
no more than P100 million. Large enterprises, on the other hand, are defined as
businesses having more than 200 employees or with an asset size of more than
P100 million. In 2016, the number of MSMEs grew to 911,768 from 896,839 in
2015. Other works that provided useful background materials for this study are
listed at the end of this paper. Another important issue in the study of SMEs
questions the motivation for SME development. Existing studies show the need
to distinguish between micro-enterprises and SMEs as each group responds
differently to changes in economic conditions. In particular, while SME startups
do not usually occur when the economy is performing poorly, many micro-
enterprises startups do occur during the same period. Researchers point out
that this shows how creation of micro-enterprises tends to reflect a "coping
strategy" by their owners--since there are less opportunities for remunerative

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work during periods of economic recessions or stagnating economic
development, some are forced to find a livelihood by starting their own small
business. Ideally, one must make a distinction between micro-enterprises and
SMEs. Unfortunately, given the small sample size of Filipino MSMEs
participating in this survey, it is not possible to make this distinction at this time,
that is, the sample included both types of business enterprise and that "SME"
used in the subsequent sections covers both SMEs and micro-enterprises. Only
one firm withdrew its application and considered to have no access to finance.
Most of the firm respondents indicated that they did not make any requests for
financing. With respect to official statistics, further problems arise due to the lack
of reliable data on SME financing particularly on the volume of loans to MSMEs.
There are some official aggregates provided by the BSP as well as by other
government agencies and regulators but there are no statistics on funding from
informal sources.
(Jimenez, 2017). Access to finance has remained one of most critical
factors affecting the competitiveness of MSMES. Studies focusing on the growth
constraints faced by SMEs in the Philippines have continued to highlight the
difficulties of MSMEs in accessing finance. Based on the PEP survey, Nangia
and Vaillan court (2006) indicated that funds obtained from the banking sector
accounted for only 11 to 21% of capital raised by SMEs. This is lower than the
30% international benchmark seen in other developing countries like India and
City of Taguig
Thailand. Furthermore, banks are generally reluctant to lend large loans
particularly those ranging fromP150,000 to P5 million (US$3,450-115,000) which
is the normal range of funding required by SMEs.
(Natividad, 2017). Filipino MSMEs are the Instagram entrepreneurs, the
tech startups, the grocery store owners; your nosey neighbor, your high school
classmate, your cousin running the family business. It’s anyone and everyone
who’s had the initiative to start their own business. Fortunately for Filipinos,
running a small or medium enterprise is easier these days, thanks to technology.
Because of the Internet, there are now more opportunities for SMEs to thrive,
grow, and even compete against larger, longer-established giants.
Fong et.al (2018). Small and medium-sized enterprises (SMEs) make up
99.6 percent of all registered businesses in the Philippines and employ over 70
percent of the working population. However, they face a host of growth
challenges—including lack of technical capacity, difficulty in accessing regional
markets in Asean and, notably, a lack of access to finance—leaving them
accounting for just 35 percent of GDP. Current discussions frequently circle back
to finding the right level of financial and private sector support but, while this is
undeniably important, there’s another powerful route to growth that deserves
attention. It could be argued that the main driver of SME development lies not in
external assistance, but instead in the DNA within the organization, in its level of
City of Taguig
readiness and openness to internal learning and the adoption of entrepreneurial
activities to adapt and win in a competitive environment.
Local Studies
(Ortega, 2018). SMEs often lack resources and are buffeted by
unpredictable events. But their very smallness means they can also be nimble.
And it’s this flexibility—both in redeploying resources and changing goals—
which can drive innovation and success. Through my experiences working with
business executives in the areas of innovation management, design thinking
and business model innovation, I consistently come across four main ways in
which this process can take place.
According to RA 9501 of 2008, the Eligibility for Government Assistance.
To qualify for assistance, counseling, incentives and promotion under this Act,
businesses falling under the above definition must be: Provided, That in the
case of micro enterprises as defined herein, registration with the office of the
municipal or city treasurer shall be deemed sufficient compliance with this
requirement; one hundred percent (100%) owned, capitalized by Filipino
citizens, whether single proprietorship or partnership. If the enterprise is a
juridical entity, at least sixty percent (60%) of its capital or outstanding stock
must be owned by Filipino citizens; business activity within the major sectors of
the economy, namely; industry, trade, services, including the practice of one's
City of Taguig
profession, the operation of tourism-related establishments, and agri-business,
which for purposes of this Act refers to any business activity involving the
manufacturing, processing, and/or production of agricultural produce; and it
must not be a branch, subsidiary or division of a large scale enterprise.
(Aldaba, 2018). In view of the SME role in economic restructuring,
governments should above all promote entrepreneurship, facilitate firm start-up
and expansion, and improve access to venture capital and other types of
financing. To this end, governments are now fostering the development of
secondary stock markets to allow easy entry and exit for venture investors;
easing taxes on capital gains and other dividends; and allowing greater use of
stock options as compensation in small firms. Governments are also fostering
business angel networks which bring together small companies and prospective
investors.
(Rao, 2013 and 2015). In the Philippines there are about 500,000
business enterprises operating both in manufacturing and service sector of
which 0.5 % are large and another 0.5 % are medium with the balance 99 %
being small and micro enterprises. The SMEs are found in all sub sectors but a
majority 78% belong to the food processing including hotel and restaurant,
garments, gifts, fashion accessories and handicrafts, electroplating/metal
working, automotive parts, furniture, foot ware & leather products bamboo
City of Taguig
products and building materials. The Philippines SMEs contribute to about 55 %
of the jobs generated in the country by business enterprises and generate 25 %
of the value added. To assist the SMEs to function effectively, the Philip-pine
government, NGOs, community programs and private sector organizations have
set up a host of support services constituting financial assistance program,
technical assistance program, marketing assistance program and backward
linkage program where BOI, Board of Investments under Philippine government,
links SMEs capable of supplying components and other raw materials to large
companies who need them. The support for SMEs here has never been better
than it is today because it is generally widely recognized that they would indeed
become a powerful vehicle in the growth and sustainable development and
contribute to the competitiveness of Philippine economy.
MSMEs that become embedded in the value chain of larger
business can be spurred on to improve their own human and technological
resources, thus improving their own productivity and performance.
The plan for the growth and advancement of the MSME sector. It was
developed in consultation with various stakeholders from the private sector,
academia, and government agencies. It is aligned with the Philippine
government’s goal of boosting employment, business, and livelihood or “Trabaho,
Negosyo, Kabuhayan” translating to “Malasakit”, “Pagbabago”,

City of Taguig
at “Patuloy na Pag-unlad” of the Philippine Development Plan (PDP) 2017-2022.
The key inputs to the Plan’s formulation were also taken from the Ten-Point
Agenda for Development presented by President Rodrigo R. Duterte at his first
State of the Nation Address on 25 July 2016. It was also developed in
accordance with AmBisyon Natin 2040, the long-term mission and vision
statement for Philippine development formulated by the National Economic and
Development Authority (NEDA) in March 2016. The Plan envisions for “more
globally competitive MSMEs that are regionally integrated, resilient, sustainable
and innovative thereby performing as key drivers of inclusive Philippine economic
growth.” It has three (3) focus areas, namely: business environment, business
capacity, and business opportunities with the following 5 strategic goals: (1)
improved business climate; (2) improved access to finance; (3) enhanced
management and labor capacities; (4) improved access to technology and
innovation; and, (5) improved access to market. On 04 April 2018.
Synthesis
Referred to the learned knowledge acquired from the reviewed literature
and studies written by the foreign and local authors, that will help the researcher
focused on the growth of paper reviewed some cases studies and suggests
lessons for policy. Among the lessons which warrant the attention of MSMEs
policy agents a It is aligned with the Philippine government’s goal of boosting
employment, business, and livelihood or “Trabaho, Negosyo, Kabuhayan”

City of Taguig
translating to “Malasakit”, “Pagbabago”, at “Patuloy na Pag-unlad” of the
Philippine Development Plan (PDP) 2017-2022.
The researcher would used most of Plan envisions for more globally
competitive MSMEs that are integrated in Central Signal, Taguig City in terms of
businesses that they had to become more resilient, sustainable, innovative and
focus in areas which their business environment, capacity and opportunities with
are improved business climate, access to finance, enhanced management and
labor capacities and access to technology, innovation and, market.
MSMEs that become embedded in the value chain of larger business can
be spurred on to improve their own human and technological resources, thus
improving their own productivity and performance. The assessment on DTI
Support Enhancement should above all promote entrepreneurship, facilitate firm
start-up and expansion, and improve access to venture capital and other types
of financing. To this end, Department of Trade and Industry, and other
governments are now created clusters or networks through MSMEs
The researcher made used R.A.9501 of Magna Carta for Micro, Small and
Medium Enterprises. MSMEs shall be defined as any business activity or
enterprise engaged in industry, agribusiness and/or services, the researcher
uphold onto this program of government for her study to insure that the
benefactors are the one who benefited.

City of Taguig
Chapter 3
RESEARCH METHODOLOGY
This chapter provides the discussion on the methods and techniques used
in the study, population and sampling scheme, description of the respondents,
research and validation of the instruments utilized, procedures in data gathering
and statistical treatment employed in the analysis and interpretation of data.
Research Method
This study utilized the descriptive method of research that was designed
to determine the level of Government support to the Micro, Small and Medium
Enterprises in Barangay Central Signal, Taguig City. The descriptive type of
research using a self-constructed survey questioner checklist as a tool in
gathering data were used because of its appropriations in this study. The
descriptive methods describes the events, people and relationship of the
variables, the testing of the null hypothesis and the development of the
generalization, Principles and Theories that have universal validity. (Frankel and
Waller, 1994)
The objective of this method of research is to gather information about the
current condition, its emphasis is to describe the present existing situations
rather than to judge or interpret.

City of Taguig
This method also attempted to accurately describe or characterize an
individual or group’s attitudes, behaviors or characteristics. Moreover, it may be
defined as a purposive process of gathering, analyzing, classifying, and
tabulating data about prevailing conditions, practices, beliefs, process, trends
and cause and effect relationships and then making adequate and accurate
interpretation about such data with the aid of statistical method.
Population and Sampling Scheme
The researcher has undertaken 100 respondents in this study. The
respondents were managers and owners of Micro, Small and Medium
Enterprise in Central Signal, Taguig City. The Sampling technique used by the
researcher was Purposive Non-random Sampling.
According to Foley (2018), Purposive sampling, also known as
judgmental, selective, or subjective sampling, is a form of non-probability
sampling in which researchers rely on their own judgment when choosing
members of the population to participate in their study. This sampling method
requires researchers to have prior knowledge about the purpose of their studies
so that they can properly choose and approach eligible
participants. Researchers use purposive sampling when they want to access a
particular subset of people, as all participants of a study are selected because
they fit a particular profile.

City of Taguig
Research Instruments
The following instruments were in the collection of data:
Survey Questionnaire. The researcher employed a self-administered
survey questionnaire that served as a major tool of the study which was
categorized into two parts. The first part was the demographic profile of the
respondents and the second part was divided into three major sub-parts: first, it
focused the assessment of DTI government Support to the Micro, Small and
Medium Enterprises in Barangay Central Signal, Taguig City which will be used
as a basis to Government – Industry Support enhancement; Second, was about
the problems encountered by the respondents regarding Micro, Small and
Medium Enterprises : and the last part composed of the questionnaires was
spotlighted in addressing the proposed recommendation to solve the said
problems.
Validation of Instruments
The researcher presented her self-constructed survey questionnaire to
his adviser and to some professionals who were very knowledgeable in
research study pertaining to the subject matter for suggestions, comments,
clarifications and corrections who validated her research instrument.
Procedure in Gathering Data

City of Taguig
Using the validation which way approved by the coordinate Chair Program
and the Dean of the Graduate School, the researcher, with the helped of her
adviser and some faculty member of this University administered or distributed
the questioner checklist as well as the self-constructed survey questionnaires.
Respondents were giving briefing, personal follow ups were done to retrieve the
filled- up questioner.
After the retrieval, the researcher recorded the data, organized, tallied and
tabulated for analysis purposes.
Statistical Treatment
The quantitative data obtained through the conduct of survey was
analyzed and evaluated using the following statistical treatment:
1. Frequency. This was utilized by the researcher to determine the actual
number of respondents to specific questions or items in the questionnaire.

2. Percentage. The percentage formula will be used to analyze and
evaluated the data on the profile of the respondents according to each
description.
Formula:
P= x 100%
Where:
F = number of respondents under particular category (Frequency)
N = Number of respondents (Samples)
P = Percent
City of Taguig
3. Mean will be used to determine the central tendency in relation on the
assessment of the respondents that focused in the study.

Formula:
M=
Where:
M = mean
Summation
X = weight of each value scale

N = Total number of respondents
4. Four-point Scale. The researcher used the four point Likerts scale in
rating the responses of the three groups of respondents. The verbal
interpretations and numerical means ranges:
Mean Scale Point Level of Problems

Value Government encountered
support
3.26 – 4.00 4 Highly Very Serious
Supported
2.51 – 3.25 3 Supported Serious
1.80 – 2.50 2 Less Supported less
Serious
1.00 – 1.79 1 Not Supported Not Serious
5. Chi-Square (SPSS). This was used by the researcher to determine and
test the null hypothesis, the significant difference on the perceptions of the
City of Taguig
respondents on the assessment off DTI Support among Micro, Small and
Medium Enterprises at Central Signal, Taguig City.

Formula:
= Chi-square
o = Observed Frequency
e = Expected Frequency
Chapter 4
PRESENTATIONS, INTERPRETATIONS AND ANALYSES OF DATA
This chapter consists of the presentations of data that had been gathered
by the researcher about the Assessment on DTI Support Enhancement among
the Micro, Small and Medium Enterprises in Central Signal, Taguig City: Basis
City of Taguig
for Government – Industry Support Enhancement. This also contains their
interpretations and analyses. Answers to all questions in the statement of the
problem would be provided in this chapter. These are:
The researcher Table compose of the profile respondents in terms of
age:
Table 1
Percentage Distribution of the profile

of the respondents in terms of Age
Respondents’ Age Frequency Percent
25 years and below 10 10

26-30 14 14
31-40 32 32
41-50 21 21
51-55 11 11
56-60 10 10
61 and above 2 2
Total 100 100.0
Table 1 from the previous page showed the Percentage Distribution of the
profile of the respondents in terms of Age. Most of the respondents were ages
31-40 years old or 32 percent. Second, was 41-50 with a frequency of 21 of 21
percent. Third, was 26-30 years old with a frequency of 14 or 14 percent. Fourth,
was 51-55 years old with a frequency of 11 or 11 percent. Fifth, were 25 years
and below and 56-60 years old with the same frequency of 10 or 10 percent.
Lastly, was 61 and above with a frequency of 2 or 2 percent.
According to Jone et. al (2018), Our team analyzed the age of all business
founders in the U.S. in recent years by leveraging confidential administrative

City of Taguig
data sets from the U.S. Census Bureau. We found that the average age of
entrepreneurs at the time they founded their companies was
Table 2
Percentage Distribution of the profile of the

respondents in terms of Gender
Respondents Gender Frequency Percent
Male 36 36
Female 64 64
Total 100 100.0
Table 2 gave the Percentage Distribution of the profile of the respondents
in terms of Gender. Most of the respondents were females with a frequency of
64 or 64 percent while, male had a frequency of 36 or 36 percent.
According to Washington (2018), Women are more likely than men to start
businesses, with 47% of women in the pre-start or idea phase of business
ownership following through on starting a business in the past year, compared to
only 44% of men.
Table 3

respondents in terms of Civil Status
Respondents’ Civil Frequency Percent
Status
Single 15 15
Married 73 73
Separated 4 4
Widows/Widower 8 8
Others, please specify; 0 0
Total 100 100.0
City of Taguig
Table 3 presented the Percentage Distribution of the profile of the
respondents in terms of Civil Status. Most of the respondents were married with
a frequency of 73 or 73 percent. Followed by, single with a frequency of 15 or 15
percent. Then, the widows/widower with a frequency of 8 or 8 percent.
Separated had a frequency of 4 or 4 percent.
According to Rampton (2017), While there are some advantages to being
a single entrepreneur, the fact of the matter is that when you’re in a healthy
personal relationship like a marriage, you’re more likely to succeed.
Table 4
Percentage Distribution of the profile of the respondents

in terms of Highest Educational Attainment
Respondents’ HEA Frequency Percent
Doctoral Degree Holder 0 0
Master’s Degree Holder 0 0
Bachelor’s Degree Holder 21 21
Vocational Course Graduate 21 21
College Level 28 28
High School Graduate 30 30
Others, 0 0
Total 100 100.0
Table 4 illustrated the Percentage Distribution of the profile of the
respondents in terms of Highest Educational Attainment. Most of the
respondents were high school graduate with a frequency of 30 or 30 percent.
Second, was college level with a frequency of 28 or 28 percent. Third, were
Vocational course graduate and Bachelor’s degree holder with the same
City of Taguig
frequency of 21 or 21 percent. Lastly, were Doctoral degree and Master’s
degree holder with a frequency of 0 or 0 percent.
According to Juang (2017), Independent business owners without a four-
year degree now outnumber those with a bachelor's degree or higher, the
Survey Monkey small-business survey shows. A solid quarter of independent
business owners had up to a high school diploma. Add in respondents with
associate's degrees or with some college and the number shoots up to 56
percent — more than half of all respondents.
Table 5

respondents in terms of Type of Business
Respondents’ Frequency Percent
Type of Business
Apartelle 4 4
Apartment 22 22
Bakery 4 4
Buy & Sell 3 3
Laundry 12 12
Restaurant 28 28
Sari-sari store 20 20
Services 2 2
Trading 5 5
Total 100 100.0
Table 5 from the previous page represented the Percentage Distribution of
the profile of the respondents in terms of Type of Business. First with the highest
frequency of 28 was restaurant or 28 percent. Second was apartment with a

City of Taguig
frequency of 22 or 22 percent. Third was Sari-sari store with a frequency of 20
or 20 percent. Fourth was Laundry with a frequency of 12 or 12 percent. Fifth
was Trading with a frequency of 5 or 5 percent. Sixth were Apparel and Bakery
with a frequency of 4 or 4 percent. Seventh was Buy and Sell with a frequency
of 4 or 4 percent. Lastly was Services with a frequency of 3 or 3 percent.
According to Robby (2013), Restaurant business is very lucrative. Apart
from the initial investments that you need to invest it can earn you life long
revenues and luxurious life. For excellent and very high results from opening a
restaurant business there is a lot of hard work and planning.
Table 6

Respondents in terms of Monthly Income
Respondents’ Monthly Income Frequency Percent
P 2,000-25,000 15 15
P 25,000-50,000 36 36
P 51,000-80,000 27 27
P 81,000-above 22 22
Total 100 100.0
Table 6 from the previous page showed the Percentage Distribution of the
profile of the respondents in terms of Monthly Income. Most of the respondent
had a monthly income of 25,000-50,000 pesos with a frequency of 36 or 36
percent. Second was 51,000-80,000 pesos with a frequency of 27 0r 27 percent.
Third was 81,000 above with a frequency of 22 or 22 percent. Lastly was 2,000-
25,000 pesos with a frequency of 15 or 15 percent.

City of Taguig
1. Perception of the Respondents on the Assessment of Department of

Trade and Industry to the Micro, Small and Medium Enterprises at Central
Signal, Taguig City.
Table 7
Mean Distribution on Perception of the Respondents on the

Assessment of Department of Trade and Industry to the Micro, Small and
Medium Enterprises at Central Signal, Taguig City in terms
of Reducing the regulatory burden on smaller firms
Indicators Mean StD VI
SMEs identify high compliance costs, extensive and
complicated paperwork, and economic regulations that
3.64 0.02 HSd
prohibit certain activities as the most onerous burdens
they face.
Problems stem from regulatory systems developed to
serve the needs of large firms and the cumulative 3.18 0.005 Sd
pressure of regulatory requirements.
Government are now reducing paperwork and
bureaucracy, minimizing administrative burdens,
3.72 0.04
streamlining procedures and reducing compliance costs HSd
for SMEs, including setting up “one-stop shops”.
The relatively weak bargaining power and generally poor
liquidity of SMEs make the government strongly 3.72 0.04 HSd
dependent on regulatory frameworks
They guarantee the reliability of transactions and secure
2.82 0.06 Sd
orderly playing rules in the economy.
Overall 3.33 0.03 HSd
Legend: StD = Standard Deviation VI = Verbal Interpretation
3.25 – 4.00 Highly Supported (HSd)
2.50 – 3.24 Supported (Sd)
1.75 – 2.49 Less Supported (LSd)
1.00 – 1.74 Not Supported (NSd

City of Taguig
Table 7 from the previous page presented the Mean and Standard
Deviation of The of Government Support on the Small and Medium Enterprises
in Taguig City in terms of reducing the regulatory burden on smaller firms. The
overall mean was 3.33 and Standard deviation of 0.03 with a verbal
interpretation of Highly Supported(HS). These were the following indicator with
their corresponding means and standard deviations: “Government are now
reducing paperwork and bureaucracy, minimizing administrative burdens,
streamlining procedures and reducing compliance costs for MSMEs, including
setting up “one-stop shops”. had a mean of 3.72 and Standard deviation of 0.04;
“The relatively weak bargaining power and generally poor liquidity of SMEs
make the government strongly dependent on regulatory frameworks” had a
mean of 3.72 and Standard deviation of 0.04; “MSMEs identify high compliance
costs, extensive and complicated paperwork, and economic regulations that
prohibit certain activities as the most onerous burdens they face” had a mean of
3.64 and Standard deviation of 0.02; “Problems stem from regulatory systems
developed to serve the needs of large firms and the cumulative pressure of
regulatory requirements” had a mean of 3.18 and Standard deviation of 0.005
and “They guarantee the reliability of transactions and secure orderly playing
rules in the economy” had a mean of 2.82 and Standard deviation of 0.06.
According to Hill (2019), Find grants, funding and support programs from
across government to help your business grow and succeed! When searching
City of Taguig
for funding, keep in mind that you’ll generally need to meet certain criteria to be
eligible, and that aside from funding assistance, many programs can help your
business by building your skills and knowledge.
Table 8
Mean Distribution on Perception of the Respondents on the Assessment of

Department of Trade and Industry to the Micro, Small and Medium
Enterprises at Central Signal, Taguig City in terms of Promoting
Enterprise cluster to enhance MSME performance and competitiveness
The government assure that Small firms working in
clusters can attain the advantages of large firms 0.0003
3.18 Sd
while retaining the benefits of specialization and
flexibility
Local, regional and national governments can
foster small-firm linkages through providing the
3.64 0.04 HSd
frameworks for public/ private and inter-firm
partnerships.
The government role in building clusters is
0.004
generally indirect and concerned with supporting 3.09 Sd
skills development and freeing up resources
The government overcome constraints to greater
3.72 0.06 HSd
enterprise interaction.
The governments promotes entrepreneurship,
facilitate firm start-up and expansion, and improve 0.01
3.45 HSd
access to venture capital and other types of
financing.
Overall 3.22 0.02 Sd

City of Taguig
1.00 – 1.74 Not Supported (NSd)
Table 8 illustrated the Mean and Standard deviation of The of Government
Support on the Small and Medium Enterprises in Taguig City in terms of
Promoting enterprise cluster to enhance SME performance and
competitiveness. The overall mean was 3.22and Standard deviation of 0.02 with
a verbal interpretation of Supported(Sd). These were the following indicator
with their corresponding means and standard deviations: “The government
overcome constraints to greater enterprise interaction” had a mean of 3.72 and
Standard deviation of 0.06; “Local, regional and national governments can foster
small-firm linkages through providing the frameworks for public/ private and
inter-firm partnerships” had a mean of 3.64 and Standard deviation of 0.04; and,
“The governments promotes entrepreneurship, facilitate firm start-up and
expansion, and improve access to venture capital and other types of financing”
had a mean of 3.45 and Standard deviation of 0.01. on the other hand, the
following are Supported(Sd):
“The government assure that Small firms working in clusters can attain
the advantages of large firms while retaining the benefits of specialization and
flexibility” had a mean of 3.18 and Standard deviation of 0.0003; and, The
government role in building clusters is generally indirect and concerned with
supporting skills development and freeing up resources has a lowest mean of
3.09 and standard deviation of 0.004.

City of Taguig
According to Ingnacio (2017), the Philippine government has two major
parallel programs for industrial policy: formation of industrial zones and industry
clustering.3 While both programs seek to promote exports, regional and national
economic development, and support regional dispersal of industries, they differ
in nature. Industrial zones or parks encourage exporting firms, regardless of
market orientation, with incentives and measures that attract foreign
investments. These industrial parks are managed by the Philippine Economic
Zone Authority (PEZA).
Table 9
Mean Distribution on Perception of the Respondents on the Assessment of

Department of Trade and Industry to the Micro, Small and Medium
Enterprises at Central Signal, Taguig City in terms of Implementing
the MSME initiatives and reforms

Governments are mounting specialized services and action
plans. 3.45 0.02 HSd
MSME units or agencies are charged with promoting small
business development by providing capital, reforming fiscal 0.01
3
practices, reducing administrative burdens, providing Sd
management and skills training.
Improving information dissemination and increasing access
to markets. 3.72 0.06 HSd
Programmes to increase the technology base of MSMEs
include R&D tax credits, loans or grants for innovative 3 0.01 Sd
activities, and technology diffusion schemes.
The government are adopting an “evaluation culture”
whereby programmes are reviewed on a regular basis to
2.82 0.04 Sd
determine their relevance and effectiveness
Overall 3.22 0.03 Sd

City of Taguig
Table 9 gave the Mean and Standard Deviation of The Government
Support on the Micro, Small and Medium Enterprises in Cenral Signal, Taguig
City in terms of Implementing the MSME initiatives and reforms. The overall
mean was 3.22 and Standard deviation of 0.03 with a verbal interpretation of
supported. There are indicators which are Highly Supported(HSd) schemes:
“Improving information dissemination and increasing access to markets” had a
mean of 3.72 and standard deviation of 0.06; and, “Governments are mounting
specialized services and action plans” had a mean of 3.45 and standard
deviation of 0.02. Furthermore While the following are Supported(Sd): “SME
units or agencies are charged with promoting small business development by
providing capital, reforming fiscal practices, reducing administrative burdens,
providing management and skills training” had a mean of 3 and standard
deviation of 0.01; “Programmes to increase the technology base of SMEs
include R&D tax credits, loans or grants for innovative activities, and technology
diffusion schemes” had a mean of 3 and standard deviation of 0.01; and, “The
City of Taguig
government are adopting an “evaluation culture” whereby programmes are
reviewed on a regular basis to determine their relevance and effectiveness” had
a mean of 2.82 and standard deviation of 0.04.

According to Pernia (2019), there is a need to address the governance
issues faced by the agribusiness sector and its related industries. The
government may need to revisit existing interventions to ensure that they are
designed to be responsive to the needs and actual behavior of farmers, fisher
folks and processors.
Table 10
Mean Distribution on Perception of the Respondents on the Assessment

of Department of Trade and Industry to the Micro, Small and Medium
Enterprises at Central Signal, Taguig City in terms of providing financial
support.

DTI-Pondo Para sa Pag-asenso (PPP Development 0.006 HSd
3.64
Plan (PDP) 2017-2022.
DTI Department Administrative Order No. 14-5 0.006 HSd
Series of 2014,Republic Act No. 10644: Go 3.64
Negosyo Act
APEC_DOST,Competitiveness through Low Carbon 0.0007
Economy Development of specialized private 3.55 HSd
banks for MSME financing
DOST such as the Regional Food Innovation 0.03 Sd
3.18
Centers (FICs).Diversifying Channels of Financing
Overall 3.5 0.009 HSd

City of Taguig
Table 10 presented the Mean and Standard deviation of The Government
Support on the Micro, Small and Medium Enterprises in Central Signal, Taguig
City in terms of providing financial support. The overall mean was 3.5 and
Standard deviation of 0.009 with a verbal interpretation of highly supported.
Most of the indicators are Highly Supported(HSd) and they are: “DTI
Department Administrative Order No. 14-5 Series of 2014,Republic Act No.
10644: Go Negosyo Act” had a mean of 3.64 and standard deviation of 0.006;
“DTI-Pondo Para sa Pag-asenso (PPP Development Plan (PDP) 2017-2022”
had a mean of 3.64 and standard deviation of 0.006; and, “APEC DOST,
Competitiveness through Low Carbon Economy Development of specialized
private banks for SME financing” had a mean of 3.55 and Standard deviation of
0.0007. On the other hand, “DOST such as the Regional Food Innovation
Centers (FICs).Diversifying Channels of Financing” was Supported(Sd) with a
mean of 3.18 and standard deviation of 0.03.
According to Roxas (2016), The DBP Small Business Puhunan Loan
Program (SBPLP) was crafted to support the government’s thrust to provide
credit for working capital to small enterprises. This program will open the doors
City of Taguig
of small borrowers who may later on enter into the regular lending program
where they can avail bigger loans.
2. The significant difference on the perceptions of the respondents on the

level of assessment of Department of Trade and Industry support to
Central Signal, Taguig City. Micro, Small and Medium Enterprises as
grouped to their profile
Table 11
The significant difference on the perceptions of the respondents

as grouped to their Profile using Chi-square (SPSS) at α = 0.05
Variables age sex Civil HEA Type of Monthly Ave.
Status Bus. Income
Reducing the regulatory
burden on small Firm
0.345 0.512 0.716 0.035 0.018 0.023 0.275
Promoting enterprise
cluster to enhance SME
performance and
0.114 0.342 0.661 0.014 0.014 0.046 0.199
competitiveness
Implementing The SME
Initiatives and Reforms
0.238 0.263 0.167 0.009 0.047 0.024 0.125
Providing Financial
Support
0.116 0.133 0.314 0.035 0.038 0.015 0.109
Average 0.203 0.313 0.464 0.023 0.029 0.027 0.177
Table 11 from previous page illustrated the Significant Difference on the
perceptions of the respondents on the assessment of Department of Trade and
Industry support to Central Signal, Taguig City. Micro, Small and Medium
Enterprises as grouped to their profile. In general, the p-value of 0.177 was
greater than the level of significance of 0.05, hence the null hypothesis was
accepted. It means, there was No Significant Difference specifically in terms of
age, sex and civil status with a p-value of 0.203, 0.313 and 0.464 respectively. It
was also inferred that the respondents have the same perception regardless of
their age, sex and civil status. However, in terms of educational attainment, type
City of Taguig
of business and monthly income with a corresponding p-value of 0.023, 0.029
and 0.027 which were all less than the level of significance of 0.05 therefore, the
null hypothesis was rejected.
It means, in terms of highest educational attainment, type of business and
monthly income there is a significant difference. Every level of educational
attainment, every type of business and every monthly income, they have
different perception on the assessment of DTI support to the MSMEs in
Barangay Central Signal Village, Taguig City.
Problems encountered of Small and Medium Enterprises in Central
Signal Village, Taguig City.
Table 12
Mean Distribution on Problems encountered in Small and Medium

Enterprise in Central Signal Village, Taguig City
Lack of resources (finance, technology, skilled labor,
3 0.0002 S
market access, and market information).
Lack of economies of scale and scope. 3.18 0.004 S
Higher transaction costs relative to large enterprises 3.18 0.004 S
Lack of networks that can contribute to a lack of
information, know-how, and experience of domestic and 2.27
international markets. 0.03 LS
Increased market competition and concentration from
large multinational enterprises caused by globalization 2.36
and economic integration. 0.02 LS
Inability to compete against larger firms in terms of R&D
expenditure and innovation (product, process, and 2.64
organization). 0.007 S
Subject to “churning” and instability. 2.91 0.001 S
City of Taguig
Lack of entrepreneurial zeal, capacity, and know-how. 3.09 0.002 S

Geographical isolation puts them at a competitive
2.82 0.001 S
disadvantage
Difficulties in accessing finance. 3.55 0.03 VS
Lack of information infrastructure for SMEs 3.09 0.002 S
Low level of business R&D in the SME business sector 3.09 0.002 S
Insufficient use of information technology. 2.27 0.03 LS
Lack of knowledge about the program and trainings given
3 0.0002 S
by local government.
They are not aware of their rights being SME. 3.09 0.002 S
Overall 2.95 0.01 S

3.25 – 4.00 Very Serious (VS)
2.50 – 3.24 Serious (S)
1.75 – 2.49 Less Serious (LS)
1.00 – 1.74 Not Serious (NS)
Table 12 illustrated the Mean and Standard Deviation of the Problems
encountered in Micro, Small and Medium Enterprise. The overall mean was 2.95
and Standard deviation of 0.01 with a verbal interpretation of Serious. Indicator
“Difficulties in accessing finance” had a mean of 3.55 and standard deviation of
0.03 was Very Serious. Where as “Lack of economies of scale and scope” had
a mean of 3.18 and standard deviation of 0.004; “Higher transaction costs
relative to large enterprises” had a mean of 3.18 and standard deviation of
0.004; “Lack of entrepreneurial zeal, capacity, and know-how”, “Lack of
information infrastructure for MSMEs”, “Low level of business R&D in the SME
business sector”, “They are not aware of their rights being MSME” all had the
same of mean of 3.09 and standard deviation of 0.002; “Lack of resources” had
a mean of 3 and standard deviation of 0.0002; “Lack of knowledge about the

City of Taguig
program and trainings given by local government” had a mean of 3 and standard
deviation of 0.0002; “Subject to “churning” and instability” had a mean of 2.91
and standard deviation of 0.001; “Geographical isolation puts them at a
competitive disadvantage” had a mean of 2.82 and standard deviation of
0.0001; and, “Inability to compete against larger firms in terms of R&D
expenditure and innovation (product, process, and organization)” had a mean of
2.64 and standard deviation of 0.007.
On the other hand, the Less Serious problems encountered by the
MSME were: “Increased market competition and concentration from large
multinational enterprises caused by globalization and economic integration” had
a mean of 2.36 and standard deviation of 0.02; and, “Lack of networks that can
contribute to a lack of information, know-how, and experience of domestic and
international markets” had a mean of 2.27 and standard deviation of 0.03.
According to Anthill (2016), Healthy cash flow is a vital part of running a
business. It is, literally, the make or break for many business owners who need
to stay on top of their finances, especially cash flow, to ensure they can operate
successfully. There are many opportunities for apps and software to give
business owners a more comprehensive view and guidance around their
financial health.
City of Taguig
Chapter 5
SUMMARY, FINDINGS, CONCLUSIONS AND RECOMMENDATIONS
This segment of the study contains its findings. These was patterned from
the previous chapter. Conclusions are also in this chapter which is derived from
the findings. In the last part of this section which are extracted from the
conclusions.
SUMMARY
This study determined the effects and the accuracy of the Department of
Trade and Industry, support among MSMEs in Barangay Central Signal, Taguig
City of Taguig
City. Specifically, this study found answers to the certain Micro, Small and
Medium Enterprises in terms of age, gender, civil status , highest educational
attainment, number of years to business existence and type of businesses, and
how does the DTI supported the MSMEs in Barangay Central Signal, Taguig
City. The results of the study has an eye opener to the Local government and
other Government agency specially DTI for their programs, if it is reachable by
the said Micro, Small and Medium Enterprises not only in Central Signal, Taguig
City but in entire Philippines.
In this study the descriptive method used to determine the level of DTI and
other government agencies for their support to the Micro, Small and Medium
Enterprises in Barangay Central Signal, Taguig City. The objective of this
method of research is to gather information about the current condition, its
emphasis is to describe the present existing situations rather than to judge or
interpret.
This method also attempts to accurately describe or characterize an
individual or group’s attitudes, behaviors or characteristics. Moreover, it may be
defined as a purposive process of gathering, analyzing, classifying, and
tabulating data about prevailing conditions, practices, beliefs, process, trends
and cause and effect relationships and then making adequate and accurate
interpretation about such data with the aid of statistical method.

City of Taguig
FINDINGS
1. The profile of the respondents
Most of the respondent had and age of 31-40 years old or 32 percent and
least are 61 and above with a frequency of 2 or 2 percent. They are mostly
female with a frequency of 64 or 64 percent while, male had a frequency of 36
or 36 percent. Majority of them are married with a frequency of 73 or 73 percent
and few are separated which have a frequency of 4 or 4 percent. The highest
educational attainment of most respondents is high school graduate with a
frequency of 30 or 30 percent. Several of them have restaurant business with a
frequency of 28 or 28% and only 3 or 3% had Services. Most of them had a
monthly income of 25,000-50,000 pesos with a frequency of 36 or 36 percent
and few have 2,000-25,000 pesos with a frequency of 15 or 15 percent.
2. Perception of the Respondents on the Assessment of Department of

Signal, Taguig City.
The perception of the respondents on the Assessment of Department of
Signal, Taguig City in terms of Reducing the regulatory burden on smaller firms
is highly supported with an overall mean was 3.33 and Standard deviation of
0.03. Indicator, “Government are now reducing paperwork and bureaucracy,
minimising administrative burdens, streamlining procedures and reducing
compliance costs for SMEs, including setting up “one-stop shops” has a highest
City of Taguig
a mean of 3.72 and they guarantee the reliability of transactions and secure
orderly playing rules in the economy which has a lowest mean of 2.82.
Promoting enterprise cluster to enhance SME performance and competitiveness
is supported with an overall mean was 3.22 and Standard deviation of 0.02.
Indicator, the government overcome constraints to greater enterprise interaction
is highly supported with a mean of 3.72 and highly supported while the
government role in building clusters is generally indirect and concerned with
supporting skills development and freeing up resources is supported with a
lowest mean of 3.09.
The government supported the implementation of the SME initiatives and
reforms with overall mean of 3.22 and Standard deviation of 0.03. Improving
information dissemination and increasing access to markets is highly supported
with a highest mean of 3.72 but the government are adopting an “evaluation
culture” whereby programmes are reviewed on a regular basis to determine their
relevance and effectiveness is being supported with a lowest mean of 2.82.
Providing financial support has an overall mean was 3.5 and Standard
deviation of 0.009 and being supported. Most of the indicators were highly
supported as DTI Department Administrative Order No. 14-5 Series of 2014,
Republic Act No. 10644: Go Negosyo Act and DTI-Pondo Para sa Pag-asenso
(PPP Development Plan (PDP) 2017-2022 has a highest mean of 3.64.

City of Taguig
However, “DOST such as the Regional Food Innovation Centers
(FICs).Diversifying Channels of Financing” was supported with a mean of 3.18.
3. The significant difference on the perceptions of the respondents on

the level of assessment on Department of Trade and Industry support to
Central Signal, Taguig City. Micro, Small and Medium Enterprises as
grouped to their profile.
In general, the p-value of 0.177 is greater than level of significance of
0.05, accept the null hypothesis. It means, there is no significant difference
specifically in terms of age, sex and civil status with a p-value of 0.203, 0.313
and 0.464 respectively. It implies that the respondents have the same
perception regardless of their age, sex and civil status. However, in terms of
educational attainment, type of business and monthly income with a
corresponding p-value of 0.023, 0.029 and 0.027 which are all less than the
level of significance of 0.05 reject the null hypothesis. It means, in terms of
highest educational attainment, type of business and monthly income there is a
significant difference. Every level of educational attainment, every type of
business and every monthly income, they had different perception on the
assessment on DTI support enhancement to the MSMEs in Central Signal,
Taguig City.
4. Problems encountered in Micro, Small and Medium Enterprises in

Central Signal Village, Taguig City.
City of Taguig
The Problems encountered in Micro, Small and Medium Enterprise are
serious with an overall mean was 2.95 and Standard deviation of 0.01. Most of
the indicators are serious but Difficulties in accessing finance is very serious had
a mean of 3.55. The serious problems are with the same mean of 3.18: Lack of
economies of scale and scope; Higher transaction costs relative to large
enterprises; Lack of entrepreneurial zeal, capacity, and know-how; Lack of
information infrastructure for MSMEs; Low level of business R&D in the MSMEs
business sector; and, they are not aware of their rights being MSMEs.
Conclusions
Micro and Small Enterprises are the backbone of the Philippine economy
even in the whole Asian Region, However in the national setting, they faced
challenges from limited access to finances, lack of seminars and trainings,
undeveloped sales channels, insufficient support through ways of complying
their business requirements.
The perception of the respondents on the Assessment on Department of
Signal, Taguig City in terms of Reducing the regulatory burden on smaller firms
is highly supported with an overall mean of 3.33.

City of Taguig
The Problems encountered in Micro, Small and Medium Enterprises are
serious with an overall mean of 2.95. Most of the indicators are serious but
Difficulties in accessing finance is very serious had a mean of 3.55. The serious
problems are with the same mean of 3.18. Lack of entrepreneurial zeal,
capacity, and know-how; Lack of information infrastructure for MSMEs; Low
level of business R&D in the MSMEs business sector; and, they are not aware
of their rights being MSMEs.
Furthermore the Department of Trade and Industry (DTI) and other
Government agency supported MSMEs are very huge in terms of programs and
trainings. The respondents think that they are not supported, because; 1. Lack
of knowledge; 2. Lack of interest about the programs; and 3. Laziness to attend
such programs.
Recommendations
After the investigation, the researcher would like to recommend the
following for the Department of Trade and Industry for the continuous
enhancement of support for R. A. 9501 known as the Magna Carta for Micro,
Small and Medium Enterprises (MSMEs). These programs must be closely
monitored so that the MSMEs in Central Signal, Taguig City could be
successfully implemented:
City of Taguig
1 DTI must support the guarantee and the reliability of the transactions from
start to finish in terms of training and skills development.
2 They should support the adaptation of an “evaluation culture” whereby
programmes are reviewed on a regular basis to determine their relevance
and effectiveness.
3 The DTI and other government agency like DOST must continue their
efforts to support the Regional Food Innovation Centers (FICs) for food
related business at Central Bicutan Area in Taguig City. This is to uplift the
continuity of Research and Development (R&D) program in the Micro,
Small and Medium Enterprises (MSMEs) sector.

4 The government through their assigned agency especially Local
government (municipality) must fully monitor the support of the diversifying
channels of financing and programs given by DTI.

City of Taguig
REFERENCES
BOOKS/JOURNALS
Aldaba, R. 2008, Lim, H., Erlinda Medalla, Fatima del Prado, and Donald
Yasay. “SMEs in the Philippine Manufacturing Industry and Globalization:
Meeting the Development Challenges” .Chapter 8 in ERIA Research Project
Report 2007 No. 5. In Asian SMEs and Globalization, ed. 2010. Integrating
SMEs into the East Asian Region: The Philippines Department of Trade and
Industry SMED Council. SME Development Plan 2004-2010.
Fukumoto, Mayumi (2004) A joint paper by the Ateneo Center for
Research and Development (ACERD) and the Financial Executives Institute of
the Philippines(FINEX) “Development Policies for Small and Medium

City of Taguig
Enterprises in APEC-In the case of the Philippines.” APEC Study Center
Institute of Developing Economies.
Hapitan, R. (2005), “Competition Policy and Access of Small and Medium
Enterprises (SMEs) to Financial Services: A Review of Selected SMEs”,
Philippine Institute for Development Studies.
Lamberte, M. 2001. “Expanding Banking Services to Micro, Small, and
Medium Enterprises and Poor Households in the Philippines.” PIDS Discussion
Paper Series 2001-24. Makati City, Philippines.
Maxwell Stamp PLC. (2001), “Strengthening Export Competitiveness”,
Study conducted for the Asian Development Bank under TA 3345-PHI.Nangia,
R. and Luc Vaillancourt. 2006. “Small and Medium Enterprise Financing in the
Philippines”.
International Finance Corporation. 2006. Remo, Michelle V. 2010. “SMEs’
loan access still limited”. Philippine Daily Inquirer. Sept 27, 2010.
Tecson, Gwendolyn (2004) “Review of Existing Policies Affecting Micro,
Small and Medium Enterprises (MSMEs) In the Philippines” Makati Philippines.

City of Taguig
Small and Medium Enterprises and Development for Sustainable Employment
Program.
Torres, Ted. 2010. Philippine Star, “Proposed credit info bureau still in
limbo after two years”. 24March 2010.
Fajardo, Feliciano R. (1994), Entrepreneurship, Philippines: National
Bookstore.
ON-LINE SOURCES
http://www.sbgfc.org.ph/about-history.htm
Asia Pacific Economic Cooperation (APEC) (1993), Survey on Small &
Medium Enterprises, Chinese Taipei: Medium and Small Administration, Ministry
of Economic Affairs. Retrieved from.
http://www.actetsme.org/archive/smesurvey.html
ASEAN-EU Partenariat '97 (1997), "Small and Medium Industries in the
Philippines".
http://aeup.brel.com/sme/sme6.html
City of Taguig
Asian Development Bank and Organisation for Economic Co-operation
and Development (2000), Workshop on Small- and Medium- Sized Enterprise
Financing in Asia: Conference Papers, Philippines.
http://www.bsp.gov.ph/statistics/keystat/day99.htm
Bangko Sentral ng Pilipinas (Central Bank of the Philippines), "Daily
Pesos Per U.S. Dollar Rate". Retrieved July 7, 2006 from
APPENDICES
City of Taguig
APPENDIX A
A Letter Requesting Permission to Conduct a Study

TAGUIG CITY UNIVERSITY
School of Graduate Studies
General Santos Avenue, Central Bicutan, Taguig City
May 24, 2019
HON. ELIZZA SEGOVIA

Barangay Kagawad
Barangay Central Signal, Taguig City
Dear Barangay Kagawad Segovia,
Greetings!
This is to request permission from your good office to conduct a study entitled:
“Assessment of Department of Trade and Industry, Support among Micro, Small
and Medium Enterprises in Barangay Central Signal, Taguig City Basis for
Government Industry Partnership Enhancement” Which serves as basis for
improvements. This study is intended to contribute, not only to the research output of
our barangay, but also to the micro, small and medium-business entrepreneurs’
concerns and needs.
Relative to this, may also I ask your permission to distribute copies of my

questionnaire to the micro-business owners in our barangay for data gathering
purposes
I hope this will merit your favorable consideration and approval.

City of Taguig
Very Truly Yours,
ROLINDA S. BLANZA
MBA Students
Noted:
CARLITO R. OSTRIA, PhD (c)

Thesis Adviser
Graduate School
Taguig City University
APPENDIX B
A Letter Requesting to Validate the Research Instrument

General Santos Avenue, Central Bicutan, Taguig City
May 24, 2019
DR. OFELIA M. CARAGUE

Vice President for Academic Affairs
Taguig City
Dear Dr. Carague,
Greetings!
This is to request permission from your good office to conduct a study entitled:
“Assessment on Department of Trade and Industry Support among Micro, Small
and Medium Enterprises in Barangay Central Signal, Taguig City Basis for
Government Industry Partnership Enhancement” Which serves as basis for
improvements. This study is intended to contribute, not only to the research output of
our barangay, but also to the micro, small and medium-business entrepreneurs’
concerns and needs.
Relative to this, I would like to ask for your assistance in validating the enclosed
research instrument, Please feel free to make any comments or suggest corrections.
City of Taguig
Thank you very much and more power.
Very Truly Yours,
ROLINDA S. BLANZA
MBA Students
Noted:
CARLITO R. OSTRIA, PhD (c)

Thesis Adviser
Graduate School
APPENDIX C
SURVEY QUESTIONNAIRE

General Santos Avenue, Central Bicutan Taguig City
Dear Respondents:
This questionnaire is intended to gather information’s about the assessment on

Department of Trade and Industry, Support among the micro, Small and Medium
Enterprises in Central Signal, Taguig City: Basis for Government – Industry
Enhancement, in connection with a master’s thesis to be written on this subject.
Thank you for your cooperation.
Respectfully yours,
Rolinda S. Blanza
----------------------------------------------------------------------------------------------------------
Direction: Please answer by filing in the blanks or putting check (/) beside the
responses which correctly answers the given questions. As much as possible,
please do not leave any question unanswered. All answers and identify shall be
treated with strict confidentiality. The academic purposes and your answer will
appear in aggregate statistical data.
Part I. Respondent’s Profile

City of Taguig
Name: _______________________ optional)
Age: _____ 25 years and below _____ 51 - 55

_____ 26 – 30 _____ 56 - 60
_____ 31 – 40 _____ 61 and above
_____ 41 – 50
Gender: ____ Male ____ Female

Civil Status: ____ Single ____ Widow/Widower ____ Married ____
others, please specify: ____________
_____ Separated
Highest Educational Attainment:

_____ Doctoral Degree holder _____Vocational Course Graduate
_____ Master’s Degree holder _____ College Level
_____ Bachelor’s Degree holder _____ High School Graduate
_____Others, please specify ___________________
Type of Business: _______________________
Monthly Income: _____P12,000 – 25,000 _____P51,000 – 80,000
_____P26,000 – 50,000 _____ P81,000 – above
Part II. What is the level of Government Support on the Small and Medium
Enterprises in Taguig City in terms of:
Instruction: indicators below will determine the level of Government Support on

the Small and Medium Enterprises in Taguig City. Please assess the following
by checking the corresponding boxes using the following scale.
4 - Highly Supported (HSd)
3 - Supported (Sd)
2 - Less Supported (LSd)
1 - Not Supported (NSd)
4 3 2 1
2.1 Reducing the regulatory burden on smaller firms
SMEs identify high compliance costs, extensive and
complicated paperwork, and economic regulations that
prohibit certain activities as the most onerous burdens they
face. (Tinutukoy ng SME ang mga mataas na gastos sa pagsunod,
malawak at kumplikadong papeles, at mga regulasyon sa ekonomiya na
nagbabawal sa ilang mga gawain bilang ang pinaka-mabigat na pasanin
City of Taguig
na kinakaharap nila.)
Problems stem from regulatory systems developed to serve
the needs of large firms and the cumulative pressure of
regulatory requirements. (Ang mga problema ay nagmula sa mga
sistema ng regulasyon na binuo upang maihatid ang mga
pangangailangan ng malalaking kumpanya at ang pinagsamang presyon
ng mga regulasyon na kinakailangan.)
Government are now reducing paperwork and bureaucracy,
minimising administrative burdens, streamlining procedures
and reducing compliance costs for SMEs, including setting
up “one-stop shops”. (Binabawasan ngayon ng gobyerno ang mga
papeles at burukrasya, pinaliit ang mga pasanin sa administrasyon,
nagpapadali sa mga pamamaraan at nagbabawas sa mga gastos sa
pagsunod para sa mga MSME, kabilang ang pagtatayo ng "one-stop
shop".)
The relatively weak bargaining power and generally poor
liquidity of SMEs make the government strongly dependent
on regulatory frameworks(Ang mahihirap na pakikipagdayalogo at
pangkaraniwang mahinang pagbabayad utang ng mga MSME ay
nakapagpapatibay ng gobyerno sa mga balangkas ng regulasyon
They guarantee the reliability of transactions and secure
orderly playing rules in the economy.
ginagarantiya nila ang pagiging maaasahan ng mga transaksyon at
matibay, maayos na paglalaro ng mga panuntunan sa ekonomiya.)
2.2. Promoting enterprise cluster to enhance MSME 4 3 2 1

performance and competitiveness
The government assure that Small firms working in clusters
can attain the advantages of large firms while retaining the
benefits of specialisation and flexibility
(Tinitiyak ng pamahalaan na ang Mga maliliit na kumpanya na
nagtatrabaho sa mga kumpol ay maaaring makamit ang mga
pakinabang ng malalaking kumpanya habang pinapanatili ang mga
benepisyo ng pagdadalubhasa at kakayahang umangkop)
Local, regional and national governments can foster small-
firm linkages through providing the frameworks for public/
private and inter-firm partnerships
(Ang mga lokal, rehiyonal at pambansang pamahalaan ay
makapagpapatibay ng mga ugnayan sa maliit na kumpanya sa
pamamagitan ng pagbibigay ng mga balangkas para sa mga
pakikipagtulungan ng publiko at pribado at inter-firm)
The government role in building clusters is generally indirect
and concerned with supporting skills development and
freeing up resources
(Ang papel ng pamahalaan sa pagbuo ng mga kumpol sa
pangkalahatan ay hindi direkta at nag-aalala sa pagsuporta sa
City of Taguig
pagpapaunlad ng mga kasanayan at pagpapalaya ng mga

mapagkukunan)
The government overcome constraints to greater enterprise
interaction. (Ang pamahalaan ay nagtagumpay sa mga hadlang sa
mas malaking ugnayan ng negosyo)
The governments promotes entrepreneurship, facilitate firm
start-up and expansion, and improve access to venture
capital and other types of financing.
(Ang mga pamahalaan ay nagtataguyod ng entrepreneurship,
nagpapalakas ng matatag na pagsisimula at pagpapalawak, at
pagbutihin ang access sa venture capital at iba pang mga uri ng
financing.
4 3 2 1
2.3. Implementing the SME initiatives and reforms
Governments are mounting specialized services and action
plans. (Ang mga pamahalaan ay nagtataas ng mga dalubhasang
serbisyo at mga plano sa pagkilos)
SME units or agencies are charged with promoting small
business development by providing capital, reforming fiscal
practices, reducing administrative burdens, providing
management and skills training
(Ang mga yunit o ahensya ng SME ay sinisingil sa pagtataguyod ng
maliit na pagpapaunlad ng negosyo sa pamamagitan ng pagbibigay ng
kapital, pagbabago sa mga piskal na kasanayan, pagbabawas ng mga
pasanin sa pamamahala, pagbibigay ng pagsasanay at mga kasanayan
sa pagsasanay)
Improving information dissemination and increasing access
to markets. (Pagpapabuti ng diseminasyon ng impormasyon at
pagtaas ng access sa mga merkado.)
Programmes to increase the technology base of SMEs
include R&D tax credits, loans or grants for innovative
activities, and technology diffusion schemes. (Ang mga
programa upang madagdagan ang base ng teknolohiya ng mga SMEs
ay kinabibilangan ng mga kredito sa R & D na buwis, mga pautang o
mga gawad para sa mga makabagong gawain, at mga pamamaraan ng
pagsasabog ng teknolohiya.)
The government are adopting an “evaluation culture”
whereby programmes are reviewed on a regular basis to
determine their relevance and effectiveness .(Ang pamahalaan
ay nagpapatibay ng isang "kultura ng pagsusuri" kung saan ang mga
programa ay sinusuri nang regular upang matukoy ang kanilang
kaugnayan at pagiging epektibo.)
4 3 2 1
2.4. Providing financial support
DTI-Pondo Para sa Pag-asenso (PPP Development Plan
City of Taguig
(PDP) 2017-2022.
DTI Department Administrative Order No. 14-5 Series
of 2014,Republic Act No. 10644: Go Negosyo Act
APEC_DOST,Competitiveness through Low Carbon
Economy Development of specialized private banks for
MSME financing
DOST such as the Regional Food Innovation Centers FICs).
Diversifying Channels of Financing
Part III. Problems encountered in Micro, Small and Medium Enterprise
Instructions: please rate the following problems encountered the owner of the
Micro, Small and Medium Enterprises in Taguig City by putting check mark to
the corresponding boxes using the following scale.
4 - Very Serious (VS)
3 - Serious (S)
2 - Less Serious (LS)
1 - Not Serious (NS)
4 3 2 1
Indicators
Lack of resources (finance, technology, skilled labor, market
access, and market information).
(Kakulangan ng mga mapagkukunan (pananalapi, teknolohiya,
kasanayan sa paggawa, pag-access sa merkado, at impormasyon sa
merkado).
Lack of economies of scale and scope.
(Kakulangan ng mga ekonomiya ng scale at saklaw.)
Higher transaction costs relative to large enterprises;
(Ang mas mataas na mga gastos sa transaksyon ay may kaugnayan sa
malalaking negosyo)
Lack of networks that can contribute to a lack of information,
know-how, and experience of domestic and international
markets.
(Kakulangan ng mga network na maaaring mag-ambag sa kakulangan
ng impormasyon, kaalaman, at karanasan ng domestic at internasyonal
na mga merkado.)
Increased market competition and concentration from large
multinational enterprises caused by globalization and
economic integration.
(Nadagdagang kompetisyon sa merkado at konsentrasyon mula sa
City of Taguig
malalaking multinasyunal na negosyo na dulot ng globalisasyon at pang-

ekonomiyang pagsasama.)
Inability to compete against larger firms in terms of R&D
expenditure and innovation (product, process, and
organization).
(Kawalang kakayahang makipagkumpetensya laban sa mas malalaking
kumpanya sa mga tuntunin ng paggasta at pagbabago ng R & D
(produkto, proseso, at samahan).
Subject to “churning” and instability. (Napapailalim sa “churning”
at kawalang- tatag)
Lack of entrepreneurial zeal, capacity, and know-how.

(Kakulangan ng entrepreneurial, kapasidad, at kaalman)
Geographical isolation puts them at a competitive
disadvantage (binibigyan sila ng heograpiyang paghihiwalay sa isang
mapagkumpentesyang kawalan.)
Difficulties in accessing finance. (Mga kahirapan sa pag – access
sa pmamalapi.
Lack of information infrastructure for SMEs
Low level of business Research & Development(R&D) in the
MSME business sector, and (Mababang antas ng paghahaloghog
at pagdadalubhasa sa sektor ng negosyo ng MSME, at)
Insufficient use of information technology. (Kakulangan sa
paggamit ng teknolohiya).
Lack of knowledge about the program and trainings given by
local government. (Kakulangan ng kaalaman tungkol sa programa at
mga pagsasanay na ibinigay ng lokal na pamahalaan .)
They are not aware of their rights being MSME.
(Hindi nila alam ang kanilang mga karapatan bilang MSME)
City of Taguig
APPENDIX D
CENTRAL SIGNAL DATA OF MSMEs
No. of Average Average

Type of Business Establishment Micro Small Percentage Percentage
Micro Small
Apartelle 10 6 4 00.76% 00.51%
Apartment 285 245 40 31.25% 05.10%
Bakery 35 30 5 03.83% 00.64%
Buy & Sell 51 33 18 04.21% 02.30%
Laundry 27 26 1 03.32% 00.13%
Sari-sari Store 263 261 2 33.29% 00.26%
Services 48 48 0 06.12% 0%
Restaurant 49 43 6 05.48% 00.76%
Trading 16 3 13 00.38% 01.66%
Total 784 695 89 88.64% 11.36%
Figure 3: Volume number and average percentage of MSMEs on
deferent nature of businesses in Central Signal, Taguig City.
.
Zone Micro Small Medium Total
1 68 14 0 82
2 25 3 0 28
3 94 9 0 103
4 58 6 0 64
City of Taguig
5 102 15 0 117
6 129 19 0 148
7 45 6 0 51
8 58 5 0 63
9 116 12 0 128
Total 695 89 0 784
Figure 4: Zonal Number of MSMEs in Central Signal, Taguig City.
No. of
Type of Business Establishment Micro Small Percentage
Apartelle 10 6 4 1.27%
Apartment 285 245 40 36.35%
Bakery 35 30 5 4.5%
Buy & Sell 51 33 18 6.5%
Laundry 27 26 1 3.43%
Restaurant 49 43 6 6.25%
Sari-sari Store 263 261 2 33.55%
Services 48 48 0 6.12%
Trading 16 3 13 2.03%
Total 784 695 89 100%
Figure 5: Number and Percentage of MSMEs on deferent type of
businesses in Central Signal, Taguig City.
A researcher made-instrument will be used to gather the research data.
The figures show us the MSMEs percentage on the micro and small enterprise,
there was none medium enterprise in Central Signal, Taguig City. The study
covers the period of 2016 to 2018 Data of Barangay Central Signal, Taguig City.
City of Taguig
APPENDIX E
Map of Central Signal Village – Red Line
FIGURE 6: Google Map of Barangay Central Signal, Taguig City.
Barangay Central Signal is part of single Signal Village, Taguig City.
Subdivided into four barangay. The barangay Central Signal, North Signal, South
Signal and Barangay Katuparan, Taguig City.

City of Taguig
APPENDIX F
CURRICULUM VITAE
ROLINDA S. BLANZA
St. Mary St., Zone 1 Central Signal Vill.,Taguig City
Email: rolibla2017@yahoo.com
Cel#: 09052424421/09753058420
Objective:
To use my skills in the best possible way for achieving the company’s
goals, keep up with the cutting edge of technologies and solve problems in an
effective, creative way in a challenging position.
Strength:
Accountant with an excellent track record and working experience,

extremely competitive environments of various reputed companies. A very
performance oriented individual maintaining high standards of professionalism
and dedication for providing timely reports and accurate information to the
company.
Professional Experience:
September 2011 – Present Bing & Ato General Merchandise

Designation Propraetor
City of Taguig
Sept. 2007 – January 2011 Display Ideas Décor L.L.C. Dubai, U.A.E
Designation General Accountant
Duties & Responsibilities:
Preparation of Monthly Financial Statement, accounts up to finalization,

aging of account receivables and account payables, Checking of payroll, report
of actual based costing against average costing. Scrutinizing and reconciling all
the ledger accounts and bank reconciliation.
June 1998 – July 2007 JUMONEART Apart. & Water Services, Inc
Designation Accountant
Preparation of financial statements, internal auditing work, monitoring of

sales, preparation of government requirements.
February 1996 – May 1998 PFEAPI – Marsman Group of Company

Designation Cost Accountant
Preparation of monthly cost of production report, inventory, work in

process and finished good, analysis of direct labor, direct materials and factory
overhead costing proposals of new products, standard and ABC Costing.
August 1992 – January 1996 Columbian Motors Corp.

Designation Cost Accountant
Preparation and submission of Cost of finished products such as CKD,

direct labor and materials, responsible for internal audit of PSPO materials,
Inventory Checking and monitoring, participate in analysis and preparation of
Standard cost.
February 1989 –May 1992 PAHRI Marketing Cooperative

Designation Cashier

City of Taguig
Preparation and submission of sales report , cash and credit sales,

checking and monitoring of remittance from sales man, participate in analysis of
Standard weighed of carcass hogs and percentage of loses from live weight .
Academic Background
March 1979 - Talisay Elementary School

Talisay, Cebu City
March 1984 - Fort Andres Bonifacio College Annex

Signal Village, Taguig City
Bachelor of Science Business Administration - Accounting

March 1988 - Philippine Women’s University (PWU)
Taft, Manila
Master of Business Administration

June 2016 up to present Taguig City University
Certificate of Eligibility (Philippines) Exam no. 262282WE May 13, 1997
Computer Proficiency:
Good Knowledge in Ms Office (Excel, Word, Power point), Accounting software

such as Peach Tree, Quick Books and Tally 9
Personal Information:
Date of Birth 09 August 1965

Nationality Filipino
Sex Female
Marital Status Married
Religion Roman Catholic
Languages Known English, Tagalog &Visayas
Character References:
Isabelita S. Japitana
Business Woman (Propretor of Herbel Apartelle)
09202230816
City of Taguig
Ma. Teresa B. De los Santos

Principal (Las Pinas National High School)
09667058772
I hereby declare that all the above statements are true and correct to the
best of my knowledge and belief.
Ms. Rolinda S. Blanza

City of Taguig
City of Taguig
City of Taguig

Congress of the Philippines
Metro Manila
Fourteenth Congress
First Regular Session
Begun and held in Metro Manila, on Monday, the twenty-third day of July, two thousand
seven.
Republic Act No. 9501 May 23, 2008
AN ACT TO PROMOTE ENTREPRENEURSHIP BY STRENGTHENING DEVELOPMENT

AND ASSISTANCE PROGRAMS TO MICRO, SMALL AND MEDIUM SCALE
ENTERPRISES, AMENDING FOR THE PURPOSE REPUBLIC ACT NO. 6977, AS
AMENDED, OTHERWISE KNOWN AS THE "MAGNA CARTA FOR SMALL
ENTERPRISES" AND FOR OTHER PURPOSES
Be it enacted by the Senate and House of Representatives of the Philippines in Congress

assembled::
SECTION 1. Section 1 of Republic Act No. 6977, as amended, is hereby further amended to
read as follows:
"SECTION 1. Title. - This Act shall be known as the "Magna Carta for Micro,
Small and Medium Enterprises (MSMEs)".
SEC. 2. Section 2 of the same Act is hereby amended to read as follows:
"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 recognize
the specific needs of the MSMEs and shall undertake to promote
entrepreneurship, support entrepreneurs, encourage the establishments of
MSMEs and ensure their continuing viability and growth and thereby attain
countryside industrialization by:
"a) intersifying and expanding programs for training in

entrepreneurship and for skills development for labor;
City of Taguig
"b) facilitating their access to sources of funds;
"c) assuring to them access to a fair share of governments 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 establishments 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 balance 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."
SEC. 3. Section of the same Act, as amended, is hereby further amended to read as follows:
"SEC. 3. Micro, Small and Medium Enterprises (MSMEs) as Beneficiaries. -

MSMEs shall be defined as any business activity or enterprise engaged in
industry, agribusiness and/or services, whether single proprietorship,
cooperative, partnership or corporation whose total assets, inclusive of those
arising from loans but exclusive of the land on which the particular business
entity's office, plant and equipment are situated, must have value falling
under the following categories:
micro: not more than P3,000,000
small: P3,000,001 - 15,000,000
medium: P15,000,001 - P1000,000,000
"The above definitions shall be subject to review and adjustments by the

Micro, Small and Medium Enterprises Development (MSMED) Council under
City of Taguig
Section 6 of this Act or upon recommendation of sectoral organizations

concerned, taking into account inflation and other economic indicators. The
Council may use other variables such as number of employees, equity capital
and assets size.
"The Council shall ensure that notwithstanding the plans and programs set
for MSMEs as a whole, there shall be set and implemented other plans and
programs varied and distinct from each other, according to the specific needs
of each sector, encouraging MSMEs to graduate from one category to the
next or even higher category."
SEC. 4. Section 4 of the same Act, as amended, is hereby further amended to read as
follows:
"SEC. 4. Eligibility for Government Assistance. - To qualify for assistance,

counseling, incentives and promotion under this Act, businesses falling under
the above definition must be:
"a) duly registered with the appropriate agencies as presently

provided by law: Provided, That in the case of micro enterprises as
defined herein, registration with the office of the municipal or city
treasurer shall be deemed sufficient compliance with this
requirement;
"b) one hundred percent (100%) owned, capitalized by Filipino

citizens, whether single proprietorship or partnership. If the enterprise
is a juridical entity, at least sixty percent (60%) of its capital or
outstanding stock must be owned by Filipino citizens;
"c) a business activity within the major sectors of the economy,

namely; industry, trade, services, including the practice of one's
profession, the operation of tourism-related establishments, and agri-
business, which for purposes of this Act refers to any business
activity involving the manufacturing, processing, and/or production of
agricultural produce; and
"d) it must not be a branch, subsidiary or division of a large scale

enterprise.
"However, this requirement shall not preclude MSMEs from accepting

subcontracts and entering into franchise partnership with large enterprises or
from joining in cooperative activities with other MSMEs.
"Program of the Small Business Corporation (SB Corporation) as provided in

subsequent provisions of this Act shall be exclusively delivered and directed
to bonafide MSMEs.
City of Taguig
"Any MSME, its directors, officers or agents, found to have committed fraud
or misrepresentation for the purpose of availing the benefits under this Act
shall be immediately disqualified as a beneficiary, without prejudice to any
administrative, criminal or civil liability under existing laws.
"Eligible MSMEs shall be entitled to a share of at least ten percent (10%) of

total procurement value of goods and services supplied to the Government,
its bureaus, offices and agencies annually.
"The Department of Budget and Management shall monitor the compliance of

government agencies on the required procurement for MSMEs and submit its
report to the MSMED Council on a semestral basis and to the Congress of
the Philippines, through its appropriate committees on a yearly basis."
SEC. 5. Section of the same Act, as amended, is hereby further amended to read as follows:
SEC. 5. Guiding Principles. - To set the pace for MSME development, the
State shall be guided by the following principles:
"x x x
"c) Coordination of government efforts. Government efforts shall be

coordinated to achieve coherence in objectives. All appropriate offices,
particularly those under the Departments of Trade and Industry, Finance,
Budget and Management, Agriculture, Agrarian Reform, Environment and
Natural Resources, Labor and Employment, Transportation and
Communications, Public Works and Highways, Science and Technology,
Interior and Local Government and Tourism as well as the National Economic
and Development Authority, Philippine Information Agency and the Bangko
Sentral ng Pilipinas, through their national, regional and provincial offices
shall, to the best of their efforts and in coordination with local government
units, provide the necessary support and assistance to MSMEs.
x x x."
SEC. 6. A new section, numbered Section 6 is hereby inserted after Section 5 of the same
Act, to read as follows:
"SEC. 6. Micro, Small and Medium Enterprises Development Plan

(MSMEDP). - The President shall approve a six-year micro, small and
medium enterprises development plan prepared by the Department of Trade
and Industry (DTI) which shall form part of the Medium Term Philippine
Development Plan (MTPDP). It shall be formulated in consultation with the
private sector, validated and updated semestrally. Such plan shall include a
component on a micro credit financing scheme."
City of Taguig
SEC. 7. Section 6 of the same Act is hereby renumbered as Section 7 and further mended to
read as follows:
"SEC. 7. Micro, Small and Medium Enterprise Development (MSMED)

Council. - The existing Small and Medium Enterprise Development Council,
which was created by Republic Act No. 6977, as amended by Republic Act
No. 6977, as amended by Republic Act No. 8289, shall be strengthened to
effectively spur the growth and development of MSMEs throughout the
country, and to carry out the policy declared in this Act and shall now be
known as the Micro, Small and Medium Enterprise development (MSMED)
Council. The Council shall be attached to the Department of Trade and
Industry and shall be constituted within sixty (60) days after the approval of
this Act."
"x x x."
SEC. 8. Section 7 of the Act, as amended, is hereby renumbered as Section 7-A and further
amended to read as follows:
"SEC. 7-A. Composition. - The Council shall be headed by the Secretary of

Trade and Industry as Chairman, and may elect from among themselves a
Vice-chairman to preside over the Council meetings in the absence of the
Chairman. The members shall be the following:
"a) Secretary of Agriculture;
"b) Secretary of the Interior and Local Government;
"c) Secretary of Science and Technology;
"d) Secretary of Tourism;
"e) Chairman of Small Business Corporation;
"f) Three (3) representatives from the MSME sector to represent

Luzon, Visayas and Mindanao;
"g) One representative from the labor sector, to be nominated by

accredited labor groups; and
"h) A representative from the private banking sector; to serve

alternately among the Chamber of Thrift Banks; the Rural Bankers'
Association of the Philippines (RBAP); and the Bankers; Association
of the Philippines (BAP).
City of Taguig
"All members of the Council so appointed, except from the ex officio

members, shall serve for a term of three (3) years. The person so appointed
to replace a member who has resigned, died, or been removed for cause
shall serve only for the unexpired portion of the term.
"The private sector members of the Council shall receive per diem of Two
thousand pesos (P2,000) per meeting, for a maximum of twenty-four (24)
meetings per year, which per diem may be adjusted by the MSMED Council
as appropriate.
"The Council may call upon the participation of any national or local
government agency, association of local government officials or private
sector organization in its deliberations especially when such agency or
private sector or organization in its deliberations especially when such
agency or private sector organizations directly or indirectly concerned with
and/or affecting the growth and development of MSMEs in any particular
area or manner.
"The Council may create an Executive Committee of five (5) members

elected by the Council from among themselves or their designated
permanent representatives, with at least two (2) members representing the
private sector, and with authority to act for and on behalf of the Council
during intervals of council meetings, and within the specific authority granted
by the Council."
SEC. 9. Section 8 of the same Act, as amended, is hereby renumbered as Section 7-B and
further amended to read as follows:
"SEC. 7-B Power and Functions. - The MSMED Council shall have the
following powers, duties and functions:
"a) To help establish the needed environment and opportunities conducive to

the growth and development of the MSME sector;
"b) To recommend to the President and the Congress all policy matters
affecting MSMEs;
"c) To coordinate and integrate various government and private sector

activities relating to MSME development;
"d) To review existing policies of government agencies that would affect the
growth and development of MSMEs and recommend changes to the
President and Congress through the Committee on Economic Affairs of the
Senate and the Committee on Small Business and Entrepreneurship
Development of the House of Representatives. Whenever deemed
necessary. This shall include efforts to simplify rules and regulations, as well
as review of the applicability in the registration, financing, and other activities
City of Taguig
relevant to MSMEs the result shall be included in the annual report to be

submitted to Congress;
"e) To monitor and determine the progress of various agencies geared

towards the development of the sector. This shall include overseeing, in
coordination with local government units and the Department of Interior and
Local Government as well as private sector groups/association, the
development among MSMEs;
"g) To provide the appropriate policy and coordinative framework in assisting

relevant government agencies, in coordination with the NEDA and the
Coordinating Council for the Philippine Assistance Program, as may be
necessary, in the tapping of local and foreign fund's for MSME development;
"h) To promote the productivity and viability of MSMEs by way of directing

and/or assisting relevant government agencies and institutional at the
national, regional and provincial level towards the:
"1) Provision of business training courses, technical training for

technicians and skilled laborers and continuing skills upgrading
programs;
"2) Provision of labor-management guidance, assistance and

improvement of the working conditions of employees in MSMEs;
"3) Provision of guidance and assistance regarding product

quality/product development and product diversification;
"4) Provision of guidance and assistance for the adoption of improved

production technique and commercialization of appropriate
technologies for the product development and for increased utilization
of indigenous raw materials;
"5) Provision of assistance in marketing and distribution of products

of MSMEs through local supply-demand information, industry and
provincial profiles, overseas marketing promotion, domestic market
linkaging and the establishment of common service facilities such as
common and/or cooperative bonded warehouse, grains storage,
agro-processing and drying facilities, ice plants, refrigerated storage,
cooperative trucking facilities, etc;
"6) Intensification of assistance and guidance to enable greater

access to credit through a simplified multi-agency financing program;
to encourage development of other modes of financing such as
leasing and venture capital activities; to provide effective credit
guarantee systems, and encourage the formation of credit guarantee
City of Taguig
associations, including setting up credit records and information

systems and to decentralize loan approval mechanism;
"7) Provision of concessional interest rates, lower financing fees,

which may include incentives for prompt credit payments,
arrangements tying amortizations to business cash flows, effective
substitution of government guarantee cover on loans for the
borrower's lack of collateral;
"8) Provision of bankruptcy preventive measures through the setting

up of a mutual relief system for distressed enterprises, and the
establishment of measures such as insurance against extraordinary
disasters;
"9) Intensification of information dissemination campaigns and

entrepreneurship education activities;
"10) Availment of and easier access to tax credits and other tax and
duty incentives as provided by the Omnibus Investment Code and
other laws;
"11) Provision of support for product experimentation and research

and development activities as well as access to information on
commercialized technologies; and
"12) Through appropriate government agencies:
"a) Provide more infrastracture facilities and public utilities to

support operations of MSMEs;
"b) Establish, operate, and administer a small business

incubation program in coordination with academic institutions,
Department of Science and Technology and other appropriate
government entities that will provide space for start-up and
expanding firms, shared use of equipment and work areas,
daily management support services essential to high-quality
commercial operations, technical assistance and other
services to develop innovative and deserving MSMEs;
"d) Provide local and international network and linkages for

MSME development;
"e) Compile and integrate statistical databank on Philippine

MSMEs;
"f) Sept-up new MSME centers and revitalize already

established MSME centers to provide MSMEs in the regions
City of Taguig
easier access to services such as, but not limited to, the
following:
"i. Accept and act on all registration application of

MSMEs;
"ii. Streamline registration process and facilitate

speedy registration for the establishment of business
enterprises in the country;
"iii. Provide all information and referral services it shall

deem necessary or essential to the development and
promotion of MSMEs;
"iv. Conduct other programs and development

programs, training, advice, consultation on business
conceptualization and feasibility, financing,
management, capacity building, human resources,
marketing, and such other services to support the
needs of MSMEs;
"v. Provide courses and development programs,

training, advice, consultation on business
conceptualization and feasibility, financing,
management, and such other services to support the
needs of MSMEs;
"g) To submit to the President and the Congress through the

OVERSIGHT Committee as defined under this Act, a yearly
report on the status of MSMEs in the country, including the
progress and impact of all relevant government policies,
programs and legislation as well as private sector activities;
"h) To coordinate, monitor and assess the implementation of

the MSMEDP, and when necessary, institute appropriate
adjustments thereon in the light of changing conditions in both
domestic and international environment; and
"i) Generally, to exercise all powers and functions necessary

for the objectives and purposes of this Act."
SEC. 10. Section 9 of the same Act, as amended, is hereby renumbered as Section 8 and
amended to read as follows:
"SEC. 8. Designation of the Bureau of Micro, Small and Medium Enterprise

Development as Council Secretariat. - The Bureau of Small and Medium
Business Development (BSMBD) hereinafter referred to as the Bureau of
City of Taguig
Micro, Small and Medium Enterprise Development (BMSMED) is hereby

designated to act as the Council Secretariat and shall have the following
duties and functions:
"x x x"
SEC. 11. A new section is hereby inserted after Section 9 of the same Act, as amended, and
numbered as Section 9 to read as follows:
"SEC. 9. Appropriations. - to finance its activities and operational expenses,

the Council shall have a separate annual appropriation approved by the
Department of Trade and Industry (DTI) which shall be provided in the
General Appropriation Act starting in the fiscal year immediately following the
approval of this Act. The Council may also accept contributions from the
private sector."
follows:
"SEC. 10. Rationalization of Existing MSME Programs and Agencies. - The

MSMED Council shall conduct continuing review of government programs for
MSMEs and submit to Congress and the President a report thereon together
with its policy recommendation."
follows:
"SEC. 11. Creation of Small Business Guarantee and Finance Corporation. -

There is hereby created a body corporate to be known as the Small Business
Guarantee and Finance Corporation, hereinafter referred to as the Small
Business Corporation (SB Corporation), which shall be charged with the
primary responsibility of implementing comprehensive policies and programs
to assist MSMEs in all areas, including but not limited to finance and
information services, training and marketing."
SEC. 14. A new sub-section is inserted after Section 11 of the same Act, as amended, to
read as follows:
"SEC. 11. Composition of the Board of Directors and its Powers. - The SB
Corporation corporate powers shall be vested on a Board of Directors
composed of eleven (11) members which shall include the following:
"a) The Secretary of Trade and Industry;
"b) The Secretary of Finance;

City of Taguig
"c) A private sector representative to be appointed by the President

upon the recommendation of the MSMED Council;
"d) Seven (7) representatives of the SB Corporation common stock

shareholders who shall be elected based on proportional distribution,
in accordance with Section 24 of the Corporation Code; and
"e) The president of the SB Corporation as ex-officio member and to

serve as vice chairman of the Board.
"The President shall appoint the chairman of the Board from among its
members.
"All members of the Board so appointed, except for the ex-officio members,
shall serve for a term of three (3) without reappointment. The person so
appointed to replace a member who has resigned, died, or been removed for
cause shall serve only for the unexpired portion of the term.
"The Board of Directors shall have, among others, the following specific
powers and authorities:
"a) Formulate policies necessary to carry out effectively the

provisions of this charter and to prescribe, amend and repeal by-laws,
rules and regulations for the effective operations of the small
business corporation;
"b) Establish such branches, agencies and subsidiaries as may be

deemed necessary and convenient;
"c) Compromise or release, in whole or in part, any claim or liability

whatsoever for or against the SB Corporation, including interest,
penalties, fees and/or charges in accordance to its own by-laws and
Bangko Sentral ng Pilipinas rules;
"d) Fix the features on non-voting preferred shares which shall be

printed on the stock certificates evidencing the same;
"e) Exercise all such other powers as may be necessary or incidental

to carry out the SB Corporation's purposes; and
"f) Notwithstanding the provisions of Republic Act No. 6758 and

Compensation Circular No, 10, Series of 1989 issued by the
Department of Budget and Management, the Board shall have the
authority to provide for the organizational structure and staffing
pattern of SB Corporation and to extend to the employees and
personal thereof salaries, allowances and fringe benefits similar to
City of Taguig
those extended to and currently enjoyed by employees and personal

of other financial institutions."
SEC. 15. A new sub-section is hereby inserted after Section 11 of the same Act, as
amended, to read as follows:
"SEC. 11-B Corporate Structure and Powers. - The SB Corporation shall:
"a) be administratively attached to the Department of Trade and

Industry and shall be under the policy and program supervision of the
MSMED Council;
"b) have its principal offices in Metro Manila and whenever necessary,
establish branch office in the provinces; and
"c) exercise all the general powers expressly conferred by law upon
corporations under the Corporation Code, including those powers
that are incidental or necessary to the attainment of the objective of
this Act.
"For this purpose, the SB Corporation subject to compliance with the rules
and regulations to be issued by the Bangko Sentral ng Pilipinas (BSP) and
the Securities and Exchange Commission, shall have the following functions
and duties:
"a) Source and adopt development initiatives for globally competitive

MSMEs in finance and business technologies;
"b) To extend all forms of financial assistance to eligible MSMEs. SB

Corporation may also engage in wholesale lending. The SB
Corporation shall be given two (2) years from the effectivity of this Act
to comply with this requirement;
"c) Guarantee loans obtained by qualified MSMEs under such terms

and conditions adopted by the SB Corporation Board of Directors;
"d) Hold, purchase, lease or otherwise acquire and own real and
personal property, introduce necessary improvements thereon and to
sell, mortgage, encumber or otherwise dispose of the same as may
be necessary in the normal course of business;
"e) Formulate means and methods of accepting alternative collaterals

and implementing alternative loan evaluation models;
"f) Apply for, receive and accept grants and donations from sources
within and outside the country; and
City of Taguig
"g) Hold, own, purchase, acquire, sell, mortgage, dispose or

otherwise invest or re-invest in stocks, bonds, treasury bills,
debentures, securities and similar forms of indebtedness of the
government, its agencies and instrumentalities or any government
financial institution."
follows:
"SEC. 12. Capitalization and Funding of the SB Corporation. - The SB

Corporation shall have an authorized capital stock of Ten billion pesos
(P10,000,000,000.00). The initial capital of One billion pesos
(10,000,000,000.00) shall be established from a pool of funds to be
contributed in the form of equity investment in common stock by the Land
Bank of the Philippines (LBP), the Development Bank of the Philippines
(DBP), in the amount of Two hundred million pesos (P200,000,000.00) each.
the Social Security System (SSS) and the Government Service Insurance
System (GSIS) shall also set aside Two hundred million pesos
(P200,000,000.00) each for the SB Corporation. Authorized capital stock of
the small business corporation shall be divided into 80,000,000 common
shares and 20,000,000 preferred shares with a par value of One hundred
pesos (P100.00) per share: Provided, That common shares, which have
been issued, including those issued against assets of the KKK Guaranty
Fund consolidated under the small business corporation by virtue of
Executive Order No. 233, Series of 2000 and Executive Order No. 19, Series
of 2001 and including those already subscribed, shall form part of the
capitalization of the corporation: Provided, further, That holders of preferred
shares issued under Republic Act No. 6977, as amended, shall have the
option to convert the same into common shares. Additional equity shall come
from trust placements of excess and unused funds of existing government
agencies, bilateral and multilateral official development assistance funds,
subscriptions from government owned or controlled corporations, and
investments of private financial institutions and corporations: Provided, finally,
That any investment from the private sector shall only be in the form of
preferred shares.
"To allow for capital build-up, SB Corporation shall be given a five (5) year
grace period on dividend commitments beginning on the date of effectivity of
this amendment. Thereafter, it may only declare as dividend not more than
thirty percent (30%) of its net income and the rest withheld as retained
earnings."
SEC. 17. New sections are hereby inserted after Section 12 of the same Act, as amended, to
read as follows:
City of Taguig
"SEC. 13. The SB Corporation shall be subject to the supervision and

examination of the Bangko Sentral ng Pilipinas taking into consideration its
development objectives."
"SEC. 14. Venture Capital and Micro Finance Trust Fund. - The SB
Corporation may set aside an amount of money to encourage the setting up
of a venture capital and micro finance trust fund for the purpose of promoting
business opportunities available of MSME sector. The Venture Capital Fund
shall be used mainly for venture capital finance especially in technology-
oriented industries. The micro finance trust fund shall be used to provide
collateral-free fixed and working capital loans to micro and small enterprises
run by those emerging out of poverty."
SEC. 18. Section 13 of the same Act, as amended, is hereby renumbered as Section 15, and
further amended to read as follows:
"SEC. 15. Mandatory Allocation of Credit Resources to Micro Small and

Meduim Enterprises. - For the period of ten (10) years from the date of the
effectivity of this amendatory Act, all lending institutions as defined under
Bangko Sentral ng Pilipinas rules, whether public or private, shall set aside at
least eight percent (8%) for micro and small enterprises of their total loan
portfolio based on their balance sheet as of the end of the previous quarter,
and make it available for MSME credit as herein contemplated.
"Compliance of this provision shall be:
"a) actual extension of loans to eligible MSMEs; or
"b) actual subscription of preferred shares of shares of stock of the

SB Corporation; or
"c) wholesale lending to Participating Financial Institutions (PFIS) for

on-lending to MSMEs; or
"d) purchase/discount of MSMEs receivables; or
"e) loans granted to export, import, and domestic traders subject to

compliance with Section 3 of this Act; or
"f) subscribed/purchase of liability instruments as may be offered by

the SB Corporation.
"The Bangko Sentral ng Pilipinas shall formulate rules for the effective
implementation of this provision: Provided, That the purchase of government
notes, securities and other negotiable instruments shall not be deemed
compliance with the foregoing provisions: Provided, further, That the Bangko
Sentral ng Pilipinas shall establish an incentive program to encourage
City of Taguig
lending to micro, small and medium industries beyond the mandatory credit
allocation to said enterprises, such as possible reduction in bank's reserve
requirement.
"The MSMED Council shall set up the appropriate systems to monitor all loan
applications of MSMSEs in order to account for the absorptive capacity of the
MSME sector.
"The Bangko Sentral ng Pilipinas shall furnish to the MSMED Council on a

quarterly basis comprehensive reports on the banks' compliance,
noncompliance and penalties of the above provisions on the mandatory
credit allocation for MSMEs.
"Lending institutions which are not qualified to acquire or hold lands of the
public domain in the Philippines shall be permitted to bid and take part in
sales of mortgaged real property in case of judicial r extra-judicial
foreclosure, as well as avail of receivership, enforcement and other
proceedings, solely upon default of a borrower, and for a period not
exceeding five (5) years from actual possession: Provided, That in no event
shall title to the property be transferred to such lending institution. If the
lending institution is the winning bidder, it may, during said five (5) year
period, transfer its rights to a qualified Philippine national, without prejudice to
a borrower's right under applicable laws."
SEC. 19. New sections to be numbered as Section 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."
"SEC. 18. Congressional Oversight Committee. - To monitor and oversee the

implementation of this Act, there shall be a Congressional Oversight
Committee on Micro, Small and Medium Enterprise Development (COC-
MSMED) composed of the chairpersons of the Senate Committee on
Economic Affairs and the House Committee on Small Business and
City of Taguig
Entrepreneurship Development as chairperson and co-chairperson,

respectively; five (5) members of each of the Senate and House of
Representatives to include the chairpersons of the Senate committees on
Trade and Commerce; and Banks, Financial Institutions and Currencies; and
the chairpersons of the House of committees on Trade and Industry, Banks
and Financial Intermediaries, and Appropriations: Provided, That two (2) of
the five Senators and two (2) of the five House members shall be nominated
by the respective minority leaders of the Senate and the House of
Representatives.
"The COC-MSMED shall set the guidelines and overall framework for the
monitoring of the implementation of this Act and shall adopt its internal rules
of procedure. The Secretariat of the COC-MSMED shall be drawn from the
existing personnel of the Senate and House of Representatives committees
compromising the COC-MSMED."
SEC. 20. Section 14 of the same Act, as amended, on Penal Clause is hereby renumbered
as Section 19, and further amended, to read as follows:
"x x x"
"Penalties on noncompliance shall be directed to the development of the

MSME sector. Ninety percent (90%) of the penalties collected should go to
the MSMED Council Fund, while the remaining ten percent (10%) should be
given to the BSP to cover for administrative expenses."
SEC. 21. A new section is hereby inserted after Section 14 of the same Act, to read as
follows:
"SEC. 20. Implementing Rules and Regulations. - The Department of Trade

and Industry, through the Bureau of Micro, Small and Medium Business
Development in consultation with other concerned government agencies,
nongovernment organizations and private sector involved in the promotion of
MSMEs, shall formulate the implementing Rules and Regulations (IRR)
necessary to implement the provisions of this Act within ninety (90) days from
the approval of this Act. The IRR issued pursuant to this Section shall take
effect thirty (30) days after publication in a national newspaper of general
circulation."
SEC. 22. Separability Clause. - The provisions of the Act are hereby declared to be
separable. If any provision of this Act shall be held unconstitutional, the remainder of the Act
not otherwise affected shall remain in full force and effect.
SEC. 23. Repealing Clause. - All laws, executive orders, rules and regulations, or parts
thereof, inconsistent herewith are hereby repealed or modified accordingly.
City of Taguig
SEC. 24. Effectivity Clause. - This Act shall take effect within fifteen (15) days from its
publication in at least two (2) national newspaper of general circulation.
Approved,
(Sgd.) PROSPERO C. NOGRALES (Sgd.) MANNY VILLAR

Speaker of the House of President of the Senate
Representatives
This Act which is a consolidation of Senate Bill No. 1646 and House Bill No. 1754 was finally
passed by the Senate and the House of Representatives on March 3, 2008 and February 27,
2008, respectively.
(Sgd.) MARILYN B. BARUA-YAP (Sgd.) EMMA LIRIO-REYES

Secretary General Secretary of Senate
House of Represenatives
Approved: May 23, 2008
(Sgd.) GLORIA MACAPAGAL-ARROYO

President of the Philippines
The Lawphil Project - Arellano Law Foundation

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Republic of the Philippines

THE PROBLEM AND ITS BACKGROUND

The Department of Trade and Industry is the government agency in charge

most especially in financial aspects to enhance the newly existing businesses in

society, much less to our barangay.in particular. This is the researcher’s

references with the support of the Department of Trade and Industry .

Micro, Small and Medium Enterprises in Barangay Central Signal, in terms of

the efforts of the Philippine government under President Gloria Macapagal

9501 also known as The Magna Carta, An Act to promote Entrepreneurship by

Strengthening Development and assistance Programs to Micro, Small and

Medium Enterprises. (MSMEs)

Background of the Study

Kapatid Mentor Micro Entrepreneurs Program (KMME).

Philippine President Duterte is inclined to “double or triple” government assistance

to the development of local small businesses and improvement of their competitiveness.

solutions to the problem of our country in terms of unemployment, poverty and

employment to our generation. Thereby, showing solutions to the poverty

performance for global competitiveness. .

The growth and advancement of the MSMEs sector was developed in

government agencies. It is aligned with the Philippine government’s goal of

boosting employment, business, and livelihood or

“Trabaho, Negosyo, Kabuhayan” translating to “Malasakit”, “Pagbabago”, at

“Patuloy na Pag-unlad” of the Philippine Development Plan (PDP) 2017-

Agenda for Development presented by President Rodrigo R. Duterte at his first

State of the Nation Address on 25 July 2016. It was also developed in

statement for Philippine development formulated by the National Economic and

Development Authority (NEDA) in March 2016.

regionally integrated, resilient, sustainable and innovative thereby performing as

key drivers of inclusive Philippine economic growth.” It had focused areas,

namely: business environment, business capacity, and business opportunities

enhanced management and labor capacities; improved access to technology and

innovation; and improved access to market.

This study will determined the Assessment on Department of Trade and

Industry Support Enhancement.

well as rules on the MSMEs enterprises assistance of the government.

only qualify for registration if it is not a branch, subsidiary, division or office of a

determined by a large scale enterprise or by persons who are not owners or

not eligible to register as a BMBE.

In other words, a business or activity may be eligible to register as BMBE if

processing, or manufacturing of products, including agro-processing, as well as

and equipment are located; the business enterprise or service provider, in

connection with his or her exercise of profession, is not a professional who is

duly licensed by the government after having passed a government licensure

a branch, subsidiary, division or office of a large scale enterprise or it is not a

The Philippines has two operational definitions of small and medium

enterprises. Based on employment which is the most commonly used definition

enterprises: 1-9 employees Small enterprises, 10-99 employees Medium: 100-

199 employees Large: 200 or more employees. In terms of number of

establishments; micro, small, and medium enterprises (MSMEs) dominate the

Enterprises by Mike Clayton, September 2011. This model is a graph-based

diagram template for describing an expanding or extending relationship between

Figure 1. Onion Model for Micro, Small and Medium Enterprises

Professional Network, Enterprise Characteristics and Entrepreneur

Industry means of finance, Technology, Skilled Labor, Trainings, Market Access,

smaller firms; Promoting enterprise cluster to enhance MSMEs performance and

competitiveness; Implementing the MSMEs initiatives and reforms; and providing

Government policy initiatives should take account of regional and local

factors which affect entrepreneurship and build on these particularities to foster

small-firm partnerships. Policies should use local institutions, groups of industries

underpin global competitiveness. Building on local strengths, MSMEs policies

need to address the new dynamics of entrepreneurship and small-firm clusters to

meet the challenges posed by globalising economies as emphasized by

Organization for Economic Cooperation and Development (OECD) in 2018.

Small firms need to upgrade their management skills, their capacity to