University of Santo Tomas

College of Commerce and Business Administration

Marketing Management Department
1st Term AY 2023-2024

Assessment of Learning for Module 1

Name:_____________________________ Section:________ Date:___________ Score:___________

Part 1. Multiple Choice

Direction: Read each question carefully. Choose the letter that corresponds to the correct answer and
write it on the blank provided before the number. Two (2) points each answer.

B. 1. A form of enterprise wherein has a capitalization of up to P3,000,000.00 and has less

than 10 employees.

A. Medium Enterprise B. Micro Enterprise C. Small Enterprise D. Super Enterprise

C. 2. A form of enterprise wherein has a capitalization off P3,000,000.00 up to

P15,000,000.00 and has ten (10) to ninety-nine (99) employees.

A. Medium Enterprise B. Micro Enterprise C. Small Enterprise D. Super Enterprise

A. 3. A form of enterprise wherein has a capitalization has a capitalization of

P15,000,001.00 to P100,000,000.00 with more than one hundred (100) employees.

A. Medium Enterprise B. Micro Enterprise C. Small Enterprise D. Super Enterprise

A. 4. A form of contribution of an MSME in the country wherein generation of job

opportunities are observed.

A. Economic Contribution B. Export Contribution C. Small Mean D. Super Enterprise

B. 5. A form of contribution of an MSME that can contribute in exports through a

subcontracting arrangement with large firms, or as suppliers to exporting companies.

A. Economic Contribution B. Export Contribution C. Small Mean D. Super Enterprise

Part 2. Essay

1. What is an Enterprise and how the Magna Carta for MSME is crafted?

An enterprise is a business entity engaged in various economic activities aimed at

producing goods or providing services for profit. It can encompass a wide range of
businesses, from small family-owned shops to large multinational corporations.
Enterprises play a crucial role in the economy by generating employment opportunities,
contributing to economic growth, and fostering innovation.

Over an extended period, foreign investors and multinational corporations have

harnessed the abundant labor resources in the Philippines. They pay these workers very

Modules in ELE-MSME Page |1

UST College of Commerce and Business Administration
 University of Santo Tomas
College of Commerce and Business Administration
Marketing Management Department
1st Term AY 2023-2024
little while making big profits. To prevent talented Filipinos from leaving the country and
to create more jobs at home, the Philippine government passed a law called Republic Act
(RA) 6977, which is known as the Magna Carta for Small Enterprises. This law
encourages the growth of Small and Medium Enterprises (SMEs) (Francisco, 2022).The
Magna Carta for SMEs is an important law that was made by the Philippine Congress in
1991, and it has been updated with other laws since then. Its main goal is to help
Filipinos start and grow small businesses by creating a good environment for them. One
of the key things it does is set up Negosyo Centers through the Small and Medium
Enterprise Development (SMED) Council, which works with the Department of Trade
and Industry (DTI) (Tibaldo, 2019).

The government to support, strengthen and promote the development of SMEs by:

 Providing a conducive business environment for them

 Providing easier access to finance
 Creating linkages between SMEs and larger organizations
 Reinforcing partnership between government and the private sector
 Providing entrepreneurship training and skills learning platforms

2. What are the government agencies that help an entrepreneur in a business? (expound you
answer)

There are several government agencies in the country that are dedicated to assisting
entrepreneurs and businesses. These agencies provide a range of services, support, and
regulatory guidance to help entrepreneurs start, operate, and expand their businesses. Here are
some examples of agencies:

DOLE (Department of Labor and Employment):

DOLE enforces labor laws, helping entrepreneurs establish fair employment practices,
ensuring a motivated workforce, and preventing disputes.

SEC (Securities and Exchange Commission):

SEC facilitates business registration, enhancing transparency and investor confidence for
entrepreneurs, thereby attracting partners and investors.

SSS (Philippine Social Security System):

SSS provides social security benefits, aiding entrepreneurs in attracting and retaining
talent by offering employees access to retirement and health benefits.

HDMF (Home Development Mutual Fund):

HDMF offers housing loans and calamity relief, indirectly benefiting entrepreneurs
through improved employee financial stability and job satisfaction.

PhilHealth (Philippine Health Insurance Corporation):

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UST College of Commerce and Business Administration
 University of Santo Tomas
College of Commerce and Business Administration
Marketing Management Department
1st Term AY 2023-2024
PhilHealth provides basic health insurance, reducing entrepreneurs' healthcare costs and
contributing to a healthier, more productive workforce.

DTI (Department of Trade and Industry):

DTI simplifies business registration, promotes investment, and ensures product quality,
benefiting entrepreneurs through ease of starting a business, access to incentives, and market
credibility (FilePino Inc., n.d.).

3. What does the Philippine government do to assist entrepreneurs?

They provide programs for entrepreneurs such as:

The Negosyo Center, part of the Go Negosyo Act, helps MSMEs connect with buyers.
Located in various places, they assist entrepreneurs by fast-tracking business registration,
offering information, training, financing, and marketing support, and helping access grants. They
are vital hubs for MSMEs across the country.

Go Lokal! is a program from the DTI that helps MSMEs selling regional or traditional products.
It partners with malls like Ayala, Duty-Free, and Robinsons to display local items. While online
platforms like Shopee and Lazada are useful, mall displays offer convenience and credibility.
Eligible MSMEs can find application forms on the DTI website and submit them to the nearest
Negosyo Center for consideration.

Pondo sa Pagbabago at Pag-Asenso (P3) is a program in the Philippines that helps micro-
businesses secure loans when traditional banks say no. Through P3, MSME owners can borrow
up to PHP200,000 at a low-interest rate of 2.5% per month from partner microfinance
institutions. The program also provides additional training and knowledge to borrowers. You can
find application forms on the Small Business Corporation website.

MSME Disaster Resiliency is a project led by the DTI and partners to help small businesses
prepare for natural disasters. It educates owners, offers technical support, supports government
initiatives, and shares knowledge regionally (Team Ninja, 2023.

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UST College of Commerce and Business Administration
 University of Santo Tomas
College of Commerce and Business Administration
Marketing Management Department
1st Term AY 2023-2024

References

FilePino Inc. (n.d.). Philippine Government Agencies Involved in Business. Filepino.

https://www.filepino.com/government-agencies-philippines/

Francisco, L. (2022, September 29). Know Your SME Law: Magna Carta. CreditBPO. Retrieved

September 20, 2023, from https://www.creditbpo.com/blog/know-your-sme-law-magna-carta

Team Ninja. (2023, January 9). Government Programs for Micro Businesses in the Philippines. Ninja

Van Blog. https://blog.ninjavan.co/en-ph/government-programs-for-micro-businesses/

Tibaldo, A. (2019, February 18). Tibaldo: The Magna Carta for Micro, Small and Medium Enterprises.

Sunstar. https://www.sunstar.com.ph/article/1793081/baguio/opinion/tibaldo-the-magna-carta-

for-micro-small-and-medium-enterprises

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UST College of Commerce and Business Administration