ASSIGNMENT NO.

1. Choose one (1) section from Republic Act 9501 or the Magna Carta for
Small Enterprises and explain.

I chose the Section 2 of Republic Act 9501 wherein it stated:

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 undertake to
promote entrepreneurship, support entrepreneurs, encourage the
establishment of MSMEs and ensure their continuing viability and growth and
thereby attain countryside industrialization by:

“a) intensifying and expanding programs for training in entrepreneurship and

for skills development for labor;

“b) facilitating their access to sources of funds;

“c) assuring to them access to a fair share of government 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 establishment 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 balanced 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.”

To sum it up, the Section 2 (Declaration of Policy) of Republic Act 9501 wants
to imply that the government wants to extend their help and support to the
MSME through this enacted law. The law contains the probable methods or
ways that can help the business of MSMEs to prosper same as to the
economic growth and development of the country through giving an
entrepreneuship skills or conducting a seminars to the micro, small, medium
enterprisers to give them an advice on how they will improve their business.
Government can also give funds for them thus they can start on establishing
their business or additional to their capital. A fair share contracts between the
government and the businessmen and many more benefits that they could get
from this law. Republic Act 9501 stated the protection that MSMEs could get
from the government thus other people can’t deceive, fool or scam them.
Unlike before, wherein the Spaniards and the US imperialists tricked the early
Filipinos to grab their lands and benefited from it (outcome of the peasants’
hardwork). But today, we already have the Magna Carta for Small Enterprises
hence businessmen like farmers could prevent the embezzlement.