Republic of the Philippines

ISABELA STATE UNIVERSITY

Cauayan Campus

COLLEGE OF BUSINESS AND MANAGEMENT

BS- Entrepreneurship

Name Ruvelyn Rodelas_

Section_____________

Final Examination: Essay

1.Which of the forms of business organization best suits you and why?

The sole proprietorship is the most appropriate form of business organization for me. I'll go
with sole proprietorship because the tax reporting process is very simple. You do not need to
file any additional taxes for your business. Sole proprietors must complete Form T2125, which
includes reporting professional income as well as expenses. Such an enterprise's assets and
liabilities include both personal assets and the owner's liabilities. The sole owner is personally
liable for all the enterprise's debts and other obligations: if the enterprise is unable to pay its
debts, any of the owner's property can be seized. The flexibility of taxation is one of the
benefits of sole ownership. The business owner owns and is responsible for all profits and
expenses. In other words, it is the most tax-efficient structure for a small business and less risky
than a partnership. Another advantage is complete independence, flexibility, freedom, and
action efficiency (this type of business provides the owner with maximum freedom of action).

2. Why is it important that business ownership should be seventy percent (70%) owned by
Filipino citizens?

The Philippine government enacted the 60-40 equity rule to regulate foreign investments and
businesses in the country. According to the Foreign Investment Act (R.A. 7042, 1991, amended
by R.A. 8179, 1996), at least 60% of the business must be owned by a Filipino citizen, with the
remainder owned by a foreign investor. This Foreign Investment Act establishes policies and
procedures for the registration of foreigners seeking to do business in the Philippines. The
Philippine government welcomes these types of foreign investments because they help
economic development by creating jobs and allowing Filipinos to earn higher wages. It is
important that business ownership should be seventy percent (70%) owned by Filipino because
non-Philippine nationals may own up to one hundred percent (100%) of domestic market
enterprises therefore, foreign ownership therein is prohibited or limited by the Constitution
existing law or the Foreign Investment Negative List.
 Republic of the Philippines
ISABELA STATE UNIVERSITY
Cauayan Campus

COLLEGE OF BUSINESS AND MANAGEMENT

BS- Entrepreneurship

3. Which government program do you think is the most effective for MSMEs and why?

I think the most effective government program for MSMEs is the Barangay Micro Business
Enterprise. Recognizing that microbusinesses keep a lot of communities thriving, especially in
remote and suburban areas, the government signed the Barangay Micro Business Enterprise
(BMBE) Law in 2002. The benefits under this law help out microentrepreneurs in the Philippines
by giving them incentives to help run their small businesses. When entrepreneurs register as a
BMBE, they get to enjoy several benefits. They are granted the following:

1. Exemption of coverage from the minimum wage law

2. Income tax exemption
3. Social security and healthcare benefits
4. Priority for a special credit window
5. Assistance programs and training
Officially registering as a BMBE reduces the amount of taxes, fees, and charges you’ll need to
deal with at the start of setting up a business.

4. What do you think are the challenges that MSMEs faces today and how can the Government
solve these challenges

For many entrepreneurs, starting a business is a significant accomplishment, but maintaining

one is the greater challenge. There are numerous common challenges that every business, large
or small, faces. Hiring the right people, developing a brand, developing a customer base, limited
access to finance, a lack of databases, low R&D expenditures, undeveloped sales channels, and
low levels of financial inclusion are some of these challenges. To solve these challenges, the
country's government should conduct risk assessments and business continuity planning in all
critical federal and regional institutions, investigate opportunities for cross-border digital trade
and collaborate with domestic small business firms, support medium- and long-term business
investments that lead to resilient supply chains for critical goods and services in the market,
and accelerate the development of e-commerce/e-marketing systems such as digital marketing
and digital advertising. The government should also use different mechanisms by cooperating
with wealthy peoples and other non-governmental organizations.
 Republic of the Philippines
ISABELA STATE UNIVERSITY
Cauayan Campus

COLLEGE OF BUSINESS AND MANAGEMENT

BS- Entrepreneurship

5. What government agency do you think is the most essential to MSME’s and why?

The Negosyo Center Program, in my opinion, is the most important government agency for
MSME's. It is due to the fact that The Negosyo Center Program is in charge of promoting ease of
doing business and facilitating access to services for Micro, Small, and Medium Enterprises
(MSMEs). The "Go Negosyo Act," Republic Act No. 10644, seeks to strengthen MSMEs in order
to create more job opportunities in the country. Negosyo Centers also aid in the development
of entrepreneurship, as MSMEs play an important role in driving the Philippine economy.