Micro, Small,

and Medium Enterprises

(MSMEs)
Presenter: Engr.Eufemia A. Santos
DM 201 Strategic Management of n Engineering
Enterprise
Professor: Jo B. Bitonio, DPA
 MSMEs Defined
Micro, small, and medium enterprises (MSMEs)
are defined as any business activity/enterprise
engaged in industry, agri-business/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
Recently, Republic Act No. 9178, otherwise known as the
Barangay Micro Business Enterprise (BMBE) Act of 2002
has redefined the categories. Hence, the present structure,
by law, is as follows :

By Asset Size
 Republic Act (RA9501): Magna Carta
for Small Enterprises of 2008

•a law to promote, support, strengthen and encourage the

growth and developments of MSMEs in partnerships with the
private sector.
•Banks be it private or government are mandated to increase
their loan portfolios from 6 to 8 percent for micro and small and
maintain the 2 percent allocation for medium-sized companies.
The penalty for non-compliance is not below P500,000.
•To avail of this financial assistance, these enterprises must be
registered first with appropriate government agencies (DTI, SEC,
CDA, LGUs).
RA No. 9178: Barangay Micro Business Enterprises Act of
2002
Provided a business capital or assets do not exceed P3
million, a registered enterprise is entitled to the following:
(a)guaranteed registration approval within 15 working
days
(b)reduced local taxes and fees
(c) exemptions from income tax and minimum wage
(d)availability of special financing and credit guarantees
windows under DTI’s SME Unified Lending
Opportunities for National Growth (SULONG)
program
(e) technology transfer; product and management
training, and marketing assistance.