SHERYL D. TOMAS, MBAProgram Chair-Bachelor of Science in

Entrepreneurship

Barangay Micro-Business Enterprise

Act of 2002: An Assessment CAUAYAN

CITY

Researchers:

SHERYL D. TOMAS, MBATERESITA S. COLLADO, Ph D. LAILANI A. MATIAS, MBA

Entrepreneurs are said to be the pillar of economic progress. They contribute to the financial growth of the nation. It is however through the support given by the government where these entrepreneurs hold strength in pursuit to their advocacy of building wealth for their family and for the nation.

RATIONALE

BUSINESS DISTRIBUTION ACCORDING TO CAPITALIZATION

MICRO98.7799%

SMALL0.811%

MEDIUM0.210% LARGE

0.210%

MICRO

SMALL

MEDIUM

LARGE

MICRO98.7799%

SMALL0.811%

MEDIUM0.210% LARGE

0.210%

MICRO

SMALL

MEDIUM

LARGE

R.A. 9178, was enacted on July 22, 2002 to hasten the country’s economic development by encouraging the formation and growth of barangay micro business enterprises which effectively serve as seedbeds of Filipino entrepreneurial talents.

Strengthening BMBEs would mean more jobs and livelihood, and better quality of life for Filipinos.

OBJECTIVESDetermine the profile of businesses in Cauayan City in terms of ;

Legal forms , Business Activity Size of CapitalNumber of years as a BMBE recipient

Determine the Degree of Contributions of BMBE law to the Economic growth of its RecipientsDetermine the degree of information Dissemination of the BMBE implementers in Cauayan CityDetermine the problems encountered by the BMBE recipients & implementers in the implementation of the program.

CONCEPTUAL FRAMEWORK

INPUT

Profile of barangay micro entrepreneurs

from city government of

Cauayan.

PROCESS

Questionnaire was constructed by the researchers for the

purpose of gathering data.

Interview was also used.

The collected data was analyzed and interpreted by the

researchers

OUTPUT

•Receptiveness of microentrepreneurs in availing BMBE as source of microfinancing.•Business growth expansion•Employment generation•New business generation

•Successful microentrepreneurs

Feedback

METHODOLOGY The before-and-after design,

was used in evaluating the impact of the law implementation to the economic growth of the firms who registered under the law.

All of the BMBE recipients were considered the population of the study.

The instruments used in collecting data are questionnaire and interviews.

• The researchers utilized: – Frequency and Percent– Distribution–Ranking–T test

DISCUSSION OF RESULTS

Sole Propri-etorshipPartnershipCorporationCooperative

Distribution of Respondents in Terms of Legal form of Business

All businesses registered under BMBE are Sole proprietorship

business

Retail Store Lumber and hardware

Drug Store Carinderia0

2

4

6

8

10

12

14

Majority of respondents were engaged in retail business

Distribution of Respondents in Terms of Business Activity

The data showed naturally the trend of patronage to be descending in terms of number of years. This indicates that though the law were enacted in 2002 it is only recently that the business owners awareness to the law is increasing.

Distribution of Respondents in Terms of Number of years in the program

63%

26%

11%1-2 Years

3-4 Years

5-Up Years

Degree of Contributions of BMBE program to the economic growth Barangay Micro-Entrepreneurs in Cauayan City.

There were great contributions played by the BMBE into the recipient in all aspects which were attested and affirmed by the data. This implied that BMBE law contributed to the growth of firms who availed of the privileges provided under the provisions of the law.

Micro-enterprise Status Before After Difference

Areas WM QD WM QD +/_

Size of Capital 1.79 Little 3.21 Moderately High

+1.42

Return of Investment 1.84 Little 3.26 Moderately High

+1.42

Size of Net Profit 1.84 Little 3.32 Moderately High

+1.48

Size of Net Worth 1.84 Little 3.32 Moderately High

+1.48

Size of Total Assets 1.84 Little 3.32 Moderately High

+1.48

Total 1.83 Little 3.28 Moderately High

+1.45

Impact of BMBE Program to the Development and Growth of Barangay Microenterprises in

Cauayan City

The graph magnifies the impact of BMBE law program to the development and growth of barangay microenterprises in Cauayan City based on the members’ response perception.

19

Yes

Seri...

Degree of Information Dissemination of the BMBE implementers in Cauayan City

the Degree of BMBE information Dissemination of the Implementer in the total microenterprise populace of Cauayan City. A minimal number of 19 out of 2435 total businesses categorized under microenterprise was aware of the existence of the law.This could be a benchmark of the Law implementer to continuously develop the awareness campaign and better services to cater the larger part of the business populace not just a meager percentage of .78%

0.0078

99.22%

BMBE Recipient Micro BusinessesNon Recipient Micro Businesses

Strengths and Weaknesses of BMBE Program as Perceived by BMBE members

STRENGTHS• Approachable personnel in the LGU• Exemption in the minimum wage law

WEAKNESSES• Lack of personnel to implement BMBE

programs• Poor Collaboration between and among

implementing agencies• No tax discount /Tax exemption• No Specific microfinance program

implemented under BMBE

CONCLUSIONS:• All respondents acknowledged that BMBE Program had high

contributions towards their enterprises in terms of economic growth, size of capital, return of investment, net profit and net worth.

• The government does not fully implement BMBE law because of lack of ordinance and because of the decrease effect on the total tax collection

RECOMMENDATIONS:

Considering the good contribution of BMBE Law to the recipient micro enterprises, there must be massive information dissemination to achieve the objective of the government legislators in passing the law.

The Local government and other implementing agencies as well as academic institutions could come up with a memorandum of agreement in providing trainings on marketing, management, financial management, accounting and other related capability building designed to improve business management competencies of micro-entrepreneurs ;

The local council should pass an ordinance stating tax exemption/specific tax discount to further increase benefits availed by BMBE recipients.

RECOMMENDATIONS:

The government authorities directly involved in the implementation of BMBE should always checked if R.A. 9178 is properly implemented and disseminated;

A specific microfinance program should be set up by the local government unit for the purpose of providing microfinance program to BMBE law recipients.

The local government in its corporate capacity should study feasible businesses to start generating additional income aside from tax collection from businesses to strengthen its financial position so as not to be greatly affected by the full implementation of the law.

The BMBE law should be strictly implemented in all municipalities/cities regardless on the income status of the municipality/city.

THANK YOU!