Negosyo center

 Published: 25 September 2016

Who should establish the Negosyo Centers in the locality?

The Micro, Small, and Medium Enterprise Development (MSMED) Council shall encourage public-private partnerships (PPPs) in the establishment and management of Negosyo Centers. Coordination and collaboration with the Local Government Units (LGUs) and other agencies and organizations is imperative to avoid duplication of efforts and to foster coordinated action.

Existing Centers may continue to operate as Negosyo Centers subject to the provisions of the “Go Negosyo Act” and its Implementing Rules and Regulations.

What are the functions of the Negosyo Centers?

The Centers will be responsible for promoting “ease of doing business and facilitating access to services for MSMEs within its jurisdiction”, such as:

a) Business Registration Assistance

    1. Accept and facilitate all new registration and renewal application of MSMEs, including application for Barangay Micro-Business Enterprise (BMBE);
    2. Coordinate with the respective local government units (LGUs) and liaise with concerned government agencies to process the duly accomplished forms submitted by the MSMEs;
    3. Implement a unified business registration process preferably through automated systems such as the Philippine Business Registry (PBR);

b) Business Advisory Services

    1. Assist MSMEs in meeting regulatory requirements to start and maintain the business;
    2. Build local support networks and establish market linkages for MSME development through the Micro, Small and Medium Enterprise Development (MSMED) Council and DTI;
    3. Facilitate access to grants and other forms of financial assistance, shared service facilities and equipment, and other support for MSMEs through national government agencies (NGAs);
    4. Ensure management guidance, assistance and improvement of the working conditions of MSMEs;
    5. Co-organize with the local chambers of commerce, other business organizations and government agencies, a mentoring program for prospective and current entrepreneurs and investors;
    6. Conduct other programs or projects for entrepreneurial development in the country aligned with the MSMEs development plan.

c) Business Information and Advocacy

    1. Provide information and services in training, financing, marketing and other areas as may be required by MSMEs;
    2. Establish and maintain a databank which will support business information requirements of MSMEs;
    3. Promote ease of doing business and access to services for MSMEs within its jurisdiction;
    4. Support private sector activities relating to MSMEs development;
    5. Encourage government institutions that are related to the business application process to help promulgate information regarding the Negosyo Center;
    6. Coordinate with schools and related organizations on the development of youth entrepreneurship program;
    7. Encourage women entrepreneurship through access to information, training, credit facilities, and other forms of assistance.

d) Monitoring and Evaluation

    1. Monitor and recommend business-process improvement for MSMEs;
    2. Establish a feedback mechanism among the MSMEs in the respective jurisdiction of Negosyo Centers.

e) Perform such other functions that may be assigned by the MSMED Council as germane to RA 10644 and other related laws.

Who can avail of the services offered by the Negosyo Centers?

Any person, natural or juridical, having the qualifications as defined in Section 3 c) of the Republic Act No. 9178 may avail of the services.

Who will supervise and man the Centers?

The MSMED Council thru the DTI is the coordinating and supervising body for all the agencies involved in the establishment and operation of the Negosyo Centers. It shall perform oversight functions and shall assign personnel to fulfil the functions of the Negosyo Centers.

Who are the members of the Micro, Small and Medium Enterprises Development (MSMED) Council?

The members of the council are Department of Trade and Industry (DTI), Department of Agriculture (DA), Department of Interior and Local Government (DILG) and Representatives from the MSMEs and women sectors and Small Business Corporation. There is an Advisory Unit whose members are government agencies, government and private financing institutions, labor and academe representatives.

Steering Group

Micro, Small, and Medium Enterprise Development (MSMED) Council
The members of the Council shall be the following:

    1. The Secretary of Trade and Industry as Chair;
    2. The Secretary of Agriculture;
    3. The Secretary of the Interior and Local Government;
    4. Three (3) representatives from the MSME sector to represent Luzon, Visayas and Mindanao with at least one (1) representative from the microenterprise sector;
    5. One (1) representative from the .women sector designated by the Philippine Commission on Women;
    6. One (1) representative from the youth sector designated by the National Youth Commission; and
    7. The Chairman of Small Business Corporation.
 A. Advisory Unit. – There shall be an Advisory Unit to the Council, which shall consist of the following:
    1. The Secretary of Science and Technology;
    2. The Governor of the Bangko Sentral ng Pilipinas;
    3. The President of the Land Bank of the Philippines;
    4. The President of the Development Bank of the Philippines;
    5. The Director General of the National Economic and Development Authority;
    6. One (1) representative from the labor sector, to be nominated by accredited labor groups;
    7. A representative from the private banking sector to serve alternatively between the chamber of thrift banks, and the Rural Banker’s Association of the Philippines (RBAP);
    8. A representative of the microfinance nongovernment organizations (NGOs);
    9. A representative of the University of the Philippines-Institute for Small Scale Industries (UP-ISSI); and
    10. The President of the Credit Information Corporation.
The MSMED Council may consult the Advisory Unit in its regular meetings and other activities of the Council. However, no voting rights shall be granted to the members of the Advisory Unit.

Aside from its existing functions as mentioned under Section 7-B of Republic Act No. 9501, otherwise known as the “Magna Carta for Micro, Small, and Medium Enterprises (MSMEs)”, the MSMED Council shall have the following additional functions:
    1. Coordinating and Oversight Body for the Negosyo Center. The MSMED Council, through the DTI, shall act as the coordinating and supervising body for all the agencies involved in the establishment and operation of the Negosyo Centers. Further, the MSMED Council shall monitor and assess the progress of the Negosyo Centers, which shall be included in its annual report submitted to the Congress.
    2. Provision of a Compliance Guide. For each rule or group of related rules issued by any government agency for compliance by MSMEs, the Council shall publish compliance guidelines which shall be written in plain language or in the local dialect, if necessary. The Council shall prepare separate compliance guides covering groups or classes of similarly affected MSMEs and shall cooperate with industry associations to develop and distribute such compliance guides. The publication of each compliance guide shall include the posting of the guide in an easily identified location on the website of the agency, and distribution of the guide to known industry contacts, such as small entities, associations or industry leaders affected by the rule. The issuing government agency shall publish and disseminate the compliance rules within ninety (90) days from the date of issuance.
    3. Conduct of Research on Women Entrepreneurship. The Council shall conduct research to support women entrepreneurship including, but not limited to entrepreneurial behavior, barriers, participation and cessation rates, discriminatory practices and contribution to the national economy and growth.
    4. Policy Formulation on Women Entrepreneurship. The Council shall provide policy direction towards recognizing women’s propensity in doing business as well as establish linkages that will enable more opportunities for women to engage in entrepreneurship.
    5. Development of Entrepreneurial Education and Training. The MSMED Council shall develop, in coordination with the Department of Education, TESDA and CHED, a course curriculum or training program in entrepreneurship that will promote entrepreneurial culture and competence. Entrepreneurship shall be integrated in the curriculum of educational and training institutions in all levels.
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