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Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City, Metro Manila

NINETEENTH CONGRESS
First Regular Session

HOUSE BILL NO. 3632

Introduced by Representative Christian S. Unabia

EXPLANATORY NOTE

Republic Act No. 10644, otherwise known as the "Go Negosyo Act” was enacted to
promote the ease of doing business and facilitate access to government services for micro, small
and medium enterprises (MSMEs) through the Negosyo Centers to be established in all
provinces, cities and municipalities nationwide, pursuant to the law.

The functions of the Negosyo Centers are in the areas of: (1) business registration
assistance; (2) business advisory services; (3) business information and advocacy; and (4)
monitoring and evaluation.

On business advisory services, the Negosyo Centers are tasked to co-organize a
mentoring program for prospective and current entrepreneurs and investors, and likewise to
conduct other programs or projects for entrepreneurial development in the country.

Since calendar year 2016, the Department of Trade and Industry (DTI) and the Philippine
Center for Entrepreneurship (PCE) implemented the Mentor ME Program which is aimed at
coaching the mentee-micro and small enterprises on the different aspects of business operations,
covering topics on entrepreneurial mindset, product development, marketing, operations
management, accounting, taxation, finance, obligations and contracts, human resource
management, supply and value chain, and business plan development.

The Mentor ME Program has proven to be successful in helping micro and small
entrepreneurs scale up their enterprises, with the end in view of spurring economic activity and
generating employment opportunities. To ensure its continuity, there is the need to
institutionalize, through legislation, the conduct of the Mentor ME Program, by including it as a
function of the Negosyo Centers.

One other proposed amendment to RA 10644 is the institutionalization of the business
counsellors who provide the aforementioned functions of the Negosyo Centers, by making them
organic employees of the DTI.

The above-mentioned provisions of the proposed Act will be in line with the following
priority directions of the Micro, Small and Medium Enterprise Development (MSMED) Plan
2017-2022:


* Capacity building and development of entrepreneurial culture: business
mentoring and access to technical advice; and

* Improving coordination and service delivery to MSMEs in the regions through
the Negosyo Centers.

In view of the foregoing, the immediate passage of this bill is earnestly sought.

|

S. UNABIA


Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City, Metro Manila

NINETEENTH CONGRESS
First Regular Session

HOUSE BILL NO. 3632

Introduced by Representative Christian S, Unabia

AN ACT
INSTITUTIONALIZING THE MENTOR ME PROGRAM FOR MICRO AND SMALL
ENTERPRISES AND CLASSIFYING AS ORGANIC EMPLOYEES OF THE DTI THE
BUSINESS COUNSELLORS OF THE NEGOSYO CENTERS, AMENDING FOR THE
PURPOSE REPUBLIC ACT NO. 10644, OTHERWISE KNOWN AS THE “GO
NEGOSYO ACT”
Be it enacted by the Senate and the House of Representatives of the Philippines in
Congress assembled:
SECTION I. Section 4 of Republic Act No. 10644, otherwise known as the “Go Negosyo
Act”, shall be amended to read as follows and the subparagraphs renumbered accordingly:
“SEC. 4. Functions of the Negosyo Centers. - Negosyo Centers shall have the
following functions:
(a) xxx
(b) xxx
(c) Accept and facilitate all registration application FOR BUSINESS
PERMITS, LICENSES, AND OTHER GOVERNMENT
REQUIREMENTS of MSMEs;
XXX
(j) Co-organize with the local chambers of commerce and other business
organizations a mentoring program for prospective and current

entrepreneurs and investors;


(kK) INSTITUTIONALIZE THE CONDUCT OF THE MENTOR ME
PROGRAM, A JOINT UNDERTAKING OF THE DEPARTMENT OF
TRADE AND INDUSTRY (DTI) WITH — THE PHILIPPINE CENTER
FOR ENTREPRENEURSHIP (PCE), AIMED AT COACHING THE
MENTEE - MICRO AND SMALL ENTERPRISES (MSEs) ON THE
DIFFERENT ASPECTS OF BUSINESS OPERATIONS;

‘The succeeding subparagraphs of Section 4 shall be renumbered —_ accordingly.
XXX

SEC. 2. A new section, Section 4-A, is inserted after Section 4 of Republic Act No. 10644,
to read as follows:

“SEC4-A. THE BUSINESS COUNSELLORS WHICH HAVE BEEN

TRAINED TO PROVIDE BUSINESS REGISTRATION ASSISTANCE, BUSINESS

ADVISORY SERVICES, AND BUSINESS INFORMATION AND ADVOCACY

TO MSMES IN THE NEGOSYO CENTERS SHALL BE INSTITUTIONALIZED

AND BE MADE ORGANIC EMPLOYEES OF THE DTI.”

SEC. 3. Appropriations. -The amount necessary to carry out the implementation of this
Act shall be charged against the current year’s appropriations of the DTI. Thereafter, such sums
as may be necessary for the continued implementation of this Act shalll be included in the annual
General Appropriations Act.

Sec. 4. Implementing Rules and Regulations. ~ The DTI shall formulate and promulgate
the necessary rules and regulations to implement the provisions of this Act within ninety (90)
days from its approval. The implementing rules and regulations issued pursuant to this Section
shall take effect thirty (30) days after its publication in a newspaper of general circulation.

SEC. 5. Separability Clause. — If any part or section of this Act is declared invalid or
unconstitutional, the remaining parts or provisions not affected shall remain in full force and
effect.

SEC. 6. Repealing Clause. — All laws, decrees, proclamations, issuances or ordinances
that are contrary to or inconsistent with any provision of this Act are hereby amended, repealed
or modified accordingly.

SEC. 7. Effectivity. - This Act shall take effect fifteen (15) days after its publication in the
Official Gazette or in a newspaper of general circulation.

Approved,