Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City, Metro Manila
NINETEENTH CONGRESS
Second Regular Session
HoUsEBILLNo.10414
Introduced by Representative Ivan Howard A. Guintu
EXPLANATORY NOTH
Section 2 of Republic Act no. 9501  or the `Magna Carta for Micro, Small, and Medium
Enterprises'  (MSMEs)  states  that  the  national  government  recognizes  "that MSMEs  have the
potential for more employment generation and economic growth and therefore can help provide
a self-sufficient industrial foundation for the country, it is hereby declared the policy of the State
to  promote,  support,  strengthen and encourage  the growth and development of MSMEs  in all
productive sectors of the economy particularly rural/agri-based enterprises.."
According  to   the  2022   data  of  the  Philippine  Statistics  Authority  (PSA),  MSMEs
comprise 99.59% of all registered businesses in the Philippines, amounting to 1,109,684 business
enterprises  operating  in the country. Of this, 90.49% or  1,004,195  are micro enterprises,  8.69%
or 96,464  are  small  enterprises,  and 0.40% or 4,484 are medium enterprises. However, a paper
by Bautista and ManzanoL  (2021) reported that the number of exported products among micro
establishments are negligible.
MSMEs  are  crucial  to  the  growth  of the  Philippine  economy.  We recognize that they
contribute to the reduction of poverty by generating employment for the nation's expanding labor
force.  Furthermore,  they  promote  economic  growth  in rural  areas,  act as  suppliers  of support
services to major corporations, and serve as start-up opportunities for emerging entrepreneurs.
The  international  market  would  expose  our  MSMEs  to  a  bigger  market.  Exportation
would entail a wider access to customers and buyers, therefore potentially increasing profits and
greater potentials for growth. Moreover, having consumers with higher expectations and market
competitors with higher product standards will push our MSMEs to improve the quality of their
products.
I  Bautista,  M.,  & ManzanoL,  G.  (2021).  Survival  Analysis  of Export Relationships  of Philippine MSMEs. PAj-/iz)pj-FTe Jowr7!¢/ a/Bet;c/opmeH/,
4j(I).https://pidswebs.pids.gov.ph/CDNffuBLICATIONS/pidspjd2018-1c.pdf


This proposed measure  aims to  assist MSMEs who seek to apply for export clearances
and permits for the exportation of their local products. This shall lessen the administrative costs
that are incurred by MSMEs who seek to export their products, and thus, make the international
market within their reach.
Partylist


Republic of the Philippines
HOUSE 0F REPRESENTATIVES
Quezon City, Metro Manila
NINETEHNTH CONGRESS
Second Regular Session
HousHBILLNo.16414
Introduced by Representative Ivan Howard A. Guintu
AN ACT
AMENDING   REPUBI.IC   ACT   NO.   10644,  OTHERWISE  KNOWN  AS  THE  "G0
NEGOsyo  ACT"  8¥  EMpoivnRING MSMHs  THROuGH THE  HSTABLlsHMHNT
OF THH HXPORTATION-ASSISTANCE FUND
Be it enacted by the Senate and the House Of Representatives Of the Philippines in Congress
assembled:
SEC.  I .  Section 4 of Republic Act (RA) No.  10644, otherwise known as the "Go Negosyo Act"
is hereby amended to read as follows:
SEC  4.  F#77ctz.o7?LT  qf //7c  IVcgo`S'j;`o  C67#fL»rs.  -  Negosyo  Centers  shall  have  the  following
functions:
(a)   Promote   ease   of  doing   business   and  access   to   services   for  MSMEs   within  its
jurisdiction;
XXX.
(n)  Facilitate  access  to  grants  and  other  forms  of financial  assistance,  shared  service
facihties and equipment, and other support for MSMEs;
(0)  EMPOWER  MSMEs  THROUGH  THE  PROVISION  0F  SUBSIDIES  FOR
START-UPS,  AND  EXPORT  CLEARANCES  AND  PHRMITS  FOR  PURPOSES
THAT SHALL ALLOW THEM TO HXPORT THHIR PRODUCTS;
[(o)]   (P)  Ensure  management  guidance,  assistance  and  improvement  of  the  working
conditions of MSMEs;


[(p)]  (Q)  Establish  a  databank  which  shall  be  a  source  of all  information necessary for
project monitoring` research and policy studies and informal dissemination campaigns;
[(q)]  (R) Map out all information and services essential to prospective entrepreneur-s and
prospective  investors  especially  in  key value  chains and economic  subsectors within its
jurisdiction;
[(r)]   (S)   Establish   a   feedback   mechanism   among   the   MSMEs   in   the   respective
jurisdiction of Negosyo Centers: and
[(s)]   (T)  ConduL`t  other  programs  or  projects  for  entrepreneurial  development  in  the
country aligned with the MSMEs development plan.
SEC 2. Section 7 of RA 10644 is hereby amended and shall read as follows:
SEC.  7.   [Szo7./-%p  J;Ti,f7ccZL`. ./a7`  "SME£./  SUBSIDIES  FOR  MSMEs.  -  Aside  from  the
existing benefits for MSMEs, the MSMED Council, through the DTI, the Depaithent of
Finance (DOF)  and the appropriate financing in`stitutions, shall establish a Start-up Fund
for  MSMEs  to  be  sourced  from  the  MSME  Development  Fund  and  BMBE  Fund  to
provide  fmancing  for  the  development  and  promotion  of MSMEs  in priority  sectors of
the economy as specified in the MSMED Plan.
FURTHERMORE,  THE  MSMED  COUNCIL,  THROUGH  THH DTI, DOF, AND
THE  APPROPRIATE  FINANCING  INSTITUTIONS,  SHALL  ESTABLISH  AN
EXPORTATION-ASSISTANCF]   FUNI)   WHICH   SHALL   BE   PROVIDED   TO
MSMEs WHO SEEK T0 APPLY FOR EXPORT CLEARANCES AND PERMITS.
THIS SHALL ALSO BE SOURCED FROM THE MSME DHVHLOPMENT FUND
AND  BMBE  FUND,  PRoytDED,  THAT  THE  HLIGIBILITY  CRITERIA  FOR
GOVERNMENT ASSISTANCH PROVIDED IN  SECTION 4 0F REPUBLIC ACT
NO.  9501,  OTHERWISE  KNOWN  AS  THE  `MAGNA  CARTA  FOR  MICRO,
SMALL AND MEDIUM ENTERPRISES (MSMHs)' SHALL BE OBSERVED.