How to be a micro entrepreneur
INVESTING ON THE GO - Iggy Go (The Freeman) - July 16, 2019 - 12:00am

There’s a lot of changes in the business world and going to business school will not guarantee that you will start your own business. Today, I’ll be sharing about some steps one can take to start as a micro or even a small entrepreneur.

People tend to go the Solo-preneur route and although you have plenty of control over your time and resources, it’s an uphill battle in terms of growth and learning curve. However, the government lately has increased their support towards entrepreneurs in terms of implementation of existing laws.

Let’s talk about RA 9178 or the “Barangay Micro Business Enterprises (BMBEs) act of 2002. This Republic Act encourages the formation and growth of barangay micro business enterprises by granting them incentives and other benefits. Under the Republic Act No. 10644, otherwise known as “Go Negosyo Act”, the DTI through the Go Negosyo Center in the city/municipality, shall have the sole power to issue the Certificate of Authority (CA) for BMBEs to avail the benefits provided by the BMBEs Act.

What is a BMBE?

A BMBE is defined as any business enterprise engaged in production, processing, or manufacturing of products, including agro-processing, as well as trading and services, with total assets of not more than P3,000,000. Such assets shall include those arising from loans but not the land on which the plant and/or equipment are located.

Who are eligible to apply as BMBE?

Any person, natural or juridical, such as sole proprietor-ships, partnerships, corporation, association and cooperative. However, entities rendering services in connection with the exercise of one’s profession by a person duly licensed y the government after having passed a government licensure examination are disqualified from applying.

What are the incentives?

• Income Tax Exemption from - income arising from the operations of the enterprise.

• Exemption from the coverage of Minimum Wage law - BMBE employees will still receive the same social security and health care benefits as other employees.

• Priority to a special credit window - set up specifically for the financial requirements of BMBEs

• Technology Transfer, production and management trainings, marketing assistance programs for BMBE beneficiaries.

What are the requirements & steps?

• Certificate of Business Name Registration from the Department of Trade and Industry (DTI) or

• Certificate of Registration from Securities and Exchange Commission (SEC), or

• Certificate of Registration from the Cooperative Development Authority (CDA)

• Registration and issuance of CA are all free of charge

• Go to the DTI Negosyo center or the city/municipality where the business is located

• Fill up and prepare 3 copies of the application form (must be signed by owner or manager of the entity)

• Depending on the amount of your assets, you will be asked to submit appropriate documents

• Your application will be evaluated and processed within 15 working days

• Receive the Certificate of Authority

After accomplishing the requirements, application evaluation happens and if approved, the recipient shall receive the BMBE certificate of Authority which is effective for a period of 2 years and thereafter subject to continued compliance with the eligibility requirements as prescribed by the law.

About the Negosyo Center

Launched in August 2015, it is a collaboration among the DTI, LGUs, Local Enterprise councils/Chambers, DILG, DOST, NEDA, BIR, PAG-IBIG, PhilHealth, SSS, and local universities. It’s vision is to provide general business advisory and capability development services to local would-be and existing micro, small and medium enterprises (MSMEs).

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Vernon Joseph Go, RFP®, REB, is a Public Speaker, Content Producer and  Author of the book “A Lazy Investor’s Way”.

NEGOSYO CENTER
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