Role of Goverment in Entrepreneurship

321

Presenter: Sylvia Beltran Guevarra

Technological University of the Philippines College of Industrial Education

ENTREPRENEURSH

IP

Role of Goverment in Entrepreneurship

Development

POLICIES AND LAWS

House Bill No. 3825

An act providing for the development of

entrepreneurship skills among government employees

for an innovation inspired corps of civil servants and

productive post-service citizenry.

POLICIES AND LAWS

SECTION 1. Short Title

This act shall be known as the “Government Employees’ Entrepreneurship Development Act of 2008”

SECTION 2. Declaration of Policy

It shall be the policy of the State to enhance the human and intellectual capital of the government and to ensure a healthy and productive life for government employees after they shall have been retired from public service.

POLICIES AND LAWS

SECTION 3. Objectives

(a) To Ensure the continues flow of innovative and development-oriented government programs and projects for entrepreneurial development and

(b) To ensure the maintenance of highly competitive government employees and the creative use of such resources whether in-service or postservice.

POLICIES AND LAWS

SECTION 4. Establishment of Entrepreneurial Programs

All government offices and agencies shall prepare a post-service Entrepreneurship Development Program (EDP) for its employees based on guidelines prescribed by the Civil Service Commission

SECTION 5. Establishment of Cooperatives and Service Loan Associations

All government agencies hall promote and support the establishment of cooperatives with the assistance of the Cooperative Development Authority and savings and loan associations, by recognizing, protecting and upholding the right of employees.

POLICIES AND LAWS

SECTION 6. Networking with Government Financial Institutions

The agency head concerned shall link with existing government financial institutions (GFIs) to provide sources of financing for the entrepreneurial projects of its employees.

SECTION 7. Creation of a Coordinating Council on Government Employees’ Entrepreneurship Development Program

A coordinating Council on Government Employees’ Entrepreneurship Development Program, herein referred to as the Council, is hereby created with shall be headed by the Chairperson Civil Service Commission (CSC).

POLICIES AND LAWS

SECTION 8. Post-Service Assistance

All government agencies shall extend post-service assisstance to their retirees and shall include this function in their Human Resources Department (HRD).

SECTION 9. Application of Present Law

The provision of Republic Act No. 6713, otherwise known as the Code of Conduct and Ethical Standards for the public Officials and Employees, under Section 7, on Prohibited Acts and Transactions, subparagraphs (a), (b) and (c), shall be observed in the implementation of this act.

POLICIES AND LAWS

SECTION 10. Implementing Rules and Regulations

The Civil Service Commission, in coordination with the members of the Council, shall promulgate the rules and regulations needed to implement the provisions of the act.

SECTION 11. Separability Clause

If any section or provision of this Act shall be declared invalid or unconstitutional, such shall not invalidate any other section or provision of this Act.

POLICIES AND LAWS

SECTION 12. Repealing Clause

All laws, presidential decrees, executive orders, other executive issuances or parts thereof which are inconsistent with this Act are hereby repealed or modified accordingly.

SECTION 13. Effectivity Clause

This act shall take effect fifteen (15) days after its publication in the Official Gazette or in a national newspaper of general circulation.

Legal Aspects: Philippine SME Best Practices

LEGAL ASPECTS (Philippines SME Best Practices)

Basic SME Policies

I. Magna Carta for Small Enterprises (RA 6977 as amended by RA 8289)

This Magna Carta is the landmark legislation which reflects the current policy to foster a dynamic SME sector, particularly rural and agri-based manufacturing ventures.

This law is guided by three (3) principles:

1. Minimal set of rules and simplification of procedures and requirements

2. Participation of private sector in the implementation of SME policies and programs

3. Coordination of government efforts


Basic SME Policies

I. Magna Carta for Small Enterprises (RA 6977 as amended by RA 8289)

Three (3) major provisions contained in the Small Enterprise Act:

1. Creation of the Small and Medium Enterprise Development Council

2. Creation of the Small Business Guarantee and Finance Corporation

3. 8% mandatory allocation to SMEs (6% for Ses, 2% for MEs)


Basic SME Policies

II. An Act Providing Assistance to Women (RA 7882)

These recognizes the special role of women in development and supports women entrepreneurs who are engaged in manufacturing, processing, service and trading businesses. The Government Financing Institutions (GFIs) are mandated to provide assisstance to:

1. Non-government organization (NGOs) engaged in developing women’s enterprises to a limit of P2M

2. Existing Women enterprises to the upper limit if P50,000; and3. Potential women entrepreneurs with sufficient training up to a limit

of P25,000 each.


Basic SME Policies

III. SME Development Strategy, 1998

The SME had its strategies that prioritizes the following five strategic imperatives in SME development:

1. Narrowing the focus by identifying priority sectors

2. Promoting mutually beneficial linkages among small and large firms- Promote industrial-subcontracting exchange schemes.

3. Strengthening technology and R&D initiatives- Boost agencies’ effort in examining and promoting technologies that would benefit SMEs.


Basic SME Policies

III. SME Development Strategy, 1998

4. Bolstering human resource development- Create and expand curricular training programs in entrepreneurship, management and technical skills for SMEs.

5. Improving access to finance- Develop innovative financing schemes using non-traditional sources and schemes such as cooperatives and associations and equity financing and venture capital respectively.


Basic SME Policies

IV. Philippine Export Development, 1999-2001

The PEDP 1999-2001 provides the guide to boost export

performance for the next time three years and lay the

groundwork to develop a sustainable and globally-

competitive export industry. It puts emphasis on the synergy

and complementation among the various programs and

initiatives to create a unified and cohesive agenda.


Basic SME Policies


The export-led agenda is supported by the following strategies.

1. Provision of a macroeconomic environment that promotes competitiveness, efficiency, and entrepreneurship.

This includes maintenance of a low and stable domestic inflation rate, competitive exchange rate and favorable interest policy.

2. Improving market access and mark presence.

Policy Level – Opening up of new markets by acceding to various multilateral agreements.


Basic SME Policies


Institutional support

Department of Trade and Industry will focus no effective representation and negotiations to improve market access, conduct of commercial intelligence.

Private trade and investment promotion through private sector or corporate entities.

Promote the development of strong and professional industry associations.


Basic SME Policies


Programs

National Communication Plan for Export Promotion

Expand market presence through Electronic Commerce

Use counter-trade and South-South trade as tolls for export

expansion

Supplement available resources for export promotion through

bilateral/multilateral technical cooperation programmes and

foreign assisted projects.


Basic SME Policies


3. Developing a competitive export base.Policy Level – The PEDP presents a comprehensive Export Policy

Agenda and outlines specific policy directions and initiatives necessary to support the export drive. It is presented in the following headings

FinancingInvestment and IncentivesCost of Doing BusinessAgricultural PoliciesTechnology AgendaEducation and Training

Employment Policy, labor and Productivity

Competition Policy,

Liberalization, and Int’l Commitments

Institutional Framework


Basic SME Policies


Institutional Reports

Export Development Council provides the forum for participatory

governance

DTI is the primary agency responsible for the implementation of the plan.

DTI will draw sound advice from the Eminent Persons Group, a top level

Committee, composed of rejected and accomplished Filipino Expert

Involvement of private sectors/industry associations in policy and program

formulation and delivery systems for competitive SME planning and

implementation.


Basic SME Policies


Programs

Clustering of Industries

Formulating a policy framework for service exports

Developing backward linkages for exports

Promotion of “global” companies: competitiveness upgrading

Product search program

Promotion of Information Management

Conduct of Bilateral and Multilateral programs

Investment promotion

Identification of materials support clusters


Basic SME Policies


4. Information: As core trade development service.

Strengthening of primary focal points for delivering, information

services related to export such as the Philippine Trade

Information and Network System (PHILTINS) and, One Stop

Export Information Assistance Center (EXPONENT)

Electronically linking up all DTI offices and commercial posts

around the world to facilitate information exchange.


Basic SME Policies

V. Other SME Initiatives

Preliminary recommendations for the promotion and growth of SMEs:

1. Finance – Increase and widen the access of SMEsPromote active participation of industry/trade/professional associations and Provincial SMEDCs in helping SMEs access financing from banks

2. Information – Operationalize pro-active, efficient, comprehensive, reliable information delivery systems for competitive SME planning and increased productivity.Align databases according to SMEs needs. Promote IT/E-commerce.


Basic SME Policies


3. Marketing – Expand market share of selected sectors such as garments.Pursue trade promotions such as fairs, missions and promote IT/E-commerce in doing business.

4. Human Resource Development – Increase the number of competent owners-managers and workers of SMEsConduct benchmarking, documentation of best approaches in Human Resource Development


Basic SME Policies


5. Technology – Enhance productivity and competitiveness of SMEs through the effective and judicious application of technologies and related resources.

Upgrade database systems on technologies for SMEs Match technology requirements of SMEs with existing programs/resources and conduct benchmarking activities.


Basic SME Policies

The government of the Philippines is still open to new initiatives to properly position SMEs at competitive level in the global

business arena.

Similarly, there are efforts to tap the capital market as additional source of funds for SMEs. At present, eight small firms have been qualified for listing at the Philippine Stock

Exchange Board but they have requested deferment until such time that the economy, so with the capital market, has fully

recovered. Relative to this, there is a pending bill to establish a separate Board for SMEs which will be named as Small and

Medium Stock Exchange (SMEX).

THE ENDThank you for listening.

Sylvia Beltran Guevarra • Sylvia Beltran Guevarra • Sylvia Beltran Guevarra • Sylvia Beltran Guevarra • Sylvia Beltran Guevarra • Sylvia Beltran Guevarra • Sylvia Beltran Guevarra • Beltran Guevarra • Beltran Guevarra •

Role of Goverment in Entrepreneurship

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