UP ISSI OK to ‘microdev’ bills

UP ISSI presented to the Senate last February 27 its position on the bills seeking to create

and accredit micro enterprise development institutions or microdevs in the country. The Senate versions of the bill were authored by Senators Manny Villar, Jinggoy Estrada and Loren Legarda while the version of the Lower House is being sponsored by several Congressmen.

Under the proposed measures, microdevs shall be recognized as institutions mandated to implement a micro enterprise development strategy and they shall be operated as non-stock DQG�QRQ�SUR¿�W�FRUSRUDWLRQV�XQGHU�H[LVWLQJ� ODZV�

UP ISSI OK to ‘microdev’ bills

In general, UP ISSI agrees to the proposed provisions of Senate Bill Nos. 1350, 2961, 2971 and House Bill No. 4688. The following is a summary of UP ISSI’s position on the proposed measures:

Item UP ISSI POSITION Basic Premise Microenterprise development institutions

�0,&52'(9V�� DUH� TXDOL¿�HG� QRQ�government institutions that implement microenterprise development strategy.

$JUHH���6KRXOG�FRQVLGHU�DGGLQJ�TXDOL¿�HG�QRQ�government institutions.

Form of organization 1RQ�VWRFN��QRQ�SUR¿�W� FRUSRUDWLRQ�SHU�6(&�rules and regulations and governed by a Board of Trustees whose members shall not receive any compensation.

Agree.

Powers and Functions of MICRODEVs

Provide the poor access to reasonable and affordable credit and related services LQFOXGLQJ� PLFUR¿�QDQFH�� PLFUR� LQVXUDQFH��health care and micro housing.

$JUHH� � ZLWK� WKH� IROORZLQJ� FODUL¿�FDWLRQV� � RQ�capital buildups and fund-generating activities:

As per Section 5, MICRODEVs can engage in deposit taking, insurance and fund generation, provided there are necessary licenses and authority from relevant agencies.

Provide business development opportunities such as leadership training and entrepreneurial training.

Provide human development services to help the poor achieve a level of sustainability and empowerment.

$PRQJ�WKH�SRZHUV�DQG�IXQFWLRQV�PLFURGHYV�DUH�PDQGDWHG�WR�H[HUFLVH�DUH�services that will provide the poor access to reasonable and affordable credit DQG� UHODWHG� VHUYLFHV� VXFK�DV�PLFUR� ¿�QDQFH��PLFUR� LQVXUDQFH�� KHDOWK� FDUH�and micro housing; business development opportunities such as leadership training and entrepreneurial skills training; and human development services.

Senator Villar, the chair of the Senate Committee on Economic Affairs, presided over the hearing. UP ISSI director Prof. Nestor O. Rañeses was invited as a resource person for the committee and he presented the Institute’s position regarding the proposed legislation.

7KH�KHDULQJ�FHQWHUHG�RQ�WKH�WD[DWLRQ�FODXVH�RI�WKH�ELOOV��ZKLFK�SURSRVHV�WKDW�PLFURGHYV�EH�WD[HG�DW���SHUFHQW�RI�WKHLU�JURVV�LQFRPH�³LQ�OLHX�RI�DOO�QDWLRQDO�DQG�ORFDO�WD[HV´���2WKHU�UHVRXUFH�SHUVRQV�IURP�WKH�'HSDUWPHQW�RI�7UDGH�DQG�,QGXVWU\�� WKH�0LFUR¿�QDQFH�&RXQFLO�RI� WKH�3KLOLSSLQHV�� ,QF���DQG� WKH�SULYDWH�sector, particularly the Tulay sa Pang-unlad, Inc. concurred with the proposed provisions of the bills while the Department of Finance and the Bureau of Internal Revenue were keen on giving more teeth to the accreditation system for prospective microdevs since the proposed measures may be a vehicle IRU�PRUH�FDVHV�RI�WD[�DYRLGDQFH�

THE OFFICIAL NEWSLETTER OF THE UP INSTITUTE FOR SMALL-SCALE INDUSTRIESISSUE NO. 18

THE OFFICIAL NEWSLETTER OF THE

Page 2

ISSUE NO. 18

Capital Requirements Net worth of >/= P20M Agree. Newly organized Initial net worth of >/= P10M

M I C R O D E V Accreditation

MICRODEV Accreditation Center under the National Anti-Poverty Commission (NAPC).

Agree.

Funding of the Secretariat from 2% 0,&52'(9V� WD[� SURFHHGV� XQGHU� WKH�People’ Development Trust fund under RA 8425.

Powers and Functions of the Accrediting Entity

Institute and operationalize a system of accreditation for MCRODEVS.

Agree.

,VVXH�&HUWL¿�FDWH�RI�$FFUHGLWDWLRQ�WR�TXDOL¿�HG�0,&2'(9V�SHU�GH¿�QHG�LPSOHPHQWLQJ�UXOHV�and regulations (IRR).Monitor the performance of MICRODEVs.6XVSHQG� RU� UHYRNH� DQ\� &HUWL¿�FDWH� RI�Accreditation for cause.Require regular submission of reports by MICRODEVs.Collect reasonable accreditation and monitoring fees from a MICRODEV.Submit an annual report to the President and concerned Committees of both Houses of Congress.Perform other functions as may be necessary.

Power of the Regulatory $XWKRULWLHV� WR� ([DPLQH�MICRODEVs

Bangko Sentral ng Pilipinas (BSP) and the Insurance Commission (IC) in coordination with the accrediting entities shall have the SRZHU� WR� H[DPLQH� � VROHO\� IRU� SXUSRVH� RI�determining MICRODEVs are not engaged in unauthorized undertakings subject to their respective regulations.

Agree.

7D[DWLRQ�RI�$FFUHGLWHG�MICRODEVs

MICRODEV shall pay 2% of the gross LQFRPH�LQ�OLHX�RI�DOO�QDWLRQDO�DQG�ORFDO�WD[HV�

$JUHH��7D[�H[HPSW�LQ�WKH�¿�UVW�\HDU�RI�RSHUDWLRQ�to encourage more MICRODEVs.

Donations shall be fully deductible from the gross income.Donations to the MICRODEV shall be H[HPSW�IURP�GRQRU¶V�WD[�Transactions of the MICRODEV and its FOLHQWV� VKDOO� EH�H[HPSW� IURP�GRFXPHQWDU\�VWDPS�WD[�

IRR The National Anti-Poverty Commission in coordination with the Department of Finance, Bureau of Internal Revenue, BSP, Department of Trade and Industry, and 0LFUR¿�QDQFH� &RXQFLO� RI� WKH� 3KLOLSSLQHV�shall formulate the IRR within 90 days after its approval.

Agree.

Penalty Clause BSP and IC may impose administrative sanctions under applicable laws.

Agree.

ISSUE NO. 18Page 3 Staff News

Nine staffers from various departments of UP ISSI graduated from the Training of Trainers conducted

between February 20 and 24 in the Institute. They were 7RQHH� 'XQJFD� RI� WKH� 'LUHFWRU¶V� 2I¿�FH�� ,DQ� GH� 9HUD� DQG�Bernie Villaluna of the Knowledge Management, Information and Communications Technology Services Department; Neil Grimaldo, Joi Mamaril, Fe Reyes and Doris Olegario of the Training and Continuing Professional Entrepreneurship Education and Development Department; and Joyce Alegre and Berna Escoto of the Entrepreneurship Research and Development Studies Department.

A closing ceremony led by UP ISSI director Prof. Nestor O. Rañeses was held on the last day of the seminar and attended E\�WKH�7UDLQLQJ�'HSDUWPHQW¶V�RI¿�FHU�LQ�FKDUJH�-DQHW�%XQJD\�and ISSI’s human resource and organizational development RI¿�FHU�&ODLUH�(VWHEDQ��ZKR�WRRN�FDUH�RI�WKH�ORJLVWLFV�WRJHWKHU�with her assistant Mark Joy Opinaldo.

Gil Dennis A. Raposa, a seasoned lecturer and himself a former staff of the Institute, facilitated the whole training. (See related story.)

Nine j unio r s t a f f e r s g r adu a t e f r om t r a ining o f t r a ine r s

One of UP ISSI’s seasoned resource persons, who is also one of its former staff, facilitated the training of trainers

for some junior staffers from various departments of the Institute.

Gil Dennis A. Raposa, or Dennis to his colleagues, delivered the seminar from February 20 to 24.

Dennis worked for ISSI from 1986 to 1990, when he designed and implemented various training programs. He also managed development projects under the Small

Enterprises Research and Development Foundation funded by various agencies such as the USAID, ADB, the Australian government, UNDP, the Food and Agriculture Organization, and other international agencies.

At present, he is the president of the InterActive Asia *URXS��D�PDQDJHPHQW�FRQVXOWLQJ�RXW¿�W�KH�IRUPHG�LQ��������His present involvements include consulting services to organizations locally and in few Asian countries. Recently, KH� IRUPHG� DQRWKHU� RXW¿�W�� WKH� ,QWHJUDWHG� &RQVHUYDWLRQ�6ROXWLRQV�$VLD��DQ�HQYLURQPHQW�SURWHFWLRQ�¿�UP�

Fo r me r s t a f f e r FACILITATES t r a ining o f t r a ine r s f o r j unio r s t a f f

Page 4

ISSUE NO. 18

UP ISSI’s major private-sector partner the Small Enterprises Research and Development Foundation

(SERDEF) held a forum in ISSI last Saturday, March 3, to highlight how micro, small and medium enterprises (MSMEs) can use social media for business growth.

6(5'()¶V� ¿�QDQFLDO� RI¿�FHU� *ORULD� &DQHOD� OHG� WKH� RSHQLQJ�prayer while the Foundation’s technical adviser and co-chair of its research and information committee Nida Lavador made the welcome and opening remarks.

TV 5’s multimedia head Carlo Ople discussed social networking and business development while Randell Tiongson, director of Registered Financial Planner Philippines

talked about strengthening entrepreneurship development advocacy through blogging and social networking.

Later in the afternoon, SERDEF research and information committee member Myrna Co made a presentation on the SERDEF blog site, which is a resource hub for MSMEs.

Dr. Herminia Fajardo, chair of SERDEF’s research and information committee delivered the closing remarks. ISSI’s own Celia Pascual emceed the program.

According to SERDEF’s post on Facebook, the Foundation LV� H\HLQJ� D� IXOO�À�HGJHG� VHPLQDU� RQ� VRFLDO� QHWZRUNLQJ� DQG�EXVLQHVV�DV�WKH�QH[W�VWHS�WR�WKLV�DSSUHFLDWLRQ�SURJUDP�

Randell Tiongson, director of Registered Financial Planner Philippines, discussed strengthening entrepreneurship development advocacy through blogging and social networking.

TV 5's multimedia head Carlo Ople talked about social networking and business development in SERDEF's social media forum for MSMEs.

SERDEF h o l ds MSME s oc ia l media f o r um in ISSI

Ma y17t h MONITORING AND EVALUATING PROGRAMS AND PROJECTS (MEPP)

Provides participants with knowledge, skills and attitudes to effectively monitor and evaluate programs and projects.

Development managers, RI¿�FHUV� DQG� WHFKQLFDO� VWDII�of NGOs, PVOs, POs, and cooperatives implementing income generating projects or livelihood programs; government employees, and industrial workers.

May 07 – 119:00 AM – 5:00 PM(Monday to Friday)P8,500

102nd MANAGERS COURSE (MC) in ILOILO

Enhances the managerial competence of participants E\� H[SRVLQJ� WKHP� WR� D�broad selection of modern management functions, tools and techniques.

Individuals who are responsible for managerial decisions including HQWUHSUHQHXUV�� H[LVWLQJ�and prospective managers, planners, and administrators.

May 19 – July 229:00 AM – 5:00 PM10 Weekends (Saturdays and Sundays)P40,000

29t h STRATEGIC MARKETING COURSE (SMC)

Equips marketing managers with skills and tools for formulating effective marketing strategies to improve their competitive position in the open market.

Owners and managers of small and medium enterprises and/or line managers responsible for the marketing operations of the company.

May 26 – June 309:00 AM – 5:00 PM(6 Saturdays)P9,000

33 r d START YOUR OWN BUSINESS (SYOB)

Provides participants with tools to assess their entrepreneurial readiness; identify, evaluate and select business ideas; and plan, start, and manage their own new enterprises.

People intending to go into business, new business start-ups, or those already in business who want to enhance their business planning skills.

May 26 – June 309:00 AM - 5:00 PM(6 Saturdays)P9,000

Copyright 2012 UP ISSI. All rights reserved. More of these and other stories are found in our website: entrepreneurship.org.ph

UNIVERSITY OF THE PHILIPPINESInstitute for Small-Scale Industries

E. Virata Hall, E. Jacinto Street, UP Campus, Diliman, Quezon City

Pioneering. Innovating. Entrepreneuring.