Tuesday, April 17, 2007 Community-based businesses meet for 2nd BMBE gab
Barangay Micro Business Enterprises (BMBEs) will be given another close study during the 2nd BMBE Conference to be hosted by the Cagayan de Oro Chamber of Commerce and Industry Foundation, Inc. (Oro Chamber) this coming May 3 at the Pearlmont Inn.
A highlight of the biennial conference is the midterm report of the Oro Chamber's Creating Opportunities and Resource Management for Enterprises (CORE) Project, highlighting it as the local chamber's delivery mechanism for the Promoting Regional Opportunities for Enterprise and Livelihood (Propel) Development Program of Sen. Francis Pangilinan.
"The challenge for micro, small and medium enterprises (MSME) development is for us to identify what are the quantifiable measures to say we're doing good," Pangilinan told Oro Chamber officials during a recent exclusive meeting to evaluate the impact of Propel funding on the Core program.
Projects
Propel has released a P1-million fund to finance Oro Chamber's Core project for BMBEs including good business forums and focused group discussions, short-term trainings, and promotional and technical assistance to the coco sugar industry in Balingasag, Misamis Oriental.
"Propel is a prime example of how the PDAF, which comes from the people, goes back directly to the people," explained Mr. Pangilinan. "A key component of private and public partnership is that it fosters greater transparency and therefore results in added accountability in the manner in which government resources are utilized."
"Besides the May 3 BMBE Conference, we have also scheduled a Product Development Training this July, the launching of our website to further market coco sugar, and extending funding to Balingasag coconut sugar producers for the physical improvement of their new processing plant which was recently granted accreditation with the Bureau of Food and Drug (BFAD)," said Heidi Grace Mendoza, Oro Chamber secretary general.
Assistance
Although Propel originally focuses on MSMEs, Ms. Mendoza said the chamber and Mr. Pangilinan's office agreed to focus assistance in Cagayan de Oro and Region X on BMBEs, with the assistance of the Department of Trade and Industry (DTI). The development of BMBEs has been supported by an enabling law, Republic Act No. 9178 also known as the "Barangay Micro Business Enterprises (BMBEs) Act of 2002."
RA No. 9178 was legislated to encourage the creation and sustainability of BMBEs and to upgrade enterprises in the informal sector into the mainstream economy. Tax incentives granted to BMBEs include exemption from income taxes arising from the operation of the enterprise; exemption or reduction of local taxes, fees and charges; and exemption from gross receipts tax. It also grants certain exception from the Labor Law.
The Oro Chamber has been appointed by the local government of Cagayan de Oro to act as the official clearing house for BMBE applications in the city.
"We provide short briefings to those who come to the Oro Chamber office for BMBE information.
So far, with the number of applications we assisted, City Hall has approved a total of 79 BMBE registrations since November 2005 till March 2007," said Ramid P. Gualberto, Oro Chamber supervising trustee for the CORE program.
"MSMEs make up the most promising and dynamic sector of our economy," said Pangilinan. "MSMEs comprise over 90% of local enterprises in the entire country, employ 70% of the nation's labor force and generate 33% of our total GDP. That's why I'm committed to MSMEs because I don't think anything matches them for poverty alleviation and wealth creation."
Already, the Oro Chamber has identified constraints facing BMBEs such as the lack of Bureau of Internal Revenue (BIR) guidelines on tax exemptions extended to such enterprises. "The Department of Finance can come out with guidelines which are contrary to the spirit of BMBEs," noted Arsenio L. Sebastian III, Oro Chamber chairman of the BMBE & SME affairs committee. These issues shall be included in the discussions during the upcoming 2nd BMBE Conference. (PR)
