Oro Chamber taps government funds for barangay enterprise development
Mike Banos
April 14, 2007
A highlight of the bi-annual conference is the midterm evaluation report of the Oro Chamber's Creating Opportunities and Resource Management for Enterprises (CORE) Project as the local chamber's delivery mechanism for the Promoting Regional Opportunities for Enterprise and Livelihood (PROPEL) Development Program funded from Sen. Francis Pangilinan's Priority Development Assistance Fund (PDAF) for Micro, Small and Medium Enterprises (MSMEs).
"The challenge for MSME development is to for us to identify what are the quantifiable measures to say we're doing good," Mr. Pangilinan told Oro Chamber officials during a recent meeting to evaluate the impact of PROPEL funding on the CORE program. "We need to have benchmarks to measure our success or failure. This is the challenge facing us as we evaluate the first tranche of PROPEL funds. Where are the success stories? How can we build on their success?"
PROPEL has released a P1-million fund to finance Oro Chamber's CORE project for BMBEs which covers good business forums and focused group discussions, short-term trainings, and promotional and technical assistance to the coconut 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 fostering greater transparency and accountability in the manner by 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 promote coco sugar, and extending funding to Balingasag coconut sugar producers for the physical improvement of their new processing plant which was recently accredited by the Bureau of Food and Drug (BFAD)," said Heidi Grace Mendoza, Oro Chamber secretary general.
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 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 us 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," 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 Mr. 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 has 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.
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