Franchisers Conducts Dialogue with Gov’t Agencies to Discuss SME Welfare

By | Event

Aug 18

The Association of Filipino Franchisers Inc. (AFFI) hosted a special Dialogue Insights Consultation Exchange (DICE) program, with representatives from key government agencies, last August 17 at New World Hotel Makati.

 

AFFI is a group of  franchisors that is committed to promoting responsible micro small medium enterprise businesses through franchising.

 

Among the attendees from the government agencies are: ASEC. Blesila Lantayona of Department of Trade and Industry (DTI), Atty. Ferdinand Sales of Security and Exchange Commission (SEC), and Atty. Rex Paul Recoter of Bureau of Internal Revenue (BIR).

 

Registration Process in the Agency

 

Business registrations are now made faster for entrepreneurs.

 

Concerned government offices have committed to make business processing easier and   more convenient, by making the application automated and cutting short the period of the processes.

 

SEC already started the initiative of providing express lanes or the Green Lane Unit to cater to one day registration process for new corporations and partnerships, since 2011. However, processing of amendment applications may still take three to five working days.

 

On the other hand, applicants for business name registration may expect faster processing with DTI. For the first quarter of this year alone, DTI has already processed more than two hundred fifty thousand business name registrations.

 

“The turn-around time of ninety six percent of all our transactions is fifteen minutes,” ASEC Lantayona of DTI said.

 

For BIR registration, a memorandum under revenue regulations 17-2012 was signed by the newly retired Deputy Commissioner Nelson Aspe that mandates all articles nationwide to release the certificate of registration in one day.

 

During the event, Senator-elect Sherwin “Win” Gatchalian, who was awarded honorary member of AFFI, discussed the measures of the present administration on how they will be helping entrepreneurs in doing business with the concerned government agencies.

 

“We improve the point of contact of our entrepreneurs. Kasi karamihan sa ating mga entrepreneurs, they talk to the local chief executive and they talk to the local government. So improve natin yung point of contacting,” Gatchalian said.

 

Gatchalian, who served for three consecutive terms in Valenzuela, made reference to the business application process of the city.

 

“The problem here in our system, in our procedures, the law always assumes that some of our tax payers are dishonest or not honest. That’s why magsubmit ka muna sa akin ng mga inspection report mo or certification bago kita bigyan ng business permit. So binaligtad namin sa Valenzuela,” he said.

 

Valenzuela has gone automated in their processes, which cut the application time from 15 to 20 minutes, through the use of existing technology.

 

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AFFI President and Leapreneur founder, Jerry Ilao with Senator Win Gatchalian.

Barangay Micro Business Enterprise

 

The Republic Act 9178 or also known as the “Barangay Micro Business Enterprises (BMBEs) Act of 2002”, encourages the establishment of barangay micro business enterprises (BMBEs), by providing incentives and other benefits.

 

“Matagal na yang Barangay Micro Business Enterprise. Actually it’s a partida na binibigay natin sa ating mga micro enterprises. And micro enterprises are defined as a those enterprises that has a size na 3 million below, so bale they are exempted from paying income tax.”

 

Registered BMBEs can take advantage of the benefits granted under this law. However, a business that would want to avail of all the perks must first get a Certificate of Authority which authorizes it to operate as a BMBE.

 

ASEC. Lantayona announced that the issuance of the certificate of BMBE has been transferred to the DTI.

 

With the recent amendment under section 5 in the GoNegosyo Act, the DTI shall have the sole power to issue the Certificate of Authority for BMBEs to avail of the benefits provided by Republic Act No. 9178.

 

“As of the latest count, August 11, we only have 265 [Negosyo Centers] pa lang. Now for areas without Negosyo Center, of course you go to the DTI provincial office,” Lantayona said.

 

While BMBE entrepreneurs are exempted from paying income tax, Atty. Rector of BIR, however, emphasized that they are still required to pay business tax.

 

BMBE was issued in February  2003 as a DTI Department Administrative Order No. 1, Series of 2003, signed by former president, Gloria Macapagal-Arroyo.

 

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AFFI with its new members and government representatives with actress, Bea Binene.

 

Kapatid Program

 

Aside from the BMBE, DTI has teamed up with Philippine Center for Entrepreneurship – Go Negosyo, for “Kapatid” program.

 

The Kapatid program aims to link the micro and small enterprises to medium and large enterprises, by empowering MSMEs through Inclusive Business models that will be introduced by contributing large corporations.

 

The program is composed of three components: the Adopt an SSF (Shared Service Facility, a program which provides SSFs to micro-entrepreneurs in their community through project partners; Mentor Me a coaching and mentoring session with business owners and practitioners; and Inclusive Business (IB), which encourages medium and large corporations to adopt an IB model and link the micro and small entrepreneurs in their value chain.

 

All items discussed by the panel and attendees are summarized into an Executive Summary document by the forum host, Tess Ngan Tian of Lots a Pizza, which will then be forwarded to the senate for consultation. Entrepreneurs also are encouraged to sign up in the Executive Summary as a symbol of support.

 

The DICE was moderated by AFFI Chairman and Franchise Guru, Armando “Butz” Bartolome and Tax Whiz, Mon Abrea, and was attended by various members of the association. DICE is one of AFFI’s programs in promoting interaction among partners and industry stakeholders. It aims to open more opportunities for growth and sustainable partnership for all AFFI Members.

 

What do you think of the current government support being provided to micro and small entrepreneurs? What else should the government do to promote entrepreneurship to our country? Tell us what you think by leaving your comments below.