Go Negosyo Act No. 10644 - Negosyo Centers Support MSMEs to Create Jobs
Republic Act No. 10644 otherwise known as the “Go Negosyo Act,” seeks to strengthen MSMEs to create more job opportunities in the Philippines. The Negosyo Center Program is responsible for promoting ease of doing business and facilitating access to services for Micro, Small, and Medium Enterprises (MSMEs). The Program started in 2014, with 5 Centers established in the islands of Luzon, Visayas, and Mindanao. Since then more than 1000 Centers have been set up nationwide. Negosyo Centers are found in strategic areas convenient for the existing and would-be entrepreneurs, such as DTI offices, Local Government Units (LGU), academe, Non-Government Organizations (NGOs), and malls. (Source)
Find below a complete FAQ on the program or download the "Go Negosyo Act Briefer" at the top right corner of this page.
Frequently Asked Questions:
What is Republic Act No. 10644?
Otherwise known as “Go Negosyo Act”, the Act seeks to strengthen micro, small and medium enterprises (MSMEs) to create more job opportunities in the country. It was signed into law by the President Benigno S. Aquino III on 15 July 2014, and which took effect on 13 January 2015. The Department of Trade and Industry (DTI) issued Department Administrative Order (DAO) No. 14-5 Series of 2014: “Implementing Rules and Regulations for Republic Act No. 10644″.
What is the basic policy of the “Go Negosyo Act”?
The basic policy of the “Go Negosyo Act” is to foster national development, promote inclusive growth, and reduce poverty by encouraging the establishment of MSMEs that facilitate local job creation, production and trade in the country.
What are the salient features of the Go Negosyo Act?
- The law seeks to promote “job generation and inclusive growth through the development of MSMEs” in the country
- Establishment of “Negosyo Centers” in all provinces, cities and municipalities to promote “ease of doing business and facilitate access to services for MSMEs within its jurisdiction”
- Technology transfer, production and management training, and marketing assistance for MSMEs
- Establishment of a Philippine Business Registry Databank under the Department of Trade and Industry (DTI) to serve as a database of all business enterprises in the country
- Establishment of a Start-up Fund for MSMEs “to provide financing for the development and promotion of MSMEs in priority sectors of the economy to be sourced from the MSME Development Fund and BMBE Fund
- Recomposition of the MSME Development Council and its additional functions.
Who should establish the Negosyo Centers in the locality?
The MSMED Council shall encourage public-private partnerships (PPPs) in the establishment and management of Negosyo Centers. Coordination and collaboration with the Local Government Units (LGUs) and other agencies and organizations is imperative to avoid duplication of efforts and to foster coordinated action.
Can existing MSME Centers or Business Assistance Centers operate as a Negosyo Center?
Yes, existing Centers may continue to operate as Negosyo Centers subject to the provisions of the “Go Negosyo Act” and its Implementing Rules and Regulations.
What are the functions of the Negosyo Centers? (Training related functions are highlighted)
The Centers will be responsible for promoting “ease of doing business and facilitating access to services for MSMEs within its jurisdiction”, such as:
a) Business Registration Assistance
- Accept and facilitate all new registration and renewal application of MSMEs, including application for Barangay Micro-Business Enterprise (BMBE);
- Coordinate with the respective local government units (LGUs) and liaise with concerned government agencies to process the duly accomplished forms submitted by the MSMEs;
- Implement a unified business registration process preferably through automated systems such as the Philippine Business Registry (PBR);
b) Business Advisory Services
- Assist MSMEs in meeting regulatory requirements to start and maintain the business;
- Build local support networks and establish market linkages for MSME development through the Micro, Small and Medium Enterprise Development (MSMED) Council and DTI;
- Facilitate access to grants and other forms of financial assistance, shared service facilities and equipment, and other support for MSMEs through national government agencies (NGAs);
- Ensure management guidance, assistance and improvement of the working conditions of MSMEs;
- Co-organize with the local chambers of commerce, other business organizations and government agencies, a mentoring program for prospective and current entrepreneurs and investors;
- Conduct other programs or projects for entrepreneurial development in the country aligned with the MSMEs development plan.
c) Business Information and Advocacy
- Provide information and services in training, financing, marketing and other areas as may be required by MSMEs;
- Establish and maintain a databank which will support business information requirements of MSMEs;
- Promote ease of doing business and access to services for MSMEs within its jurisdiction;
- Support private sector activities relating to MSMEs development;
- Encourage government institutions that are related to the business application process to help promulgate information regarding the Negosyo Center;
- Coordinate with schools and related organizations on the development of youth entrepreneurship program;
- Encourage women entrepreneurship through access to information, training, credit facilities, and other forms of assistance.
d) Monitoring and Evaluation
- Monitor and recommend business-process improvement for MSMEs;
- Establish a feedback mechanism among the MSMEs in the respective jurisdiction of Negosyo Centers.
e) Perform such other functions that may be assigned by the MSMED Council as germane to RA 10644 and other related laws.
Who can avail of the services offered by the Negosyo Centers?
Any person, natural or juridical, having the qualifications as defined in Section 3 c) of the Republic Act No. 9178 may avail of the services.
Who will supervise and man the Centers?
The MSMED Council thru the DTI is the coordinating and supervising body for all the agencies involved in the establishment and operation of the Negosyo Centers. It shall perform oversight functions and shall assign personnel to fulfil the functions of the Negosyo Centers.
Who are the members of the Micro, Small and Medium Enterprises Development (MSMED) Council?
The members of the council are Department of Trade and Industry (DTI), Department of Agriculture (DA), Department of Interior and Local Government (DILG) and Representatives from the MSMEs and women sectors and Small Business Corporation. There is an Advisory Unit whose members are government agencies, government and private financing institutions, labor and academe representatives.
What other forms of assistance will be extended by the Negosyo Centers to MSMEs?
A Start-up Fund for MSMEs shall also be established “to provide financing for the development and promotion of MSMEs in priority sectors of the economy as specified in the MSMED [MSME Development] Plan”. Likewise, a Philippine Business Registry Databank (PBRD) shall be established under the DTI to serve as a repository of information of all business enterprises in the Philippines.