The Barangay Micro Business Enterprise Program: How it Can Help You Start and Grow Your Business
Are you thinking of a small business? Consider registering your new business in the BMBE program. On November 13, 2002, President Gloria Macapagal-Arroyo signed into law the “Barangay Micro Business Enterprises (BMBEs) Act of 2002” creating the program that aims to promote economic growth by encouraging the formation and growth of micro and small enterprises (SMEs) within the barangay. Also, it intends to encourage and empower Filipinos to become successful entrepreneurs by providing new small business owners with incentives and other benefits.
What is the BMBE Program?
The Barangay Micro Business Enterprise (BMBE) program was established under Republic Act No. 9178. The program is designed to aid MSEs with assets not exceeding ₱3 million by granting them exemption from taxes, registration fees, and other regulatory requirements.
Who can avail of the program?
Based on the revised guidelines issued by the Department of Trade and Industry (DTI) under the Department Administrative Order No. 16-01, Series of 2016, any person, natural or juridical, such as partnership, corporation, association and cooperative, having the qualifications and none of the disqualifications shall be eligible to register as BMBEs. For more details you may visit the DTI Negosyo Center Online at https://dtinegosyocenter.online.
Benefits of the BMBE Program for New Businesses
The BMBE program provides several benefits for new businesses in the Philippines. Some of the benefits of the program include:
1. Exemptions
The program exempts new businesses from paying income tax and from the coverage of the minimum wage law. This exemption can significantly lessen the financial burden on new businesses, enabling them to use their resources more on developing and expanding their businesses.
2. Simplified Registration
The program simplifies the registration of a new business through the Department of Trade and Industry (DTI) or the local government unit (LGU). The registration process was streamlined with minimal requirements making it easy to comply with the regulations.
3. Access to Credit
The program provides new businesses access to credit. Registered BMBEs are eligible to apply for loans from various government agencies and financial institutions. This enables them to secure the necessary funding to start or expand, increasing their chances of success.
4. Technical Assistance
The program extends technical assistance from the DTI and other government agencies such as training programs, business development services, and marketing support, and others. These resources help new business owners gain the necessary knowledge and develop skills to succeed in their chosen industry.
5. Competitive Advantage
The program provides new BMBE-registered businesses the competitive advantage over their non-registered counterparts. It allows them to offer their products or services at lower prices, thus, making them more attractive to their prospective customers and helping them gain a foothold in the market.
The BMBE program is an excellent initiative by the Philippine government. It encourages Filipinos into entrepreneurship and promote small business development. The benefits it gives to new businesses do not only help them get off the ground but also allow them to thrive and grow, eventually, contributing to the overall economic development of the country. So, if you are a thinking of establishing a new business, consider registering it as a BMBE and take advantage of the benefits that this program provides.
By: Bernardino F. De Leon, CPA, and one of the Founders of Bytesfusion Link Solutions Inc. and owner of BFDL Tax and Accounting Services
