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that will monitor the economic contributions as well as
bottlenecks and environmental effects of the development of
MSMEs.
(Sec. 2, RA 6977, as amended by RA 8289, and further amended by RA 9501)
Sec. 2. Local Economic Development. Pursuant to the Constitution, the
Local Government Code and other existing laws, local economic development
and current efforts and initiatives of local government units (LGUs) and other
stakeholders towards providing an enabling environment for MSME
development, shall be a thrust of this IRR. In this regard, technical support
and coordination with existing structural mechanisms promoting MSMEs and
entrepreneurship development in LGUs, particularly of provinces and non-
component cities, shall be prioritized. This shall also be applicable to the
cities and municipalities in the National Capital Region. Collaborative
arrangements with other mechanisms involved in local economic development
must be pursued to avoid duplication of efforts and to ensure coordinated
actions.
Sec. 3. Identification of Replicable Practices, Barriers and Hindrances. To
pursue this policy, replicable practices such as facilitative mechanisms in
the country as well as those implemented in other countries shall be studied,
adopted or adapted to ensure that this policy is implemented subject to existing
laws, orders, rules, and regulations implemented in this jurisdiction. On the
other hand, existing barriers and other hindrances in furtherance of this policy,
particularly in the countryside and other areas where pockets of poverty exist,
shall be reviewed and appropriate policies put in place, as may be warranted.
Sec. 4. Micro enterprises. With the enactment of RA 9501 amending RA
6977, as amended by RA 8289, micro enterprises shall now be made part of
the coverage of the Act separate and distinct from small enterprises. In this
regard, the Micro, Small and Medium Enterprise Development Council
(MSMEDC) shall consider the provisions under RA 8425 or the Social Reform
and Poverty Alleviation Act; RA 9178 or the Barangay Micro Business
Enterprises (BMBEs) Act of 2002; RA 7844 or the Export Development Act;
and, Republic Act No. 7882 on the Act Providing Assistance to Women
Engaging in Micro and Cottage Business Enterprises, in encouraging the
establishment of micro enterprises and strengthening existing ones. For the
purpose of coordinating with different concerned government entities to
enhance assistance to this sub-sector, the beneficiaries of the above-mentioned
laws shall be identified.
With regard to microfinance services for the exclusive use of the poor, the
MSMEDC and the Bangko Sentral ng Pilipinas (BSP), shall coordinate with
the National Anti-Poverty Commission (NAPC) on enjoining government