Guide to the Magna Carta for Micro Small and Medium Enterprises

“i) assuring a balanced and sustainable developmentthrough the establishment of a feedback and evaluationmechanism that will monitor the economic contributionsas well as bottlenecks and environmental effects of thedevelopment of MSMEs.”(RA 9501 through Sec. 2 amended Sec. 2 of RA 6977, as amended by RA 8289)SEC. 3. Micro, Small and Medium Enterprises (MSMEs) asBeneficiaries. — MSMEs shall be defined as any business activity orenterprise engaged in industry, agribusiness and/or services, whether singleproprietorship, cooperative, partnership or corporation whose total assets,inclusive of those arising from loans but exclusive of the land on which theparticular business entity’s office, plant and equipment are situated, musthave value falling under the following categories:micro : not more than P3,000,000small : P3,000,001 - P 15,000,000medium : P15,000,001 - P100,000,000“The above definitions shall be subject to review and adjustment bythe Micro, Small and Medium Enterprises Development (MSMED) Councilunder Section 6 of this Act or upon recommendation of sectoral organizationsconcerned, taking into account inflation and other economic indicators. TheCouncil may use other variables such as number of employees, equity capitaland assets size.“The Council shall ensure that notwithstanding the plans and programsset for MSMEs as a whole, there shall be set and implemented other plansand programs varied and distinct from each other, according to the specificneeds of each sector, encouraging MSMEs to graduate from one category tothe next or even higher category.”(RA 9501 through Sec. 3 amended Sec. 3 of RA 6977, as amended by RA 8289)SEC. 4. Eligibility for Government Assistance. — To qualify forassistance, counseling, incentives and promotion under this Act, businessesfalling under the above definition must be: “a) duly registered with the appropriate agencies as presentlyprovided by law: Provided, That in the case of micro enterprisesas defined herein, registration, with the office of the municipalor city treasurer shall be deemed sufficient compliance withthis requirement;2