Guide to the Magna Carta for Micro Small and Medium Enterprises

SEC. 5. Guiding Principles. — To set the pace for MSMEdevelopment, the State shall be guided by the following principles:“(a) Minimal set of rules and simplification of procedures andrequirements. All government agencies having to do with smallenterprises shall pursue the principles of minimum regulationto ensure stability of rules and to encourage entrepreneurialspirit among the citizenry. The agencies shall see to itthat procedural rules and requirements, within their respectiveoffices in coordination with other agencies, are minimized inthe act of registration, availment of financing and accessingother government services and assistance.“(b) Role of the private sector. In order to hasten growth andexpansion of small and medium enterprises, the private sectorthroughout the country shall be encouraged to assist in theeffective implementation of this Act by participating ingovernment programs for small and medium enterprises strictlyin accordance with the law, and consistent with the attainmentof the purposes hereof. To encourage private sectorparticipation, the Council, in consultation with the concernedsector, may recommend simplified procedure and localizedincentives to small enterprises. The Government shallencourage the organization and establishment of small andmedium enterprise industry associations at the local andregional levels preferably unified under a national federationassociation.“c) Coordination of government efforts. Government efforts shallbe coordinated to achieve coherence in objectives. Allappropriate offices, particularly those under the Departments ofTrade and Industry, Finance, Budget and Management,Agriculture, Agrarian Reform, Environment and NaturalResources, Labor and Employment, Transportation andCommunications, Public Works and Highways, Science andTechnology, Interior and Local Government and Tourism as wellas the National Economic and Development Authority, PhilippineInformation Agency and the Bangko Sentral ng Pilipinas, throughtheir national, regional and provincial offices shall, to the best oftheir efforts and in coordination with local government units,provide the necessary support and assistance to MSMEs.“(d) Decentralization. The State shall accelerate the decentralizationprocess by establishing regional and provincial offices in order toenhance and attain greater efficiency in the provision of services4