Guide to the Magna Carta for Micro Small and Medium Enterprises

must be owned by Filipino citizens;c) a business activity within the major sectors of the economy, namely:industry, trade, services, including the practice of one’s profession, theoperation of tourism-related establishments, and agri-business, whichfor the purposes of this Act refers to any business activity involving themanufacturing, processing, and/or production of agricultural produce.Business activities involving fisheries, aquatic resources and other relatedindustries shall likewise be covered by this Act.d) a business activity as provided in Section 3 of this Rule which is nota branch, subsidiary or division of a large scale enterprise.However, this requirement shall not preclude MSMEs from acceptingsubcontracts and entering into franchise partnership with large enterprisesor from joining in cooperative activities with other MSMEs.Sec. 2. Coverage of Small Business Corporation (SB Corporation). Programsof the Small Business Corporation (SB Corporation) as provided in subsequentprovisions of this Act shall be exclusively delivered and directed to bonafideMSMEs. The SB Corporation shall make known through all its offices andpartner organizations its current programs pertaining to bonafide MSMEs.Sec. 3. Disqualification of MSMEs as Beneficiaries under RA 6977, asamended. Any MSME, its directors, officers or agents, found to have committedfraud or misrepresentation for the purpose of availing the benefits under thisAct shall be immediately disqualified as a beneficiary, without prejudice toany administrative, criminal or civil liability under existing laws.Sec. 4. Share of MSMEs in Government Procurement. Eligible MSMEsshall be entitled to a share of at least ten percent (10%) of total procurementvalue of goods and services supplied to the Government, its bureaus, officesand agencies annually.Sec. 5. Monitoring on Required Government Procurement. The Departmentof Budget and Management shall monitor the compliance of governmentagencies on the required procurement for MSMEs, as provided for in Sec. 4of this Rule, and submit its report to the MSMEDC on a semestral basis, andto the Congress of the Philippines, through its appropriate committees on ayearly basis.25