Guide to the Magna Carta for Micro Small and Medium Enterprises

Rule 5Guiding PrinciplesSECTION. 1. Minimal Set of Rules and Simplification of Procedures andRequirements. All government agencies having to do with MSMEs shall pursuethe principle of minimum regulation to ensure stability of rules and to encourageentrepreneurial spirit among the citizenry. The agencies shall see to it thatprocedural rules and requirements, within their respective offices and incoordination with other agencies, are minimized in the act of registration,availment of financing and in accessing other government services andassistance.Sec. 2. Role of the Private Sector. In order to hasten growth and expansionof micro, small and medium enterprises, the private sector throughout thecountry shall be encouraged to assist in the effective implementation of RA9501 and this IRR by participating in government programs for MSMEs forthe attainment of the purposes hereof. To encourage private sectorparticipation, the MSMED Council, in consultation with the concerned sector,may recommend a simplified procedure and localized incentives to MSMEs.The Government shall encourage the organization and establishment of MSMEindustry associations at the local and regional levels, where none exists, andtheir strengthening if already established. To ensure collective actions andinitiatives, MSME industry associations preferably be unified under a nationalfederation/association.Sec. 3. Coordination of Government Efforts. Government efforts shall becoordinated to achieve coherence in objectives. All appropriate offices,particularly those under the Departments of Trade and Industry, Finance,Budget and Management, Agriculture, Agrarian Reform, Environment,Transportation and Communications, Public Works and Highways, Scienceand Technology, Interior and Local Government, and Tourism, as well as theNational Economic and Development Authority (NEDA), Philippine InformationAgency (PIA), and the Bangko Sentral ng Pilipinas (BSP), through theirnational, regional and provincial offices shall, to the best of their efforts and incoordination with local government units, provide the necessary support andassistance to MSMEs.Sec. 4. Decentralization. The State shall accelerate the decentralizationprocess by establishing regional and provincial offices in order to enhanceand attain greater efficiency in the provision of services to the countrysideand the implementation of RA 9501, in coordination with local governmentunits. To this end, the government agencies shall effect a substantialdelegation of authority to their regional and provincial offices to make decisions,particularly in the registration of beneficiaries, qualification for availment ofbenefits, accreditation of private voluntary organizations, industry associationsand cooperatives, and to resolve complaints for violation of applicable laws.26