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BAGUIO CITY – The city’s Micro, Small and Medium Enterprises Development Council is urging all individuals and groups operating business in the city to register the same with the concerned government agencies and the city government to ensure their inclusion in the formal economy.
The registration of businesses operating in the city is one of the thrusts of the Department of Trade and Industry (DTI) and the city government to reflect the contribution of these micro, small and medium enterprises (MSMEs) to the state of the city and national economy, especially in the infusion of investments and the job generation of the said sector.
Based on the data obtained from the DTI-CAR, more than 99 percent of the more than 924,000 registered businesses in the country are classified to be MSMEs with the top 5 regions with the largest number of MSMEs being the National Capital Region, Central Luzon, Cavite-Laguna-Batangas-Rizal-Quezon (CALABARZON), Central Visayas and Western Visayas, all of which account for over 60 percent of the registered MSMEs in the country.
Further, the DTI reported that in terms of employment, the registered MSMEs contribute around 67 percent of the country’s employment rate.
The city government is currently crafting the city’s MSME Development Work Plan for 2020-2022 pursuant to the existing National MSME Plan 2017-2022 with the participation of the MSME sector as the bulk of the programs, projects and activities that will enhance the MSMEs should come from the members of the sector.
Among the identified 5 development goals for MSMEs include improved business climate, improved access to finance, enhance management and labor, improved access to technology and innovation and improved access to market.
One of the 15-point collective agenda of the present administration is strengthen livelihood and entrepreneurship which is aligned with the efforts of concerned government agencies to improve the state of MSMEs through the provision of available technical and financial assistance.
The city MSMED Council is chaired by the City Mayor with the DTI Baguio-Benguet Provincial Director as vice chairperson.
Relevant government agencies and the city government are working for the registration of MSMEs to be able to gather the appropriate data reflecting the overall contributions of the said sector to the city and national economy and the provision of employment and sources of livelihood to a certain percentage of the population.
The non-registration of the MSMEs will result to the classification of the said businesses as part of the underground economy whose contribution is not reflected in the formal economy as the MSMEs sector is a major economic driver providing employment opportunities for people in the different barangays.
The city government intends to tap the barangays to ensure the registration of existing MSMEs in their respective areas of jurisdiction to achieve the overall objective of strengthening livelihood and entrepreneurship.
By Dexter A. See