Florence II A. Panlilio BSBA - Management Accounting

Florence II A.
Panlilio
BSBA – Management Accounting
Thesis Title :
Awareness of Entrepenuers in Barangay AAA on BMBE Law (Barangay Micro

Business Enterprises).
Introduction:
The “BMBEs Act of 2002” of Republic Act No. 9178 encourages the formation
and growth of barangay micro business enterprises by granting them incentives and
other benefits. The Act was signed into law by President Gloria Macapagal-Arroyo on
November 13, 2002. Its Implementing Rules and Regulations (IRR) which was issued
on February 7, 2003, as DTI Department Administrative Order No. 1, Series of 2003,
was published twice in the February 11 and 26, 2003 issues of the Manila Bulletin. A
BMBE is defined as any business enterprise engaged in production, processing, or
manufacturing of products, including agro-processing, as well as trading and services,
with total assets of not more than P3 million. Such assets shall include those arising
from loans but not the land on which the plant and equipment are located. For the
purpose of the Act, “services” shall exclude those rendered by any one, who is duly
licensed by the government after having passed a government licensure examination, in
connection with the exercise of one’s profession (e.g., Accountant, Lawyer, Doctor, etc.).
The DOF Department Order No. 17-04 also provides that, an enterprise can only qualify
for registration if it is not a branch, subsidiary, division or office of a large scale
enterprise and its policies and business modus operandi are not determined by a large
scale enterprise or by persons who are not owners or employees of the enterprise (i.e.,
franchises).
Objective:
To know the awareness of entrepenuers of Brgy. AAA on this law.

To know the incentives & benefits of the law for the entrepenuers of Brgy. AAA.
To know how the government agencies helping/proving assistance regarding on this
law.
To know who can avail this incentive program.
To know the advantage or disadvantage of putting small business under BMBE
III. Research Proposal
Abstract of the proposal (maximum of 250 words)
ABSTRACT
This study aims to know the cases of the incentives and benefits provided by theBarangay Micro
Business Enterprises (BMBE) Act of 2002 to registered microenterprises in the City of Tarlac, Philippines.
It looked into the implementation of the law by the conduct of a multiple case studies of six selected
micro enterprises in availing and/or forgoing the incentives and benefits of the said Act. The study
revealed that all the selected cases of micro enterprises managed to avail the discount provided by the
local government regarding its taxes, fees and charges. All the cases of micro enterprisesexercised as well
their rights on the exemption from the minimum wage law. However,the most attractive provision of the
Act pertaining to the income tax exemption of themicro enterprises are not successfully availed by the
micro enterprises. The financingarea of micro enterprises through a special credit window was not
explored by the microentrepreneurs which might result to possible benefit in the future in the area of
financialmanagement. The study showed that the major obstacles faced by the micro entrepreneursare
the lack of understanding of the BMBE Act and bureaucratic red tape in thegovernment.
Keywords: BMBE, Micro Business, Fiscal Incentives, Income tax exemption.
b) Background
- Rationale of the Research
BMBEs are essential to the country’s economic development since they effectively serve as
seedbeds of Filipino entrepreneurial talent. Thus, the Act primarily aims to integrate micro enterprises in
the informal sector into the mainstream of the economy. Strengthening BMBEs would mean more jobs
and livelihood, and a better quality of life for Filipinos
- Purpose of the Research (includes research questions)
For the purpose of the Act, “services” shall exclude those rendered by any one, who is duly
licensed by the government after having passed a government licensure examination, in connection with
the exercise of one’s profession (e.g., Accountant, Lawyer, Doctor, etc.).
The DOF Department Order No. 17-04 also provides that, an enterprise can only qualify for registration if
it is not a branch, subsidiary, division or office of a large scale enterprise and its policies and business
modus operandi are not determined by a large scale enterprise or by persons who are not owners or
employees of the enterprise (i.e., franchises).
- Theoretical Framework
- Literature Survey
- Significance of the Research
- Definition of Terms
- Scope and Limitation of the Study
- Statement of Desired Outcomes
c) Description of method or approach
- Research Design/Research Instrument/Data Gathering Procedures
- Respondents/Units of analysis/Subjects of the Study
- Sampling Design and Procedures
- Assumptions or Hypotheses
- Data Analysis Plan
- Research Paradigm/Conceptual Framework

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Florence II A.

Awareness of Entrepenuers in Barangay AAA on BMBE Law (Barangay Micro

To know the awareness of entrepenuers of Brgy. AAA on this law.

Abstract of the proposal (maximum of 250 words)

Keywords: BMBE, Micro Business, Fiscal Incentives, Income tax exemption.

- Purpose of the Research (includes research questions)

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