The document provides an overview of theories explaining economic growth and development. It discusses several theories: - The "Invisible Hand" principle proposes that economic development is brought about by individuals pursuing their self-interest through a free market. - Cultural diffusion theory views economic development as resulting from the spread of ideas between cultures. - Other theories discussed include those attributing development to racial heritage, climatic conditions, challenges of the natural environment, technological improvements, population changes, and socio-psychological factors. The document also covers economic development and entrepreneurship theories. It discusses the importance of entrepreneurship in creating jobs, improving standards of living, and mobilizing resources. Government programs to support small businesses in

1. Chapter 1
How Does Economy Grow?

2. “Society is composed of two great
Classes:
Those who have more dinners than
appetite,
And those who have more appetite
than dinners.”
Sebastian R.N. Champfort

3. Theories That Explain How
Economies Grow
• Theories viewing economic growth as a
natural and inevitable.
• Theories explains economic growth
development as rational.
• Theories views economic development as a
result of economically irrational.

4. General Explanation Of
Economic Development

5. Economic development proceeds
according to a master plan or “Law of
Nature.”
In 1932..
Spengler – Explained economic development
as a culture or society to a living organisms that
grows lives and dies.
Economic development is a natural thing that
happens to an existing culture.
Herbert Spencer - viewed society as an
organism constantly in a process of evolution.

6. Economic development is brought
about by an “Invisible Hand.”
In the 18th Century..
Adam Smith - advanced the principle of the
“Invisible Hand” as underlying economic
development.
 While individuals seek to work for their own
personal goals, they unknowingly promote what
is best for all.
 Any society including a very underdeveloped one
can to prosper with little or no intervention from
government because economic development is
brought about as a natural course of things.

7. Economic development is brought
about by “Cultural Diffusion.”
Anthropologists – introduced the idea that societies
have been involved in different social or culture
“experiments” in various economic, political, religious
or social aspects of life.
 Societies are fortunate enough to stumble on a
“breakthrough;” a “lucky” combination of
interests, leaders, people, events, methods that
leads to economic or other development in society.
 Example of breakthrough is the evolution of
machines.
Some theories classify economies as traditional (less
developed/backward) or modern
(market/capitalistic/developed).

8. Racial heritage determines the
economic development of a people.
 Belief that one race is superior to another on
the basis of color, build and other genetic
heritage has been around for a long time.
Hitler – contend that racial characteristics make
some people more energetic and allowing their
countries to be far more developed than other.
 Belief in “Aryan superiority” as justification
for conquest during world war 2.

9. Climatic conditions determine the
energy level of a people and the rate
of development.
In 1951..
Ellsworth Huntington (American geographer)
– wrote the most of the great civilization
flourished in the tropics or the far north.
Observation and studies led to conclude that
extremes of temperature of climatic
conditions have a detrimental effect on the
energy level of people.

10. The challenge of the natural
environment is responsible for the rise
of civilization.
In 1947..
Theory advanced by A.J Toynbee in his book a
Study of History.
Traces economic and cultural change a
combination of natural phenomena and sociopsychological pressure of stimuli such as new
soils to exploit.
The “challenge of environment” is responsible
for the rise of civilization.

11. Economic explanation for
development.
Early 19th century..
Industrial Revolution – economists such as
Adam Smith, David Ricardo, and Karl Marx
identified various economic factors influencing
economic growth.
Example: capital accumulation, population
changes, division of labor, and
entrepreneurship.

12. Technology improvements and division
of labor lead to development.
Adam Smith – believed that the invention of better
machines and equipment brought to increased
productivity together with the division of labor.
Division of labor in Smith view’s.
• An increase of skills among workers.
• Reduced time necessary to produce
commodities.
• The invention of better machines and equipment.

13. Population changes affect
development.
According to David Ricardo – population increases eventually
lead to stagnation or a final stationary state of economy.
 Sustained increases in population would lead to more and
more demand for food.
 He argued that the time will come when land becomes less
productive, and requires higher product costs in order to
continue producing.
John Maynard Keynes(1936) – disagreed with Ricardo’s
conclusion on the effect of population increase on economic
growth.
 Maintained that capitalists or entrepreneurs are most likely to
invest their resources when there is a demand for commodity.
Increasing demand and increasing population, capitalists
invest more.

14. Socio-psychological explanation of
development.
Sociologists and psychologists differ from
economists in explaining economic growth.
Joseph Schumpeter(writing in 1921) – observed
that economic development progressed and in
sudden leaps, initiated by men who wanted to
“promote new goods and new market.”

15. Sociological factors in economic
development.
Max Weber(1904) – attributed the high degrees
of economic development in the west.
Talcott Parsons – used by sociologists to
describe the change in values held by cultures as
they evolve from traditional to modern
economies.

16. According to Parsons, individuals in
modern societies are:
• Unemotional
• Interested in Themselves
• Able to relate to others in terms of their social
roles
• Known for their
accomplishments(achievements)
• Able to relate to others in specific economic
terms.

17. In Contrast..
• Be emotional
• Be more interested in general welfare of the
community
• Relate to others in terms of their unique
qualities
• Be known for who they are
• Tie up economic relationships

18. Psychological factors in economic
development.
 Psychologist view economic growth as a
product of individual human behavior.
 Person’s decisions
 Thoughts and actions.
In 1961..
David McClelland- concluded that among the
many human motives, the achievement motive
does the most in predisposing individuals to
vigorous economic activity.

19. THE GENERAL THEORIES

20. • The “Invisible Hand” principle
• Cultural Diffusion
•
Racial Heritage
• Climate
• Challenge of the Environment

21. • The “Invisible Hand” principle
-> the invisible hand of the market is
a metaphor conceived by Adam Smith to
describe the self-regulating behavior of the
marketplace.
Cultural Diffusion
->mean as the ideas and things in one
culture “borrowed” by another culture
cultural diffusion.

22. • Racial Heritage
->was proposed by Adolph Hitler, He
thought that there was a race that was
superior to the others . This was determined
by factors such as skin, color, body
type, weight and other genetically
determined factors.

23. • Climate
->is usually defined as the "average
weather,“
Challenge of the Environment
ex. Flash flooding is a real threat to peoples
lives and has devastating impact on
business, homes and communities

24. Economic theory
-> a theory of commercial activities such as
production and consumption of goods.
Socio-psychological Theories
-> is the scientific study of how
people's thoughts, feelings, and behaviors ar
e influenced by the actual, imagined, or
implied presence of others.

25. Entrepreneurship and Economic Growth
->is a process of identifying and
starting a business and organizing the
required resources and taking both the
risk.

26. Chapter 2
The role of
entrepreneurship in
economic Development

27. Innovation
• This refer to new or different ways of doing
things, like technology, marketing, human
relations, management, and so forth.
• When an individual creates a new product, it
is innovation. When he sells his product in
different approach, it is also innovation.

28. Entrepreneur Defined
• Prof. Nathaniel left, is the capacity for
innovation, investment and expansion in new
markets, products and techniques.
• Prof. Hirsh said that “Entrepreneurship is
more than a word. It is a mission. We must
perceive opportunities inherent in change; we
must create a desire for pursuing the
opportunities that arise; and we must create
an environment in which success is possible
and the consequences of failure are
tolerable.”

29. Economic Development & Growth
explained
• Development is a process while growth
is product. So growth is the result of
development.

30. Economic Development
• Refers to a progressive process of
improving human conditions by
eliminating or reducing
poverty, unemployment, disease, illitera
cy, injustice and exploitation.

31. Development and Growth Theories
Laissez Faire theory – These are French
words introduced by the Physiocrats to mean
economic freedom. This theory explains that
the government should not interfere in
economic activities. It is Free-enterprise
economy.

32. • Keynesian Theory – the government should
play the key role in economic
development, particularly in less developed
countries, or those depressed economic
conditions
• Ricardian Theory – This theory of David
Ricardo, an English classical economist. He
believes that the key factor in economic
growth is land

33. • Harrod-Domar Theory – This was
conceptualized by Sir Harrod of England and
Prof. Domar of US. The key factor in economic
growth is physical capital like machines.
• Kaldor Theory – Nicholas Kaldor maintains
that the key factor is technology. This explains
that the applications of modern technology in
productions of goods and services has been
responsible for the economic success of highly
developed countries like the United State.

34. • Innovation Theory – This was developed
by Joseph Schumpeter. He stresses the
role of innovators or entrepreneurs in
economic development. He says that it is
the innovator who has courage and
imagination to handle old system, and be
able to transform theory into reality.

35. • Non-Economic Theories – These are several
other theories which are non-economic in nature.
Key Factors:
 Political stability
 Efficient Public administration
 Open society
 Positive cultural values

36. The importance of Entrepreneurship
Statistics in both rich and poor countries show
that small enterprises are leading in the
generation of jobs and wealth.
In Philippines, most of our economic activities
fall under the micro and small business
categories. There are many
retailers, vendors, and other small sole
proprietors.

37. Contributions of Entrepreneurs
Develop new markets – Under the modern
concept of marketing, markets are people who
are willing and able to satisfy their needs. In
economic, this is called Effective Demand.
Entrepreneurs are resourceful and creative. They
can create customer or buyers. This makes
entrepreneurs different from ordinary businessmen
who only perform traditional functions of
management like planning, organization and
coordination.

38. Discover new sources of materials –
Entrepreneurs are never satisfied with traditional
or existing sources of materials. Due to their
innovative nature, they persist on discovering
new sources of materials to improve their
enterprises.
Mobilize capital resources – Entrepreneurs are
the organizers and coordinators of the major
factors of production, such as land, labor and
capital.

39. Introduce new technologies, new industries
and new products – Aside from being
innovators and reasonable risktakers, entrepreneur take advantage of
business opportunities, and transform it into
profits.
Create Employment – The biggest employer
is the private business sector.

40. Participation of Women
 Women constitute a big portion of total
population. Their exclusion from productive
enterprises is a great economic loss. They should
be producers and not merely consumers.
The business potentials of women have
gained the attention of some United Nations
agencies and other non-governmental organizations
(NGOs). As a result, there are now
programs/projects for women, especially in the
rural areas of poor countries, which are envisioned
to train women for business enterprises and
livelihood endeavors.

41. Filipino Entrepreneurial Economy
• There is a need for a Filipino entrepreneurial
economy. This means our productive
resources should be in the hands of Filipinos
for their own benefits. A reasonable economic
nationalism should dominate our business
culture for our own prosperity as a nation.

42. • Claro M. Recto - considered the Father of
modern Filipino nationalism .
- He defined economic
nationalism as the control of the economic
resources for their own benefit and
enjoyment.

43. Social and Economic Impact of
Entrepreneurship

44. Entrepreneurship creates
employment.
• The existence of business activities
influences employment. Business
estab-lishments need people to work for
them.

45. Entrepreneurship improves the
quality of life
• People need to work in order to
survive, attend to their needs, and satisfy their
wants.

46. Entrepreneurship contributes to more
equitable contribution of income and
therefore eases social unrest
• With more entrepreneurial activities provided
to the people in the country sides, natives
have more work opportunities thus,
discouraging them from reset-tling in other
places.

47. Entrepreneurship utilizes and
mobilizes resources to make the
country productive
• We may use our own natural resources, and
process and convert them to more useful
things.

48. Entrepreneurship brings social
benefits through the government
• The resources collected by the
government are given back to the people
in the form of services, infrastructure
projects, school buildings, and
maintenance of peace and order

49. Per Capita Income
• Per capita income: total resources/total population.
• Per capita income is often used as average income, a
measure of the wealth of the population of a
nation, particularly in comparison to other nations. Per
capita income is often used to measure a country's
standard of living. It is usually expressed in terms of a
commonly used international currency such as
the Euro or United States dollar, and is useful because
it is widely known, easily calculated from readilyavailable GDP and population estimates, and produces
a useful statistic for comparison of wealth between
sovereign territories. This helps the country to know
their development status.

50. “Government Programs for
Entrepreneurs”
• Government and Non governmental or organization, as
well as foreign offer financial and technical assistance to
micro and small entrepreneurs, particularly for those in
the rural communities.
• these materials are not useful to student but also to other
who are interested in setting up their micro or small
business.
• the following reprints are: “Magna Carta for small
enterprises
• “,”kalakalan 20”,”Micro-Enterprises Development
Programs”,
• “Self-Employment Loan Assistance Program”, and
“Training Programs for small and medium Enterprises”

51. Primer: Magna Carta for Small
Enterprises
1.What is R.A 6977 otherwise known as the Magna Carta for Small
Enterprises?
-R.A 6977 signed on Jan.24,is act to promote, develop and assistant small
and Medium Enterprise (SMEs) through the creation of a small and medium
enterprise development (SMED) Council , the establishment of a small
business guarantee and finance corporation (SBGHFC) the mandatory
allocation of credit resources to small enterprises and the rationalization of
government assistance programs and agencies concerned with the
development of SMEs.
2.Who will be benefit from the magna carta for small enterprises?
-Small and Medium enterprises will benefit from magna carta for small
enterprises.

52. 3. What is Small and Medium Enterprises?
-A small and Medium enterprise is defined as any business activity or
enterprise engaged in industry, agribusiness and/or services, plant
and equipment are situated, must have value falling under the ff.
categories:
Micro: less than- P 50,000
Cottage: P 50,001- P 500,000
Small: P 500,001- P 5,000,000
Medium: P5,000,001-P 20,000,000
4. What is Small and Medium Enterprises development council?
- The council shall be the primary agency responsible for the
promotion, growth and development of SMEs in the country
,including assisting relevant agencies in the tapping of local and
foreign funds for SME development as well as promoting

53. 5. Who are the members of the SMED council?
-the council is headed by SMED as chairman. the members are
the ff:
a. Director General of the National Economic and
Development Authority
b. Secretary of Agriculture
c. Secretary of Labor and Employment
d. Secretary of Environmental and Natural Resources
e. Secretary of Science and Technology
f. Chairman of Small Business Guarantee and Finance
Corporation
g. Chairman of small and medium enterprises promotion body
which the president shall undertake to establish under this Act.
h. Three representative from the private sector, all Filipino
citizens, to represent luzon , Visayas and Mindanao to be
appointed by the president one of whom shall come from the
banking industry.

54. 6. What are the power and functions of the SMED Council?
- The small and medium enterprise development council
shall have, among others the ff. powers, duties and
functions:
a. To recommend to the president and the congress and
policy matters affecting small and medium scale enterprises;
b. To coordinate and integrate various government and
private sector activities relating to small and medium
enterprise development
c. To monitor and determine the progress of various geared
towards the development of the sector.
d. To provide the appropriate policy and coordinate frame
work in assisting relevant government agencies , in the
tapping of local and foreign funds for small and medium
enterprise.
e. To promote the productivity and viability of small and
medium enterprise, regional ad provincial towards the:

55. 1. Provision of business training course, technical training for
technicians and skilled laborers and continuing skills upgrading
programs.
2. Provision of labor-management guidance's , assistance and
improvement of the working conditions of employees in small and
medium-sized firms;
3. Provision of guidance and assistance and assistance regarding
product quality/product development and product diversification;
4. Provision of guidance and assistance for the adoption of improved
production technologies and commercialization of appropriate
technologies for the product development and for increased
utilization of indigenous raw materials;
5. Provision of assistance in marketing and distribution of products of
small and medium scale enterprises;

56. 6. Intensification of assistance and guidance to enable greater access to credit
through a simplified multi-agency financing program;
7. Provision of concessional interest rest, lower financing fees, which may include
incentives for prompt credit payments, arrangements tying amortizations to business
cash flows, effective substitution of government guarantee cover on loans for the
borrowers lack of collateral;
8. Provision of bankruptcy preventive measures through the setting up of a mutual
relief system for distressed enterprises and the establishment of measures such as
insurance against extraordinary disasters;
9. Intensification of information dissemination campaigns and entrepreneurship
education activities.
10. Easier access to and availment of tax credits and other tax and duty incentives as
provided by the omnibus investment code and other laws;
11. Provision of support for product experiment and research and development
activities as well as access to information on commercialized technologies.

57. f. To assist in the establishment of modern industrial
estates outside urban centers.
7. What is the small Business Guarantee and Finance
Corporation (SBGFC)?
- It is a corporation body created to
provide, Promote, develop and widen in both scope
and service reach, various alternative modes of
financing for small enterprises, including but not
limited to:
- -direct and indirect project lending
- -venture capital
- -financial leasing
- -secondary mortgage and/or rediscounting of loan
papers to small business.
- -secondary/regional stock markets

58. 8. What loans can be guaranteed by the SBGFC?
-the Corporation shall guarantee loans obtained by the following under such
terms and conditions adopted by its board.
•
qualified small enterprises
•
local and/or regional associations of small enterprises
and
industries
-private voluntary organization and/or cooperatives.
9. What are the guarantee schemes that may be provided by the SBGFC?
-the SBGFC may guarantee loans up to one hundred percent (100%)
-it may also provide second level guarantee (i.e, re insurance) on the credit
and/or investment guarantee made by credit guarantee associations and
other institution in support of small entrepreneurs.

59. 10. What does the provision on the “Mandatory
Allocation of Credit Resources to Small Enterprises”
provide for?
a.Section 13 of R.A 6977 provides that all lending
institutions whether, public or private , shall set aside a
portion of their total loan portion based on their
consolidate statement of condition/balance sheet as of
the end of the previous quarter and make it available for
small enterprises credit.
b.The purchase of government notes, securities and other
negotiable instruments with the exception of such
instruments as may be offered by the SBGFC shall not be
deemed compliance with the foregoing provision.

60. “Small-Medium Enterprises Skills Training”
• Focuses on the development and training of existing and/or would
be small and medium business entrepreneurs
• Program provides continuing training of existing entrepreneurs
• Aims to provide a forum for exchange of experience among small
and medium entrepreneurs and business expert/consultants from
both the private and government sectors.
Types of SME skills training:
• Meat Processing
• Fish Processing
• Peanut Processing
• Wine and Vinegar Processing
• Skills Upgrading on Shellcraft
• Skills Upgrading on Ceramics
• Skills Upgrading on Pottery
• Skills Upgrading on Banacbac Handicraft
• Skills Upgrading on Coco-midribs Handicraft

61. “Small-Medium Enterprises Management Training”
• Focuses on the development and training of existing
and/or would be small and medium entrepreneurs.
• This program provide continuing training of existing
entrepreneurs in upgrading and enhancing their
business management skills.
• Aims to assist potential small and medium
entrepreneurs in starting their own business
• Provides a forum for exchange of experience among
small and medium entrepreneurs and business experts
/consultants from both the private and government
sectors.

62. •
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•
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•
•
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•
•
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•
•
Chalk Making
Bamboo Furniture Training
Duck Raising and Hatchery
Speed Sewing
Salt and tile Making
Basic Carpentry Training
Skills Training on Rope making
Bamboo craft (Basketry)
Embroidery
Soft broom making
Stuffed toy training
Sawali making
Loom Weaving
Clay Hollow block making
Seagrass basketry
Rattan basketry
Christmas décor making
Fruit Processing
Candle making]
Banana Processing

63. Types of SME Management Training:
•
Simplified Bookkeeping
•
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•
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Financial Management
Business Management
Marketing Management
Product Management
Product Planning and Development
Furniture Business Development
Strategic Marketing
Product Costing and Pricing
Basic of Exporting
Consumer Education
Productivity Quality Improvement
Improve Your Business Training
Symposium on Livelihood Projects
Starting a Small Business
Subcontracting with Exporters
Organizing a Corporation

64. •
•
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Value Formation Seminar
Teambuilding
Store Design /Merchandizing
Effective Time Management
Leadership Training for farmer leaders
Management Extension and Consultancy
Advertising and Promotion
How to get started in exports
How to negotiate with buyers
Exports management
Entrepreneurship development Seminar
Seminar on bookkeeping and accounting
Seminar on Management and Simple Bookkeeping
Cooperative Management and Simple Bookkeeping

65. Micro-Enterprise Development
Program
• Program Rational
Poverty incidence continues to plagues a
high percentage of our population. The first 3
years of the Aquino Administration has resulted
in an encouraging reduction in poverty
incidence.

66. Program Objective
•
•
•
•
•
•
•
•
To increase income and improve living conditions
in low income municipalities,thru:
-Provision of financial assistance for livelihood
projects in low income municipalities.
-Development of capabilities in livelihood program
implementation in low income municipalities.
Program Components
Financial Assistance (Loan)
-For working capital equipment and other
requirements of livelihood projects.
Technical Assistance (Grant)
-For community org.
Institutional, strengthening, training, etc.

67. Program Assistance Flow
•
•
•
•
•
•
•
•
•
•
Program allocates P1,000,000 per identified low income municipality.
Program lends to community based organization borrowers:
-Maximum of P250,000 per organization borrowers:
-7% interest rate per annum
-Collateral free
-Repayable within 3 years
3. Organization borrowers relent to individual entrepreneurs:
- maximum of P25,000 per microentrepreneur
-maximum of 15% interest rate per annum
-preferably collateral-free
Eligibility of Organization Borrowers
•
•
•
•
Its governing body or board has representatives from
religious, business/banking, parent-teacher groups and 2 other community
leaders.
Such governing body or board preferably has members who are bonafide residents
of the municipality where the organization borrower is based.
Registered with SEC, CDA, DOLE or other appropriate agency
Has been endorsed by Congressmen concerned.

68. Eligibility of Microentrepreneur-Borrowers
• Should be bona-fide residents of low income municipality
and presently engaged or will engaged in a livelihood
activity in any of the ff:
• Handicraft/Cottage Industries
• Post harvest Facilities
• Fish Production/Processing
• Food Production/Processing
• Livestock or Poultry Production/Processing
• Trading/Wholesaling
• Services
• Other Manufacturing Activities
• Other Agricultural Production/Processing

69. Loan Application Procedures
• Applicant organization fills up a 3-page form
available at any DTI Provincial Office.
• DTI Provincial Office initially evaluates
application and endorses it to the MEDP-CDF
Management Committee (MC)
• MEDP-CDF MC evaluates application and
endorses it to the Congressmen concerned.

70. Self-Employment-Loan Assistance
Program
Program Rationale
•
The rural poor is in need of a financing facility for gainful
entrepreneurial activities.
• DTI recognizes that NGOs are effective intermediaries for
credit, skills and organizational assistance to low income groups in
the rural areas.
•
•
Program Objectives
•
•
- Provision of credit for micro entrepreneurs
- creation of employment and enhancement of income in the
rural areas.
•
- Development and strengthening of NGOs capabilities for
livelihood projects.

71. Program Components
• Credit for NGOs for on beneficiaries for microenterprises and
livelihood projects.
• NGO STRENGTHENING through systematic assessment of
needs, provision of training in livelihood project
management, market development and other related activities.
NGO Borrowers Qualification Criteria
• Legal identity
• One year track record in implementing a livelihood/income
generating
• Adequate staff/logistical complement
• Minimum networth P100,000
• Proponent counterpart of 15% of total project cost

72. Use of NGO Loans
• Re-lending to individual micro entrepreneurs
engaged in either manufacturing, agroprocessing, trade, transport and service
business.
• Re-lending to self-help groups engaged in a
manufacturing, agroprocessing, trade, transport and services
business

73. Department Administrative
Order No.2
Series of 1990

74. Guidelines Implementing R.A 6810
Otherwise Known As”KALAKALAN 20”
Pursuant to Sec.10 of R.A 6810, otherwise known
as Kalakalan 20, and after consultation with the
Departments of Finance, Labor and
Employment, and Health and the local
government units, the following
Guidelines, Rules and Regulations governing
countryside and barangay business enterprise
are hereby promulgated for the
compliance, information and guidance of all
concerned:

75. Preliminary Provisions
Sec. 1. Principles. – Registration procedures and
granting of incentives shall be governed by the
following principles:
a. That the rensponsibility for the
implementation of the law rests principally
on the local government units;

76. b. Tha t the burden of proof for non-compliance with the
requirements shall rest with the government.
Sec. 2 Definition of Terms. – When used herein, the
term:
a. CBBE – shall refer to countryside and barangay
business enterprises;
b.Productive business enterprises – shall mean
entities engaged primarily in the
production, processing or manufacturing of products
or commoditites, or other productive business
enterprises recommended by the Department of Trade
and Industry provincial office that will help develop the
economy in its area.

77. c. Professional services – shall refer to services
rendered in connection with the exercise of a
profession, avocation or occupation duly
licensed by the government.
d. Countryside – shall refer to all cities and
manicipalities.
e. CBBE Certificate of Authority – is the
certification issued to an applicant authorizing
the same to operate as a CBBE and to untitled to
the benefits and priviledge accorded to a
register CBBE.

78. f. EMPLOYEES- shall mean all person hired by
the CBBE.
g.ASSETS – shall mean all kinds of
properties, real or personal, owned by the
CBBE and use for the conduct of its business.
In determination of total assets, the
properties of all branches, agencies or
divisions of the business entity shall be
included.
h. Registration – shall mean the inclusion of
CBBE in the CBBE. Registry of an eligible city
or municipality.

79. I.Financing – Shall refer to all borrowing of the
CBBE from all resources after registration.
j. ACT – shall refer to R.A 6810, otherwise
known as KALAKALAN 20.

80. REGISTRATION OF CBBE
Sec. 3 PLACE OF REGISTRATION. – The office of
the Treasurer of each city or municipality
shall process the registration of CBBE.
Sec. 4 Function of the City or Municipal
Treasurer in CBBE Registration.
- To recieveall application and process in the
same as expeditiously as possible.

81. Sec. 5 Who are ligible to Register – Any
Person, natural or juridical,cooperative or
association, having the qualification.
- At the time of registration, the application should
have no more than 20 employees.
- -The applicant should engage solely in productive
business enterprises.
- The assets, before financing, of the applicant
should not exceed Five Hundred Thousand Pesos.
- The applicant does not own an existing business
that has been collapsed and or transferred to the
countryside for the purpose of setting up the
same line of business.

82. Sec. 6 Requirements for Registration – The
applicant for CBBE registration shall submit
the following:
- Application form, in duplicate , signed by the
owner or manager of the applying entity
(CBBE Form 01).
- -1 picture of the owner in case of single
proprietor-ship, and the manager in case of
other types of business entity.

83. Sec. 7 FEES and CHARGES. – Applicant shall
, upon approval of his application, pay the
registration fee of 250 PESOS to the city or
municipality.
Sec. 8 Period within to apply for Registration –
applicant for CBBE Registration shall be
made, Application made after that date will no
longer be entertained.
Sec. 9 Approval of APPLICATION for Registration
and Issuance of the CBBE Certificate of
authority.

84. Sec. 10 Durationof CBBE Authority. – The CBBE
authority shall be valid for a period of 5 years
from date of registration, without any
renewal.
Sec. 11 Grant of JURIDICAL PERSONALITY to
CBBEs. –
Sec. 12 Denial of Application for Registration. –
The denial of any CBBE application shall be
conveyed to the applicant within 24 hours
receipt of the same, stating the grounds for
denial.

85. REVOCATION or Cancellation of
CBBE Certificate of Authority
Sec. 13 Revocation, CANCELLATION or
suspension of CBBE Certificate of authority –
the CBBE Certificate of authority may be duly
revoked, cancelled or suspended by the city or
municipal registration office,
Sec. 14 Notification of changes of address
Sec. 15 Transfer of ownership
Sec. 16 Establishment of Branches

86. Benefits and Privileges
Sec.17 Exemption from taxes and fees.
Sec. 18 Exemption from government rules and
regulation.
Sec. 19 ALL fees and charges derived from the
registration of CBBEs shall accrue exclusively
to the city or municipality and shall be used
for the administration of the act and for
development projects approved by the
minicipal or city council.

87. • Sec. 20 These guidelines, rules and
regulation shall take effect 15 days
after publication in a newspaper of
general circulation.

88. THE END ! ! !