Awareness of Micro, Small, and Medium Enterprises on the Salient Features of Magna Carta for Msmes, Barangay Micro Business Enterprises Act, and Go Negosyo Act in the Philippines

The study was conducted to determine the awareness of the MSMEs in District IV of Nueva Ecija on the three important laws that provides programs that will benefit them. Particularly, these are the Magna Carta for MSMEs (RA 9501), Barangay Micro Business Enterprises (BMBEs), and the Go Negosyo Act (RA 10644). Descriptive research method was used in the study with 340 enterprises as respondents in District IV of Nueva Ecija. The main instrument of the study was survey questionnaire composed of closed ended questions. Based on the result of the study, majority of the respondents were female, married and college graduates. Moreover, they are belong to micro enterprises based on the classification under RA 9501 and majority are belong to service industry.The study also reveals that MSMEs are already aware on the many important provisions under the three laws. They are already aware that there are Negosyo Centers in many municipalities in the province and gives services such as business name registration. However, they are not aware on the other services of the centers such as trainings and technical assistance. The DTI has been effective in information dissemination of the existence of the negosyo centers, though additional efforts shall be given to inform the target clientele on the services they offer. The MSMEs also recognized the importance of business registration on the qualification to benefit from the programs of the government especially those under the three laws. Based on the findings of the study, the researchers want to recommend the following to future researchers, Local Government Unit, Policy makers, universities, and enterprises. Other researchers can use this study as a main reference for future research than can be conducted in other municipalities or districts of Nueva Ecija.This is to identify if the result of this study will be the same in other places.They can explore their municipalities to seek for assistance given by the three important legislations such as the Negosyo Centers created under the Go Negosyo Act. These facilities will help them in the operation including the marketing, production, and even in the financial assistance.The LGU and Policy makers should improve the information dissemination of the Magna Carta for MSMEs, BMBEs Act, and the Go Negosyo Act. Since the result of the study is that there are still enterprises that are not aware on the programs of the three legislations. Seminars and trainings can be conducted to increase the awareness of the MSMEs.Private and state universities should also improve the awareness of the students on the programs given by the Magna Carta for MSMEs, BMBEs International Journal of Advanced Engineering, Management and Science (IJAEMS) [Vol-6, Issue-6, Jun-2020] https://dx.doi.org/10.22161/ijaems.66.3 ISSN: 2454-1311 www.ijaems.com Page | 237 Act, and Go Negosyo act so that in the future when they established their own enterprises they can take advantage the availability of the programs given by the three legislations. Keyword— MSMEs, Magna Carta for MSMES, Barangay Micro Business Enterprises Act, Go Negosyo Act.


INTRODUCTION
The MSME Sector Micro, small and medium enterprises (MSMEs) have a very important role in developing the Philippine economy. They help reduce poverty by creating jobs for the country's growing labor force. They stimulate economic development in rural and far-flung areas (Senate of the Philippines, 2012). They serve as valuable partners to large enterprises as suppliers and providers of support services. They serve as breeding ground for new entrepreneurs and large corporations. A vibrant MSME sector is thus an indication of a thriving and growing economy. Despite policies that aim to provide an enabling environment for MSME development, the sector still faces various constraints that prevent it from realizing its full growth and potential.
Micro, small, and medium enterprises (MSMEs) are defined as any business activity/enterprise engaged in industry, agribusiness/services, whether single proprietorship, cooperative, partnership, or corporation whose total assets, inclusive of those arising from loans but exclusive of the land on which the particular business entity's office, plant and equipment are situated, must have value of not more than 3 million Pesos (Sec. 3. of R.A.9501 otherwise known as the Magna Carta for Micro, Small and Medium Enterprises (MSMEs). The law is geared to uplift the entrepreneurial spirit in the Philippines by providing a conducive business environment businessmen and entrepreneurs.
The RA 9178 defined Barangay Micro Business Enterprises (BMBEs) as any business enterprise engaged in production, processing, or manufacturing of products, including agroprocessing, 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 (DTI, 2009).
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 (Entrep.ph, 2018).
Strengthening BMBEs would mean more jobs and livelihood, and a better quality of life for Filipinos .
Republic Act No. 10644 also known as Go Negosyo Act seeks to strengthen micro, small and medium enterprises (MSMEs) to create more j0b opportunities in the country. The basic policy of the"Go Negosyo Act"is to foster national development, promote inclusive growth, and reduce poverty by encouraging the establishment of MSMEs that facilitate local job creation, production and trade in the country (DTI, 2012). 4. To identify if there is significant difference on the awareness of the enterprises in each municipality.

Hypothesis
Ho: There is no significant difference on the awareness of the enterprises in each municipality

II. RESEARCH METHODOLOGY
The study used descriptive method of research conducted at municipalities of District IV of Nueva Ecija. The respondents of the study were the owners or managers of the enterprise totaling to 340 individuals/enterprises. Respondents were selected using quota sampling. Furthermore, the main instrument of the study is a structure questionnaire. To facilitate the analyzation of the data, the researcher used frequency distribution, weighted mean, and analysis of variance as the statistical tools.

III. RESULTS AND DISCUSSION
This section presents the data gathered by the researchers directly from the three hundred forty (340) respondents at the selected municipalities of District IV (Cabiao, San Isidro, San Antonio, Jaen) Nueva Ecija. Data were presented using pie graphs and tables, and further analyzed by the researchers for the better understanding of the readers.

Profile of the Owners
There are three variables included in the profile of the owners-gender, civil status, and educational attainment.Data gathered were presented below. With the given data above, the study showed that 178 out of 340 respondents or 52% were female. Female usually family oriented, they run a business so that they can control their time to her family that employees don't.Meanwhile, 162or 48% of the total respondents were male. Men are the bread winners so they tend to run a business.
As to the civil status of the owners, it is clearly stated that 174 out of 340 respondents or 51% were married. It only denotes that having a family is expensive that's why married couple start a business to provide the everyday necessity of their family as well as the education of their children.On the other hand, 143 out of 340 respondents or 42% were single. Singles tend to save money for their future.Meanwhile, only 23 out of 340 respondents or 7% were widowed. Since they are the only one that can provide financial assistance to their family.
Lastly, the study also determined the educational attainment of the owners. From the data given above, 153 out of 340 respondents or 45% were college graduates which means they have knowledge to run a business. Having knowledge means you have an ability on how to manage a business.Meanwhile, 87 out of 340 respondents or 26% were college undergraduate.College undergraduate still have a knowledge about business than high school graduates.Also, 75 out of 340 respondents or 22% were high school graduates. High school graduates start a business since they don't have diploma that they can use to find a stable job.  As to the profile of the enterprises, majority of the size based on the estimated asset is not more than P3,000,000, were registered on Municipal or Mayor's permit and sole proprietorship. Also, the nature of operation were service ranging from 1 to 3 years of operation.

Awareness of the Respondents in Magna Carta For Msmes, BMBEs Act and Go Negosyo Act
There were 17 questions that will measure the awareness of the enterprises on important legislations for MSMEs. Specifically eight questions for Magna Carta for MSMEs, three questions for BMBEs Act, and five questions for Go Negosyo Act. However, based on the result of the study there are important provisions that the respondents are not aware of.These are the following: 1. Provision on the business ownership to receive the assistance and programs of government.
2. Existence of Small Business (SB) Corporation that can provide loan assistance for eligible enterprises. 3. Mandatory allocation of loans by banks and lending institutions for at least 10% for MSMEs of their total loan portfolio. 4. Only enterprises whose assets are not more than P 3,000,000 are qualified on Barangay Micro Business Enterprises (BMBEs) Act. 5. Negosyo Centers can provide training and technical assistance for the enterprises.
Lastly, the respondents are highly unaware on the classification of enterprises based on assets defined by Magna Carta for MSMEs with a weighted mean of 1.60. The p-value=8.51E-13 is less than the significance level= 0.05.Therefore, reject the Null Hypothesis. There is a significant difference on the awareness of enterprises in four municipalities.This indicates that possible there is a difference in the effectiveness in the information dissemination of the LGU of each municipality about the Magna Carta for MSMEs, Go Negosyo, and BMBEs Act.