Extensive Implementation of the BMBE Law: An Assessment Across Metro Manila

Abstract

The Barangay Micro Business Enterprise (BMBE) Law or Republic Act No. 9178 (Philippines) was enacted on November 13, 2002 to help microenterprises in their financial hurdle during the early years of their business operations. Although considered a pro-poor law, it is suspected that not too many cities in the National Capital Region (NCR) in particular are implementing it. Thus, this study will encompass an assessment on the extensiveness of the BMBE Law implementation across the 17 cities in Metro Manila through a perception survey that will make use of a 10-item dichotomous questions. On the other hand, the determination of the acceptable and ideal BMBE Law implementation will be conducted through an Expert Survey of 10 respondents purposively chosen from the government, academe and business. The responses from a sample of 100 microentrepreneurs across various sectors will be analyzed using arithmetic mean and Chi-square Test Method.

Overwhelmingly, the study concluded that the BMBE Law (since 2002) is not being promoted, nor is it extensively implemented (close to 0%). Therefore, the study reveals that the BMBE Law is not effective. There is a significant difference between the ideal and actual level of promotion (in terms of awareness of microentrepreneurs) of the BMBE Law in Metro Manila across the 17 cities and identified Sectors. There is a significant difference between the ideal and actual level of implementation (in terms of experience of microentrepreneurs) of the BMBE Law in Metro Manila across the 17 cities and the identified Sectors. Finally, there is a significant difference between the ideal and actual level of effectiveness in terms of satisfaction to microentrepreneurs across the 17 cities and the identified Sectors.

Keywords: BMBE Law, Barangay Microbusiness enterprise, local government units, Department of Trade and Industry, Department of Finance, microentrepreneurs

JEL Classification: I31, K19, K20, K29, M13, N45, N85