Someone stumbled on the Pinoy Entrepreneurs (pinoy-business.com) community through a search engine, using this search parameter: “categories of entrepreneurship according to asset size.” While there are entries on this topic at the Glossary section, the search result pointed to a different topic here. So, in order not to frustrate others who may do the similar search in the future, let’s discuss the classes or categories of enterprises based on assets.
The Magna Carta for Micro, Small and Medium Enterprises classifies any business activity or enterprise engaged in industry, agribusiness and/or 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, has the following values:
Micro enterprise — not more than P3,000,000
Small enterprise — P3,000,001 – P15,000,000
Medium enterprise — P15,000,001 – P100,000,000
The definitions or classifications are subject to review and adjustment by the Small and Medium Enterprises Development (SMED) Council, using variables such as the number of employees, equity capital and assets size.
The Barangay Micro Business Enterprises (BMBEs) Act of 2002, on the other hand, covers business entity or enterprise engaged in the production, processing or manufacturing of products or commodities, including agro-processing, trading and services (“services” 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), whose total assets including those arising from loans but exclusive of the land on which the particular business entity’s office, plant and equipment are situated, shall not be more than Three Million Pesos (P3,000,000.00). BMBEs enjoy certain benefits, including tax perks, that are discussed in more detail in a previous post.
Related posts:
- Summary of Incentives for Barangay Micro Business Enterprises (BMBEs)
- Do Entrepreneurs Receive Enough Government Support?
- A Smart & Practical Guide for New Entrepreneurs (Marlo Sanchez)
- Characterizing Entrepreneurship: Who are Pinoy Entrepreneurs?
- Inspiring Stories of the Pinoy Entrepreneurs Community
- Pinoy Entrepreneurs All
- The 3-fold Role of Entrepreneurs: Technician, Manager and Marketing Guru
