Over the past decades, the Philippine Government has institutionalized policies and programs that seek to establish an environment
conducive to the growth of the small business sector, which makes up 99.57% of business establishments in the country. 1 Figures have consistently shown the increasing contributions of the sector in employment creation and export, including through subcontracting arrangements with large firms, or as suppliers to exporting companies. Yet development of the sector remains modest, and under the 2017–2022 Philippine Development Plan (“PDP”), the policy focus on access to finance, financial literacy, and access to technology has been reiterated. While an explicit correlation between the growth of micro, small and medium sized enterprises (“MSMEs”) and (the
presence of a) competition law has yet to be established, 2 there is basis for looking at competition policy, particularly as articulated in Republic Act No.10667 or the Philippine Competition Act (“PCA”), as an area of intervention in support of MSME development.
This Article conducts a survey of the current legal framework for MSMEs to provide an understanding of the underlying policy for enhancing the sector’s development and competitiveness.