Republic Act No. 7882 Assistance to Women in Micro and Cottage Enterprises

Republic Act No. 7882
Assistance to Women in Micro and Cottage Enterprises: A study about the benefits and the areas of improvements in the provision of RA 7882
By: Czarina Lim


I. Introduction:


Woman must not accept; she must challenge.
She must not be awed by that which has been built up around her;
she must reverence that woman in her which struggles for expression.
~ Margaret Sanger ~

For centuries, the differences between men and women were socially defined through a lens of chauvinism in which men assumed superiority over women and maintained it through domination.
The efforts of the early women who struggled to enter the men-dominated business industry faced great personal difficulties, legal barriers, ridicule and danger to pursue their dreams of entrepreneurship and business ownership. They were hampered by laws which prevented them from entering into contracts or owning properties. Even their husbands during those times could prevent them from starting a business of their own.
Thus, through a long period of undergoing gender discrimination, what has become of the early Filipino women? They were dominated by men in business, politics, social status, and in some other aspects.
The gender discrimination that often exists at all levels in the world made an impact in the sphere of women in the business industry and a cumulative effect of psychological, social, economic and educational factors acted as obstacles to women entrepreneurs entering the mainstream.
Conditions have changed since the turn of the century and the society has become more aware of the fact that women play an important role in the nation-building. As the 1987 Constitution provided in Article III, Section 14, “The State recognizes the role of women in nation-building, and shall ensure the fundamental equality before the law of women and men”.
Many policies through law, executive order or local ordinance have provided more opportunities for women in the economy, in politics, as well as services for their welfare. The government, the community and private sector have been working together to bring about better conditions for Filipino women.
However, the majority of Filipino women up to this day are not yet exactly on equal footing with their male counterparts. There remains a gender inequality in the economic field. Women are still left out in many areas of occupation and do not enjoy the same opportunities and privileges given to men. The Filipino women have indeed come a long way; but they have some more distance to go to be truly triumphant in their struggle for equality.
Hopefully, this paper, in representing an advocacy of equality between men and women, can contribute to the collective effort to achieve gender equality in the society that is being denied from women.

II. Benefits of Republic Act No. 7882:
There are several laws on social development and women empowerment legislations enacted and one of those is the Women in Small Business Enterprises Act 1995 (RA 7882). RA 7882 is a particular legislation that recognizes the special role of women in development and supports women entrepreneurs in manufacturing, processing, service and trading businesses.
Republic Act No. 7882 is enacted primarily to provide assistance to Filipino women who are engaged in small business enterprises. It is applicable to all Filipino women who are at least eighteen years of age, regardless of civil status.
This Republic Act gives priority to any woman in obtaining a loan from any financial institution for the purchase of equipment, tools and materials to start a micro or cottage business, provided the qualifications under its provisions are satisfied. Government financing institutions like the Landbank of the Philippines and the Development Bank of the Philippines are mandated to provide assistance to: NGO’s engaged in developing women’s enterprises to a limit of P2M, to existing women enterprises to the upper limit of P50, 000 and to potential women entrepreneurs with sufficient training up to a limit of P25, 000.


III. A Closer Look into Republic Act 7882:


This pertinent Act that has been passed needs further improvement and enforcement because there are still issues to be solved. For instance, while RA 7882 provide for better opportunities, it is not really effective in terms of making a Filipina a truly empowered entrepreneur.
First of all, the maximum loanable amount being too low does not give women opportunities to be competitive in the business industry. A woman who opt to be productive and avail of the benefits offered by RA 7882 will have no choice but to choose occupations or businesses that are somehow closely relate to household chores, the so-called women’s functions.
As Atty. Emily Sanchez already pointed out in her book entitled “The Filipina and the Law”, women entrepreneurs, due to small capital, are constrained to engage in businesses that are similar to their traditional work at home such as operating a small carinderia, sewing, laundry services, massage and similar services.
Such kind of businesses endeavor inevitably leads to the support of a stereotype on women as the household managers. But I believe that a woman is capable of doing things far greater than offering services in laundry, sewing or cooking.
Moreover, the realizable profit from such small businesses is too low which again shows to support another stereotype that women are low income earners and that the wife is supposedly the supplementary earner between the spouses.
Second, the means for implementation seemed to lack its teeth by its failure to provide specific sanctions for violators of its provisions . The provision on Women in Small Business Enterprises Act will not acquire satisfactory compliance if it does not provide for specific sanctions for violators of this provision. There should be penalties that are grave enough to have other people observe the rights of women in RA 7882.

Third, the provision failed to offer ways of harnessing a woman’s entrepreneurship and technical skills. The financial assistance alone does not guarantee the success of any business. Women entrepreneurship must be molded properly with entrepreneurial traits and skills to meet the changes in trends, challenges global markets and also be competent enough to sustain and strive for excellence in the entrepreneurial arena.
Fourth, the stringent social traditions and cultural values routinely impede opportunities for women's entrepreneurship. The State should create a healthy environment in which women's economic independence is valued and encouraged. Moreover, women should also be encouraged to enter industries traditionally held by men.
And finally, the lack of access to market is another barrier for women entrepreneurs. Without equal opportunity to access both national and international markets, businesses will not be able to sustain continued expansion and competitiveness.

IV. Conclusion and Recommendation:


Education and Training

Access to education and training are keys to fostering an entrepreneurial spirit. The financing program should be complemented with education such as modules in management, problem solving and decision making, organizational dynamics, marketing, succession, and technical trainings.
Loanable Amount
This paper already discussed the problem regarding the diminutive loanable amount of RA 7882. The limitation on the amount of the loan that can be availed of by women should be higher in order for women to completely achieve economic liberation.
Social Recognition
Government entrepreneurship programs of the United States encouraged women entrepreneurship by granting awards to honor outstanding woman entrepreneurs. The Office of Women’s Business Ownership and the Office of Technology jointly sponsored training seminars to expand the base of women receiving grants under the Small Business Innovation Research Program. They also jointly produced a manual, ‘A pattern for Success’, for women business owners who may be eligible for Small Business Innovation Research awards.
The United States’ International Trade Administration of the Department of Commerce launched a program called Women in International Trade Initiative for women-owned firms in the United States. The Initiative aims to promote women’s economic rights and independence, facilitate equal access to resources and trade, and strengthen women’s economic capacity and commercial networks by placing women-owned companies in touch with prospective foreign business partners.
Access to Technology
In many economies, women face serious obstacles in accessing new information and communications technology due to inequalities in education and training often resulting in a gender imbalance within different industries.

Access to Market
Vital to the growth of women's entrepreneurship and start-up companies is women’s access to the market. , women must be able to identify what their respective markets are, who makes up their customer base and to then create demand for their products and services.
An Office of Government Contracting in the United States provides encourages qualified women business owners to do business with the federal government in the area of goods and services.
Time-frame for RA 7882
Lastly, this provision should only be temporary just for the purpose of leveling the playing field between men and women. Again, men and women are equal in all aspects. Had the conditions been equal all along between genders, women would not need to take special measures for opportunities to open for them.

Suggested Activities to Improve RA 7882
The Asia-Pacific Economic Cooperation (APEC) symposium provided for creative ideas of best practices for enhancing women’s entrepreneurship and start-up companies. Some of those were incorporated in this paper’s recommendations.
I. Education and Training. The Government shall:
a. Draw up educational curricula for all levels of schooling that offer equal opportunities for boys and girls in selected fields of study, particularly in the technology field and in entrepreneurship.
b. Formulate training programs for teachers to promote female entrepreneurship thus fostering this culture for women.
c. Encourage the private and public sectors to establish mentor programs for women to introduce them to the intricacies and challenges of starting and running a business, to equip them with the skills to solve problems, and to play an ongoing advisory role to offer guidance and mentoring designed exclusively for the unique challenges that women face.
II. Social Recognition. The Government shall:
a. Create a healthy environment in which women's creativity, risk-taking and economic independence is valued and encouraged.
b. Provide women equal access to occupations traditionally held by males.
c. Establish incentive mechanisms to encourage women to put their business ideas into practice through: creating annual awards to honor outstanding woman entrepreneurs, hosting events and competitions that support innovative ideas and business plans, and providing tax incentives, procurement opportunities and sponsorship of local-level campaigns promoting women's entrepreneurship.
d. Enhance public awareness of women's participation in and contributions to, economic development by promoting their success stories through seminars and media events, thus respecting women as positive role models.
e. Augmentation of women-owned business participation in International Trade Administration trade events.
III. Access to Technology. The Government shall:
a. Support access to Internet technology to women.
b. Provide access and encourage women to use Information and Communications Technologies to improve technical skills and knowledge.
c. Endorse women entrepreneurs’ optimal use of the Internet to harness e-commerce possibilities while reducing sales, marketing and purchasing expenses.
d. Promote online databases and portals to gather and share women entrepreneurs’ knowledge and expertise with others.
IV. Access to Market. The Government shall:
a. Identify potential strategic alliances between government, business and academia and enhance and support women's entrepreneurship.
b. Ensure that women-owned businesses have equal access to bidding for government contracts and establish government goals for women businesses in the award of these contracts.
c. Promote network-building and information exchange among women entrepreneurs including conferences, on-line data bases and women's business development centers to create opportunities for the expansion of women’s businesses domestically and internationally.
V. Higher Loanable amount. The Government shall:
a. Provide an amount of loan that will enable women to be competitive in the entrepreneurial arena.
b. Encourage involvement of NGOs and other charitable institutions to contribute financially to the financial assistance program.
c. Educate women applying for loans to be well-versed with the terms and policy of the loan for them to avoid from making a default in the loan agreement.