2007 1st qtr issue

KMBI

“Partner for a Progressive Life”

communi-k A quarterly publication

Organizational Performance Loan Activity Client Outreach Loan Portfolio (US$) Value of Loans Made (US$) Average Loan Size (US$) Ave. No. of Clients per PA Portfolio At Risk Number of Loans Made

94,985 5.6 M 5.2 M 127.23 247 4.73% 41,176

Efficiency (As of March 31, 2007; Forex $1 to Php47.51 ) Cost per Unit Lent (US$) Cost per Loan Made (US$)

0.0033 20.71

Human Resource Total No. of Staff MF Operations Support Group

502 44

Sustainability and Profitability Financial Self-Sufficiency Operational Self-Sufficiency

132.91% 136.79%

(As of March 31, 2007; Forex $1 to PhP 48.18)

IN FOCUS Organizational Sphere of Service Areas of Operations

6

Number of Branches

29

Municipalities/ Cities Covered

245

Barangays Covered

1,268

Target Places of Expansion National Capital Region Pasig Marikina Muñoz (Quezon City) Lagro (Quezon City) Almar (Caloocan) Valenzuela Bulacan Meycauayan/Marilao Sta. Maria These expansions are targeted to be completed by third quarter of this year. Market studies have been completed. Other processes as recruitment, transfer of branch officers and branch set-ups are currently done. See HR advertisement inside for recruitment info.

1st quarter 2007 . VOL 4 NO 1

Koronadal comdev takes shape KMBI’s Communitybased Enterprise Development Project (CBEDP) in Koronadal City is starting to take shape as the study, planning and organizing phases produce database through the active participation of community leaders.

The Enterprise Development Services department conducted a “Community Planning” Community leaders of barangay Carpenter Hill, Koronadal City actively training to 48 community involved in the CEBDP’s Planning and Organizing phase in Barangay Carpenter Hill, Korondal City. leaders on March 21, with Constancia Rosacia, president of the Alliance of Philippine community. The survey was based Partners in Enterprise Development on basic household indicators, which (APPEND) network, as resource include livelihood and employment, speaker. The training focused on the household income, land size, land formation of a barangay development ownership, house ownership, house council and the clarification of roles type, household assets, business and responsibilities of each council assets, number of meals per day, and member. This was followed by the education.

After the data were made formation of a development council for barangay Carpenter Hills, the available, 13 members of the development council formed a recipient community of the project.

The participants along with working group and worked on different the project enumerators went through community maps, such as transect, political, a training on Participatory Rapid Rural resource, road network, Appraisal, a pre-requisite to the resource and spot, which will be used situational analysis and development for resource analysis and development planning. planning of the community.

During the On the succeeding days, the participants and enumerators mapping, the working surveyed 1,300 households in the group went to unreached KORONADAL/8

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Training spends Php.718M for capacity building

L-R: Executive Director Edgardo Mercedes encourages HO staff to strengthen their guild as supporters of mainstream operations during the Goal 25.250 reorientation in Lucban, Quezon; Bicol Area Manager Reynald Alpajando supervises branch officers as they fill out new forms of the modified system.

A total of Php718,000 was invested on various training for human development on the first quarter of 2007, a 27.72 percent growth of investment on training compared to the fourth quarter of 2006. This signifies KMBI’s intensified intent to build up its human resources towards achieving Goal 25.250.

Reorientations of staff were held in Luzon and Mindanao areas from February to March to ensure common and in-depth understanding on the institution’s directions and the modified branch operating systems.

On February, four training activities were facilitated for Luzon and Mindanao branch officers.

Training sessions on “Decentralized Administration of Statutory Benefits” were held simultaneously in Luzon and Mindanao. This was followed by the orientations on modified branch operation system. The orientation focused on the guidelines in using the new forms set in the modified system to address the varying applications and misunderstandings. During the

sessions, details of the new processes were expounded and participants practiced proper applications under the supervision of key officers.

After deliberations were settled, details of the seven directions to achieve Goal 25.250 were explained including departmental plan of actions and the set goals of the operations team for the next five years. Plans for further expansion this year and strategic maintenance of operations in the succeeding years were laid out to ensure that everyone knows their roles in the plans drawn.

Executive Director Edgardo Mercedes, for his part, shared hard facts on current market trends, organizational performance, and financial analysis that moved the organization to plan such major decisions. He explained that by taking calculated movements in the strategic directions toward Goal 25.250, the organization will help counter an increasing rate of poverty incidence in the Philippines while achieving sustainability. He impressed that even

2 “Reaching out to 250,000 clients on our 25th year”

though the task at hand may be huge, God will sustain the organization to fulfill its mission through Goal 25.250.

To strengthen their guild as supporters of the mainstream operations, head office staff went through the same training and teambuilding exercises in Lucban, Quezon on March 1 to 3.

Building up the human resource management skills of operations personnel became the top priority for the first quarter.

Three Mindanao area managers, namely, Nemwell Arzaga of NORSOCO operations, Enrique Maca of Caraga operations and Hazel Laurente of Davao operations, were sent to a human resource management course conducted by the Mindanao Microfinance Council together with Asian Institute Management (AIM) held in Butuan City. Likewise, Luzon Area Managers Ronald Ravelo of Calabarzon 1 and Reynald Alpajando of Bicol, and HR-Admin Officer Concepcion Parantar were trained on managing, developing and supervising microfinance staff at the Ateneo De Manila University. Topics on organizational architecture, understanding microfinance growth and institutional culture and human resource development were the highlights of the said event. It also offered MFIs tools on how to assess skills needed, hire the right people, design incentives and compensation package for staff and create work environment that boost employee retention.

“O Lord, you are my God; I will exalt you & praise your name, for in your perfect faithfulness you have done marvelous things, things planned long ago.” (Isaiah 25:1)

HO starts accountability groups

Finance department staff get rooted on the Word of God in the weekly Accountability Group Meeting (AGM).

Seeking to strengthen relationship with God and fellow workmates, the Head Office staff started the weekly accountability group meeting or AGM, a close group of four to seven staff members of similar field to connect and journey together through the

study of God’s Word.

The weekly AGM, which began on February 14, provides a venue for the staff to reflect on particular Bible study lessons, share insights and experiences, and help each grow in the knowledge of Christ. The groups convene every Wednesday and gather together every first and last Monday of the month for a “Family Fellowship.”

During the fellowships, members of the Board of Trustees (BOT) and invited speaker join to give encouragement to the staff.

During one of the fellowships, Amelia Gonzales, president of the BOT, shared that the members of the Board will likewise form an AGM of their own.

The AGM came about after

assessing the impact of devotional activities on the lives of the employees especially pertaining to supervisorsubordinate relationship. Continuous monitoring and evaluation of the said activity reflect that these AGMs help in building harmonious working relationships among the staff as it is being currently manifested in the head office.

Also, this activity is in line with the first of the seven strategic directions towards Goal 25.250, which advocates the active sharing of Christ and promotion of Christian values.

This transformational intervention shall be cascaded to the branch level after it is fine tuned and systems are properly installed.

R&D conducts market study With an aim to understand the current market drive, R&D conducted an initial study in Luzon and Mindanao branches on March 14 to 29. Branches were selected based on their strategic locations and operational performance as of February 2007. The result of the study will serve as benchmark in determining various behaviors of clients and staff in the areas of product and service delivery, management style and structure. A total of 112 respondents comprised of resigned and existing clients, branch officers and staff participated in the study.

The study provided an overview of the strengths and

weaknesses of the organization’s programs and services as well as valuable insights pertaining to the operation’s capability.

Data collection was done through group and one-on-one interviews. Probing was also done to allow researchers to study the processes, perceptions and relationships of data gathered.

Initial results of the study hinted the effectiveness of new information system and notable competitiveness of KMBI’s loan program design and features. Interpretation was categorized based on product, delivery, control, management, and transformation capabilities.

Although the analysis of

data from this initial study is still inconclusive, the working hypothesis formed will assist the research team in conducting a more intensive research project on the third quarter of this year.

Two program members of Surigao branch air their views and comments on the programs and services during an interview.

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Biñan ignites center leaders To enhance the camaraderie between the center leaders, Biñan branch conducted its first center leaders meeting on January 29 at the branch office.

A total of 41 presidents from different SUCCESS centers in barangay Sta. Rosa participated in the meeting. Set early this year, center presidents, together with Branch Manager Gloria Baluyot and the staff, called for an open forum regarding the organization’s programs and other concerns toward giving relevant services.

During the event, they agreed to give utmost priority to center meetings to ensure its impact on the program members.

Being reminded of their duties and responsibilities, they also expressed support to the program assistants on holistic transformation, and equipping of leaders through team building activities and leadership

Center presidents from Brgy. Sta. Rosa, Biñan discuss their responsibilities and priorities in the first center leaders meeting of the branch.

training.

“Marami kaming natutunan at naliwanagan kami ng mabuti kung ano ba ang hangarin sa amin ng KMBI. Bilang mga lider, responsibilidad namin ang pagtulong at pagsuporta sa KMBI. (We learned a lot from the discussions and we gained better understanding on the plans of KMBI for us. As leaders, it is our responsibility to help and support the organization),” one of the officers said after the meeting.

Gensan supports International Women’s Day

Gensan branch officers and staff join in a parade during the city’s celebration of the International Women’s Day.

Officers and staff of General Santos branch expressed their support to “CEDAW ng Bayan: Kabuhayan ng Kababaihan” through their participation in the local government’s celebration of the International Women’s Day. CEDAW or Convention on the Elimination of All forms of Discrimination Against Women is the theme coined by the national government for its month-long

4 “Reaching out to 250,000 clients on our 25th year”

women’s celebration in March that endeared different local women sectors, government offices and nongovernment organizations, including KMBI, to contribute in its vision of uplifting the economic condition and status of impoverished women.

During the celebration, the branch staff joined the open forum on today’s political and economic situation of Filipino women, which enhanced their knowledge about the rights of women within the family, community and country.

The staff also made most of the affair through building linkages with government offices that could uplift the organization’s cause for economically-active women. They also communicated with identified women leaders in different barangays, especially in the mismanaged area of the branch, to increase the organization’s contacts in the communities.

Another aspect emphasized in the celebration was women being co-equals in sustaining the homes. The keynote speaker City Counselor Lourdes Casabuena, also the chairperson of the committee on women, said, “Man cannot do amazing task without the woman; both man and woman should work together for the family.”

The branch staff affirmed the role women play in transforming lives. They are one in saying that women are God’s co-laborers in bringing transformation in the family, community and country. “The women we are working for have the capacity to bring Christ to others,” they added.

KMBI is catering to 94,985 clients as of March 31, 99.99% of whom are women. It supports them by building them up wholistically through its various programs and services.

“O Lord, you are my God; I will exalt you & praise your name, for in your perfect faithfulness you have done marvelous things, things planned long ago.” (Isaiah 25:1)

Clients’ children get free college education Five children of KMBI clients made it to the second batch of scholars of “Knowledge for Inspiring Leadership Opportunities and Spirituality” or KILOS program of the Gordon V and Helen C Smith Foundation, which grants them free college education in the university of their choice.

Jhon Edison Manalo of Calamba branch, Lorelie Lim of Metro Davao 1, Jonelyn Mendoza of Lipa, Robinrey Olaivar of Butuan and Jestoni Simon of Metro Manila South 1 made their parents proud for making it as part of the ten scholars of the second batch who will enjoy the program’s benefits. Benefits include free tuition fee, school and living expenses, health insurance and other incidental expenses.

These scholars passed a series of examinations and interviews.

On January 4 and 18, preliminary examination of applicants from all organizations under the APPEND network was held. Among 30 children of KMBI clients from Luzon and Mindanao areas who took the examination, ten were able to qualify.

Manalo and Simon ranked first and second, respectively, on the said exam.

The students, together with their parents, gathered in Manila for the final phase of the screening process. The APPEND panel interviewed them and made them take entrance examinations of their chosen school. Based on their performance on the university exams and final interview, the second batch of scholars was chosen.

Lorelie Lim (middle), daughter of a program member from Metro Davao 1, interacts with other qualifying applicants.

Manalo passed the entrance examination of Mapua Institute, Simon and Olaivar in University of Sto. Tomas, and Lim and Mendoza in Far Eastern University. Currently, APPEND is preparing for the scholars’ entry in their respective universities.

These students had general weighted average of not less than 85% and did not have any failing grade while in high school. These were the initial requirements of the said scholarship.

Graduating high school students and out-of-school youth who exhibited outstanding scholastic performance applied during the pre-selection phase, that took place during the fourth quarter of 2006.

It is open to the children of clients from the 11 member organizations of APPEND. It is designed to allow the students to rise above financial constraints in pursuance of a tertiary education. Its guiding principle is to provide constructive assistance to talented people in need.

Remembering Bicol Legaspi branch staff took the initiative of spending devotion time with the program members and their children in Brgy.

Padang, Taysan to continuously spur hope among them.

On March 28, 17 staff gathered 18 program members to fellowship and impart God’s message of hope. The staff also expressed their support as the members start anew in the resettlement areas. Children were also grouped together so that they could listen to Bible stories.

According to Frederick Siapno, branch manager of Legaspi, these clients were badly affected by the typhoon Reming.

They were among the clients whose businesses and houses were totally washed out. Some of them lost family members.

Currently, they hold regular consultations to assist the program members start new businesses. The organization has also given ample time for these clients to recover from the tragedy. Simultaneously, microinsurance benefits are being prepared for clients who lost loved ones.

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Living a Life of Influence “And we know that for those who love God all things work together for good, for those who are called according to His purpose” Romans 8:28

Damiana Exiomo shares the ups and downs in her every ministry with pastor husband, Dr Jonathan Exiomo.

Damiana Exiomo, fondly called by her friends as Yana, 58, is one of the Board of Trustees of KMBI. She is married to Dr Jonathan Exiomo, pastor of Alliance Gospel Church and president of Alliance Graduate School. They have three children namely John Mark, Marian and Joseph Philo. Together with her husband, they started a pre-school, the Wisdom Jade, and later on established a second school, the St. Paul Christian School.

Yana graduated from elementary at Quiapo Parochial School and high school at Mapua Institute of Technology. She took up BS Commerce at College of the Holy Spirit and finished her master’s degree in Business Administration at Wesleyan University of the Philippines.

Yana was with Corporate Treasurer Aurelio Llenado’s former

core group at Bangko Sentral ng Pilipinas (BSP) and Bible study group.

Upon Mr. Llenado’s invitation, she became a board member of KMBI. Her dream of becoming part of a cause that endeavors to alleviate poverty in the Philippines was made true through her work at KMBI. Now, she celebrates 14 years of growing commitment as a member of the BOT. For her, KMBI has exceeded everyone’s expectation. “I am attributing this success to God. He gives wisdom to the board and provides people who are knowledgeable, loyal, dedicated and good in management. It is God who guides us in this ministry. Without God, KMBI is nothing.”

She also attests that KMBI’s ministry of microfinance has greatly impacted the lives of its clients. She recalls one client who used to live in a dilapidated shanty in Batangas but now lives in a better house in Novaliches with a flourishing business.

She sees other clients being transformed through teaching and training sessions at the SUCCESS Centers. For her, NGOs are far different from banks which only help in the finances. She said, “Through KMBI, we do not only give capital, but we also give hope to our clients.”

She is able to lead and influence the Board of Trustees particularly with the financial dealings of the organization. Her expertise is always consulted regarding

6 “Reaching out to 250,000 clients on our 25th year”

appropriations, budget, expenses, banking concerns and other important financial matters. She acquired her skills and knowledge from courses taken from both local and international academic institutions.

As a manager in the International Operations Department of BSP, Yana converted her training and experiences to lessons generously taught to subordinates to achieve excellence in every task. She gives effort to extend a hand in her team and stands by every staff’s work outcome. She has the “one for all and all for one” mentality in her team at work. She accepts the liability and responsibility for her staff. In the process of delivering competitive output with the team, she has grown to become a better leader while ushering her subordinates to professional growth.

Currently, she is one of the consultants in the microfinance policy making at BSP. Her experience in KMBI prepared her for this. Through this, it became clear to her that all the learning she acquired can be linked together. This made her believe all the more of the truthfulness of God’s Word in Romans 8:28. For her, everything that God allowed for His children to experience always has a good purpose.

Yana was given many choices through the years, but she chose to use her skills and talents to impact others. She believes doing so creates ripples of influence that lasts beyond a lifetime.

“O Lord, you are my God; I will exalt you & praise your name, for in your perfect faithfulness you have done marvelous things, things planned long ago.” (Isaiah 25:1)

Untarnished Faith The story of a program assistant who remained faithful to the mission despite the unrelenting hurls of typhoon Reming

Typhoon Reming rocked the faith of many residents in Bicol.

However, Ruby Calinisan of Legaspi branch stood out by remaining faithful despite the storm.

Ruby has been a program assistant of KMBI for two years now.

Every week, she checks on her program members in ten trustbanks she maintains. She glories that through their perseverance in developing their micro-enterprises, God’s message of grace which she never forgets to impart, is starting to bear fruit in their lives.

Little did she know, the cruelty of nature would come in the way. As the typhoon ravaged Legaspi, down went the businesses that her program members painstakingly nurtured. This was the time their vision of progress was covered with dark clouds. With this, Ruby’s testimony was also tested.

The hurls of the wind could easily break down a testimony so carefully sustained. But as the sun came out and residues of the storm littered the way, Ruby started her daily quest of checking on the program members she has grown to cherish in her stay in KMBI. The bridge that she used to cross towards the SUCCESS centers was gone. Other SUCCESS centers were washed away. Most program members lost sources of livelihood.

But Ruby shrugged off frustration and chose to be optimistic instead.

She rolled up her pants, took off her shoes and started crossing the mud-

ingrained shallow water to gather the program members to a site she deemed appropriate for the moment.

In her mind, she told herself, “These women needed more help than I do.”

Even if what she could offer is simple encouragements, she would do it to give them a ray of sunshine in their dark circumstance.

As the days passed, Ruby was able to gather all program members of her ten SUCCESS Centers. She cultivated the meetings to impress upon them God’s faithfulness in carrying out His promises. She continued inspiring them to source out other means to augment family needs.

She urged them to never give up as she would never give up on them.

There were times when Ruby felt drained after giving much of her enthusiasm. During these times she would reflect on the difficulty of her task. However, she would then conclude that she is still willing to do whatever God plans for her to do in her stay with the organization.

After all, she finds the greatest joy

in seeing the program members being revived through her inputs. She is also pretty sure a new bridge will be built soon.

As for the moment, Ruby is contented in crossing the bridge made of spare coconut lumber and branches.

It has truly helped her easily get to her SUCCESS centers. In fact, she is even able to help other program assistants sustain their own centers.

The storm did shaken Ruby’s commitment and her program members’ faith. But for Ruby, no storm could pull them down. In fact, as what her family name means (“Calinisan” or “Cleanliness), she continually strives that her commitment remains untarnished. She hopes other program assistants would find inspiration in her story. The task is great, but nothing is too difficult for a person whose heart is into it.

Top: Ruby Calinisan runs the extra mile to facilitate transformational programs in the ten trustbanks she maintains. Left: She crosses a makeshift bridge made of coconut lumber to attend the center meetings.

Note: SUCCESS stands for “Skills Utilized for Christ’s Commission and Enlightened Society.” It is KMBI’s alternate term for trustbank.

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Special News Transformation gears up for Mass Wedding As a regular transformation intervention, KMBI is gearing up again for the facilitation of mass weddings for its clients who desire to get married with their partners in July. “We have this opportunity again to support our clients who are in live-in relationship. We give them the chance to have their wedding so that they may be able to maximize the integral benefits of our program,” Transformation Coordinator Ken Layawan said. A budget of Php377,000 has been allotted for the implementation of the program.

By facilitating the mass wedding project, KMBI aims to lead program members to a morally upright life, promote the sanctity of marriage and family life, and assist in acquiring legal documents for their future lawful purposes.

Also, KMBI hopes to enhance partnership with government and like-minded churches, provide value-added non-financial services to clients, and promote gender sensitivity.

The project will be implemented in partnership with the local government and like-minded churches where the branch is located. The main role of the branch is to facilitate the project for the program members and engage the partner institutions in its implementation.

The responsibilities of the branch range from preparation, actual conduction, & post-evaluation.

1st Quarter 2007

MFIs consulted on proposed magna carta In response to the invitation of Punla sa Tao Foundation and Noynoy’s Organization of, for & by Women (NOW), KMBI sent its Resource Mobilization manager, Aldy Duque, to participate in the consultation on the proposed Magna Carta for Microfinance held in Rockwell, Makati City. Representatives from various sectors like the MF industry, banking, women, government attended the meeting. The consultation was called for to solicit reactions and comments on its policy framework and proposed provisions. The intention is for the magna carta be passed into law to ensure that the government will promote the development of and strengthen the microfinance industry towards economic empowerment of women.

During the consultation, participants raised several concerns on strong women’s perspective towards legislative platform for women, needs of MFIs, integration of enterprise

8 “Reaching out to 250,000 clients on our 25th year”

development in MF operations, funding for capacity building and research and development, standard impact assessment tool and tax incentives.

From 1992 to present, the growth of Philippine microfinance has been described as vibrant considering the unmet demand for microfinance of about 3 million households. Based on the study of International Fund for Agricultural Development, up to 73% of the poor may need to borrow money to finance their microbusinesses.

The National Statistics Office survey in 2003 said that microenterprise comprised 92% while small enterprises accounted for 7.27%, medium businesses are 0.36%, while large businesses are 0.37%.

According to NOW, these data show that there is an urgent and critical need to strengthen the microfinance and microenterprise industry through a magna carta that will address the current major issues, concerns and gaps in the industry.

Koronadal comdev ...

From Page 1

corners and the highest peaks in the area. They conquered the watery mountains of Koronadal, where an indigenous tribe, the B’laan, live.

After the activity, the members of the development council were grateful that through the CBEDP they finally have a database of their community’s constituents as well as maps of their locality.

“They are all the more eager to take responsibility of the development of their community,” says Hazel

Christine Rosacia, EDS Unit Head.

In relation to the project in the area, several activities for the clients of Koronadal branch are being prepared such as Training of Trainors, Centers Leaders Meeting, Tree Planting, and Impact Study.

Studies and preparations for this project started in August of 2006. It is supported by the local government unit of Koronadal City and is funded by AusAID through Opportunity International Australia.

“O Lord, you are my God; I will exalt you & praise your name, for in your perfect faithfulness you have done marvelous things, things planned long ago.” (Isaiah 25:1)

MFIndex : Client Selection Client selection is a major activity that needs focus and should be done seriously. This activity if taken for granted will result to problems and eventually affect the viability and sustainability of the branch.

Client selection is so called as the base or foundation in implementing a microfinance program. Hence, branch implementors should observe this process religiously.

In learning about client selection, it is very important that we know the rationale why we do it.

Why do we process selection of clients? How do we do it? These are some of the questions most of us failed to ask.

Before we could select clients, we have to understand the market our institution is targeting.

As an MF institution, KMBI, is catering to the economically active women with viable small businesses. This means our clients are those who have been into business for quite some time and are

in need of additional capitalization to grow their businesses. Here are some of the things that we need to keep in mind to improve our client selection skills.

How to search intelligently

• Verify individual character and ability of borrower or group • Check related business activity • Determine existing potential market for the business • Examine the feasibility of the projected cash flow

Where to get it

• Use the network of peers, community leaders, community leaders’ friend and/ or enemies • Check past records (if they exist) • Ask the borrowers customers & suppliers • Ask the borrower creditors

How to get it

• Use your own ability to observe • Ask the client or group to express plans, methods and concerns • Analyze supporting records

Develop Your Facilitation Skills Business issues and other pressing matters are topics that usually arise during center meetings. In order to be productive during these times, the facilitator should be dynamic. A dynamic facilitator helps others face difficult issues creatively and collaboratively, achieving unanimous solutions. He can let others be themselves. He works with each person’s natural inclinations and genius. This process builds trust and new levels of capability.

You can be a dynamic facilitator through keeping in mind these few items.

• HELP members build the sense of community, trust and commitment – a “We” community - by letting them address issues and helping them decide on concrete steps to solve those problems. Keep up their enthusiasm by believing in what they can do.

• ENGAGE members to healthy discussions. Real problems are discovered, addressed and solved.

To do this, be prepared p h y s i c a l l y, emotionally and spiritually.

Recognize where the participants are coming from in terms of their perceptions. Plan gestures since people cannot see inside you.

• ALLOW the group to decide on solutions to the pressing issue. The group can tackle and solve impossible problems and become empowered. Avoid monopolizing discussions. Rather, facilitate expressions of ideas, etc.

• RESPECT their views. People can be themselves and not hold back.

You just need to H-E-A-R. When you do this, your members and the system will grow in capability.

Additional source : http://www.tobe.net/

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Entrep 101 Microentrepreneurs’ Rights & Responsibilities Series : THE BMBE [bämbē] LAW Most of our microentrepreneurs are not aware of their rights. Hence, they deprive themselves with a lot of benefits and incentives. As development workers, it is our utmost responsibility to educate or inform our Program Members their rights and obligations as Filipino microentrepreneurs. For this Communi-K issue, let us talk about the ‘Barangay Micro-Business Enterprises (BMBEs) Act 0f 2002.

What is the law all about?

Republic Act No. 9178 or the ‘Barangay Microbusiness Enterprises Act of 2002’ encourages the formulation and growth of barangay micro-business enterprises to effectively serve as source of growth of Filipino entrepreneurial talents. The Act also enhances the integration of the informal sector to the mainstream economy through the rationalization of bureaucratic limitations, pro-active intervention of the the government at the local level and the granting of incentives and benefits to fulfill the generation of employment and contribute to the alleviation of poverty.

What is a Barangay Micro-Business Enterprise (BMBE)?

As defined in Section 3a of the Act, it shall refer to ‘any business or enterprise engaged in the following activities: production, processing or manufacturing of products or commodities; and agro-processing trading and services. A ‘BMBE’ shall also include any person owning and/or engaged to such business entity/enterprise, partnership, cooperative, corporation or other established business institutions under Philippine laws and duly registered with concerned agencies.

BMBE Registration a. Eligibility Registration Any individual, natural or juridical, cooperative or association, having the qualifications enumerated above, may apply for registration as BMBE: (1) Having an asset size of not more than three million pesos (Php3,000,000.00) excluding land, before applying for BMBE registration; and (2) Having owned and/ or engaged in various business activities as defined earlier.

b. Place of Registration The said individuals may come to the Office of the Treasurer in their city or municipality for BMBE registration and issuance of Certificate of Authority (COA). c. Requirements for Registration The applicant shall submit duly filled up BMBE Form No. 1 application form, signed by the owner or manager of the entity applying for registration. d. Registration Procedures The applicant shall go directly to the Office of the Treasurer where the business being applied for is located. He shall endeavor to accomplish the said form in triplicate and submit it to the said Office. The City Treasurer shall evaluate the application within fifteen (15) working days. Otherwise, any extent of it may deem the application approved; and upon approval, the applicant shall be issued COA as proof of registration good for two years and renewable for another two years. e. Fees and Charges Potential applicants shall pay a fee of not more than one thousand pesos (Php1,000.00) as payment for administrative and monitoring costs for BMBE. What are the incentives & benefits accorded to BMBE? The major incentives granted to BMBEs are: • Exemption from income tax or income arising from the operations of the enterprise; • Exemption from the coverage of the Minimum Wage Law; • The creation of a special credit window set-up to service the financing needs of BMBEs; and • All BMBEs shall be given the opportunity to access technology transfer, production, management training programs and marketing assistance from participating agencies such as the Department of Trade and Industry (DTI) and Technical Education and Skills Development Authority (TESDA).

Reference: Registering Your Business, Center for Small Entrepreneurs (CSE), Department Administrative Order No. 01 Series of 2003. ‘Implementing Rules and Regulations of R.A.9178, Otherwise Known as the ‘Barangay Micro-business Enterprises (BMBEs) Act of 2002, Department of Trade and Industry. 2003

10“Reaching out to 250,000 clients on our 25th year”

“O Lord, you are my God; I will exalt you & praise your name, for in your perfect faithfulness you have done marvelous things, things planned long ago.” (Isaiah 25:1)

KMBI... “Partner for a Progressive Life” Mission-driven...empowering people...touching lives... ... Join us in making impact to the nation...facilitating transformation in the lives of people in the communities

microfinance, training and enterprise development services through

We need you...

Entrepreneurial Development Service Specialist • Graduate of 4-year course preferably Business Management, Commerce or its equivalent. Having a masters degree is advantage.

• With at least 2 years related work experience; business/project management; knowledgeable in conducting livelihood training, etc.

Research & Development Associate • Graduate of Journalism, Economics, any business or social course • Knowledgeable in impact assessment, market research and other related documentation • Has exceptional written and oral communication skills

Program Assistants • Graduate of any business or social science course • People-oriented with strong Christian values • Willing to do field work

Training Associates • Graduate of Psychology or any business course • With adept experience in drafting training module and designs • Willing to travel and a team player

Transformation Manager/ Associates • Graduate of Bachelor of Social Science or Theology • With experience in conducting devotions, retreat and other related activities

Human Resource Development Assistants • Graduate of Psychology or Behavioral Science • At least 1 year experience in all facets of HR • Proficient in oral and written communication skills

Branch Accounting Associates • Adept in accounting system and principles • With at least 1 year experience in general accounting, cash flow and financial report preparation and analysis • Adept in branch to head office transaction

Resource Mobilization & Communication Assistant • Graduate of Mass Communication, Journalism, Developmental Communication or equivalent • At least 2 years experience in a corporate or NGO set-up particularly in information or communication related work

Current Branches Daet, Gumaca, Iriga, Legaspi, Naga, Batangas, Central Cavite, Lipa, Tanza (Cavite), Dasmariñas (Cavite), Pasay, Paranaque, Biñan, Calamba, Lucena, San Pablo, Sta. Cruz, Butuan, Compostela Valley, San Francisco, Surigao, Digos, Metro Davao (in Ulas and J.P. Laurel), Tagum, General Santos, Kidapawan, Koronadal and Tacurong.

Future Branches Pasig, Marikina, Muñoz (Quezon City), Almar (Caloocan), Lagro (Quezon City), Meycauayan/ Marilao, Sta. Maria, Valenzuela.

Common qualifications for all applicants • Must possess strong Christian values, and • Willing to be assigned in any of KMBI’s existing branches of KMBI Benefits package Monthly rice subsidy, health care, accident insurance and/or monthly allowances (meal, transportation & communication) plus a chance to travel locally and internationally.

Please submit your comprehensive resume with 2 x2 pictures at KMBI, 12 San Francisco St. Karuhatan, Valenzuela City, or email at hrd@kmbi. org.ph. Contact nos. 291.1484 to 86 and fax no.

294.0673.Visit our website at www.kmbi.org.ph.

Goal 25.250

11

Our Vision

Top Four Performing Branches

1st Quarter 2007

LP

RANK

TOTAL SCORE

BRANCH

AREA

COR (active)

ACP

(Php - Million)

1

12.75

Kidapawan

NORSOCO

4,571

319

2

11.9

San Pablo

Cal 2

4,228

3

7.7

Butuan

Caraga

4

7.4

Calamba

Cal 2

PAR (%)

PI/D (%)

OSS (%)

OFC. MGT.

FPA

TRANS

18.40

0.00

13.57

209.11

2.5

2.5

2.5

280

12.90

0.00

-31.50

210.56

2.5

2

2.5

4,239

286

14.25

1.44

50.89

177.77

2.5

2.5

2

4,203

284

12.91

0.91

47.13

186.00

2

2

2

Abbreviations: COR - Client Outreach; ACP - Average Clients per PA; LP - Loan Portfolio; PAR-Portfolio-at-Risk; PI/D-Percentage of Increase/Decrease of Client Turn-Over; OSS - Operational Self Sufficiency; FPA - File and Policy Administration; TRANS - Transformation

Kidapawan makes it again Kidapawan branch of NORSOCO area made it again as top performing branch among the organization’s 29 branches.

It has exceeded the required number of client outreach, maintained zero PAR, is sustainable and exemplary in office management, administration and transformation. The branch has been a consistent top performer since it was established on 2004.

Venue: Koronadal, South Cot.

June 5-6

“Pilot Testing of EDS Awareness and Orientation Program”

June 8-9

Center Leader’s Conference

June 23

Tree Planting

June

Impact Assessment STAFF RETREATS

June 14-16

Luzon Staff Retreat

(tentative sched)

Venue: Island Cove, Cavite

July 13-14

Mindanao Staff Retreat

(tentative sched)

Venue: Davao City

Our Mission

“KMBI is a Christ-centered development organization, existing to help transform the lives of its clients and develop its human resources who will provide sustainable microfinance, training and demand-driven non-financial services.”

Core Values Third from left: Branch manager of Kidapawan, Rhodora Sabillo, in a picture with Executive Director Edgardo Mercedes (to her right), and branch managers Roschelli Clemente of Upper Cavite and Rhany Barrera of Koronadal.

Respect Integrity Stewardship Commitment to the Poor Discipline Innovation Excellence

Goal 25.250

Upcoming Events CBEDP Activities

“To see people in communities live in abundance with strengthened faith in God and in right relationship with their fellowmen and the rest of creation.”

feedback We want to hear from you. Send us your feedback and topics on special sections you want included in future issues. Your thoughts are valuable to us.

dear writer We are calling out for young bloods who have the passion to write. Be a part of KMBI’s writers guild. Submit one news story of any event that transpired in your area and a feature article on a topic of your choice.

send them here rmc@kmbi.org.ph.

292.2441.

Kabalikat para sa Maunlad na Buhay, Inc. Head Office: KMBI Bldg., 12 San Francisco St., Karuhatan, Valenzuela City Tel (02) 291.1484 to 86 l Fax (02) 292.2441 l http://www.kmbi.org.ph

or

fax

at

(02)

Reaching out to 250,000 clients on our 25th year

editorial box Editorial Advisers: Eduardo C. Jimenez Edgardo S. Mercedes Liza D. Eco Editor: Rizaldy R. Duque Assistant Editor: Kris Joy T. Guimary Contributors: Hazel Christine Z. Rosacia, Charis Ken C. Layawan, Reynald B. Alpajando, Donnabelle A. Ramirez, John Erick Bongalos.