Declaration of Policy.
Section 2
SEC. 2. Declaration of Policy. - Recognizing that small and medium scale enterprises have the potential for more employment generation and economic growth and therefore can help provide a self-sufficient industrial foundation for the country, it is hereby declared the policy of the State to promote, support, strengthen and encourage the growth and development of small and medium enterprises in all productive sectors of the economy particularly rural/ agri-based enterprises. To this end, the State shall undertake to spur the growth and development of small and medium enterprises throughout the country and thereby attain countryside industrialization: by assuring, through the establishment of adequate support structure, and the creation and promotion of an environment conducive to the viability of these enterprises, establishment of mechanisms, the access and transfer of appropriate technology needed by small and medium enterprises; by intensifying and expanding programs for training in entrepreneurship and for skills development for labor; by facilitating their access to sources of funds; by assuring to them access to a fair share of government contracts and related incentives and preferences; by complementing and supplementing financing programs for small and medium enterprises and doing away with stringent and burdensome collateral requirements that small entrepreneurs invariably find extreme difficulty complying with; by instituting safeguards for the protection and stability of the credit delivery system; by raising government efficiency and effectiveness in providing assistance to small and medium enterprises throughout the country, at the least cost; by promoting linkages between large and small enterprises, and by encouraging the establishment of common service facilities; by making the private sector a partner in the task of building up small and medium enterprises through the promotion and participation of private voluntary organizations, viable industry associations, and cooperatives; and by assuring a balanced and sustainable development through the establishment of a feedback and evaluation mechanism that will monitor the economic contributions as well as bottlenecks and environmental effects of the development of small and medium scale enterprises.