INTEGRATING LIVELIHOOD, COOPERATIVES AND ENTREPRENEURSHIP PROGRAMS AT LOCAL LEVELS

INTEGRATING LIVELIHOOD, COOPERATIVES AND ENTREPRENEURSHIP PROGRAMS AT LOCAL LEVELS

Across many Local Government Units (LGUs) in the Philippines, there are three distinct yet overlapping programs in place: livelihood programs, cooperatives development programs, and entrepreneurship programs. Each of these was undoubtedly formed with good intentions, but I cannot help but observe a lack of integration among them.

It may partly be a matter of semantics, but when you take a closer look, the objectives of these three often overlap. Many livelihood projects are best organized using the cooperative model, while entrepreneurship programs often result in livelihood outcomes for individuals and families. They exist in the same ecosystem — all focused on empowering communities through economic activity.

This scenario became even more complicated with the passage of the Go Negosyo Act (Republic Act No. 10644), which requires every LGU to establish a Negosyo Center Office (NCO). These NCOs are designed to serve as support hubs for micro, small, and medium enterprises (MSMEs) — providing business registration assistance, advisory services, and training programs to promote entrepreneurship.

Interestingly, the Go Negosyo Act was inspired by the private sector-led Go Negosyo Movement, which aims to foster entrepreneurship among Filipinos. However, long before the law was passed, many LGUs were already running livelihood programs and cooperative development programs that aimed to achieve similar goals — helping residents start businesses, generate income, and become self-sufficient.

This raises a fundamental question: If livelihood, cooperatives, and entrepreneurship programs are all trying to uplift local economies, why are they being implemented separately? Wouldn’t it make more sense to integrate them into a cohesive, streamlined approach at the local level?

Some distinctions are worth noting, but they need not create unnecessary divisions. In theory, not all small business owners are entrepreneurs, since entrepreneurship requires an innovation component — the creation of something new, whether a product, service, or process. However, in practice, this distinction has blurred. Whether they are called entrepreneurs or small business owners, the important thing is that they generate profits and create economic value.

Similarly, a cooperative can function like a small business, only with a different ownership structure. Cooperatives are owned by their members, and decisions are made democratically. In contrast, corporations — another type of business structure — operate under a more traditional shareholder model. Cooperatives register with the Cooperative Development Authority (CDA), while corporations register with the Securities and Exchange Commission (SEC). But aside from these technical differences, both models serve the same purpose: to pool resources and create economic opportunities for their members.

With the mandatory establishment of Negosyo Centers, LGUs have no choice but to comply with the law. However, rather than seeing NCOs as just another layer of bureaucracy, LGUs should view them as an opportunity to consolidate and streamline their existing programs.

One practical solution would be for LGUs to enact local ordinances officially declaring that their Negosyo Centers will also perform the functions of their Livelihood Development Offices and Cooperative Development Offices. This would create a single office handling all aspects of MSME support — from individual entrepreneurs to cooperative ventures, to community-based livelihood projects. Such integration would reduce duplication, improve coordination, and enhance service delivery.

This integrated approach could also leverage national programs such as the SME Roving Academy (SMERA), which provides continuous learning and business development services for MSMEs. Supported by the Department of Trade and Industry (DTI) through its Bureau of Small and Medium Enterprise Development (BSMED), SMERA already partners with LGUs to provide capacity-building programs at the local level.

The synergy doesn’t have to end there. Livelihood Seeding Programs like the Negosyo Serbisyo sa Barangay (LSP-NSB) already encourage collaboration between Negosyo Centers and LGU-based Livelihood Development Offices to identify and support MSMEs in barangays. If this model of collaboration could be institutionalized and expanded, it could become the standard for integrated MSME development at the local level.

At the end of the day, whether we call them livelihood projects, cooperative businesses, or entrepreneurial ventures, they all contribute to the same goal: uplifting local economies and improving the lives of ordinary Filipinos. By aligning and integrating these programs under a unified framework, LGUs can maximize resources, expertise, and outcomes — making it easier for aspiring entrepreneurs, cooperative members, and livelihood beneficiaries to navigate government support systems and succeed in their ventures.

With former Senator Bam Aquino’s advocacy for Negosyo Centers, the legal and institutional framework for this integration already exists. What’s needed now is the political will and administrative creativity at the LGU level to break down the silos between livelihood, cooperatives, and entrepreneurship programs — and bring them together under one roof.

In the end, integration is not just a matter of efficiency, it’s about creating a more responsive, accessible, and effective support system for the people who need it the most — the small business owners, the aspiring entrepreneurs, and the cooperative members working hard to build better futures for themselves and their communities.

Ramon Ike V. Seneres, www.facebook.com/ike.seneres
iseneres@yahoo.com, 09088877282, senseneres.blogspot.com

04-11-2025Top of Form