Section 3January 24, 1991, Sec./Art. 3

Small and Medium Enterprises as Beneficiaries. — "Small and medium enterprise" shall be defined as any business activity or enterprise engaged in industry, agri-business and/or services, whether single proprietorship, cooperative, partnership or corporation whose total assets, inclusive of those arising from loans but exclusive of the land on which the particular business entity's office, plant and equipment are situated, must have value falling under the following categories;

micro: less than P50,000

cottage: P50,001 P500,000

small: P500,001 P5,000,000

medium: P5,000,001 P20,000,000

In a generic sense, all enterprises with total assets of Five million pesos (P5,000,000) and below shall be called small enterprises.

The above definitions shall be subject to review and adjustment by the said Council as deemed necessary, taking into account inflation and other economic factors.