Small and medium enterprises are essential to the growth of the Philippine economy. Small and medium enterprises provide an avenue for job creation, employment opportunities and possible alleviation from poverty. These Enterprises are critical to the economic development because they are the steppingstone in the formulation of the development of Filipino entrepreneurial talent. This act also aims to incorporate the informal sector through granting specific incentives to these firms therefore giving them a chance to be part of the mainstream of the economy. Given these, the law endeavors are strengthen by the Small and Medium Enterprise Development Council and Department of Trade and Industry in doing so, it is tantamount to having more jobs and livelihood for the people and more so better quality of life for the Filipino people. The private sector has a central role in renewed efforts to reduce poverty and achieving hasten growth and expansion of small and medium enterprises, as the main contributor to economic growth and job creation. The Act have a strong interest in promoting a business environment that allows the private sector to flourish and fulfill its role as the main growth engine. It is important to recognize that the private sector consists of more than formal businesses. Individuals and households, from rich to poor, also operate as private economic actors when they consume goods and services, sell their labor, farm or produce goods and services. The implementation of this act and strict accordance with the law and attaining its purpose will bring great development and solid grounds for small and medium enterprises