1
Republic of the Philippines 
HOUSE OF REPRESENTATIVES 
Quezon City, Metro Manila 
NINETEENTH CONGRESS 
First Regular Session 
HOUSE BILL NO. ____ 
Introduced by CIBAC Party-List Representative 
HON. EDUARDO “BRO. EDDIE” C. VILLANUEVA 
AN ACT  
INSTITUTIONALIZING THE POVERY REDUCTION THROUH SOCIAL 
ENTREPRENEURSHIP (PRESENT) PROGRAM AND PROMOTING 
SOCIAL ENTERPRISES, PROVIDING FUNDS THEREFOR AND FOR 
OTHER PURPOSES 
EXPLANATORY NOTE 
In 2015, it was estimated that there were about 164,473 social 
enterprises in the Philippines, which constitutes 17% of the then 987,974 
registered companies in the country. 1 Meanwhile, in a survey of 206 
verified social enterprises in a study published by the British Council, 
together with the European Union, the United Nations Economic and 
Social Commission in Asia and the Pacific (UN ESCAP), and the 
Philippine Social Enterprise Network (PhilSEN), it was found that:2 
a)
Social enterprises are led by young social entrepreneurs, with 28%
of the start-ups headed by persons aged 35-44, 23% are led by
persons aged 45-54, and 21% are led by 25-34 years old;
1
 ADB 
Briefs, 
Road 
Map 
for 
Strengthening 
Social 
Entrepreneurship 
in 
the 
Philippines, 
accessible 
at 
https://www.adb.org/sites/default/files/publication/514471/adb-brief-112-social-entrepreneurship-road-map-philippines.pdf (last 
accessed August 3, 2022). 
2
 Reaching 
the 
Farthest 
First: 
The 
State 
of 
Social 
Enterprise 
in 
the 
Philippines, 
accessible 
at 
https://www.britishcouncil.ph/sites/default/files/social_report_bc_fa_102517_web-compressed.pdf (last accessed August 3, 
2022). 
January 30, 2023
8:00 am
6952


 
 
2
b) 
More than half of the jobs created were for women, with 56% of 
females employed, showing that social enterprises are empowering 
women; 
 
c) 
17,434 full-time staff were hired by the enterprises surveyed; 
 
d) 
More than 60% of respondents have growth plans, including 
attracting new customers, developing new products or services, 
expanding into geographic areas, and increasing sales with existing 
customs; and 
 
e) 
19% of social entrepreneurs surveyed are focused on agriculture, 9% 
in education, 9% in business development, 8% in financial services, 
and 8% are engaged in employment creation. 
 
The same report showed that social entrepreneurs usually face 
barriers and constraints, including capital, obtaining grants, and concerns 
with cash flow, among others. 
 
At present, there are no direct policies for social enterprises in the 
Philippines. They indirectly benefit from laws applicable to MSMEs in 
general. But in view of the unique characteristic of social enterprises, 
generally “producer-based organizations whose efforts went primarily into 
the integration of their goods/services into the broader value chain and 
the distribution of the profits obtained from such to their low-income 
stakeholders,” 3 there is a need to recognize and offer niche support 
mechanisms for their continued growth and expansion in Philippine and 
global markets. 
 
Thus, the immediate passage of this bill is earnestly sought. 
 
 
 
EDUARDO “BRO. EDDIE” C. VILLANUEVA 
 
 
 
 
 
 
 
3 Id. 


3
Republic of the Philippines 
HOUSE OF REPRESENTATIVES 
Quezon City, Metro Manila 
NINETEENTH CONGRESS 
First Regular Session 
HOUSE BILL NO. ____ 
Introduced by CIBAC Party-List Representative 
HON. EDUARDO “BRO. EDDIE” C. VILLANUEVA 
AN ACT  
INSTITUTIONALIZING THE POVERY REDUCTION THROUH SOCIAL 
ENTREPRENEURSHIP (PRESENT) PROGRAM AND PROMOTING 
SOCIAL ENTERPRISES, PROVIDING FUNDS THEREFOR AND FOR 
OTHER PURPOSES 
Be it enacted by the Senate and House of Representatives of the 
1 
Philippines in Congress assembled  
2 
3 
4 
CHAPTER I 
5 
GENERAL PROVISIONS 
6 
7 
SECTION. 1. Short Title. – This Act shall be known as the “Poverty 
8 
Reduction Through Social Entrepreneurship (PRESENT) Act.” 
9 
10 
SEC. 2. Declaration of Policy. – The State shall promote a just and 
11 
dynamic social order that will ensure the prosperity and independence of 
12 
the nation and free the people from poverty through policies that provide 
13 
adequate social services, promote full employment, a rising standard of 
14 
living, and an improved quality of life for all. The State shall provide social 
15 
justice in all phases of national development and shall guarantee, at all 
16 
times, the dignity of every human person and full respect for human rights. 
17 
The State recognizes the important role of enterprises in the economy as 
18 
the major agent of development, creating off-farm employment 
19 
6952


4
opportunities and providing transitional means for improving the livelihood 
1 
of the people. 
2 
3 
Towards this end, the State shall pursue an inclusive growth 
4 
strategy that promotes an environment conducive to the development and 
5 
growth of a vibrant social enterprise sector engaged in poverty reduction, 
6 
and economic and social development. It shall empower the poor as 
7 
primary stakeholders in social enterprises, establish mechanism essential 
8 
to realizing their potential and achieving their full growth, and extend the 
9 
assistance necessary for their advancement. The State shall likewise 
10 
provide technical and financial assistance, incentives and other services 
11 
to enable social enterprises to develop into viable and vital anti-poverty 
12 
agents, and a strong social entrepreneurship movement that will be 
13 
instrumental in reducing poverty in the country. 
14 
15 
SEC. 3. Definition of Terms. – The following terms when used in 
16 
this Act shall mean:  
17 
18 
a)
Basic Sectors refer to the disadvantaged sectors of Philippine
19 
society, namely: farmer-peasant, artisanal fisherfolk, workers in
20 
the formal sector and migrant workers, workers in the informal
21 
sector, indigenous peoples and cultural communities, women,
22 
persons with disabilities, senior citizens, victims of calamities
23 
and disasters, youth and students, children and urban poor;
24 
25 
b)
Economic Subsectors refer to networks of related actors, and
26 
enterprises performing various functions to value chains that
27 
transform raw materials into finished products, or develop
28 
services, and distribute or provide them through market
29 
channels to final consumers. These subsectors may be
30 
identified by key raw material source, by finished product or final
31 
service provided. An economic subsector may be comprised of
32 
several competing value chains;
33 
34 
c)
Marginalized Sectors refer to groups of people who are
35 
stigmatized 
or 
excluded 
by 
virtue 
of 
their 
physical,
36 
psychological, economic, social or cultural circumstance;
37 
38 
d)
Poor refers to individuals and families whose income fall below
39 
the poverty threshold as defined by the National Economic and
40 
Development Authority (NEDA) and/or cannot afford in a
41 
sustained manner to provide their minimum basic needs of
42 


 
 
5
food, health, education and housing and other essential 
1 
amenities of life;  
2 
 
3 
e) 
Poverty Reduction refers to overcoming the income, resource 
4 
and capability deprivation among the poor, basic and 
5 
marginalized sectors;  
6 
 
7 
f) 
Social Enterprise or SE refers to a social mission-driven 
8 
organization in the form of an association, single proprietorship, 
9 
partnership, corporation, cooperative, people’s organization, 
10 
non-stock non-profit and people’s organizations or any other 
11 
legal entity that conducts economic activities providing goods 
12 
and/or services directly related to their primary mission of 
13 
poverty reduction and improving the well-being of the poor, 
14 
basic and marginalized sectors and their living environment. In 
15 
pursuit of this primary mission, a SE:  
16 
 
17 
1) 
Engages and invests in the poor to become effective 
18 
workers, suppliers, clients and/or owners; 
19 
 
20 
2) 
Ensures that a substantive part of the wealth created by the 
21 
enterprise is distributed to or benefits these sectors;  
22 
 
23 
3) 
Reinvests its surplus or profits back to the enterprise to 
24 
sustain the fulfillment of its social mission; and 
25 
 
26 
4) 
Utilizes its surplus or profits and mobilizes other resources 
27 
to assist the poor to become partners in SE or value chain 
28 
management and governance and to become partners in 
29 
community, sectoral and societal transformation;  
30 
 
31 
g) 
Social Enterprise Service Institution refers to an organization 
32 
that provides assistance, including trainings, education and 
33 
other capacity-building measures, research and development, 
34 
and other activities, to SEs for them to become viable and 
35 
sustainable; 
36 
  
37 
h) 
Transactional Services refer to enterprise or market-driven 
38 
activities, such as providing loans, demonstrating new 
39 
technologies or conducting trainings that are necessary for the 
40 
poor in the SE system to effectively and efficiently perform their 
41 
roles as workers, suppliers, clients and owners. Transactional 
42 
services may be fee-based, such as the granting of loans, or 
43 


 
 
6
non-fee based, such as the extension of production-related 
1 
trainings;  
2 
 
3 
i) 
Transformative Services refer to activities that empower the 
4 
poor, 
such 
as 
leadership 
formation, 
organizational 
5 
development, financial and legal literacy, asset build-up and 
6 
providing education and experiential learning opportunities, to 
7 
become conscious change agents for themselves, for their 
8 
communities, sectors and society as a whole;  
9 
 
10 
j) 
Value Chains refer to value-adding economic activities that 
11 
firms and workers do to bring product from its conception to its 
12 
end use. A value chain typically consists of: (1) raw materials 
13 
processing; 
(2) 
inbound 
distribution 
or 
logistics; 
(3) 
14 
manufacturing operations; (4) outbound distribution or logistics; 
15 
(5) marketing and selling; and (6) after-sales service. These 
16 
activities are supported by (1) purchasing or procurement; (2) 
17 
research and development; (3) human resource development; 
18 
and (4) organizational development; and  
19 
 
20 
k) 
Living Wage refers to the amount of family income needed to 
21 
provide for the family’s food and non-food expenditures with 
22 
sufficient allowance for savings/investments for social security 
23 
so as to enable the family to live and maintain a decent standard 
24 
of human existence beyond mere subsistence level, taking into 
25 
account all of the family’s physiological, social and other needs.  
26 
 
27 
 
28 
CHAPER II 
29 
POVERTY REDUCTION THROUGH SOCIAL ENTERPRISES 
30 
 
31 
SEC. 4. Formulation of a Poverty Reduction Through Social 
32 
Entrepreneurship (PRESENT) Program. – There is hereby established 
33 
a Poverty Reduction Through Social Entrepreneurship (PRESENT) 
34 
Program to progressively improve the position and benefits received by 
35 
the poor, marginalized and basic sectors of Philippine society from 
36 
economic subsector development and growth. To do this, the PRESENT 
37 
Program shall identify strategic economic subsectors with potential for 
38 
growth, the geographic concentration of the basic, marginalized and poor 
39 
sectors, and how these sectors can be tapped to spur the growth and 
40 
development of a specific subsector. The PRESENT Program shall 
41 
involve identifying and developing key SEs and resource institutions as 
42 


 
 
7
partners in providing transactional and transformational services towards 
1 
poverty reduction.  
2 
 
3 
The formulation of the PRESENT Program shall be guided by the 
4 
following:  
5 
 
6 
a) 
Promoting sustainable programs that support the development 
7 
of inclusive value chains in key economic subsectors, with a 
8 
view to reducing inequality in incomes and increasing self-
9 
reliance among the poor;  
10 
 
11 
b) 
Enabling SEs to overcome constraints and to take advantage 
12 
of opportunities for enhancing the position and benefits of the 
13 
poor and their living environments, including those that 
14 
harness innovative approaches in addressing social problems;  
15 
 
16 
c) 
Developing sustainable mechanisms for the provision of 
17 
quality and accessible social services to the poor;  
18 
 
19 
d) 
Empowering people by ensuring the participation of the basic, 
20 
poor and marginalized sectors;  
21 
 
22 
e) 
Promoting gender sensitivity by ensuring women’s equal rights 
23 
and access to resources of SEs;  
24 
 
25 
f) 
Promoting ccological soundness in the pursuit of sustainable 
26 
and equitable development; 
27 
 
28 
g) 
Incorporating the PRESENT Program in the government’s 
29 
poverty reduction drive as a major sustainable and 
30 
comprehensive strategy; and  
31 
 
32 
h) 
Rationalizing of poverty reduction programs by streamlining 
33 
and coordinating the various anti-poverty programs of the 
34 
government to reduce inefficiency and duplication to improve 
35 
the effectiveness of each program.  
36 
 
37 
The planning process and framework of the PRESENT Program 
38 
shall ensure that the poor are engaged as primary stakeholders. It shall 
39 
add value and complement ecosystem-based, area-based, community-
40 
based and other tools and processes in local economic development by 
41 
promoting and utilizing the economic subsector as a strategic unit of 
42 


 
 
8
analysis and planning for the development of interventions spearheaded 
1 
by SEs.  
2 
 
3 
The medium-term and annual development plans of the PRESENT 
4 
Program shall be aligned with the medium-term development plan of the 
5 
national government.  
6 
 
7 
SEC. 5. National Enterprise Development Council. – The existing 
8 
Micro, Small and Medium Enterprise Development (MSMED) Council, 
9 
which is an attached agency of the Department of Trade and Industry 
10 
(DTI), shall be strengthened and expanded to effectively spur the growth 
11 
and development of MSMEs and SEs throughout the country, and to carry 
12 
out the policy declared under this Act. It shall hereafter be known as the 
13 
National Enterprise Development Council (the “Council”).  
14 
 
15 
In addition to the existing functions of the Council as provided under 
16 
Republic Act No. 9501, otherwise known as the Magna Carta for Micro, 
17 
Small and Medium Enterprises, the Council shall serve as the primary 
18 
agency tasked to carry out the promotion, growth and development of SEs 
19 
in the country. It shall also approve the SE development plans as 
20 
formulated and recommended by the Center for Social Enterprise 
21 
Development (CSED) created under Section 6 of this Act.  
22 
 
23 
To ensure that the Council is able to fulfill its additional mandate as 
24 
provided under this Act, there shall be created an SE Committee under 
25 
the Council that shall perform the following functions:  
26 
 
27 
a) 
Promote social enterprise as a key strategy for reducing 
28 
poverty and enabling inclusive growth;  
29 
 
30 
b) 
Provide oversight for the implementation of the PRESENT 
31 
Program and activities of the CSED;  
32 
 
33 
c) 
Establish policies, plans, programs and projects to develop and 
34 
promote SEs as a tool for poverty reduction in accordance with 
35 
a comprehensive social enterprise development plan that is 
36 
fully integrated and consistent with national development 
37 
objectives and plans;  
38 
 
39 
d) 
Monitor and evaluate the performance of programs and 
40 
projects of CSED for appropriate incentives;  
41 
 
42 


 
 
9
e) 
Submit annual and other periodic reports to the President and 
1 
the Congress of the Philippines not later than April 30 of each 
2 
year; and 
3 
 
4 
f) 
Promulgate such rules and regulations and exercise such other 
5 
powers and functions as may be necessary to carry out the 
6 
purposes of this Act and for the continued enhancement, 
7 
growth and development of the SE sector. 
8 
 
9 
The SE Committee shall be composed of the Secretary of DTI, 
10 
Secretary of Agriculture, Secretary of Interior and Local Government, the 
11 
Chairman of the Small Business Corporation, and three (3) 
12 
representatives each from the SEs, SE service institutions and SE 
13 
advocacy groups: Provided, That such representatives shall each come 
14 
from the main island groupings of Luzon, Visayas, and Mindanao.   
15 
 
16 
SEC. 6. Center for Social Enterprise Development. – There shall 
17 
be established a Center for Social Enterprise Development (CSED) under 
18 
the supervision of the Council to be headed by an Executive Director. The 
19 
Executive Director shall have the primary responsibility of implementing 
20 
the comprehensive policies for social enterprise development.  
21 
 
22 
Specifically, the CSED shall be responsible for the following:  
23 
 
 
24 
a) 
The development and implementation of the PRESENT 
25 
Program as approved by the Council, with the following 
26 
components:  
27 
 
28 
1) 
Formation and Implementation of Plans: The CSED shall 
29 
formulate and implement social entrepreneurship-oriented 
30 
strategic and economic sub-sector development plans that 
31 
shall serve as the basis for major policies, projects and 
32 
activities;  
33 
 
34 
2) 
Capacity Building and Sustainability:  CSED shall work with 
35 
qualified SE service institutions and other intermediaries to 
36 
design and deliver training and education in social 
37 
entrepreneurship development, institutional start-up or 
38 
strengthening, human resource competency and skills 
39 
training, business planning and advisory services, 
40 
upgrading of accounting and auditing systems, technical 
41 
assistance for the installation or improvement of 
42 
management 
information 
systems, 
technology 
43 


 
 
10
intervention, 
technology 
incubation/commercialization, 
1 
market studies, and product development competitiveness, 
2 
business matching activities, trade fairs and missions, 
3 
policy advocacy, disaster resiliency and other related 
4 
activities.  
5 
 
6 
3) 
Research and Development: The CSED, in coordination 
7 
with NEDA, Department of Science and Technology 
8 
(DOST), DTI, and other appropriate agencies, research 
9 
institutions, academe, and intermediaries, shall develop 
10 
and enhance a research and development system that:  
11 
 
12 
(i) 
Provides recommendations and robust discussions 
13 
and engagements on poverty reduction vis-à-vis SE 
14 
development in key economic subsectors and other 
15 
inputs for the Council to undertake strategic planning 
16 
for programs and projects;  
17 
 
18 
(ii) 
Equips SEs and supports institutions with services and 
19 
technologies that are appropriate for enhancing the 
20 
participation and benefits of the poor in various 
21 
economic subsectors, and innovative and sustainable 
22 
approaches to improve access of the poor to quality 
23 
basic social services;  
24 
 
25 
4) 
Information and Marketing Assistance: The CSED shall 
26 
promote the development and expansion of local and 
27 
foreign markets for the products and services of SEs. 
28 
Towards this end, the CSED shall:  
29 
 
30 
(i) 
Establish a marketing assistance program that will 
31 
assist SEs match supply with demand in both domestic 
32 
and foreign markets, as well as promote SE products 
33 
and services through tri-media marketing, trade fairs 
34 
and trade missions; and  
35 
 
36 
(ii) Develop, install and sustain market information system 
37 
for SEs with the assistance of the DTI and the 
38 
Department of Tourism (DOT). All government 
39 
departments, agencies, bureaus, research institutions, 
40 
and local government units (LGUs) shall consolidate 
41 
and continuously update on a regular basis and make 
42 


 
 
11
accessible all relevant information and data that would 
1 
be useful to SEs;  
2 
 
3 
b) 
Establishment and implementation of criteria and process for 
4 
the qualification of SEs to be eligible for the support and other 
5 
incentives provided under this Act and as approved by the 
6 
Council;  
7 
c) 
Identification of sources of financing for the SE sector, which 
8 
shall not be limited to grants, loans and equity financing for 
9 
enterprise incubation, start-up and expansion;  
10 
 
11 
d) 
Management of multi-stakeholder convergence programs and 
12 
activities 
among 
government 
agencies 
and 
private 
13 
organizations in support of the PRESENT Program;  
14 
 
15 
e) 
Coordination with the concerned government agencies and 
16 
LGUs in the development and implementation of the PRESENT 
17 
Program and projects;  
18 
 
19 
f) 
Coordination with social enterprise stakeholders, including 
20 
people’s organizations, non-government organizations, and 
21 
multi-sectoral and multi-disciplinary pool of experts from the 
22 
academe, practicing professionals, business, industry, youth, 
23 
women, and other concerned sectors to provide advice and 
24 
technical assistance on matters pertaining to SEs.  
25 
 
26 
SEC. 7. Role of LGUs in SE Development. – LGUs shall be 
27 
encouraged to incorporate viable SE development plans in their local 
28 
development plans, and, as far as practicable, collaborate with SEs with 
29 
regard the implementation thereof. 
30 
 
31 
SEC. 8. Social Enterprise Development Fund. – There is hereby 
32 
appropriated 
an 
amount 
of 
Nine 
Hundred 
Million 
Pesos 
33 
(P900,000,000.00) for the establishment of a Social Enterprise 
34 
Development Fund (SEDF), which shall be used to fund grants to SEs for 
35 
the implementation of the PRESENT Program.  
36 
 
37 
The SEDF shall be allocated as follows:  
38 
 
39 
a) 
Six Hundred Million Pesos (P600,000,000.00) for value-chain 
40 
financing; and  
41 
 
42 


 
 
12
b) 
Three Hundred Million Pesos (P300,000,000.00) for enterprise 
1 
development services.  
2 
 
3 
After the first year of its implementation, such sums as may be 
4 
necessary to fund the SEDF shall be included in the budget of the DTI 
5 
under the annual General Appropriations Act.  
6 
 
7 
The CSED shall develop the roadmap for the utilization of the Fund, 
8 
which shall be approved by the Council.  
9 
 
10 
 
11 
CHAPTER III 
12 
INCENTIVES AND BENEFITS FOR SOCIAL ENTERPRISES 
13 
 
14 
SEC. 9. Special Credit Windows. – The Land Bank of the 
15 
Philippines (LBP), Development Bank of the Philippines (DBP) and other 
16 
government financial institutions shall establish special credit windows for 
17 
the following purposes:  
18 
 
19 
a) 
Credit line for business development loan or working capital 
20 
loan to cover the operational and management expenses of an 
21 
existing business or income generating project, including 
22 
receivable financing or purchase of additional inventory, soft or 
23 
intangible investments, such as trade fair participation or 
24 
acquisition of software or franchise development packages;  
25 
 
26 
b) 
Fixed assets financing to cover the acquisition of fixed assets 
27 
like machineries and equipment, motor vehicle, or acquisition of 
28 
lot for project site or construction of a plant and building and the 
29 
improvement thereof;  
30 
 
31 
c) 
Value chain financing to cover any of the value chain activities 
32 
such as production, processing and marketing;  
33 
 
34 
d) 
Domestic letter of credit or trust receipt to provide a stand-by 
35 
credit facility for the SE borrower for the purchase of product 
36 
inputs, equipment, machinery, implements, and spare parts; 
37 
and  
38 
 
39 
e) 
Revolving credit line for re-lending to finance the livelihood 
40 
project requirements of the beneficiaries/clients of SEs.  
41 
 
42 


 
 
13
SEC. 10. Compliance with Mandatory Allocation of Credit 
1 
Resources. – Loans granted by financial institutions to SEs shall be 
2 
computed by the Bangko Sentral ng Pilipinas (BSP) as equivalent to two 
3 
times the amount of the loan for purposes of determining the financial 
4 
institution’s compliance to the mandatory allocation of credit resources to 
5 
micro, small and medium enterprises as provided under Republic Act No. 
6 
9501, otherwise known as the Magna Carta for Micro, Small and Medium 
7 
Enterprises.  
8 
 
9 
SEC. 11. Government Procurement. – Eligible SEs shall be 
10 
entitled to a share of at least ten percent (10%) of total procurement value 
11 
of goods and services supplied to the Government, its bureaus, offices 
12 
and agencies annually. The Department of Budget and Management 
13 
(DBM) shall monitor the compliance of government agencies on the 
14 
required procurement for SEs and submit its report to the Council and the 
15 
Congress of the Philippines not later than April 30 of each year. 
16 
 
17 
SEC. 12. Insurance for Social Enterprises. – The Insurance 
18 
Commission shall issue the necessary rules and regulations to implement 
19 
measures to ensure that the insurance industry shall provide insurance 
20 
products, both life and non-life, for social enterprises and their 
21 
stakeholders.  
22 
 
23 
SEC. 13. Exemption from the Coverage of the Minimum Wage 
24 
Law. – SEs with a Within three (3) years from its organization, SEs that 
25 
have total assets, inclusive of those arising from loans but exclusive of the 
26 
land on which the SE’s office, plant and equipment are situated, is not 
27 
more than Three Million Pesos (P3,000,000.00) shall be exempt from the 
28 
coverage of the Minimum Wage Law: Provided, That all employees 
29 
covered under this Act shall be entitled to the same benefits given to any 
30 
regular employee such as social security and healthcare benefits.  
31 
 
32 
SEC. 14. Eligibility for Benefits and Incentives. – In the case of 
33 
social enterprises organized as stock corporations, partnerships or sole 
34 
proprietorships, the following requirements shall apply to become eligible 
35 
for benefits and incentives provided under this Act:  
36 
 
37 
a) 
An SE must not be organized as a branch, subsidiary or 
38 
division of a private business enterprise, regardless of the size 
39 
of such private enterprise, nor may its policies be determined 
40 
by a private business enterprise: Provided, That this shall not 
41 
preclude an SE from accepting subcontracts from large private 
42 
business enterprises or firms or from joining in cooperative or 
43 


 
 
14
joint venture activities with other SEs or foundations practicing 
1 
corporate social responsibility;  
2 
 
3 
b) 
At least sixty percent (60%) of an SE’s total expenditures and 
4 
profits are plowed back to the enterprise for the benefit of the 
5 
poor, and such SE engages in practices that optimize the 
6 
benefits for the poor through the provision of living wages, 
7 
above-market 
pricing 
for 
economically 
disadvantaged 
8 
producers and suppliers, and other best practices that 
9 
distribute the profit generated by the enterprise.  
10 
 
11 
 
12 
CHAPTER IV 
13 
APPROPRIATION AND OTHER PROVISIONS 
14 
 
15 
SEC. 15. Social Entrepreneurship Education in Schools. – The 
16 
Council, in addition to its mandate to promote entrepreneurship and 
17 
coordinate with education agencies for this purpose, shall coordinate with, 
18 
and develop in conjunction with the Department of Education (DepEd), 
19 
Technical Education and Skills Development Authority (TESDA) and the 
20 
Commission on Higher Education (CHED), a curriculum or module that on 
21 
SEs, and its inclusion in the curricula at all levels, especially in the 
22 
secondary and tertiary levels. A continuing social entrepreneurship 
23 
education program for out-of-school youth and adults shall likewise be 
24 
developed and undertaken.  
25 
 
26 
SEC. 16. Social Enterprise Week. – In order to institute continuing 
27 
awareness on the importance of SEs as a viable government strategy in 
28 
pursuing poverty alleviation, the week of the month when this Act shall 
29 
have been signed into law shall be declared as the Social Enterprise 
30 
Week. The Social Enterprise Week shall be celebrated annually, the 
31 
celebrations of which shall be spearheaded by the CSED.  
32 
 
33 
SEC. 17. Appropriations. – The Council shall allocate the initial 
34 
amount of Fifty Million Pesos (P50,000,000.00) from the existing MSMED 
35 
Council Fund to support the operations and programs of the CSED. 
36 
Thereafter, such sums as may be necessary for the continued 
37 
implementation of this Act shall be included in the budget of the DTI under 
38 
the annual General Appropriations Act.  
39 
 
40 
 
The budgetary requirements of the cooperating agencies shall be 
41 
incorporated in their respective budgets. The CSED may raise funds from 
42 
other sources for specific projects as may be authorized by law.  
43 


 
 
15
 
1 
SEC. 18. Transitory Provision. – Within a period of five (5) years, 
2 
the Council shall facilitate the development and dissemination of tools and 
3 
invest in the development of the capability of SEs to plan, monitor and 
4 
evaluate their social and financial performance and outcomes. In addition, 
5 
the Council shall evolve socially-acceptable benchmarks for evaluating 
6 
the performance of SEs and incorporate such to more effectively develop 
7 
and regulate the sector.  
8 
 
9 
SEC. 19. Implementing Rules and Regulations. – Within ninety 
10 
(90) days from the effectivity of this Act, the DTI, in consultation with the 
11 
appropriate government agencies and other relevant stakeholders, shall 
12 
formulate the rules and regulations to effectively implement the provisions 
13 
of this Act. 
14 
 
15 
SEC. 20. Separability Clause. – Any portion or provisions of this 
16 
Act that may be declared unconstitutional or invalid shall not have the 
17 
effect of nullifying other portions and provisions hereof as long as such 
18 
remaining portions or provisions can still subsist and be given effect in 
19 
their entirety.  
20 
 
21 
SEC. 21. Repealing Clause. – All laws, decrees, executive orders, 
22 
proclamations and administrative regulations, or any parts thereof 
23 
inconsistent with the provisions of this Act are hereby revoked, repealed 
24 
or modified accordingly. 
25 
 
26 
SEC. 22.  Effectivity Clause. – This Act shall take effect fifteen (15) 
27 
days after its publication in the Official Gazette or in at least two (2) 
28 
newspapers of general circulation. 
29 
 
30 
Approved. 
31