Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City, Metro Manila

SIXTEENTH CONGRESS
Second Regular Session

HOUSE BILL NO. 5163

Introduced by HON. RENE L, RELAMPAGOS
First District, Bohol

EXPLANATORY NOTE

‘This legislative proposal seeks to stimulate interest in entrepreneurship among
the Filipino youth by providing entrepreneurial opportunities — financial and technical
assistance— and by incorporating subjects and competencies in entrepreneurship in the
school curriculum.

Entrepreneurship, without a doubt, is one of the main drivers of economic
growth and social progress. Micro, small and medium enterprises (MSMEs) are viewed
as important sources of employment and productivity growth. However, most
entrepreneurs also face major challenges in the process of growing their business.
Hence, we need to equip the youth with the necessary skills and values to turn their
ideas into successful business and to be able to sustain growth amidst challenges.

‘This measure, thus, aims to motivate the youth to become entrepreneurs early on
in their lives through the integration of entrepreneurship and financial literacy in all
levels of education including alternative learning schools.

‘The new generation of entrepreneurs will also pave the way for the creation of
more MSMEs — a strong engine of growth in our country. We hope that through the
passage of this bill, we will further foster entreprenuership among our youth with the
ultimate goal of fueling and improving the country’s growth, prosperity and quality of

life.
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Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

SIXTEENTH CONGRESS
Second Regular Session

5169

HOUSE BILL NO.

Introduced by HON. RENE L. RELAMPAGOS
rict, Bohol

“AN ACT TO ACTIVELY PROMOTE ENTREPRENEURSHIP AND
FINANCIAL EDUCATION AMONG FILIPINO YOUTH”

Be it enacted by the Senate and House of Representatives of the Philippines in
Congress assembled:

SECTION 1. Short Title. -
through Youth Entrepreneurship Act.”

is Act shall be known as the “Poverty Reduction

;CTION 2. Declaration of Policy. - It is the policy of the State to foster
employment among the youth by providing entrepreneurial opportunities as a way of
alleviating poverty and boosting the country’s economic competitiveness, trade and
investment.

SECTION 3. Definitions. — As used in this Act, the following terms are referred
to as follows:

(a) “Entrepreneurship” is the capacity and willingness to develop, organize
and manage a business venture along with any of i in order to make
a profit.

(b) “Higher Education” refers to any pos
technical, vocational or degree program;

secondary education may it be a

(c) “Alternative Learning Schools” refer to institutions accredited by the
Department of Education (DepEd) through the Bureau of Alternative
Learning System that cater to those who are not able to undertake formal
education;

(d) “Eligible entity” refers to an institution for formal or informal education or
a partnership between an institution for higher education; and


(e)

0)

(g)

i. a non-profit organization with experience and proven track record
in quality financial literacy, entrepreneurship or personal finance
programs; and/or

ii, a local government dedicated to uplifting the lives of its
constituents; or

iii, learning organization with experience and proven track record in
quality financial literacy, entrepreneurship or personal finar
programs;

ve

“Subjects and Competencies” refer to entrepreneurial courses, which may
include, but not limited to, subjects in financial literacy and accounting,
agri-entrepreneurship, agribusiness management, securing capital and
borrowing, business plan conception and drafting, management,
marketing, design thinking, social entrepreneurship and community
organizing;

“Council” refers to the Micro, Small and Medium Enterprise Development
(MSMED) Council under the Department of Trade and Industry;

“Young entrepreneurs” refers to individuals within the age of 18 and 30
years old who are engaged in the design, creation, establishment and/or
management of a micro, small or medium enterprise; and

“Learning community” or “Learning organization” refers to the community
association wherein the people and institutions, such as family, school,
church, non-government organizations and business are together
continually learning how to co-create community enterprises with their
children and the youth, in general, towards a sustainable |

SECTION 4. Promoting Youth Entrepreneurship ‘Through Education. ~ Youth
entrepreneurship shall be promoted in all levels of education.

(a)

(b)

Primary and Secondary Levels and Alternative Schools ~ The Department
of Education (DepEd), in consultation with learning organizations, non-
government organizations, local government units, and other concerned
groups, shall develop and integrate subjects and competencies in
entrepreneurship in their curriculum: Provided, That at the primary level,
the subjects or competencies on entrepreneurship referred to in this
paragraph will principally focus on teaching the fundamental and ideal
values necessary to become successful entrepreneurs, which include but
not necessarily limited to being hardworking, creative, cost-efficient, and
learning the propensity to save.

Post-secondary Level - The Commission on Higher Education (CHED)
and the Technical Education and Skills Development Authority (TESDA)


shall develop and integrate subjects and competencies in entrepreneurship
in their curriculum.

SECTION 5. Providing Training and Support Through Private-Public
Partnership.

(a) ‘The Department of Trade and Industry (DT!) shall help in strengthening
the entreprencurial capabilities of the youth by providing support and
training as needed. These interventions may include linkages to private
industries, strong information campaign, business infrastructure support
and mentoring.

(b) DTI shall also seek partnership with the private sector, the academe and
the civil society in order to achieve its objectives. By establishing strong
linkages among industries, schools and NGOs, the youth will have the
opportunity to be exposed to a fast-paced entrepreneurial environment.
‘They are expected to gain knowledge on various business tools, strategi
and practices which they can eventually apply as they execute their
business plans and ide:

SECTION 6. Entrepreneurship Education Committee. — There shall be
established an entrepreneurship education committee which shall be headed by the
Secretary of DepEd or his/her authorized representative whose rank shall not be lower
than an Under ry. The regular members shall consist of the Chairperson of CHED
and Director General of TESDA or their authorized representatives whose ranks shall
not be lower than an Undersecretary or its equivalent. The MSMED Council shall sit as
an ex-officio member. The entrepreneurship education committee shall have the
following functions:

(a) Ensure coherence and clear progression in the learning objectives and
course design;

(b) Study and standardize all current efforts of schools and institutions to
teach subjects and competencies in entrepreneurship; and

(c) Research best practices in foreign countries with the end view of applying
relevant practices in our educational system.

SECTION 7. Grants and Loans. ~ Two (2) types of financing shall be established
by this Act as follows:

(a) pacity Building Grants for Entities Teaching Entrepreneurship ~

1. Primary and Secondary Levels and Alternative Schools ~ DepEd shall
award grants for a term of not more than four (4) years each, on a
competitive basis, to be determined in the implementing rules and
regulations, to eligible entities in order to:


(b)

w

Develop subjects and competencies for primary, secondary and

alternative learning school students;

ii, Train primary, secondary and alternative learning school teachers
all over the country to teach subjects and competencies developed;

. Prepare methods, through their consultants, to evaluate the effect
of entrepreneurial education and improve the subject and
competencies design as necessary; and

iv. Develop the subjects and competencies for inclusion by the DepEd

in the required training and education for aspiring, primary,

secondary and alternative learning school teachers.

Post-secondary Level - CHED and TESDA shall award grants for a
term of not more than four (4) years each, on a competitive basis, to be
determined in the implementing rules and regulations, to eligible
entitites in order to:

i. Develop subjects and competencies for post-secondary school

students;

‘Train post-secondary school teachers all over the country to teach

subjects and competencies developed;

iii, Prepare methods, through its consultants, to evaluate the effect of
entrepreneurial ‘education and improve the subjects and
competencies as necessary; and

iv. Develop the subjects and competencies for inclusion by the
Commission and 'TESDA in the required education for aspiring
post-secondary school teachers.

The entrepreneurship education committee shall meet annually

regarding these capacity-building grants to monitor the absorptive
capacity of the receiving entities, their fund utilization and their progress.

‘The capacity building grants to eligible entities referred to herein

shall be sourced from the respective annual appropriations of DepEd, DTI,
the Commission and TESDA, as the case may be.

Project Grants and Loans for Young Entrepreneurs ~

1

‘The Department, Commission and TESDA shall make available to
deserving young entrepreneurs who are pursuing a project or study on
entrepreneurship, assistance in the form of grants or loans, as
applicable. Such applications for grants and loans shall be considered
based on the qualifications that each agency will require, the area or
level of study and the standards to be determined in the implementing
rules and regulations. This shall be sourced from each agency's annual
appropriations.



2, The entrepreneurship education committee shall partner with
government financial _ institutions, banks, — nongovernment
organizations, foundations, private corporations and individuals,
foreign or local, who are interested to support entrepreneurship
eeducation by launching small enterprise incubation programs with
them and making available to young entrepreneurs funding and
support for the incubation of an enterprise project; and

3. The Department of Trade and Industry (DTI) and the Council shall be
responsible for integrating youth entrepreneurship promotion into
national policies in support of micro, small and medium enterpri
development. Programs shall include finance and information services,
and training and marketing support for young entrepreneurs.

SECTION 8. Available Assistance, Training and Support. ‘The
entrepreneurship education committee shall:

(a) Provide information on available government and nongovernment
assistance and training programs which may be availed by students for
further training and possible entrepreneurial and financial ventures. This
may be done through their agency's website, agency announcements and
other forms of communication;

(b) Develop mentoring and coaching programs for young entrepreneurs in
coordination with eligible entities to facilitate sharing of technical
knowledge and skills/technology transfer;

(c) Set up enterprise incubation laboratories and creative spaces in schools
and communities in coordination with eligible entities to encourage
enterprise creation and development; and

(a) Coordinate with the Department of Agriculture and Land Bank of the
Philippines to develop lending and other support programs specifically for
agriculture-related entrepreneurship activities.

SECTION 9. Report. ~ The entrepreneurship education committee shall provide
the appropriate committees in the Senate and House of Representatives with an annual
implementation status report and an overall assessment of the subjects, competencies,
teaching methods and mentoring programs.

SECTION 10. National Program to Promote Youth Entrepreneurs
Development. —

hip

(a) ‘The Council shall include in its MSMED Plan the development of a
program and strategy for promoting youth entrepreneurship;

(b) The Council shall be responsible for facilitating national programs to
encourage youth entrepreneurship as part of a broader strategy to promote
the viability and growth of enterprises in the country;


(c) The composition of the Council shall include a youth representative, by the
National Youth Commission, with the following duties:

1. Represent the youth sector and their concerns regarding

entrepreneurship;

Coordinate with the entrepreneurship education committee on

mentoring and support programs provided by this Act; and

3. Identify possible funding mechanisms to support young in the
incubation and start-up of enterprise projects.

SECTION 11. Appropriations. — The amount necessary for the implementation

of this Act shall be charged to the budget allocated to the Department of Education, the
Commission on Higher Education, the Technical Education and Skills Development

‘Authority and the Department of Trade and Industry from the General Appropriations
Act.

SECTION 12. Implementing Rules and Regulations. — ‘The Department of
Education, the Department of Trade and Industry, the Commission on Higher
Education and Technical Education and Skills Development Authority shall promulgate
rules and regulations necessary for the proper implementation thereof within sixty (60)
days from the effectivity of this Act.

SECTION 13. Repealing Clause, ~ All laws, decrees, executive orders or parts
thereof inconsistent with the provisions of this Act are hereby repealed, amended or
cordingly.

SECTION 14. Separability Clause. ~ If any provision of this Act is held invalid or
unconstitutional, other provisions not affected shall continue to be in full force and
effec

r its

SECTION 15. Effectivity. — This Act shall take effect fifteen (15) days aft
complete publication in at least two (2) newspapers of general cireulation,

Approved,