Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

Sixteenth Congress
Third Regular Session

House Bill No. 6486

Introduced by
HON. NEIL BENEDICT A. MONTEJO

EXPLANATORY NOTE

The pressing need to cultivate a strong and competitive mindset of youth
entrepreneurship in the Philippines has become imperative at a time when the
State is currently facing unabated issues on unemployment where basically all
sectors of social life are directly affected. This need has risen timely in order to
prepare the future of our youth as well as enhance their chances of securing
entrepreneurial success through achievable programs and efficient initiatives of
government delving on the varying levels of enterprises together in partnership
with businesses, groups and organizations with similar persuasion

It is thus envisaged by this bill that introducing entrepreneurship studies and
training at the primary level, onto the secondary and tertiary levels, would give
the Filipino youth the firsthand opportunity to learn the basic dynamics of these
studies that will help equip them further in life. Using this as a premise, young
people who transit from one level of education to another will develop the
confidence to take on life's challenges as they grow old

Quite odd, most countries today have overemphasized the need for
entrepreneurship education programs only in the higher institutions of learning
As can be gleaned from the experience of developed counties, the root of
industrialization through entrepreneurship development must be rooted at the
foundation of education, that is, during primary education.

According to Republic Act 8044 or the "Youth in Nation Building Act of 1995", the
youth, by legal definition. comprises those who are 15 to 30 years old. Youth
population makes up 27.7 percent or almost one-third of the country’s total
population as of the last survey. Surprisingly since within this age bracket are
mostly young people who have finished college, they are the ones who remain
out of employment if not underemployed due to government's inability to fast-
track its efforts to address the rising unemployment incidence

This is where creating structures and mechanisms by government on youth
entrepreneurship becomes pertinent.


The State must not recognize the boosting of job creation and gainful
employment as the sole and effective tool for inclusive growth but rather must
complement it with actions that are equally vital such that it would result in
the holistic empowerment of young Filipinos to be productive members of
society. Empowerment could be done through providing greater opportunities
for the youth. These opportunities will enable them to participate in deeper
community life and capacity building. Moreover given their large number in our
current population, they increasingly play an important role in the
development of Philippine society. Having thus stated this role placed upon the
youth, it is now an inescapable duty of the State to impress a positive
entrepreneurial philosophy upon them that will orient them towards
development. Just as our national hero, Dr. Jose Rizal, once said, the task of
enriching the motherland is upon them. At best, their priorities, attitudes and
values will be responsible in shaping a better country tomorrow.

Pursuing the objective of this bill, an integration of entrepreneurship into our
primary, secondary and tertiary education curricula is best seen by this author
that will serve as the foundation of the youth’s strength to become effective
managers of their own destiny through entrepreneurship.

Likewise, this bill seeks the cooperation of different key government learning
and skills training agencies such as the Department of Education (DepEd), the
Commission on Higher Education (CHED), and the Technical Education and
Skills Development Authority (TESDA). Aside from developing and integrating
entrepreneurship courses in the curriculum for primary, secondary and post.
secondary school students, these agencies shall also be in charge with the
provision of grants to ensure that our schools, teachers, and teaching partners
have the capacity to teach these courses. Grants shall also be made available
to support students who are pursuing studies and projects related to
entrepreneurship.

Further, the MSME Development Council, whose one of the major duties and
functions is to help establish the needed environment and opportunities
conducive to the growth and development of the MSME sector, is called upon to
work on a National Youth Entrepreneurship Program that will inspire young
Filipino entrepreneurs to take advantage of the vast potentials of growing a
business, The program shall include a support structure providing, among
other things, access to financing and capital, as well as technology transfer
services and skills development and training, The MSME Development Council
and the Small Business Corporation shall provide priority in allocating for the
youth the credit funds available,

Passage of the bill is earnestly sought.

HON. NEIL BENEDICT A. MONTEJO.


Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

Sixteenth Congress
Third Regular Session
House Bill No.

Introduced by
HON. NEIL BENEDICT A. MONTEJO

AN ACT ADVANCING THE PROMOTION OF YOUTH ENTREPRENEURSHIP

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

Section 1, Title. - This Act shall be known as the “Youth Entrepreneurship Act
of 2016”.

Section 2. Declaration of Policy. - The State recognizes the vital role of the
youth in nation-building and shall promote and protect their physical, moral,
spiritual, intellectual, and social well-being. It shall inculcate in the youth
patriotism and nationalism, and encourage their involvement in public and
civic affairs. Towards this end, it shall be the objective of the State to provide
the youth the opportunity to gain access to government support through
education and skills training on entrepreneurship to instill upon them a
positive outlook toward a successful community life and encourage the young
people to participate in social development and nation-building.

Section 3. Definition of Terms. - For the purpose of this Act, the following
terms shall be defined as follows:

a. “Eligible Entity” refers to:

1. an institution for basic and higher education or;

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

3. a local government dedicated to uplifting the lives of its
constituents;

4. a partnership consisting of institutions for basic and higher
education; of the non-government and non-profit organizations and
of local governments;

b. “Department” refers to the Department of Education;

Gi. “Commission” refers to the Commission on Higher Education;


d. “Courses” mean those pertaining to entrepreneurship, which may
include, but not limited to, courses in financial literacy and accounting,
securing capital and borrowing, business plan conception and drafting,
management, marketing, design thinking, social entrepreneurship and
community organizing;

e. “Council” refers to the Micro, Small and Medium Enterprise Development
Council under the Department of Trade and Industry;

f, “SB Corporation” refers to the Small Business Guarantee and Finance
Corporation;
g. “Young Entrepreneurs” mean 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.

Section 4. Promoting Youth Entrepreneurship through Education and Skills
Training.

a, The Department shall develop and integrate courses in entrepreneurship
in the curriculum for primary and secondary school students;

b, _ The Commission in cooperation with the Technical Education and Skills
Development Authority (TESDA) shall develop and integrate entrepreneurship
courses in the curriculum for post-secondary school students;

c. The Department and the Commission shall ensure coherence and clear
progression in the learning objectives and course design through close
coordination with other concerned agencies;

Section 5. Grants.—TWO Types of Grants shall be established by this Act as
follows:

a. Capacity Building Grants for Entities Teaching Entrepreneurship;

1, The Department shall award grants for a term of not more than
four (4) years each, on a competitive basis, to eligible entities in
order to—

a. Develop courses for secondary school students;
b. Train secondary school teachers all over the country to teach
courses developed;

c. Prepare methods to evaluate the effect of entrepreneurial
education and improve the course design as necessary; and
d. Develop the courses for inclusion by the Department in the

required training and education for aspiring secondary
school teachers.

2. The Commission shall award grants for a term of not more than
four (4) years each, on a competitive basis, to eligible entities in
order to—

a. Develop subjects for post-secondary school students;
b. Train post-secondary school teachers all over the county to
teach courses developed;


c. Prepare methods to evaluate the effect of entrepreneurial
education and improve the courses as necessary; and

d. Develop the courses for inclusion by the Commission in the
required education for aspiring post-secondary school
teachers.

b, Project Grants for Young Entrepreneurs

1. ‘The Commission shall provide grant assistance for deserving young
entrepreneurs who are pursuing a project/study that tackles
entrepreneurship. This grant may come in the form of cash grant
from the Commission or a link up with another grant or
scholarship-giving agency. Standards in choosing a project/study
that would deserve a grant would be included in the implementing,
rules and regulations;

2. The Commission shall also provide an avenue for private
corporations and individuals who are interested in funding or
providing support to post-secondary school students or graduates
for the incubation of an enterprise project.

Section 6. Available Assistance and Training.—

a. The Department and the Commission shall provide information on
available government and non-government 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
website, agency announcements and other forms of communication;

b. The Department and the Commission shall develop mentoring and
coaching programs for young entrepreneurs in coordination with eligible
entities to facilitate sharing of technical knowledge and skills/technology
transfer;

c. The Department and Commission shall set up enterprise incubation
laboratories and creative spaces in schools in coordination with eligible entities
to encourage enterprise creation and development.

Section 7. Report—

The Department and the Commission shall provide the appropriate
committees in the Senate and House of Representatives with an annual status
report on the implementation and an overall assessment of the curricula and
teaching and mentoring programs.

Sectio 8. National Program to Promote ‘Youth __Eintrepreneurship
Development —

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

be
b. The Council shall {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;


Ci The composition of the Council shall include a youth representative with
the following duties:

1. Represent the youth sector and their concerns regarding
entrepreneurship;

2. Coordinate with the Department of Education, the Commission for
Higher Education, TESDA, and other eligible entities on the
education, mentoring and support programs provided by this Act;
and

3. Identify possible funding mechanisms to support young
entrepreneurs in the incubation and startup of enterprise projects.

d. The SB Corporation shall be responsible for integrating youth
entrepreneurship promotion into the national policies and programs in support
of micro, small and medium enterprise development. Programs shall include
finance and information services, training and marketing support for young
entrepreneurs;

e. The SB Corporation shall also allocate at least Ten Percent (10%) of any
Venture Capital and Micro Finance Trust Fund for the purpose of promoting
business opportunities for young entrepreneurs, The allocated portion of the
Micro Finance Trust Fund shall be used to provide collateral-free fixed and
working capital loans for micro and small enterprises established by young
entrepreneurs;

f, All lending institutions as defined under Bangko Sentral ng Pilipinas
rules, whether private or public, shall allocate to micro and small and medium
enterprises established by young entrepreneurs at least Ten Percent (10%) of
the total loan portfolio that is allotted for micro, small and medium enterprises
as mandated by law;

Section 9. 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, and Department of Trade
and Industry from the General Appropriations Act.

Section 10. Implementing Rules and Regulations—The Department of
Education, Commission on Higher Education, and Department of Trade and
Industry shall promulgate rules and regulations necessary for the proper
implementation thereof within sixty (60) days from the effectivity of this Act.

Section 11. Repealing Clause—All laws, issuances, rules and regulations
inconsistent with any provision of this Act shall be deemed amended, modified,
or repealed accordingly.

Section 12. Separability Clause—If, for any reason, a provision or part hereof is
declared invalid or unconstitutional, the other provisions not affected thereby
shall remain in full force and effect.

Section 13. Bffectivity—This Act shall take effect fifteen (15) days after its
publication in any newspaper of general circulation.

Approved.