Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

SIXTEENTH CONGRESS
Second Regular Session

HOUSE BILL NO. _ 4 864

Introduced by Rep. ALFREDO D. VARGAS Ill

EXPLANATORY NOTE

Section 14 Article XII of the Philippine Constitution explicitly provides that sustained
development of a reservoir of Filipino entrepreneurs and managers shall be promoted by the
State.

‘The Philippines is an entrepreneurial country and Filipino entrepreneurs are gradually
becoming the backbone of our economy. Small and medium-sized enterprises (SMEs)
comprise around ninety nine (99) percent of the establishments in the country and provide 66
percent of total employment in the private sector. However, a number of problems continue to
hold back Filipino entrepreneurs and SMEs from realizing their full potential. Among these are
lack of adequate knowledge on business techniques and financial management, high cost of
doing business, lack of access to finance and market information, and low productivity and
competitiveness due to lack of innovative capacity, We may overcome these challenges by
equipping the Filipino youth with the proper entrepreneurial knowledge and tools.

This bill seeks to promote entrepreneurship and financial education among Filipino
Youth. To develop an innovative and entrepreneurial culture in the country, the bill mandates
the introduction and promotion of youth entrepreneurship in all levels of education. It also
instructs the establishment of financial assistance in form of grants and loans which may be
awarded to young entrepreneurs and entities teaching entrepreneurship.

This measure is patterned after Senate Bill 2212 prepared by the Senate Committee on
Youth joint with the Committees on Education, Arts and Culture; ‘Trade, Commerce and
Entrepreneurship; and Finance.

By empowering the Filipino Youth and our young entrepreneurs, we pave the way for
the creation of businesses, more job opportunities, and better quality of life for the Filipinos.
Thus, the speedy passage of this bill is earnestly sought.

FREDO D. VAR( a

'Department of Trade and Industry, nd, Micro, Small, Medium Enterprise Development Plan 2011-2016, Available

from:
bup://dt.gov.ph/uploads/DownloadableForms/MSMED%20PIan%202011-2016(Final).pdf. [8 August 2014]



Socwmiadaueun—

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Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

SIXTEENTH CONGRESS
‘Second Regular Session

House BILLNo._4864
Introduced by Rep. ALFREDO D. VARGAS III

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

mbled:

Be it enacted by the Senate and the House of Representatives in Congre:

SECTION 1. Short Title. - This Act shall be known as the “Youth Entrepreneurship Act
of 2014”

SECTION 2, Definition. - As used in this Act, the following terms are referred to as
follows:

(a) “Higher Education’ refers to any post-secondary education may it be a technical,
vocational or degree program;

(b) ‘Alternative Learning Schools” refers 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;

(c) “Bligible entity” refers to

1. an institution for formal or informal education or;
2, a partnership between an institution for higher education and;
i, a non-profit organization with experience and proven track record in
quality financial literacy, entrepreneurship or personal finance ; 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 finance programs;

(a) “Department” refers to the Department of Education;

(c) “Commission” refers to the Commission on Higher Education;
(0 “TESDA' refers to the Technical Education and Skills Development Authority;

(g) “Subject and Competencies" refers to entrepreneurship courses, which may include,


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but not be 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 entreprencurship and community organizing;

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

(i) “Young entrepreneurs” refer 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 the family, the school, the
church and businesses are together continually learning how to co-create
community enterprises with their children and the youth, in general, towards a
sustainable life,

SECTION 3. Promoting Youth Entrepreneurship Through Education. - Youth
entrepreneurship shall be promoted in all levels of education.

(a) Primary and Secondary Levels and Alternative Schools - The Department, 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 successfull entrepreneurs, which include but not necessarily
limited to being hardworking, creative, cost-efficient, and learning the propensity to
save.

(b) Post-secondary Level - The Commission and the TESDA shall develop and integrate
subjects and competencies in entrepreneurship in their curriculum.

SECTION 4. Entrepreneurship Education Committee ~ There shall be established an
entrepreneurship education committee which shall be headed by the DepEd. The regular
members shall consist of the Commission and TESDA. The MSMED Council shall sit as an e)
officio member. The entrepreneurship education committee shall have the following function:

1, Ensure coherence and clear progression in the learning objectives and course
design;

2, Study and standardize all current efforts of schools and institutions to teach
subjects and competencies in entrepreneurship; and

3, Research current government efforts in foreign countries with the end view of
applying relevant practices in our educational system,

SECTION 5. Grants and Loans. ~ ‘Two (2) types of financing shall be established by this
Actas follows:

(a) Capacity Building Grants for Entities Teaching Entrepreneurship ~


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1. Pri

2. Pos

nary and Secondary Levels and Alternative Schools ~ The Department 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 cligible
entities in order to:

i, Develop subjects and competencies for primary, secondary and
alternative learning school students;

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

iii, 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 Department
in the required training and education for aspiring primary, secondary
and alternative learning school teachers.

secondary Level - The Commission 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 cligible entities in
order to:

i, Develop subjects and competencies for post-secondary school students;

ii, 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
entreprencurial education and improve the subject 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
ving entities their fund utilization and their progress.

referred to herein shall be
of DepEd, the Commission

‘The capacity building grants to eligible entities
sourced from the respective annual appropriations
and TESDA, as the case may be.

(b) 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,



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2. The entrepreneurship education committee shall partner with government
financial institutions, banks, non-government organizations, foundations,
private corporations and individuals, foreign or local, who are interested to
support entrepreneurship education 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 the national
policies and programs in support of micro, small and medium enterpr
development. Programs shall include finance and information services, and
training and marketing support for young entrepreneurs.

SECTION 6, Available Assistance, Training and Support. - ‘The entrepreneurship
education committee shall:

(a) 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
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 cligible entities to encourage enterprise creation
and development; and

(d) 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 7. Report. ~ The entrepreneurship education committee shall provide the
appropriate committees in the Senate and House of Representatives an annual
implementation status and an overall assessment of the subjects, competencies, teaching
methods and mentoring programs.

SECTION 8, National Program to Promote Youth Entrepreneurship Development. ~

(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 facilitation 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, deputized by
the National Youth Commission, with the following dutie



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1, Represent the youth sector and their concerns regarding entrepreneurshi
2, Coordinate with the entrepreneurship education committee on mentoring and
support programs provided by this Act; and
3. Identify possible funding mechanisms to support young entrepreneurs in the
incubation and start-up of enterprise projects
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, the Technical Education and Skills Development Authority and the
Department of Trade and Industry from the General Appropriations Act

SECTION 10, Implementing Rules and Regulations. - The Department of Education, the
Commission on Higher Education, Technical Education and Skills Development Authority and
the 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, decrees, executive orders or parts thereof
inconsistent with the provisions of this Act are hereby repealed, amended or modified
accordingly.

SECTION 12. 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 effect.

SECTION 13. Effectivity, ~ This Act shall take effect fiftecn (115) days after its complete
publication in at least two (2) newspapers of general circulation,

Approved,

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