NINETEENTH CONGRESS OF THE) 
REPUBLIC OF THE PHILIPPINES ) 
First Regular Session 
)
SENATE
S. No. 1 851
Senate
*22 SEP 28 A8S9
RECEIVED BY;
Introduced by Senator MANUEL "LITO" M. LAPID
AN ACT
ESTABLISHING THE PHILIPPINE ENTREPRENEURS' ACADEMY,
AND APPROPRIATING FUNDS THEREFOR AND FOR OTHER PURPOSES
EXPLANATORY NOTE
The Constitution, Art. II, Section 9 provides that"[t]he State shall promote a just and 
dynamic social order that will ensure the prosperity and independence of the nation and free 
the people from poverty through policies that provide adequate social services, promote full 
employment, a rising standard of living, and an improved quality of life for all.
Micro, Small, and Medium Enterprises (MSMEs) are the backbone of our economy for 
several reasons, such as but not limited to, its role in the generation of employment to 
Filipinos, which reduce or lower poverty incidence, and spearheading innovation, which help 
in the promotion of growth. The Philippine Statistics Authority (PSA) reported in 2020 that out 
of 957,620 business enterprises operating in the country, 952,969 or 99.51% are MSMEs. 
These MSMEs generated 5,380,815 jobs or 62.66% of the country's total employment. 
Further, in terms of exports contribution, the MSME sector accounted for 25% of the country's 
total exports revenue, whereby 60% of exporters in the country belong to such sector1.
Given the statistics mentioned above, it is but evident how significant and critical the 
role of these MSMEs Is in our economy. Indeed, MSMEs are nation's vehicles for growth and
1 https://www.dti.gov.ph/resources/msme-
statistics/?TSPD_lOi_RO=9128b7c4911b6fbb85c457O444e59flecr500OOOO00OOOOOOOOdcO7697cffffOOOOOOOO
0000000000000000000063311dfb00ddc2552108c923bcedab2000cabef39aa3cd495422d304ed7e7bf0ff3c965f
daaef3021546100ce942bc39420833ed2a540a2800abllfd4378d865f3b05115b8e4c38a036d27a889bl8a5651
4f2a408c46069288e614e807d7e6ff7d


development. Yet, our country does not fully invest on these and capitalize on the potential 
of the same for economic growth. This is worsened by the outbreak of the COVID-19. Thus, 
this bill aims to address such gap by establishing a learning institution to be known as the 
Philippine Entrepreneurs Academy. This is also in support of one of the administration's top 
priorities, that is to revitalize and revive the MSMEs in the country, by providing adequate 
protection and ample opportunities that will allow the same to be more resilient and thriving2.
Malaking bagay po sa ating ekonomiya ang pagne-negosyo. Dapat po nating turuan 
at bigyan ng pagkakataon ang ating mga kababayan sa tamang pagnenegosyo kung saan 
magkakaroon sila ng pagkakataong kumita ng marangal at hindi na maghanap pa ng 
mapapasukang trabaho. Makatutulong din po ang mga negosyo upang solusyonan ang ating 
mga suliranin ukol sa unemployment.
Marami po tayong mga kababayan na handang harapin ang hamon ng pagnenegosyo 
sapagkat ang Filipino po ay hindi nagkukulang sa sipag at determinasyon. Kailangan lamang 
po na mabigyan ang maraming kababayan natin ng pagkakataong matutunan ang kahit 
pinaka-basic na kaalaman sa tamang pagnenegosyo.
The Academy shall formalize and integrate the nonformal entrepreneurship programs 
and short-term technical-vocational courses in TESDA, DTI, and Department of Science and 
Technology, and other government agencies, under a school system. It seeks to enhance the 
core competencies of individuals on entrepreneurship and promote the relevance of 
entrepreneurship to job generation and sustainable economic growth. The Academy is the 
catalyst for change - it shall facilitate the growth of MSMEs which will stimulate our economy.
In view of this, early passage of this bill is sought.
ARID
https://www.pna.gov.ph/articles/1182267


NINETEENTH CONGRESS OF THE) 
REPUBLIC OF THE PHILIPPINES ) 
First Regular Session 
)
SENATE
W/^fticroftDc^^rretnrj.
Senate
72 SEP 28 A 8-59
Introduced by Senator Manuel "Lito" M. Lapid
1 
AN ACT
2 
ESTABLISHING THE PHILIPPINE ENTREPRENEURS' ACADEMY,
3 
AND APPROPRIATING FUNDS THEREFOR AND FOR OTHER PURPOSES
Be it enacted by the Senate and the House of Representatives of the Philippines 
in Congress assembled:
4 
Section 1. Short Title. - This Act shall be known as "Philippine Entrepreneurs
5 
Academy Act"
6 
Section 2. Establishment - There is hereby established a learning institution
7 
under the supervision of the Commission on Higher Education (CHED), to be known
8 
as the "Philippine Entrepreneurs Academy", hereinafter referred to as the Academy.
9 
Section 3. General Mandate. - The Academy shall provide undergraduate and
10 
graduate degree programs, short-term technical-vocational nondegree courses and
11 
modular trainings that will enhance the core competencies of individuals on
12 
entrepreneurship. It shall cater to technical-vocational,* college, and graduate
13 
students. It shall also promote the relevance of entrepreneurship to job generation
14 
and its significant role to the sustainable economic growth of the country.
15 
The Academy shall formalize and integrate, under a school system, the
16 
nonformal entrepreneurship programs and short-term technical-vocational courses of
17 
the Technical Education and Skills Development Authority (TESDA), Department of
18 
Trade and Industry (DTI), Department of Science and Technology (DOST), and other
19 
government agencies. It shall also administer education and consultancy, and
1


1 
supervise publication on entrepreneurship. It shall also conduct scientific and policy-
2 
oriented research and training.
3 
Section 4. Curricular Offerings. - The Academy shall offer undergraduate and
4 
graduate degree programs and short-term diploma or certificate courses on
5 
entrepreneurship, including entrepreneurship development in the fields of agriculture,
6 
trade, technology, and the manufacturing sector. The curriculum and modules of the
7 
programs shall be designed and developed following the competency-based
8 
curriculum model and in accordance with the mandate of this Act.
9 
Section 5. School Sites. - The Academy shall have two (2) campuses, with the
10 
main campus to be established in the Clark Freeport and Special Economic Zone
11 
located in the Provinces of Pampanga and Tarlac, to be known as the Entrepreneurs
12 
Academy-Clark Campus. The other campus shall be located in the City of Baguio, to
13 
be known as the Entrepreneurs Academy-Baguio City Campus. Other campuses may
14 
be established upon approval of the Governing Board.
15 
Section 6. Governing Board. - The governing board of the Academy shall be
16 
the Board of Trustees, hereinafter referred to as the Board, which shall be chaired and
17 
co-chaired by the Chairperson of the CHED, and the President of the Academy,
18 
respectively, with the following as members:
19 
(a) Chairperson of the Committee on Higher, Technical and Vocational
20 
Education of the Senate;
21 
(b) Chairperson of the Committee on Higher and Technical Education of the
22 
House of Representatives;
23 
(c) Director General of the TESDA;
24 
(d) Director General of the National Economic and Development Authority
25 
(NEDA);
26 
(e) Secretary of the DOST;
27 
(f) Secretary of the DTI;
28 
(g) President of the federation of faculty associations of the Academy;
29 
(h) President of the federation of student councils of the Academy;
30 
(i) President of the federation of alumni associations of the Academy; and
2


1 
(j) Two (2) prominent citizens from the private sector who have distinguished
2 
themselves in their professions or fields of specialization.
3 
The members of the Board shall not receive any compensation or remuneration
4 
for their services as such, but may be reimbursed for actual and necessary expenses
5 
incurred in discharging the business of the Academy.
6 
Section 7. Powers and Duties of the Board. - The Board shall be the highest
7 
policymaking body of the Academy. In addition to its general powers of administration
8 
and the exercise of all the powers granted to the Board of a corporation under existing
9 
laws, the Board shall have the following specific powers and duties:
10 
a) Promulgate and implement policies in accordance with the declared State
11 
policies and pertinent provisions of the Philippine Constitution on education, as
12 
well as policies, standards and thrusts of the CHED under Republic Act No.
13 
7722, otherwise known as the "Higher Education Act of 1994";
14 
b) Prepare, adopt and enact rules and regulations in accordance with applicable
15 
laws, as may be necessary to carry out the purposes and functions of the
16 
Academy, and to effectively discharge its responsibilities;
17 
c) Receive assistance from any legitimate source to augment the internal sources
18 
of funds, as may be provided, for the support of the Academy in the manner it
19 
may determine, in its discretion, to carry out the purposes and functions of the
20 
Academy;
21 
d) Constitute the Board, as herein defined;
22 
e) Appoint the President and as many Vice-Presidents as may be necessary to
23 
assist the President in the administration of the affairs of the Academy;
24 
f) Review periodically the administrative procedures and programs of the
25 
Academy;
26 
g) Receive, in kind and in trust, legacies, gifts and donations of real and personal
27 
properties of all kinds, to administer and dispose the same when necessary for
28 
the benefit of the Academy, subject to the limitations, discretions and
29 
instructions of the donors, if any;
30 
h) Fix the tuition fees and other school charges such as matriculation fees.


1 
graduation fees, laboratory fees, and other miscellaneous fees as the Board
2 
may deem proper to impose after due consultations with the involved sectors:
3 
Provided, That these fees shall not be prohibitive or unreasonable as to deviate
4 
from the purpose for which the Academy was created based on the guidelines
5 
oftheCHED;
6 
1. Such fees and charges, including government subsidies and other
7 
incomes generated by the Academy, shall constitute its regular fund and
8 
shall be deposited in any authorized government depository bank, and
9 
all interests that shall accrue therefrom shall form part of the same fund
10 
for the use of the Academy.
11 
2. Any provision of existing laws, rules and regulations to the contrary
12 
notwithstanding, any income generated by the Academy from tuition
13 
fees and other charges, as well as from the operation of auxiliary
14 
services and land grants, shall be retained by the Academy, and may be
15 
disbursed by the Board for instruction, research, extension services, or
16 
other programs and projects of the Academy: Provided, That all fiduciary
17 
fees shall be disbursed for the specific purposes for which they were
18 
allocated.
19 
3. Of for reason beyond its control, the Academy shall not be able to pursue
20 
any project for which funds have been appropriated and allocated under
21 
its approved program of expenditures, the Board may authorize the use
22 
of said funds for any reasonable purpose which, in its discretion, may be
23 
necessary and urgent for the attainment of the objectives and goals of
24 
the Academy.
25 
i) Adopt and implement a socialized tuition scheme for greater access of poor,
26 
but deserving students in accordance with Republic Act No. 10931 or the
27 
"Universal Access to Quality Tertiary Education Act";
28 
j) Authorize the construction or repair of its buildings, machineries, equipment,
29 
and other facilities, as well as the purchase and acquisition of real and personal
30 
properties, including the necessary supplies, materials, and equipment;
31 
k) Appoint, upon the recommendation of the President of the Academy, the deans,
32 
executive directors, heads of departments, faculty members, and other officials
4


1 
and employees;
2 
I) Prescribe the salaries of faculty members and administrative officials and
3 
employees, subject to the provisions of Republic Act No. 11466, otherwise
4 
known as the "Salary Standardization Law of 2019" and civil service rules and
5 
regulations governing hours of service and related concerns, and other
6 
pertinent laws;
7 
m) Formulate and implement the curricula and institutional programs of the
8 
Academy: Provided, That they comply with the minimum CHED requirements
9 
and guidelines;
10 
n) Formulate and promulgate the rules of discipline for the students of the
11 
Academy to ensure orderly and effective governance thereof;
12 
o) Set policies on admission and graduation of students: Provided, That they
13 
conform with the CHED guidelines;
14 
p) Award honorary degrees upon persons in recognition of outstanding
15 
contribution in the field of education, public service, arts, science and
16 
technology, or any field of specialization within the academic competence of
17 
the Academy and to authorize the issuance of certificates of completion of non-
18 
baccalaureate programs and nontraditional or innovative courses: Provided,
19 
That these conform with the applicable guidelines of the CHED and TESDA;
20 
q) Establish research and extension centers of the Academy where such will
21 
promote the development of the latter;
22 
r) Establish professional chairs in the Academy and provide fellowships for
23 
qualified faculty members and scholarships to deserving students;
24 
s) Enter into any agreements or joint ventures with business and industry for the
25 
profitable management of the economic and manpower assets of the Academy,
26 
the proceeds from which shall be used for upgrading of facilities and its
27 
development;
28 
t) Authorize an external management audit of the Academy, to be financed by
29 
the CHED, subject to the rules and regulation of the Commission on Audit and
30 
institute reforms, including academic and structural changes, on the basis of
31 
the audit results and recommendations;
32 
u) Import economic, technical and cultural books and publications;
5


1 
v) Develop consortia, academe-industry linkages and other forms of networks with
2 
other institutions and agencies, both public and private, local and foreign:
3 
Provided, That these comply with the applicable guidelines of the CHED in
4 
furtherance of the purposes and objectives of the institutions as well as develop
5 
academic arrangements for institution capacity and capability building with
6 
appropriate institutions and agencies, public and private;
7 
w) Appoint experts and specialists as consultants, or visiting or exchange
8 
professors, scholars, researchers, as the case may be: Provided, That the
9 
appointment shall conform to the CHED guidelines;
10 
x) Set up the adoption of modern and innovative modes of transmitting
11 
knowledge, such as the use of information technology, the dual training system,
12 
open distance learning, and community laboratory for the promotion of greater
13 
access to education;
14 
y) Outsource, where most advantageous to the institution, the management of
15 
non-academic services such as health, food, building or grounds or property
16 
maintenance and similar objectives;
17 
z) Delegate any of its powers and duties to the President or the other officials of
18 
the Academy, as it may deem appropriate, so as to expedite the administration
19 
of the affairs of the Academy;
20 
aa) Extend the term of the President of the Academy beyond the age of retirement,
21 
when deemed meritorious due to outstanding performance, but not later than
22 
the age of seventy (70) years old; and
23 
bb)Promulgate rules and regulations, as may be necessary, to carry out the
24 
purposes and functions of the Academy.
25 
Section 8. President of the Academy. - The Academy shall be headed by a
26 
President, who shall render full-time service and shall be appointed by the Board upon
27 
the recommendation of a duly constituted Search Committee. The President shall also
28 
be the chief executive officer of the Academy.
29 
The President shall have a term of four (4) years and shall be eligible for
30 
reappointment to another term. Within six (6) months before the expiration of the


1 
term of office of the incumbent President of the Academy, the Board shall constitute
2 
the Search Committee for the Presidency.
3 
The President shall receive such compensation and remuneration in accordance
4 
with Republic Act No. 11466 or the "Salary Standardization Law of 2019", and by such
5 
other laws amendatory thereto, which may hereinafter be enacted, and shall be
6 
comparable to that being received by the Presidents of similar educational institutions.
7 
The President shall exercise the following powers and duties:
8 
a) Submit, for the consideration of the Board and Executive Committee, the
9 
policies and measures which are necessary to carry out the purposes of the
10 
Academy;
11 
b) Recommend, coordinate, and administer the programs and projects of the
12 
Academy;
13 
c) Direct and supervise the operations and internal administration of the Academy,
14 
and delegate administrative responsibilities in accordance with the rules and
15 
regulations of the Academy;
16 
d) Submit an annual report to the Board setting forth the accomplishments of the
17 
Academy during the year, its financial operations and status, and a program
18 
and budget for the ensuing year; and
19 
e) Exercise other powers and discharge other functions, as may be vested by the
20 
Board and the Executive Committee.
21 
The Board shall designate an Officer-In-Charge (OIC) of the Academy in case
22 
of vacancy in the Office of the President by reason of death, compulsory retirement,
23 
resignation, removal for cause or incapacity of the President to perform the functions
24 
of the office, pending the appointment of a new President: Provided, That the OIC
25 
shall not serve beyond the unexpired portion of the term in such capacity.
26 
The powers and duties of the President of the Academy, in addition to those
27 
provided in this Act, shall be those usually pertaining to the Office of the President of
28 
similar educational institutions, and those delegated by the Board.


1 
Section 9. Executive Committee. - There shall be an Executive Committee
2 
consisting of the President of the Academy and four (4) other members to be elected
3 
by the Board from its members. Each Member of the Executive Committee, other than
4 
the President of the Academy, shall hold office for a term of two (2) years, and shall
5 
be eligible for re-election, unless at the time of election, a short term is specified. The
6 
Board shall elect the Chairperson of the Executive Committee from the membership
7 
of the Board.
8 
Section 10. Functions of the Executive Committee. - The Executive Committee
9 
shall administer the affairs of the Academy in accordance with such functions, powers
10 
and responsibilities as may be delegated by the Board.
11 
Section 11. Government Support and Coordination. - The CHED Chairperson is
12 
hereby authorized to call upon any department, bureau, agency or instrumentality of
13 
the government for such assistance as may be necessary for the effective
14 
implementation of this Act.
15 
Section 12. Tax Exemption. - The importation of economic, technical and
16 
cultural books and publications, which are for economic, technical, vocational,
17 
scientific, philosophical, historical or cultural purposes made by the Academy, upon
18 
certification by the CHED, shall be exempt from customs duties in accordance with the
19 
provisions of Republic Act No. 10863, otherwise known as the "Customs Modernization
20 
and Tariff Act".
21 
All grants, bequest, endowments, donations and contributions made to the
22 
Academy, to be used actually, directly and exclusively by it, shall be exempt from
23 
donor's tax and the same shall be considered as allowable deduction from the gross
24 
income in the computation of the income tax of the donor, in accordance with the
25 
provisions of the National Internal Revenue Code of 1997, as amended.
26 
Section 13. Appropriations. - The amount necessary for the immediate
27 
implementation of this Act shall be included in the annual General Appropriations Act.
28 
Section 14. Impiementing Ruies and Reguiations. - Within ninety (90) days
29 
from the approval of this Act, the CHED, in coordination with the TESDA and the DTI,
8


1 
shall formulate the necessary rules and regulations to fully implement the provisions
2 
of this Act.
Section 15. Separability Clause. - If, for any reason, any part or provision of 
this Act is declared invalid or unconstitutional, the remaining parts or provisions not 
affected shall remain in full force and effect.
Section 16. Repealing Clause.-AW laws, presidential decrees, executive orders, 
rules and regulations contrary to or inconsistent with the provisions of this Act are
8 
repealed or modified accordingly.
9 
Section 17. Effectivity. - This Act shall take effect fifteen (15) days after its 
10 publication in the Official Gazette or in a newspaper of general circulation.
3
4
5
6 
7
11
Approved,