by Miel Feria, SERDEF Media Bureau
(first published in the Philippine Online Chronicles, August 21, 2014)
With a vote of 18-0, the Senate recently approved on third and final reading SB No. 2212 or the Youth Entrepreneurship Act, an act that mandates the Department of Education to make entrepreneurial and financial literacy education an integral part of secondary education.
Senator Paolo Benigno “Bam” Aquino IV, Senate Committee on Trade, Commerce and Entrepreneurship Chair and sponsor of the said bill, hopes that the bill will instil financial literacy among Filipino youth as it seeks to integrate entrepreneurship and financial literacy subjects in the curriculum.
“Financial literacy in the basic education system is a good foundation for entrepreneurship in the future,” Aquino said. The Senator further hopes that the measure will address joblessness in the country by encouraging Filipinos to go into business as an alternative solution to unemployment and underemployment.
Grants and loans
The bill will not only promote youth entrepreneurship through education but also establish two types of financing to promote and develop competencies in teaching Entrepreneurship, as well.
(1) Capacity Building Grants for Entities Teaching Entrepreneurship shall be awarded by the Department of Education to qualified institutions to develop subjects and competencies for primary, secondary and alternative learning school students. CHED and TESDA shall likewise award grants to eligible entities in order to develop subject and competencies for post-secondary school students, train post-secondary school teachers, prepare methods and to evaluate the effect of entrepreneurial education.
(2) Project Grants and Loans shall be provided by DepEd, CHED and TESDA to qualified young entrepreneurs who are pursuing a project that tackles entrepreneurship. Financing may be provided directly or through link up with a funding agency. The Act’s Implementing Rules and Regulations shall set the standards in choosing those who will qualify for the financial support and the mode of disbursement.
The DepEd, CHED, and TESDA, in cooperation with learning institutions and other players in the education sector, shall likewise provide an avenue for banks, foundations, and others who are interested in funding or providing support to post-secondary school students or graduates for the incubation of their enterprise project.
On the other hand, the Department of Trade and Industry (DTI) and the Micro, Small and Medium Enterprise Development (MSMED) Council shall be tasked to integrate youth entrepreneurship promotion in national policies and programs in support of mSME development.
Moreover, the bill shall establish a Youth Entrepreneurship Guarantee and Surety Fund (YEGSF) that will provide guarantee cover to financial institutions and other parties who will be extending financing to young entrepreneurs.
Available assistance, training and support
DepEd, CHED, and TESDA are tasked to disseminate information regarding existing government and non-government assistance and training programs which may be availed of by students for further training and possible entrepreneurial ventures. It shall also develop mentoring and coaching programs for young entrepreneurs, as well as set up enterprise incubation laboratories and creative spaces in schools and communities to encourage enterprise creation and development.
Youth Representation in the MSMED Council
One of the key provisions in this proposed bill is the inclusion of a youth representative, deputized by the National Youth Commission, in the MSMED council to ensure the inclusion of youth entrepreneurship agenda in the national MSMED Plan.
With its passage in the Senate, the bill shall now be forwarded to the House of Representatives for approval. The bill is co-authored by Senators Bam Aquino, Pia Cayetano, and Miriam Santiago.