Policy and purpose commitments
- Section 2 declares State policy to promote the sustained development of young Filipinos whose aptitude and skill in finance and entrepreneurship are encouraged and honed through education and specialized training.
- Section 2 requires the State to establish, maintain, and support a complete, adequate, and integrated system of education and training to encourage entrepreneurial spirit among youth nationwide.
- Section 2 mandates support and promotion of the growth of young entrepreneurs nationwide.
Key definitions and defined terms
- Section 3(a) defines “Eligible entity” as either:
- (1) an institution for formal, nonformal, or informal education; or
- (2) a partnership between a tertiary education institution and one or more of:
- (i) a nonprofit 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; and/or
- (iii) a learning organization with experience and proven track record in quality financial literacy, entrepreneurship, or personal finance programs.
- Section 3(b) defines “Learning center” as provided by Republic Act No. 9155 (otherwise known as the “Governance of Basic Education Act of 2001”) as a physical space housing learning resources and facilities for out-of-school youths and adults, serving as a venue for face-to-face learning activities and community development.
- Section 3(c) defines “Learning organization” as the community association where people and institutions (including family, school, church, and businesses) continually learn to co-create community enterprises with children and youth toward a sustainable life.
- Section 3(d) defines “MSMED Council” as the Micro, Small and Medium Enterprise Development (MSMED) Council under the Department of Trade and Industry (DTI).
- Section 3(e) defines “Standards and competencies” to cover entrepreneurial knowledge, understanding, skills, abilities, and attitudes, including but not limited to:
- 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.
- Section 3(f) defines “Tertiary education” as any post-secondary education, whether technical, vocational, or degree program.
- Section 3(g) defines “Young entrepreneurs” as individuals eighteen (18) to thirty (30) years old engaged in the design, creation, establishment, and/or management of a micro, small, or medium enterprise.
Education-wide entrepreneurship and finance
- Section 4 requires promotion of youth entrepreneurship and financial literacy to be inculcated in all levels of education nationwide.
- Section 4 directs the Department of Education (DepED) to ensure that the K to 12 curriculum is supported by programs on entrepreneurship and financial literacy, consistent with Section 5 of Republic Act No. 10533 (the “Enhanced Basic Education Act of 2013”).
- Section 4 requires that at the elementary level, the programs focus principally on ideal values necessary to become successful entrepreneurs.
- Section 4 assigns the Commission on Higher Education (CHED) and the Technical Education and Skills Development Authority (TESDA) to ensure promotion of programs on entrepreneurship and financial literacy.
Entrepreneurship Education Committee (EEC)
- Section 5 creates an Entrepreneurship Education Committee (EEC) chaired by the DepED Secretary or a duly authorized representative.
- Section 5 sets EEC membership to include a representative each from CHED, TESDA, DTI, and the National Youth Commission (NYC).
- Section 6(a) requires the EEC to formulate a national plan of action for implementing the Act.
- Section 6(b) requires the EEC to study and standardize all current school and institutional programs on entrepreneurship and financial literacy.
- Section 6(c) requires the EEC to research foreign government efforts and apply relevant practices to the education system.
- Section 6(d) requires the EEC to provide assistance, training, and support to ensure coherence and clear progression of the Act’s objectives, including:
- (1) providing information on available government and nongovernment assistance and training programs for students for further training and possible entrepreneurial and financial ventures;
- (2) developing mentoring and coaching programs for young entrepreneurs in coordination with eligible entities to facilitate sharing of technical knowledge and skills/technology transfer;
- (3) setting up enterprise incubation laboratories and creative spaces in schools and communities in coordination with eligible entities to encourage enterprise creation and development; and
- (4) coordinating 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 6(e) authorizes the EEC to exercise other powers necessary to carry out the Act.
Grants, loans, and financing mechanisms
- Section 7 establishes two financing types for eligible entities and deserving young entrepreneurs: (a) Capacity-Building Grants and (b) Project Grants and Loans.
- Section 7(a)(1) requires the DepED to award capacity-building grants for up to four (4) years each, on a competitive basis (as determined in the implementing rules and regulations) to eligible entities to:
- (i) develop standards and competencies for elementary, secondary, and learning center students;
- (ii) train teachers to teach the developed standards and competencies nationwide;
- (iii) prepare evaluation methods (through consultants) to assess entrepreneurial education effects and improve design; and
- (iv) develop standards and competencies for inclusion by DepED in required training and education for aspiring elementary, secondary, and learning center teachers.
- Section 7(a)(2) requires the CHED and TESDA to award capacity-building grants for up to four (4) years each, on a competitive basis (as determined in implementing rules and regulations) to eligible entities to:
- (i) develop standards and competencies for tertiary school students;
- (ii) train tertiary school teachers to teach developed standards and competencies nationwide;
- (iii) prepare evaluation methods (through consultants) to assess effects and improve standards and competencies as necessary; and
- (iv) develop standards and competencies for inclusion by CHED and TESDA in required education for aspiring tertiary school teachers.
- Section 7 requires the EEC to meet annually regarding capacity-building grants to monitor absorptive capacity, fund utilization, and progress of receiving entities.
- Section 7(a) requires capacity-building grant funding to be sourced from the respective annual appropriations of DepED, CHED, and TESDA, as applicable.
- Section 7(b)(1) authorizes the DepED, CHED, and TESDA to make available to deserving young entrepreneurs pursuing a project or study on entrepreneurship assistance in the form of grants or loans, as applicable, based on qualifications each agency requires, the area/level of study, and standards to be determined in implementing rules and regulations; funding is sourced from each agency’s annual appropriations.
- Section 7(b)(2) requires the DepED, CHED, and TESDA to partner with specified institutions (including government financial institutions, banks, national government agencies, LGUs, NGOs, foundations, private corporations, and individuals, foreign or local) to support entrepreneurship education by launching small enterprise incubation programs and making available funding and support to young entrepreneurs for incubation of enterprise projects, and authorizes acceptance of financial contributions from partner institutions.
- Section 7(b)(3) assigns to the DTI and the MSMED Council responsibility for integrating youth entrepreneurship promotion into national policies and programs in support of MSMED.
- Section 7(b)(4) requires relevant government agencies and financial institutions to establish and implement programs that include financing and information services, and training and marketing support for young entrepreneurs.
Oversight, reporting, and annual review
- Section 8 creates a Joint Congressional Oversight Committee to oversee, monitor, and evaluate implementation of the Act.
- Section 8 provides that the Oversight Committee has five (5) members each from the Senate and from the House of Representatives, including:
- Chairpersons of Senate Committee on Youth (to act as Chairperson of the Senate Panel),
- Senate Committee on Education, Arts and Culture (to act as relevant panel chair),
- House Committee on Basic Education and Culture (to act as Chairperson of the House Panel),
- House Committee on Higher and Technical Education,
- House Committee on Youth and Sports Development.
- Section 8 requires that each House delegation include at least two (2) minority members.
- Section 8 requires the EEC to submit an annual written report to the Senate and House through the Oversight Committee, including:
- an implementation status report, and
- an overall assessment of standards, competencies, teaching methods, and mentoring programs.
- Section 8 mandates the Oversight Committee to conduct a mandatory review every year from the Act’s approval.
National program and coordination roles
- Section 9 requires the MSMED Council to develop a national program to promote youth entrepreneurship development.
- Section 9(a) requires the MSMED Council to include in its MSMED Plan the development of a program and strategy for promoting youth entrepreneurship.
- Section 9(b) requires the MSMED Council to facilitate national programs encouraging youth entrepreneurship as part of a broader strategy to promote the viability and growth of enterprises in the country.
- Section 9(c) requires the MSMED Council to identify funding mechanisms to support young entrepreneurs in enterprise incubation and start-up.
- Section 9(d) requires inclusion of the youth representative in the MSMED Council, as provided by Section 9(f) of Republic Act No. 10644 (the “Act Promoting Job Generation and Inclusive Growth Through The Development of Micro, Small, and Medium Enterprises”) to coordinate with the EEC on mentoring and support programs, among others.
Appropriations and implementing rules
- Section 10 provides that the amount necessary to implement the Act shall be charged to the budgets allocated to DepED, CHED, TESDA, DTI, and other relevant government agencies and institutions under the General Appropriations Act.
- Section 11 requires the following to promulgate implementing rules and regulations necessary for proper implementation within one hundred twenty (120) days from the effectivity of the Act:
- the Secretary of DepED,
- the Chairperson of CHED,
- the Director General of TESDA, and
- the Secretary of the DTI.
Separability, repeals, and effectivity
- Section 12 provides separability: if any provision is held invalid or unconstitutional, the remaining unaffected provisions continue in full force and effect.
- Section 13 provides repeal of conflicting laws: all laws, decrees, executive orders, or parts thereof inconsistent with the Act are repealed, amended, or modified accordingly.