Entrepreneurship Education Policy and Implementation. in Philippines

Transcription

1 Multi-Year Expert Meeting on Enterprise Development Policies and Capacity-building in Science, Technology and Innovation (Third session) Geneva, January 2011 Entrepreneurship Education Policy and Implementation in Philippines by Ramon M. Quesada Chairman and CEO - Small Business Corporation, Philippines This view expressed are those of the author and do not necessarily reflect the views of UNCTAD.

2 Multi-Year Expert Meeting Enterprise Development Policies and Capacity Building in Science, Technology and Innovation Item 3 Session 3: Overview of Policies for Entrepreneurship Education DR. RAMON M. QUESADA Chairman and CEO Small Business Corporation, Philippines Discussant Geneva, Palais des Nations January 2011

3 POLICY ORIGINATION Policies originate from the government through Executive Orders (EO) from the President or Legislative Republic Acts (RA) from Congress (Slide 1). The three key players that implement policies in entreneurship education are Government agencies, Private business sector, Non-Government Organizations (NGOs). The distinction between private business and NGOs is that the latter are nonstock, not for profit institutions such as cooperatives and foundations. GOVERNMENT AGENCIES In the forefront are the Department of Education and Commission on Higher Education (CHED) which regulates entrepreneurship education (Slide 2). The private sector offers several College or undergraduate degrees and a Masteral program in Entrepreneurship. On the non-degree and non-formal training programs, there are several institutions and among the major ones are (Slides 3-4): 1) Department of Trade and Industry 2) Small Business Corporation 3) Philippine Trade Training Center 4) Technical Education and Skills Development Authority (TESDA) PRIVATE BUSINESS SECTOR Among the front runners in formal education are the University of Asia and the Pacific offering a College or undergraduate degree; and the Asian Institute of Management with a Masteral Degree (Slide 5). The umbrella organization of business enterprises in the Philippines is the Philippine Chamber of Commerce and Industry (PCCI) which has an impressive networking across all the 17 Philippine regions. PCCI supports educational degrees and non-degree programs in enterprise development. In order to ensure the coordination and cooperation of the private and government sector, the Micro, Small and Medium Enterprise (msmed) Council was formed in 1991 (Slide 6). 1

4 National Policies EDUCATION ENTERPRISE DEVELOPMENT Implementing Gov t Agencies Private Business Sector Non Gov t Organizations Technical Training Programs Education Cooperatives Financial Formal Non-formal Foundations Institutional 1 GOVERNMENT AGENCIES Department of Education is covered by RA 9155 dated August 11, The government s policy statement on education includes the alternative learning systems for out-of-school youth and adult learners. It shall be the goal of basic education to provide them with the skill knowledge and values they need to become caring selfreliant, productive and patriotic citizens. Commission on Higher Education (CHED) is covered by RA 7722, dated May 18, It is CHED s mandate to protect, foster and promote the right of all citizens to affordable quality education at all levels and to ensure that it is accessible to all. As a government entity, CHED s projects and programs shall be geared towards national, regional and local development plans. 2 2

5 GOVERNMENT AGENCIES Technical Department of Trade and Industry (DTI) which started in 1898 was reorganized thru Executive Order (EO) 133 issued on January 27, 1987, to provide institutional services to private sector, such as: investment and export promotion, market information, product research and development, technological assistance, manpower training, infrastructure support, fiscal incentives and such other services that shall facilitate increased international trade, improve national productivity and accelerate industrialization. Financial Small Business Corporation (SBC) established by law in 1991 has expanded and strengthened its mandate under RA 9501 in May 2008 to promote, support, strengthen and encourage the growth and development specifically in financing and guarantee programs of the Micro, Small and Medium Enterprises (MSMEs) particularly rural/agribased. SBC provides not only financial services but also capacity building training programs on credit risk management. 3 GOVERNMENT AGENCIES Philippine Trade Training Center (an attached agency of DTI) under EO 133 dated January 27, 1987, is tasked to raise the level of awareness of Philippine businessmen of export opportunities, availability of alternative sources of import products and diversified markets. It is also mandated to develop and conduct training modules and programs on: export and import technique and procedures; specialized courses for specific industry group directed at overcoming barriers to overseas market penetration; and international trade practices, inspection, techniques and exhibition mounting. Technical Education and Skills Development Authority (TESDA) was established by Republic Act (RA) 7796 on August 25, TESDA was mandated to design and administer training programs and schemes to include, among others, the skills training for entrepreneurs and cost-effective training in occupational trades and related fields of employment. 4 3

6 Education (Formal) PRIVATE SECTOR University of Asia and the Pacific began in 1967 as the Center for Research and Communication conducting research and offering graduate courses in economics and management. Today, it also offers Entrepreneurial Management (EM) Program that captures and nurtures entrepreneurial talent as early as the adolescent years. It is tough, intense, holistic, and integrated formation program that is uniquely designed to breed young entrepreneurs and develop them into well-rounded individuals who are mentally sharp, socially adept, emotionally mature, physically fit, and morally grounded. Asian Institute of Management (AIM) is committed towards making a difference in promoting the sustainable growth of Asian societies by developing professional, entrepreneurial and socially responsible leaders and managers. The MBA Major in Entrepreneurship a comprehensive MBA that equips students with steady science in managing Asian business systems, finance, accounting, people and teams, marketing, communications, operations, and strategic planning and execution. The Executive Education Programs for Entrepreneurs and Business Owners are designed to address the special challenges of entrepreneurial and family-managed firms and to fit the learning needs and schedules of entrepreneurs and business owners. Aspects of the courses may be conducted online or face-to-face in a classroom setting. 5 PRIVATE SECTOR Micro, Small and Medium Enterprise Development (msmed) Council The council was established by law in 1991 and strengthened by RA 9501 in The rationale of the Republic Act is to ensure the constant interaction, coordination, and cooperation between the private sector and government. Under the principles of solidarity and subsidiary, the private sector is the engine of growth but government can take the initiative in development areas where private sector is not present. Chairman: Vice-Chairman: Members: Secretary of Trade and Industry Private Sector Representative Secretary of Agriculture Secretary of Interior and Local Government Secretary of Science and Technology Secretary of Tourism Chairman of Small Business Corporation Private Sector Representatives: msme Sector in Luzon msme Sector in Visayas msme Sector in Mindanao Banking Sector Labor Sector 6 4

7 NON-GOVERNMENT ORGANIZATION (NGOs) NGOs are non-stock, non-profit organization that are community based and organized by residents who are underprivileged and/or by successful individuals or enterprises outside the community. Members bond together to work on a common collective business objective such as production, credit, and marketing and enterprise development in general. Government provides these organizations with fiscal incentives such as income tax holidays (slide 7). POLICY ISSUES AND CONCLUSIONS 1) Formal (degree) education is affordable only to higher income individuals. Perhaps, more scholarships can be given both in the local country and abroad. 2) Entrepreneurship is often assumed as the science and art of an individual who forms his own business and leads it to success. The spirit of enterprise also covers individuals who works as an employee of a company but who contributes to the company s success in terms of original or innovative ideas. These individuals are called intrapreneurs. The higher form is social entre or intra preneurship whereby the enterprise has contributed not only to the employment and income of individuals but also elevated the beneficial community to a higher level. 3) Based on the documents provided by UNCTAD in this Conference, the undersigned will review the entrepreneurship education programs in the Philippines at the primary and secondary level. 4) While entrepreneurship capacity building is focused on the demand side (entrepreneurs), equal importance is also given to the supply side (e.g. credit risk management). The Small Business Corporation received a research and development grant from KFW Germany to validate and enhance their (SBC) Credit Risk Rating (CRR). Trainee Consultants (retired bankers) underwent workshop seminars and upon graduation were assigned for three months to specific rural banks to share the improved CRR. The experience and capacity building education of the 10 rural banks who benefited from this process met fully the expected results (of lowering significantly credit defaults) and expanding and diversifying loan portfolio. 5

8 NGOs Cooperative Development Authority, created by RA 6939 on March 10, 1990, regulates, develops and conduct management and training programs upon request of cooperatives to provide members of the cooperative with the entrepreneurial capabilities, managerial expertise and technical skills required for the efficient operation of their cooperatives. Philippine Business for Social Progress (PBSP) has been around since It promotes the practice of corporate citizenship and implements development and capacity building projects. Creation of livelihood opportunities Building of capacities of partners Building of partnerships and alliances Increased corporate contribution to poverty reduction 7 6

9 5) While there is a necessary bias or predisposition to prioritize enterprise development and education for SMEs, the value chain among large and small businesses cannot be overlooked. Large businesses educate (e.g. pass on technology) small business who do business with them like contract growers, business process outsources, suppliers, venture capital projects, and the like. 6) The APEC SME Summit was held in Yokohama, Japan on November 11, Among the interesting conclusions are: a) SMEs play important roles in promoting the social participation of women. (Author s addition: Goldman Sach s has a global training project called 10,000 Women (5 years which started 2 years ago). The Philippines is among the selected participating countries. b) The business environment surrounding enterprise development and education is changing rapidly due to the economic globalization and the resulting expansion of regional economic integration and the advent of emerging economics. The author thanks UNCTAD for organizing this milestone event. Ramon M. Quesada, Ph.D. 7