Youth Entrepreneurship

The best gift to Filipino graduates

Every March, as I attend graduation ceremonies, I get a rush of inspiration seeing so many young Filipinos reach a major milestone and life achievement – completing their studies.

We can see both pride and relief in their eyes. They exchange hugs and high fives, happy to be free from the shackles of their terror teachers.

Parents, too, beam with delight as they applaud the end of tuition fees and other school-related expenses.

This year, about 700,000 fresh graduates will be scouring newspaper advertisements, join job fairs, sign up on online job websites, visit companies and inquire about possible employment vacancies.

A number of these graduates will find jobs in the Philippines; a number will find jobs abroad. Some will work in a formal company; others will be working more informally. And unfortunately, some will join the ranks of the unemployed.

This is the unfortunate milieu our 2015 graduates are entering. We need to build a bridge between education, and employment and entrepreneurship, and we need to fill in the gap at the soonest possible time.

In the case of New Zealand’s Ministry of Education, they created an agency called Careers New Zealand (NZ) to bridge this gap by working with both the private sector and educational institutions.

They determine the qualifications demanded by the workforce then ensure that the right skills and expertise is developed in schools. Therefore, graduates match the job opportunities in the market.

Inspired by New Zealand, our office is currently working with Generoso Villanueva National High School in Bacolod to match the needs of the job opportunities in their area, which include call centers and HRM opportunities, to the skills that they are teaching to their students.

Offering alternatives

To scale this up, Department of Education (DepEd) Secretary Armin Luistro committed to establish placement offices in public high schools in the K to 12 system, upon our suggestion during the budget deliberations of DepEd in the Senate.

But with the lack of jobs to fill in the first place, we need to offer more alternatives to our young graduates, and entrepreneurship should be a viable option for them.

Micro, small, and medium enterprises (MSMEs) compose 99.6% of total establishments in the Philippines and contribute 61.2% of the country’s total employment. Already, MSMEs play a vital role in providing livelihood and prosperity to millions of Filipinos.

Entrepreneurship can also serve as a means for our unemployed youth sector to pave their own way out of poverty and into financial independence. Not to mention, they can create more job opportunities for their peers.

The Department of Trade and Industry is now establishing 100 Negosyo Centers all over the country this year with our recently enacted Go Negosyo Act, which will consolidate all efforts in assisting starting and current small business owners.

Potential clients can access help in business registration, financing, product development, financial management and market linkage from these Negosyo Centers.

We also authored and sponsored the Youth Entrepreneurship Bill, which aims to expose our Filipino youth to entrepreneurship at a young age and give them a good foundation for business creation in the future.

If enacted into law, course programs in entrepreneurship will be developed for primary, secondary and post-secondary schools to give them basic knowledge on financial literacy and how to start and run their own businesses.

Moreover, the bill aims to create a fund and support structures to aid starting entrepreneurs in their product development, access to capital, training and other services, to help them establish their own enterprises.

The Youth Entrepreneurship Bill was passed on third reading in the Senate and was passed on second reading in the House of Congress recently.

With our improving economy, there is no better time than now to empower our youth with the values and skills of innovative entrepreneurship.

I am hopeful that the Philippines can offer our wide-eyed, idealistic, and well equipped graduates a wealth of opportunities – from job openings in successful institutions to the possibility of putting up a thriving business around their innovative, world-class ideas.

Firs published on Rappler.com

Youth Entrepreneurship to Address Youth Unemployment

With the graduation season fast approaching, excitement builds up as students prepare themselves for the next phase of their young lives – the professional life.

 

After graduation, they will be scouring newspaper advertisements, join job fairs, sign up on online job websites, visit companies and inquire about possible employment vacancies.

 

A number of these graduates will find jobs in the Philippines; a number will find jobs abroad. Some will work in a formal company; others will be working more informally.  And unfortunately, some will join the ranks of the unemployed.

 

For the Filipino youth, especially those in the last unfortunate set, they have to have better choices. What if rather than just working as an employee, you could become your own boss and run your own enterprise?

 

In the Senate, I have the Youth Entrepreneurship Bill, which aims to expose our Filipino youth to entrepreneurship at a young age and give them a good foundation for business creation in the future.

 

If enacted into law, course programs in entrepreneurship will be developed for primary, secondary and post-secondary schools to give them knowledge how to start and run their own businesses.

 

Moreover, the bill aims to create a fund and support structures to aid starting entrepreneurs in their product development, access to capital, training and other services, to help them establish their own enterprises.

 

The Youth Entrepreneurship Bill was passed on third reading in the Senate and was passed on second reading in the House of Congress recently.

 

I hope that this bill will be enacted into law soon to assist our fresh graduates and young Filipinos.

 

This bill hopes to also address the growing unemployment rate in the country.

The government’s push for inclusive growth will not take off unless the problems of youth unemployment and underemployment are not immediately addressed.

 

The challenge is make our current economic growth felt by every Filipino through generation of jobs and creation of livelihood. And youth entrepreneurship is one of the keys for our Filipino youth to experience this growth for themselves and for their families.

 

First Published On: Youth Enterprising Blog

 

 

Try Tech-Voc Courses for Better Employment Chances – Sen. Bam to Students

Amid the rising unemployment rate due to job mismatch, Senator Bam Aquino called on high school and college graduates to try technical-vocational courses because of their high demand on the job market.

“We need to adjust to current demands by the labor sector. If we don’t do that, then we’ll end up at the back of the unemployment line,” said Aquino, chairman of the Senate Committee on Trade, Commerce and Entrepreneurship.

Aquino made the call after the International Labor Organization (ILO) reported that the Philippines has the highest unemployment rate in Southeast Asia, mainly because of job mismatch.

The ILO said the Philippines has an unemployment rate of 7.3 percent compared to six percent by Indonesia and 3.7 percent by Brunei.

Myanmar has an unemployment rate of 3.5 percent, Malaysia has 3.2 percent and Singapore has 3.1 percent. At the bottom of the list are Vietnam (1.9 percent), Laos (1.4 percent) Thailand (0.8 percent) and Cambodia (0.3 percent).

According to the latest labor force survey of the National Statistics Office (NSO), unemployment rate rose to 7.5 percent or 2.969 million jobless Filipinos from 7.1 percent in January 2013 and 6.5 percent last October.

Aquino said the high number of jobless Filipinos is a result of a surge in new entrants to the labor sector and job mismatch dilemma that has been hounding the country in recent years.

The senator mentioned a recent report from the Department of Labor and Employment, showing that 35.8 percent of applicants were rejected because of lack of competencies.

The senator also cited another DOLE report saying that majority of skills required by 3.8 million job vacancies is technical-vocational related, such as services, information technology and communications.

“Schools produce more four-year college graduates but the current labor market demands for more skills-related workers that can only be filled by technical-vocational graduates,” Aquino stressed.

At the same time, the lawmaker also advised students to dismiss the stigma that goes with technical-vocational courses and instead focus on what career path will give them a brighter future.

Aside from addressing job mismatch, Aquino said the government should strengthen its support on micro, small and medium enterprises to boost employment opportunities.

Aquino recently filed the Youth Entrepreneurship Bill to help address the problem of high unemployment among the youth.

The senator said would-be youth entrepreneurs should be given access to financing, training, market linkages, and other means of support that will help them run and develop their own businesses.

 

Photo sources: www.tesda.gov.ph, perpetualdalta.edu.ph and fptiphilippines.com

“Bayanihan Economy” Key to Achieving Inclusive Growth — Sen. Bam Aquino

Speaking at the Corporate Social Responsibility (CSR) Expo of the League of Corporate Foundations (LCF) on July 5, Sen. Bam Aquino talked about how a “bayanihan economy” can help the Philippines achieve inclusive growth.

The term “bayanihan economy”, coined by former NEDA Director Dr. Cielito Habito, speaks of an economy where “all players work together toward a shared goal of uplifting the lives of all.”

According to Aquino, who was pointing to a classic visual depiction of rural folk lifting a nipa hut as a display of bayanihan, “You don’t know anymore if the guys lifting the house are the owners, their neighbors, or are passersby who offered to help. In bayanihan, everyone has a role to play.”

A former social entrepreneur who has won local and international awards for his micro-enterprise program Hapinoy, Aquino identified possible interventions that can help the Philippines move closer toward a “bayanihan economy.” These are:

1. Micro-finance. According to Aquino, there are currently around 4.5 million micro-finance borrowers in the country. “But the current capacity of microfinance institutions can accommodate another six million borrowers, which means that through micro-finance we can have six million more potential micro-entrepreneurs who can lift their families out of poverty.”

2. Social enterprise development. “Social enterprises are the missing middle, connecting large corporations and small communities,” Aquino said. Citing his experience in developing the Hapinoy program, Aquino said that the willingness to help of large companies is there but the capacity to reach the community is sometimes unavailable. He also added, “The role of social enterprise is to make sure that these communities and companies get to talk and work together.”

3. MSME development. Aquino cited the large contribution of micro- and small enterprises (MSMEs) to the Philippine economy, pointing out that 92 percent of all businesses in the Philippines are micro-enterprises that largely belong to the informal sector, while only seven percent belong to the small and medium category. “Sadly, MSME’s don’t get enough support from the government.” One of his priority bills, Aquino said, is to help create a more “enabling environment” for MSMEs “beyond entrepreneurial training.”

“More MSMEs are able to provide more employment than large corporations,” the first-time lawmaker added as another reason for helping boost MSMEs.

4. Youth entrepreneurship. “Youth unemployment is one of the largest problems not only of youth in the Philippines, but also in the entire world,” Aquino pointed out.

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