Have you ever had a bright and wonderful idea for a business? Was there a time when you thought of something that would be Scientifically beneficial for the environment? Well, you might want to think of something now because our dearest President Rodrigo Duterte signed the Innovative Startup Act.
What is the Innovative Startup Act?
The Innovative Startup Act or Republic Act (R.A.) 11337, is an act that pertains to the government allowing the government to give “support on the research and the development of startups and startup enablers in the Philippines.”
What this basically means is that the Department of Trade and Industry (DTI), the Department of Information and Communications (DICT), and the Department of Science and Technology (DOST) would be authorized to regulate and subsidize to business startups to help cover for business registration costs.
In addition to this, the use of equipment, space, facility, and the cost of travel need will be included in the subsidy.
When was the law signed?
Apparently, the Innovative Startup Act was signed into law by our dear President back on the 26th of April of this year.
Media and other news agencies were able to get a piece of information about it last Thursday, the 18th of July, 2019.
So, once the announcement has been published in a newspaper of national circulation or in the official Gazette of the Republic of the Philippines, we can count days before it becomes effective.
What is the Innovative Startup Act all about?
Basically, this new law looks to provide aid and to promote accesses to development programs of a startup in the country. Furthermore, it also seeks the overall improvement and development of companies that has the drive in allowing our country to compete in the startup industry.
Simply put, the Innovative Startup Act, or simply, the Program, aims to provide sufficient aid in research and development programs that would be beneficial to the growth of startup businesses and establishments in the Philippines.
In the law, it states and specifies that the Program shall be composed of the following: incentives, programs, and benefits.
The Program shall be composed of programs, benefits, and incentives for startups and startup enablers promulgated through the respective mandates of national government agencies and through additional mandates provided by the provisions of this Act.”
It is quite clear that startups and startup enablers would be mandated and be given a hand by the provisions of the Act.
In addition to that, the law also states that the Innovative Startup Act, in partnership with entities in the private sector, shall indicate the different incentives, programs, and benefits which is extended even to Non-Government Organizations (NGOs).
Senator Paolo Benigno “Bam” Aquino, one of the principal authors of the bill, emphasized the importance and the help of startups to our everyday lives.
He said that these startups aren’t just here to make money. In fact, some startups even provide a way of living to some people with unique sets of skills.
These are startups that provide unique and relevant solutions to our problems, from daily hassles, like finding a taxi during rush hour, to improving the delivery of healthcare, providing support for our farmers, and addressing unemployment.”
As per the new law, the Program shall eradicate constraints targeted to the growth and development of startups in the country as it is crucial for the startup.
The State shall provide incentives and remove constraints aimed at encouraging the establishment and operation of innovative new businesses, business crucial to their growth and expansion and to strengthen, promote and develop an ecosystem of business and government and non-government institutions that foster an innovative entrepreneurial culture in the Philippines.”
In addition to all government bodies listed above, the law also commands the Commissiom on Higher Education (CHED), The Technical Education and Skills Development Authority (TESDA), and the Department of Education (DepEd) to appropriately coordinate different entrepreneurial lessons and programs that shall improve how future startups would be initiated.
The law also wants to extend these incentives to different academic and learning institutions for funds to be provided for the use of research and development of students and facilities.
What do you think about the Innovative Startup Act? Would this help entrepreneurs in their journey of becoming successful? Could this open more local jobs for Filipinos? Even foreigners?