Starting a business in the Philippines can be a daunting challenge. If you’re a startup owner who’s looking to expand their operations and establish a headquarters in Southeast Asia, the Philippines is a good place to start.
While you need to look at the cost of doing business in the Philippines, it’s also important for you as an entrepreneur to get a feel for the business climate in the country.
Here are some things you should consider when deciding to build an extension of your startup business in the Philippines.
Improving Ease of Doing Business Ranking
The government has been working to reduce the processing time involved in starting a business in the Philippines. In 2018, the Philippine Congress passed the Ease of Doing Business Act into law, which sought to eliminate red tape and eliminate corruption in the bureaucratic ranks.
One of the most important features of the Ease of Doing Business Law is the introduction of automated channels to facilitate the business registration process. By transitioning to a purely online process, inefficiencies can be reduced. This also aims to encourage entrepreneurs to establish startup businesses in the Philippines.
Steadily Growing Economy
The Philippines’ gross domestic product (GDP) registered a 6.2-percent growth in the third quarter of 2019. This makes the Philippines the second fastest growing economy in the same period in Asia, next to Vietnam.
Despite the market headwinds and the slower growth reported in the first two quarters of the previous year, the Philippine economy is performing well.
As former senator and real estate magnate Manny Villar opined in the Business Mirror, this development boosts the confidence of businessmen in the country, as it shows how the economy was able to weather “adverse local and global developments” such as the high inflation rate in 2018, the US-China trade war, and the fluctuating oil prices in the world market.
Young, Tech-Savvy Population
The Philippines has a very young population. In October 2019, the Philippine Statistics Agency reported that the total youth (ages 15 to 24) population was 19.9 million, with an employment rate estimated at 87.2 percent.
In a global study commissioned by Dell EMC shows that young Filipinos (those born after 1996) have a deep understanding of technology and how it can transform our lives. This survey also showed that the youth, dubbed as the “Generation Z” or “Gen Z”, is confident in their technology skills. This is good news for the future of the Filipino workforce.
A Vibrant Local Startup Scene
Startup businesses in the country have been flourishing in the past five years.
A few years ago, QBO Innovation Hub and PwC Philippines conducted the 2017 Philippine Startup Survey to gain insights into the state of local startups. While capital requirement was a top-of-mind concern for most interviewed founders (88%), the outlook remained positive, with 95% of them planning to tap international markets such as Indonesia, Thailand, Malaysia, and Vietnam in the next three to five years as part of their growth strategy.
Overall, the number of investors, mentors, incubators, and entrepreneurs have been growing. In addition, more Filipinos are venturing into entrepreneurship. As proven by the 900,000 micro, small, and medium enterprises in the country. While we have a long way to go, the Philippine startup scene is off to a great start.
D&V Philippines: Your Gateway to the Philippines
Do you want to learn how you can establish your business in the Philippines? This is where we can help. We are a high-end professional services firm with expert business and accounting consultants who can walk you through the process.
Read our comprehensive guide Getting Your Business In: A Startup’s Gateway to the Philippines to learn how we can partner with you in your journey.