Startups have been in the headlines around the world in recent years, especially after the tremendous success of
startup tech companies like Facebook, Amazon, and Google.
While most startups are in the information technology (IT) sector, there are also non-IT startups dealing in
consumer products. These have also been gaining ground, but at a slower growth trajectory than tech startups.
In the Philippines, the Business Process Outsourcing (BPO) boom has opened the doors for many startup possibilities
in the IT sector. Success in BPOs has focused the spotlight on the country’s wealth of IT talents, and their ability
to develop products and services with a good potential for growth.
In addition to this, the many challenges facing millions of Filipinos every day present a load of opportunities for
non-IT startups. As the old adage goes, necessity is the mother of invention. The right motivation and support help
encourage ingenious Filipinos to come up with innovative products or services that will respond to Filipinos’ needs.
Definition of “startup”
A “startup” has been broadly defined by Merriam-Webster as a “fledging business enterprise.” Those in the market have identified startups as companies that present fresh solutions to common problems to help improve people’s lives. These solutions are borne out of ideas that may or may not succeed. With this in mind, not all startups make it to “exit,” or the point when the venture’s initial investors sell their stake at a profit (or loss) to an acquiring company, or when the startup goes public. Startups that don’t get off the ground are not uncommon.Present Philippine startup conditions – tech sector
A Philippine “startup” has been defined by the Department of Science and Technology – Information and Communications Technology Office (DOST-ICTO) as: “any business entity that is less than five (5) years old, registered with the financial regulatory authorities of any country, provided that majority of its team is operating and residing in the Philippines. The startup should have at least one (1) founder who is working full time.” In 2015, the ICTO was tasked to generate internet-related startups in the country that will help spur economic growth and “find solutions to the society’s most pressing and pervasive issues.” It has identified 100 Philippine startups as of 2015. The ICTO also lists down classifications of common internet startups, including:- e-Commerce (eBay, Amazon)
- Search tools or engines (Google)
- Communication (Facebook, Skype)
- Disruptive services (Uber)
- Sharing economy (Airbnb)
- Gaming
- Media and entertainment (YouTube, Snapchat)
- Food technology
- Education technology (Coursera)
Philippine startups in the non-tech sector
In the non-tech sector, the lead agency tasked to promote startups is the Department of Trade and Industry (DTI). The DTI notes that the country has improved its rankings in the World Intellectual Property Organization (WIPO) Global Innovation Index, from #100 in 2014 to #83 in 2015. About 30 Filipino inventors hold 23 patents that have been assigned to 12 foreign companies.Leading Philippine startups
Some of the leading tech and non-tech startups in the country todate are as follows (according to Forbes Magazine May 2016 edition):- Sulit.com.ph – an e-Commerce site which exited in 2013
- Xurpass – a consumer technology company offering a broad range of products and services, which went public in 2014
- Galleon – an e-Commerce site offering products not found in the Philippines
- Carmudi – online vehicle marketplace
- Lifetrack Medical Systems Inc. – a software company that offers RIS PACS
