Southeast Asia is a world leader when it comes to startups, with countries such as Indonesia and Singapore serving
as home to some of the biggest unicorns — privately held startup companies valued at US$1 billion or more.
The
Philippines, an archipelagic nation located in the heart of Southeast Asia has the potential to become a similar
hotspot for startups. This is mainly because of its status as a fast-growing economy — a status that has led the
World Bank to dub it as one of the “Most Vibrant” economies in the Asia-Pacific region.
A tech-savvy population
The Philippines spends the most time in the world accessing the
internet through smartphones and other mobile devices, according to a study by Google. The Philippines is more than
just receptive to new technologies — it avidly embraces them.
High
engagement with the internet and social media is one reason why technology-related services such as those related to
FinTech are among the most promising start up business ideas in the Philippines.
The
Philippines has an increasingly large population with an increasingly large amount of disposable income.
Entrepreneurs would only need to hone in on their specific markets with the confidence that there is enough market
there to make their business profitable.
The right skill sets
The Philippines is no longer just a talent pool that exports
low skilled labor. The last couple of decades has seen foreign companies invest in highly skilled employees, whether
it be in the medical field or the BPO industry. There is also a rising IT talent pool developing in the Philippines.
This technical proficiency, coupled with the Philippines being one of, if not the strongest English speaking country
in Asia, provides the right talent for tech startups.
Support to investors
Entrepreneurs who wish to try their hand at startups will have
an easier time of it, as they will be assisted in part by the Philippine government.
The recent
passage of Republic Act 11337 or the Innovative Startup Act grants subsidies — either full or partial — to qualified
startup owners. This subsidy covers the registration of the startup, as well as the application and processing of
their necessary permits. Separate grants are also given to cover the startups’ so that they can conduct research and
training for employees, as well as expand their business.
One of the things that should be in every entrepreneur’s business startup
checklist is filing for protection when it comes to their intellectual property.
The
Innovative Startup Act also mandates that startup owners and investors be given assistance with the registration of
their intellectual properties to the Intellectual Property Office of the Philippines or IPOPHL.
Qualified
tech startup owners and investors can expect to be given subsidies to cover the use of facilities such as office
spaces, equipment, and services provided either by the government or the private sector — a significant form of
assistance considering the cost of building a space in today’s economy.
Fiscal incentives to startup businesses operating in special economic zones
The Innovative Startup Act also mandates that the Philippine
Economic Zone Authority (PEZA) create Philippine Startup Ecozones or Special Economic Zones that can help facilitate
the growth, development, and subsequent expansion of startups in the country.
Much like
the country’s other economic zones, these Startup Ecozones will allow startups operating within them to enjoy
several perks, such as tax benefits and tax breaks.
The Philippines is currently one of the most promising locations
for tech startups — and with good reason. Not only does the Philippines have a tech-savvy population, and a
burgeoning middle-class with tremendous spending power, it also has a government that’s open and supportive when it
comes to radical business endeavors.
Starting a Business in the
Philippines is easy if you have the FilePino team to assist you with all of your business needs.
With its
complete and comprehensive set of professional business services, FilePino can help you get a leg up should you plan
on operating a business in the Philippines.
Contact the FilePino team today at +1.806.553.6552 or send us a message here for more information.