Starting a business in the Philippines is like climbing a mountain, a rocky terrain to climb with difficulties along the route but the summit is extremely rewarding. The Philippines has a young crowd who speak English fluently. It is one of the few countries which has a potential market and is one of the fastest growing economies in south-east Asia. Although, the country has a lot of potentials; there are a lot of barriers to overcome. If you’re planning to start a business in Manila, here are a few things you must keep in mind.
1. Ease of Doing Business
Due to the political instability with the current president, the Philippines is currently ranked 124/190 in the 2018 World Bank Report; this is due to the decrease in business confidence, industrial production, an increase in the corruption index. Although there have been a lot of reforms pertaining to construction permits and tax services, yet the company registration and getting credit is still a nightmare.
2. Positive Business Climate
In the last 5 years, the country has shown positivity in doing business and most of the American companies were satisfied in many areas, especially low labor cost, personal security, laws, regulations, and their tax structures as well.
3. Rise in MNCs
The rise in multinational companies in outsourcing their work to the Philippines has primarily been due to lower labor costs which are associated with the positive business climate. The industry has been rising at 17% every year and ranks 2nd next to India when compared with the competitiveness in the BPO industry.
The startup ecosystem in the Philippines is currently small and the capital that flows into these startups is low which can be looked as opportunities to invest into their startup ecosystem. Apart from this, the Silicon Valley micro funds 500+ startups, similar to the other Southeast Asian countries.
5. Investment Opportunities
The country has been growing steadily at a 6% GDP for more than 3 years, and has attracted a lot of long term investments who are willing to invest in the country’s talented youth. The stock market in the Philippines is performing well and gives a good return to long term investors.
6. Governments’ Role in Startups
The government does not support most of the startups and businesses, due to which there has been a vacuum created and is currently filled with a young workforce. The Department of Science and Technology in Philippines has incorporated a roadmap for digital startups. The current projections indicate that by 2020, the number of startups will rise to 5 times the current number and will bring in almost $200-300 million to fund these 500+ startups.
The country has more than 7,000+ islands, and faces quite a few logistical issues. Due to this, infrastructure development has seen slow growth. The lack of new airports and seaports has led to heavy congestion in the currently existing ones and the road infrastructure is currently not able to handle the traffic load; the traffic in Manila is one of the worst in the world. However, as an entrepreneur or businessman, you can see this as an opportunity to build the country’s weak infrastructure by building a model and working around it.
We understand that setting up a business in the Philippines isn’t easy and the journey is rough, but the opportunities are endless. And if you wish to set up your business, we at Business Setup Worldwide are here to assist you in the process of establishing your business. We assure you that it will be smooth ride. Feel free to contact us, and our dedicated business advisors would assist you further.