The Startup Ecosystem of Philippines

The country has dozens of government programs to encourage entrepreneurs, including the QBO Innovation Hub and the P3 Program. KMC, the largest co-working chain in the country, along with several startup incubation programs, are also supporting local startup ecosystems. The public sector is creating a regulatory framework through the Innovative Startup Act to empower early stage startups. Under this act, three new types of visas are set to attract entrepreneurs, investors, and startup employees. Another public sector initiative, the amendment to the Foreign Investment Act, aims to encourage global SMEs to set up fully-owned businesses in the country.

The Department of Information and Communications Technology (DICT) supports early-stage startups with grants and spearheads initiatives like the Digital Cities Program. This program evaluates and promotes the startup environment in cities beyond Metro Manila, aiming to bolster local innovation ecosystems that can sustain local startups.

Nevertheless, the Philippines faces several challenges that could delay the country’s development of fully mature startup ecosystems. The lack of infrastructure is a limiting factor to the country’s economic growth, and entrepreneurs struggle with slow regulatory support for their startups. Tackling these issues is important due to common interests from both international and local venture capitalists.