How does the Philippines
government support startup
businesses?
- By : Thune, Jaizy, Pan Pan, Jennifer
The economy of the Philippines
• The Philippines is a developing
country with 8.6% of its labor force in
the primary sector, 29.1% of its labor
force in the secondary sector and
62.3% in the tertiary sector as of
2023. As of 2021, there are 700 active
business startups in the Philippines
which is a successful growth after only
having 273 active startups in 2017
Why and how does the government help the
startups?
The government help the business startups in the Philipines because of the many
benefits they bring to the society. (job creation, greather consumer choices, etc) The
government makes sure their support reaches the businesses by starting an innovative
startup act called The Republic Act 11337 on 22/11/19.
What is the Republic Act 11337?
The Republic Act 11337, also known as The Innovative Act includes
benefits, incentives, loans and startup visas for foreign owners,
employees, and investors. It also promotes collaboration with
government and industry partners.
It also provides education programs, creation of positions, startup
grant fund, full or partial subsidy for the use of facilities, office spaces
and/or services provided by the government agencies. There are even
Grants-in-aid(GIA) for research, development, training and expansion
projects. It also helps the business with the startup investment
development
How else does the government support the
businesses?
• The government of the Philippines hosted a
competition in 2021 called the Philippines
Startup Challenge. This competition was
funded by companies like Huawei, Microsoft,
Amazon and more.
This event helps young entrepreneurs build strategic
partnerships or network with guest participants and/or
judges; and receive feedback from industry practitioners and
ICT professionals on enhancements that can be made on
the presented startup idea.
More ways the government helps the
businesses !
• The Philippine Trade and Investment Center (PTIC), partnered
with Silicon Valley HQ Founder and CEO Chris Peralta, and
Startup Village President Carlo Calimon to bolster Filipino
startups and companies through a startup pitching session
organized on 30 March, followed by a pitching session to
investors on 14 April.
• Startup Village President Carlo Calimon has been helping the
DTI
and
various
government
and
non-government
organizations in developing and strengthening the country’s
startup
ecosystem
through
Startup
Village,
an
incubator/accelerator that enables startups to bring their unique
ideas and business concepts to reality.
“Our goal is to help startups build disruptive technology that
displaces an established technology and shakes up the industry
or introduces a groundbreaking product that creates a completely
new industry,” Calimon said.
Here are some busineses that the programmed has helped:
BAMBUHAY
A Greentech social enterprise focused on a circular economy that
innovates products, causes no harm to the people and the planet
and uses business to implement solutions to plastic pollution,
deforestation, climate change, and poverty using Bamboo and
Technology. A total of US$550k was raised by the company for
the invention of the first plantable toothbrush in the world.
MAGWAI
Magwai is the Philippines’ pioneer in marine-friendly personal
care products. The company aims to disrupt the personal care
category by getting consumers to switch to alternatives that are
sustainable, effective, and accessible. Magwai’s products include
reef-safe sunscreen and plastic-free shampoo bars. With sales
forecasted to breach the US$5M mark by 2026, the company
intends to raise US$550k to be used in the next two years.
The benefits that these startups bring to the
economy
- Generally, startup businesses bring benefits to the economy by creating new jobs, spur innovation, increase
competitions and attract investments.
- Small businesses, particularly small, micro, medium and new enterprises play a crucial role in the economics
development of the Philippines, They contributes significantly to the country’s income, generate millions of
jobs and contribute billions to the GDP.
- These businesses help the economy by applying innovative technologies, to create new products and service,
they can make a significant contribution to the economic development while contributing social and
environmental belief.
These reasons listed above are the reasons why the governments help the startup businesses grow and nurture.
By doing so, there are more hope of the country’s economy growing faster and becoming greater in the future.