The month of February 2017, there were at least four Hackathons and Startup events and these were well participated in by students and young professionals. It has also been the replicated in other regions of the country. Although the startup ecosystem in the country remains relatively young as compared to other countries, what is evident is that the intellectual raw material is present and continues to grow. It is only a matter of time and government intervention with regards to providing an environment for these startups to flourish and become an important component of the Philippine economy.
Startups can address the problem of urban and rural unemployment since the use of technology can be implemented both in the commercial/industrial setting as well as in the agricultural sector.
Such creativity and ingenuity of the Filipino youth can be harnessed to the fullest given the right environment.
In the Macro-scale of the economy, a window of opportunity is open with regards o the playing field and fertile soil for startups.
The continued and accelerated rise of the Philippines’ Gross Domestic Product (GDP) is a positive indicator for the startup environment. According to the Philippine Statistics Authority (PSA), the country’s GDP performed better than the 2015 GDP which was at 5.8% and 2016 had a 6.8% growth. This upward trend has been evident for almost half a decade. It could be a note that the usual boom and bust cycle of the Philippine economy that has characterized it for more than 30 years may have already been broken.
It is in correlation and in parallel the continued economic growth that founding of new businesses have also increased in pace according to the PSA. Data shows that the number of business establishments increased by 11,188 between 2010 and 2014. The recorded pace of growth is remarkable in comparison with the rate of increase of new businesses at 3,242 between 2003 and 2010, considered a period wherein economic growth was hampered by political uncertainties and the still ongoing groundwork for more stable economic fundamentals.
2,797 establishments were founded indicating increased activity by “founders” and represented a net annual change in the number of businesses between 2010 and 2014. In sharp contrast, the net change per year from 2003 to 2010 was only 463, suggesting a much slower pace of business activity.
This is a good opportunity for startups to be founded, startups to expand and scale up and will further stimulate the startup ecosystem not only I the NCR but I other regions in the country where ideas have passed from being just simmering but coming to a boil. This will be an incentive to government to fast track the Information and Communications Technology (ICT) infrastructure, come up with update and relevant laws and policies and also include financing for viable startups.
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