Starting a business in the Philippines? As in any other venture, you’ll likely be met by quite a few challenges. But you can also expect great rewards.
According to the Asian Development Bank and other international economic observers, the Philippine economy will continue to grow over the next few years, and one of the drivers for growth is growing domestic demand. Considered a rising economy, the investment landscape in the Philippines is a favorable one for Americans and other foreigners looking to start a business of any size.
If you’re looking for business ideas in the Philippines, here are a few suggestions to consider.
With boundless natural features, numerous historic sites, and over 7,100 islands, some of which have been named among the best in the world, the Philippines is a haven for tourists from all over the country and the world. As of June, 2019, tourism has contributed 12.7% to the national GDP
Tourism-related businesses you can explore include:
Tourists in the Philippines come from all walks to life, so the demand for lodging ranges from budget to luxury. With their Filipino partners, many foreigners have been successfully operating their own resorts and lodging services in popular tourist destinations around the country.
This can be a home-based business that you can start for as low as P2,500. You can offer group tours, tour packages for private groups and individuals, or simply arrange flight and hotel bookings.
The Philippines offers a wealth of opportunities for outdoor activities, such as surfing, mountaineering, hiking, diving, and more. You can take advantage of this by offering adventure tours, complete with guides, transportation, and the necessary gear and equipment. If you own a resort, you can include an adventure tour as part of your in-house services.
Filipinos love to eat, and dining out has become a favorite pastime. The country’s growing population also assures a huge and constant demand. Revenues from food businesses are predicted to reach P637 billion in 2020 and P656 billion in 2021
Partly because of their multicultural background, Filipinos are highly adventurous when it comes to food choices, so there’s no limit as to the type of products or cuisine to introduce. In fact, a number of American fast food chains are well patronized by Filipinos. Locals also love buying from food kiosks, cafes, milk tea bars, and other types of food establishments. Food for delivery or take out is also gaining popularity.
Not all establishments succeed, however. There are as many closures as there are openings, so you need to study the market carefully and be aware of the nuisances of operating a food service business in the country
The BPO industry continues to be a driving force in the Philippine economy. Currently, the country has captured around 10% to 15% of the outsourcing market in the world, with more BPO hubs expected to enter soon.
It’s predicted that revenues from the industry will soon surpass OFW remittances – one of the top sources of revenue for the country – and the BPO sector will continue to grow at a rate of 9% to 10% annually over the next few years. BPO companies in the Philippines also enjoy incentives from the government, including tax holidays
Business opportunities in the BPO sector include
The Philippines is the leading call center services provider in the world. There are basically four types of call center services that you can explore:
Many industries across the globe require transcription services, including the legal and medical industries. Filipinos’ English proficiency makes them highly suited for this kind service. A minority are also proficient in other languages, such as Chinese and Spanish, allowing them to cater to several non-English speaking markets
Filipinos have a wealth of talent in IT services, such as web development, SEO marketing, content development, and mobile app development. As of 2019, an estimated 1.8 million Filipinos are employed in the Information and Communication Technology sector in the country. With an acknowledged shortage of skills in this sector around the world, the Philippines offers plenty of potential to address a huge chunk of that shortage
The popularity of social media has made it an invaluable business tool. Opportunities to manage companies’ social media sites, such as Facebook and Twitter, have risen significantly in the last few years. With their English proficiency, high literacy rate, and IT skills, this is an area that Filipinos can potentially excel in.
The Philippines is well on its way to becoming an economic force to reckon with in Asia, opening up plenty of business opportunities for locals and foreigners alike.
For assistance and expert guidance in setting up a business in the country, don’t hesitate to get in touch with us.
