The Philippine startup industry is reaching new heights but
aspiring tech entrepreneurs still face certain challenges—from business
conditions to regulatory requirements and gender disparity.
To assess the country’s current startup ecosystem, QBO Innovation
Hub, in partnership with the Department of Trade and Industry (DTI), conducted
a Startup Ecosystem Mapping exercise which identifies areas that need to be
improved and available resources in order to help make the Philippines a
globally competitive place for startups. The initiative is also part of QBO’s Startup
Pinay program that encourages and supports increased female participation
in the startup industry.
“DTI acknowledges the importance of a thriving, science and
technology-based startup ecosystem to achieve the country's goal of growing
globally competitive and innovative industries. Our focus is on S&T-based
solutions in sectors that need innovative solutions such as communications, agriculture,
health, AI, IoT, among others. and covering not only software but also hardware
and business model. Having an innovative tech and services industry contributes
to inclusive growth and employment generation of the Philippines as a
whole," said DTI Undersecretary of the Competitiveness and Innovation
Group Rafaelita M. Aldaba. "We partnered with QBO to support startup
development by building the startup ecosystem; bridge the gap between
innovative technological seeds and commercialization; and help create global
Philippine startups."
In 2016, only two cities—Manila and Cebu—were mapped. But with
Philippines startup exhibiting growth in other areas, the 2019 Startup
Ecosystem Mapping extended to three other cities: Legazpi, Bohol, and Naga.
Similar mapping efforts are to be conducted in Zamboanga City, Puerto Princesa,
Pangasinan, and Dumaguete by the Department of Information and Communications
Technology with Ideaspace Foundation, making it an unprecedented countrywide
effort.
The mapping sessions were participated by startup representatives,
accelerators, public and private incubators, community builders, venture
capitalists, angel investors, government, and private companies. The cities
were categorized based on Techstars’ 7 Stages
of Startup Communities: Nascent, Foundational, Accelerating,
Established, High Functioning, Progressive, and Aspirational.
“Aside from assessing the health of the startup communities in
these cities, we also put together a set of recommendations after each mapping
session to help them move to the next stage,” said QBO President Rene “Butch”
Meily. “We’ve seen remarkable changes from 2016 to 2019 and ultimately, our
goal is to promote and encourage collaboration to address the pain points
experienced by startup founders and identify initiatives that will enable them
to grow.”
Manila: A Place Where Startups Accelerate and Thrive
Home to most successful startup stories in the country, Manila’s
landscape has improved remarkably. The 2018 Startup Ecosystem Canvas revealed
Manila as having an “Accelerating Ecosystem” because of the increasing support
it is getting from the government, investment groups, and other stakeholders.
Recent exits from startups such as ChatbotPH, Teko, and Coins.ph have also
contributed to the stronger awareness about startups in the city. Recent
findings of the 2019 StartupBlink Report revealed the Philippines ranking 54th
among 202 countries, with the strongest startup ecosystem, Manila, as its
frontrunner breaching the global top 100 for the first time.
“In order for Manila to move to the next stage, we recommend
verticalization of support programs that specialize in specific industries such
as FinTech, HealthTech, and PropTech and creation of a density center or
cluster for housing, services, and spaces to increase collaboration among
startups and ramp up their productivity,” said Meily. “Corporate engagement
must also be strengthened and entrepreneurs must be engaged in the development
of a favorable regulatory environment that addresses concerns relevant to the
tech industry.”
Cebu, Bohol, Naga, Legazpi: The Next Wave Cities for Startups?
Aside from Manila, four other cities exhibited growth potential in
their respective startup economies: Cebu, Legazpi, Bohol, and Naga.
Cebu is categorized under the Foundational Ecosystem due to an
increasing density of startups, considerable number of co-working spaces, and
strong regional networks with connections with Manila, the rest of Southeast
Asia, and Silicon Valley. The city also benefits from the strong support from
the government, with local officials taking the lead in developing the local
startup ecosystem. To further elevate Cebu’s ranking, recommended key actions
include the establishment of local incubators with accessible mentor networks,
stronger support for local businesses, as well as more dynamic engagement with
universities.
Bohol’s potential to be a travel tech hub is also evident with
efforts to develop the local talent and inspire Boholanos to be more involved
in tech. The mapping effort revealed that these programs must be made
sustainable for Bohol to reach its full potential. “Bohol has a lot of
potential and this can be fully achieved by inspiring and mentoring young
talents to build their own startups,” added Meily. Currently, Bohol is
categorized as a Nascent Ecosystem characterized by a group of passionate
people pushing to build a stronger startup community.
Visible support from local businesses and involvement of local
universities is pushing Naga to be categorized as a Foundational Ecosystem.
Additionally, the efforts of Naga’s local government units contribute to its
fast-growing startups. Similarly, Legazpi’s startups are benefitting from
programs with fund allocation and support from different government agencies.
To continue this momentum, recommended actions include putting up an online
information portal related to the local startup ecosystem and organizing more
collaborative and networking events.
“The Philippines has a lot of potential hubs for startups—all it
takes is for all stakeholders to come together and realize that great ideas can
come from everywhere. To achieve our goal of advancing the Philippines’ startup
ecosystem, there must be a concerted effort not just from Manila but from the
countryside as well to cultivate talent and support burgeoning businesses
locally” said Meily.
For inquiries on how you can map out your own city, visit www.qbo.com.ph or email hello@qbo.com.ph. To learn more about the QBO’s ecosystem mapping efforts, visit https://www.facebook.com/QBOphilippines/.
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