The Philippine capital joins other Asian cities on the list of 30 top start-up ecosystems in this year’s Global Start-up Ecosystem Report.
In the GSER 2021, Manila ranks 30th in the regional ecosystem performance.
Manila was also named as the 10th most affordable talent in the region and 20th globally.
“The Philippine start-up ecosystem is rapidly developing with stronger government support particularly in high-growth services such as AI [artificial intelligence], Big Data, and fintech, among others,” the GSER 2021 said.
It added government policies, such as the Philippine Innovation Act and the Innovative Startup Act, have helped the country to boost the local start-up ecosystem.
According to the report, the country’s start-up ecosystem was valued at $584 million, while early stage funding amounted to $101 million.
However, this is still far from the global average of $13.68 billion in start-up ecosystem value and $548 million in average early-stage funding.
“Despite setbacks due to Covid-19 [coronavirus disease 2019], start-ups remain a catalyst for innovation. Leveraging on our strengths, the Philippines will continue supporting start-ups by reducing barriers to entrepreneurship, providing the right conditions, and boosting their entrepreneurial potential,” Department of Trade and Industry (DTI) Undersecretary for Competitiveness and Innovation Group Rafaelita Aldaba said.
In a news statement, the DTI said the pandemic has accelerated the growth of e-commerce in the country, with revenues estimated to reach more than $5 million this year and growing up to $8.8 million in the next three years.
“The continued emergence of fintech and e-commerce start-ups in the Philippine market highlights the important role of the government in addressing market failures and creating an enabling environment which is crucial in developing a robust start-up ecosystem,” Aldaba added.
Meanwhile, Trade Secretary Ramon Lopez said the agency is committed to strengthening the startup ecosystem in the country.
“We are moving forward in finalizing the structure that will allow us to maximize the utilization and effectiveness of the Startup Venture Fund [SVF] that we are allocating for the development of start-up venture[s] in the country,” Lopez said.
The GSER report also highlighted that the SVF is one of the reasons why start-ups should tap opportunities in Manila. PNA