The Philippines is among the top 100 startup ecosystems worldwide, with notable strengths in transportation, education technology, and health technology.
Ecosystem Startup in Philippines 2025
The Philippines is an archipelago of over 7,100 islands in Southeast Asia, located in the western Pacific Ocean. With a population of 117 million people, it ranks 6th in Southeast Asia and 60th globally. In the 2023 Global Innovation Index, the Philippines is ranked 53rd out of 132 economies. The country is also among the top 100 startup ecosystems worldwide, with notable strengths in transportation, education technology, and health technology.
Current State of the Philippine’s Startup Ecosystem
Three main government departments support the startup community:
The Department of Science and Technology (DOST),
The Department of Trade and Industry (DTI) and
The Department of Information and Communications Technology (DICT)
And each department offers various programs and initiatives to aid startups.Several government programs are available to assist entrepreneurs in the Philippines. These programs include the QBO Innovation Hub and the P3 Program. KMC is the largest co-working space provider in the country, and it has various startup incubation programs. It contributes to the development of local startup ecosystems.
The government is working on regulatory measures through the Innovative Startup Act to support early-stage startups. This act introduces new types of visas to attract entrepreneurs, investors, and startup employees. Additionally, an amendment to the Foreign Investment Act seeks to encourage global small and medium-sized enterprises to establish fully-owned businesses in the country.
The DICT provides grants to early-stage startups and leads the Digital Cities Program. This initiative evaluates and promotes the startup environment in cities outside Metro Manila to strengthen local innovation ecosystems and support homegrown startups.
Landscape of Startups and Investments in the Philippines
The Philippines has over 9,200 startups, with 3 startups achieving Unicorn status. The latest Unicorn is Voyager Innovations.
As of December 2024, the Philippine Board of Investments (BOI) has approved Php1.62 trillion in investments for 2024. The amount not only exceeds the agency’s Php1.5 trillion target for the year but also represents the highest level of investment approvals in the BOI’s 57-year history.
Conclusion
Although the Philippines’ startup scene is growing it still faces problems like weak infrastructure and slow government support, which affect the country’s economic growth. To help solve this, the National Innovation Council should appoint startup advocates. This council, made up of top government officials, oversees the Innovative Startup Act and the Philippine Innovation Act. It’s also essential to keep high standards for incubators and advanced startup accelerators.
Encouraging students to study STEM and adding STEM topics to agriculture courses in high schools and vocational schools is also key. As the Philippines continues to grow quickly in the ASEAN region, smart decisions that support startups will be necessary for future success.
FAQs
Q1. What is the Philippines startup ecosystem ranked?
In 2024, the Philippine startup ecosystem ranks 60th out of 100 countries in the Startup Ecosystem Index.
Q2. What are the startup sectors in the Philippines?
The country’s startup scene is particularly strong in Transportation, Edtech, and Healthtech sectors.
Q3. Is Philippines a fast growing economy?
The Philippines is the fastest-growing economy in the ASEAN region, with a 5.6 percent growth rate in 2023, supported by positive assessments from multilateral organizations
