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What is Incorporate Philippines?
Incorporate Philippines is a campaign to help foster economic growth in the Philippines through entrepreneurship and business success. When small businesses thrive, they create more jobs, goods, and services, increasing overall economic value and benefitting everyone.
Fast Numbers on the Philippine Business Landscape
*Based on most recent statistics published by the Department of Trade and Industry.
99.59%
Percentage of businesses in the Philippines that are micro, small, and medium enterprises (MSMEs) in 2022.*
18.5%
The highest concentration of MSMEs, in the National Capital Region in 2022.*
5.6M
Number of jobs generated by MSMEs, approximately 65% of total employment in 2022.*
3M
Number of jobs generated by large enterprises, approximately 34.9% of total employment in 2022.*
827,491
Number of new business registrations in the Philippines in 2022 (10-year high).*
120,132
Number of business name renewals in the Philippines in 2023.*
The 8 Life Stages of a Business
Seed
At the seed stage, the business is barely more than a thought or idea. You’re carefully assessing whether or not your product/service is feasible in your chosen market segment.
Startup
The business now has initial funding and a basic operational structure. With a small team, you’ve acquired your first customers and demonstrated promising market demand.
Growth
With a stable revenue stream and additional investors, the business is looking to expand its customer base and explore new markets. You’re making rapid product iterations, ramping up brand awareness, and hiring more.
Scale
The business is increasing revenue without substantial cost. You’re reaching new customer segments and establishing industry partnerships that can lead to continued growth.
Maturity
The business has established a dominant market position. At this stage, brand management, customer retention, and operational efficiency are top of mind.
Exit
Upon reaching a certain growth threshold, founders may consider several exit strategies, such as a company acquisition, management buyout, or initial public offering. This can happen before a business has fully scaled or experienced a decline period.
Decline
At some point, the business can experience decline due to a variety of factors like new competition and changes in consumer behavior. You’re either innovating or selling off the business to cut losses.
Renewal
A successful response to major challenges can lead to business renewal. You’re re-establishing your market position, creating new revenue streams, or rebranding to better align with customer values.
Where Businesses Often Struggle
Most businesses don’t make it past the startup stage. Here are some of the typical reasons why aspiring business owners close up shop within the first few years.
Access to capital
It’s not easy for startups to secure that initial round of funding. Traditional bank loans may not be the best fit. Plus, the venture capital infrastructure in the Philippines is not as mature like in the US.
Business registration and compliance
The process of registering a business and adhering to local regulations can be cumbersome. Startups may get overwhelmed with bureaucratic hurdles, which can delay or derail their plans.
Market validation
Startups can struggle to validate their product/service idea. Misinterpretation of market data and a shallow understanding of consumer pain points can lead to business failure.
Limited experience and resources
Startups with inexperienced founders may lack the vision or technical skills needed to succeed. Resource constraints (e.g. staffing, technology stack, equipment) can also hinder growth.
Market saturation
Startups face an uphill battle in overcrowded industries. With an unproven solution, it can be challenging to outcompete established players.
Get a Free Consultation
Do you have plans to start a business in the Philippines? Learn what you need to get started by answering a short questionnaire.
Depending on your responses, a professional business consultant will reach out to you to discuss business registration requirements.
Ready to Do Business in the Philippines? Find Out.
Answer Questionnaire
About Incorporate Philippines
Incorporate Philippines is powered by Loft, the first homegrown coworking franchise in the Philippines. Since 2018, Loft has developed a range of business registration and compliance services to better support local and foreign entrepreneurs.
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