Philippines establishes supportive ecosystem for startups

Illustrative photo (Photo: businessupturn.com)

Hanoi (VNA) – A supportive ecosystem for startups has been established in the Philippines and it continues to evolve, providing a platform for the development of innovative enterprises, according to a new report of the Asian Development Bank (ADB).

The report said there are about 700 active startups in the Philippines, a significant increase from only 100 in 2015.

Most of the startups are active in fintech, media and entertainment, and e-commerce. Other market segments are emerging but still in the early stages of development, said the report.

Startups with high development impact on education, health, agriculture and the environment are emerging, according to the report.

The report added that startup innovations in these sectors support human capital development by improving health and education, assist poor people in rural areas by increasing farm productivity, and help create a cleaner environment through mitigation and adaptation to climate change.

"Promoting innovation is seen as a key strategy for the Philippines to recover from the pandemic, accelerate its growth, and achieve high-income status by 2040," the report said, adding that startups can play a vital role in these processes through their innovative capabilities.

In the Philippines, venture capital provided by large corporations was the earliest investment source for startups, which remains a primary funding source today./.