Philippines' 'mini Silicon Valley' opens

MANILA, Philippines — If the Americans of the Silicon Valley started their billion-dollar businesses from the garage, in the Philippines, people are considered lucky if they even have a garage, a Filipino government official said.

So, for Filipinos, the way to start a life is through a basic house like a nipa hut or bahay kubo, said Nora Terrado, Department of Trade and Industry (DTI) Undersecretary for Trade and Investments Promotion Group.

Playing on the word “kubo,” the government, private businesses and non-government agencies recently launched QBO (also pronounced as “kubo”) Innovation Hub, a 190-square-meter space at DTI International, Sen. Gil Puyat Street, Makati City that will serve as the Philippines’ “mini Silicon Valley,” said Terrado.

Taking its cue from Silicon Valley in the US, Blk 71 in Singapore, and MaGIC in Malaysia, QBO represents the Philippines’ pioneering multi-sectoral effort to create an innovation community in the country.

In partnership with DTI, Department of Science and Technology (DOST), IdeaSpace, and J.P. Morgan, QBO was established to help speed up growth and learning for startups and entrepreneurs, said QBO and IdeaSpace president Rene “Butch” Meily. IdeaSpace is the brainchild behind QBO.

“We are excited to create success stories that will inspire Filipinos to start their own companies instead of pursuing opportunities overseas,” Meily said in a statement.

“Our mission is to make the Philippines the startup destination for foreign and local funders,” he said in a speech during QBO’s launch last April 4.

QBO, according to him, is a shared platform where partners can develop and nurture the most promising startups.

“Our dream is not only matching them with investors, but making them sustainable enough to have an IPO (Initial Public Offering) with the Philippine Stock Exchange… We hope to create success stories and prosperities among startups, as well as contribute to trends, opportunities, and jobs, to show people that they do not have to go abroad to work for a job they love to do well.”

QBO aims to work with bourgeoning businesses of all stripes and also to open other headquarters in different parts of the nation, Agnes Perpetua Legaspi, assistant director, DTI Export Marketing Bureau, told Philstar.com.

But, for a start, the hub will cater to “technopreneurs” or entrepreneurs into technology, because, according to her, gone are the days when Filipinos are just into basket weaving, Legaspi said.

Studies, such as those that show that the Philippines is the world’s “selfie capital” and that Filipinos are among those with the most smartphones in the world, are proof that, as Legaspi noted, technology is where the talent of the Filipinos are right now.

“Filipinos have a big leverage on technology,” she enthused. “With just a good Internet connection, they can create a solution to any problem, may it be in government or business processes.”

From an old library, a space in DTI International has been converted into QBO’s headquarters that will initially serve “technopreneurs” who are into creating new inventions and applications or apps, following the footsteps of Filipino technological innovations like shopping portal OLX, free text messaging app Chikka; MyPhone, which claims to be the first Filipino smartphone maker; and electronic loading and share load services.

Free office space for startups

“Entrepreneurs now are young,” Legaspi observed. “Their median age is 23 years old and most of them are from universities. Being young gives them logical and creative thinking to address society and business needs.”

There are, however, also “serial entrepreneurs” who are not so young but after a few months, are capable of transforming the business landscape with new products, Legaspi said. These serial entrepreneurs are invited by DTI to provide mentorship. QBO has what it calls “open house Tuesdays,” where successful startups share their experiences and journey.

The QBO headquarters in Makati, said QBO Director Katrina Rausa Chan, will provide a free space for meetings and a temporary Makati address for startups. It is, she said, will also be a place for startups to collaborate and develop a community with other entrepreneurs. Moreover, it will provide opportunities for startups to connect with investors.

“In the past two years, we’ve seen a lot of changes and dynamism. Investors are lining up,” said Dr. Rowena Guevara, Department of Science and Technology (DOST) Undersecretary for Research and Development.

“The money part is not an issue, as long as you have something concrete, relatable, a product that you can launch that really is solving a need,” Terrado assured. “The financial part will come later. Once ideas are viable, ideas can be easily matched with investors.”

The DOST, Guevara reported, invests about Php14 million per year to technology business incubators, and has invested 72 million in the last seven years. For 2017 to 2019, among the department’s priority plans are to develop new and emerging technologies; work on giving entrepreneurs income tax holidays, incentives, and grants for further studies abroad; partnering with Sen. Bam Aquino to pass the Startup Bill that will further promote entrepreneurship among Filipinos.

“We want to build the story from the Philippines. Tech-driven businesses are making it big in the ever-changing digital world,” Guevara remarked.

Through the help of QBO, she and her partners for the program long to transform the Philippines from the world’s “selfie capital” to its “startup capital.”

QBO's augmented reality room to cater for startups wanting to expand developments in the field. Philstar.com/Deni Rose M. Afinidad-Bernardo