Hope is a strategy

One of the many things that propels my decision-making in running the most popular ride-hailing service for motorcycles in the Philippines is looking at figures and making sense of the available numbers. The same can be said when looking at the current state of the nation.

If we’re basing it solely on numbers, the future looks promising: In November of 2022, we recorded the highest employment rate in 17 years with 95.8 percent or 49.71 million people in the labor force. It slightly dipped in December at 95.7 percent but is still 2.46 percent higher than what was reported the previous year. As the economy reopens after years of rigorous adherence to COVID-19 limitations, our GDP increased by 7.2 percent in the fourth quarter of 2022, delivering a 7.6 percent full-year growth compared to the official growth target of 6.5-7.5 percent.

While these figures are reassuring, they only give us a partial picture of where we are now and do not show us where we are headed towards achieving lasting progress. Our ultimate goal should not just solve joblessness in the near term but also empower our population to develop new industries in order to create job opportunities for generations to come.

President Ferdinand Marcos Jr. advocated innovation and digital economy development in his six-year economic plan to aid the rehabilitation of the pandemic-ravaged economy. He also encouraged government agencies involved in research, technology and development to collaborate with local entrepreneurs and MSMEs. If this plan for digital transformation to boost the economy gets underway quickly, we’ll be off to a strong start.

In 2021 alone, startups from the Philippines raised over $1 billion, a 179 percent increase over the previous year. This rising trend is projected to continue in the following years. According to the latest e-Conomy SEA Report, the Philippines’ digital economy is expected to reach $35 billion by 2025 and may reach $100-150 billion by 2030, making it the fastest-growing digital investment in Southeast Asia. The Center for Economics and Business Research (CEBR) has already identified the Philippines as one of five ASEAN countries poised to become technological powerhouses over the next 15 years.

The development of tech unicorns (startups valued at more than $1 billion) in nearby ASEAN countries has benefited one of the largest economies in the region. In Indonesia, Gojek was the first unicorn to emerge in 2016. Like breaking the 4-minute mile, which then led many others to do the same, Gojek has inspired Indonesian founders to believe they can do more. This has resulted to 13 more homegrown unicorns in quick succession. Gojek’s overall economic contribution to Indonesia in 2019 was $7.1 billion. The company’s success has contributed to the development of a robust ecosystem for Indonesian tech companies and as a direct result, has drawn billions in foreign direct investments (FDI) to many local startups.

My hope for the country is to have our first Filipino founder to become a tech unicorn to which many of our countrymen can aspire. With the number of talented and innovative people in the Philippines, along with a problem-solving mindset, I am confident that this will soon become a reality.

Angkas has made significant contributions to the development of the Philippines’ tech startup ecosystem. Our platform now has 30,000 biker partners. Given that the Philippines has 18 million motorcycle owners (99 percent are low income and many, if not all, do some form of side hustle), the potential impact of developing a sustainable digital future for this informal sector is immense. Armed with expansion plans to generate one million jobs for motorcycle owners in the next few years, our business advocacy, which is a social mission centered on delivering inclusive mobility and poverty eradication, has fueled growth and development in the Philippines’ digital sector.

There are many social enterprises in the Philippines that aim to help local businesses and talents achieve the greatest standards and opportunities. We are seeing an increase in the number of businesses that promote equality and support the local economy. GrowSari, a tech-enabled B2B platform, is one of them. Its goal is to provide millions of sari-sari stores with the infrastructure and resources they need to transition from simple FMCG outlets to comprehensive service hubs. Another is Kumu, which aims to empower Filipino content creators in the Philippines. They not only help give them a platform to a strong domestic market (a country with the highest social media penetration in the world), but they also help to introduce them globally.

These are just some of the companies we can call our own, created by Filipinos for Filipinos, which could pave the way for additional successful startups to become billion-dollar Filipino enterprises. Their ideals will not only inspire the next generation of disruptors and innovators who will export ideas and businesses to the rest of the globe, but will also establish a new sector of young social entrepreneurs who will potentially contribute to the nation’s GDP.

When I think about the economic potential of startups, I think about the many highlights they can bring to our dimly lit economy. We can turn on the light and follow the path of a brighter future. We know from sheer numbers that startups help the majority both directly and indirectly by producing high-quality jobs. While conglomerates and traditional industries have a major role to play, much attention and government support are already being given to them. And rightly so.

But our startup industry is at an inflection point that can hugely benefit from a good backing from its government. This will allow us to replicate the Gojek effect in the Philippines.

Our greatest export has always been our people, but now we have the opportunity to keep them in the country and instead, export their billion-dollar ideas. Thus, creating a new pillar of sustainable economic growth in addition to traditional FDI in infrastructure and conglomerates.

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George Royeca is founder and CEO of Angkas motorcycle hailing platform.