AIM: Startups to drive Phl economy

CEBU, Philippines - Startups have shown a very big potential to drive the Philippine economy, said the president of the Asian Institute of Management (AIM).

"As you all know, startups, most of them micro-enterprises and small businesses, belong to the biggest drivers of the Philippine economy," said AIM President and Dean Jikyeong Kang in a recent event in Manila.

Kang said that from the 99.6 percent of local companies that make up the backbone of the Philippine economy, a mere fraction of a percent belong to medium enterprises.

"The bulk belongs to enterprises with less than 10 employees," she said.

"As crucial drivers of the Philippine economy, startups have such huge potential," the AIM official underscored.

Kang described that startups are usually "small, but agile," and can pivot quickly in response to a "fickle, demanding market."

"Startups are primed to rapidly deploy technology simply because resources ? both human and capital ? are limited; and members can easily benefit from mentoring because they can instantly apply what they learn without wrestling with the bureaucracy of a large organization," Kang explained.

The management school recently launched in incubator program in partnership with Filipino technology innovator Diosdado Banatao to help Philippine startups go through mentoring.

The Philippine Roadmap for Digital Startups provides a framework for developing the Philippine startup ecosystem, which mainly consists of internet- related innovation.

While the startup ecosystem in the Philippines is still at its infancy stages, a nationwide interest in this sector is emerging.

There are currently around 20 accelerators, incubators, and venture capitalists present here in the Philippines, and at least 100 operating tech startups.

In spite of the development and dynamism of the local startup scene, the government, together with the local movers and shakers of this sector realizes there are still lots of things to be developed and improved as the country prepares to be a global startup hub. Being a nation with one of the fastest growing economies in Asia and with a young and tech savvy population, the Philippines also has other competitive advantages – low operating costs, English language proficiency, and minimal business competition, which makes the country conducive for startup businesses.

To date, no local startup has surpassed the $50 million in valuation. The country’s leading startups-turned-big-companies are Sulit.com.ph (now OLX.ph), Chikka, Airborne Access, Netbooster, Xurpas, iRemit, and Morphlabs.

When it comes to the academe, digital entrepreneurship courses are yet to be introduced in colleges and universities, but a number of top universities have already taken steps forward by housing student startups.

By 2020, the roadmap targets to achieve at least 500 Philippine startups with a cumulative valuation of $2 billion, resulting to 8,500 high-skilled jobs created, 1,250 startup founders, 15,166,684 users acquired, and 719, 737 paying customers.

The roadmap is a product of the collaboration of no less than the most experienced names in the country’s local tech industry. The Philippine Software Industry Association (PSIA), Philippine Development Foundation, Kickstart, Ideaspace, and TechTalks.ph highlight the list of roundtable contributors. Former entrepreneurs, foreign startup founders, investors, academicians, policymakers, and grassroots representatives were also part of the roadmap team. (FREEMAN)