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With its growing middle-class income, sustained urbanization, and a mostly young population, the Philippines economy is anchored on strong consumer demand and supported by robust remittances. Many businesses in the country have transformed into established outlets given the advancements in industrial development and information technology. Even though the country’s economy is mainly dominated by agriculture, there is an enormous opportunity not just for locals but also for foreigners. This article will discuss how you can start a business in the Philippines as a foreigner.
Why the Philippines is Ideal for Business
Apart from its rich supply of mineral and natural resources, diverse culture, and beautiful tourist spots, the Philippines is also a good market for foreign entrepreneurs to explore. Here is why:
Quality and substantial workforce resources
In Asia, the Philippines has one of the best workforces, giving it an edge over other countries. With its government prioritizing education, the Philippines has a literacy rate of 99.081 percent, the highest in the region. To make things better, English is taught in all schools apart from the native language, making the country one of the world’s largest English-speaking nations.
It is a strategic location
Given its strategic location in the heart of Asia, the Philippines plays a crucial role in trade and commerce, resulting in economic development. The country is located within three to four hours flying from major capitals in the region. Placed at the crossroads of western and eastern business, the Philippines is a critical entry point to over 600 million people in the Asian market. It is also a gateway of airplanes and international shipping suited for American and European businesses.
Its citizens are confident consumers
Filipinos are self-confident consumers, investing their well-earned money on vacations, new clothes, home improvements, and investments. According to a survey, the Philippines is ranked number one spenders globally, ahead of global giants like the United States. It outranked regional competitors like Indonesia and India, which were placed third and fourth respectively.
Strong local currency
The local currency in the Philippines is the peso. This is a strong currency that played a crucial role in economic growth. If you are from the United States, you should look for the best exchange rate for USD to pesos. This will help you get the most out of your money as you plan to start a business in the Philippines. The standard rate is 1 USD = 48 Philippine Pesos. The peso has emerged to become one of the most traded currencies in the world.
Openness to new opportunities
Filipinos are short-oriented and are open to new ideas and changes, given the country’s history from foreign colonizers. Problems and challenges are accepted and dealt with, regardless of the circumstances. Filipinos are also very resilient, having gone through severe calamities that have hit the country in recent times.
Unlimited business opportunities
The country has improved and inclined various areas for investors, providing a dynamic consumer market that is accustomed to the competitive domestic economy. The Philippines offers an excellent opportunity for new business ideas, given its confident buying power and diverse culture. As a foreigner, you won’t miss out on the business opportunities you can venture into.
Developing infrastructure
The country has well-developed transportation, communication, business, and economic infrastructure that keeps the economy thriving. Even though the Philippines is an archipelago (making it challenging to connect every island), the well-developed infrastructure links the three major islands that are key for economic sustainability. You can reach these islands by water, air, and road, thanks to the expansive infrastructure. Cyberspace is also top-notch, with domestic aviation further improving service delivery.
Industries You Can Venture On
So, you have designed to start a business in the Philippines; what industries can you venture into? Discussed below are some of them.
- Agriculture: Given that the Philippines is a tropical country, it holds a sizeable agrarian land that extends to over nine million hectares. The land has fertile soil ideal for crops like rice, coconut, sugarcane, mango, banana, coffee, corn, cacao, and pineapple. Besides, the country produces livestock and poultry, which support the region’s basic needs. This can be an excellent industry to venture into as a foreigner.
- Travel and Tourism: The Philippines is one of the most beautiful places you can be. The country takes pride in its excellent tourist destination and scenic beauty, making tourism one of the most lucrative businesses you can venture into. There is enormous demand for packages, services, accommodation, transport, food, and beverages, among other related services.
- IT and Business Services: The Philippines has a highly developed information technology sector that has led to rapid business expansion. Business Process Outsourcing (BPO) emerged among the top contributors to the country’s economy.
Conclusion
Starting a business in the Philippines is not a challenge. The country has a confident spending culture that is ideal for the success of your business. No matter the industry you decide to venture into, the Philippines is a country that can sustain your business’s growth.
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This content is brought to you by Andrew Ahearne.
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