Opening a Business in the Philippines? Here’s What you Need to know to Get Started

MANILA, PHILIPPINES - In the Philippines, micro, small, and medium enterprises (MSMEs) comprise 99.58% of all businesses in the country and employ 64.67% of the entire workforce and are the driving force of the economy. These businesses, which include small community stores or sari-sari stores, water refilling stations, laundry stations, and many others, not only contribute to the country's GDP but also provide essential services to the local communities.

Such is the outsized importance of MSMEs that the United Nations (UN) designated every June 27 as International MSME Day to raise awareness on their immense contributions to the UN Sustainable Development Goals (SDGs). These enterprises play a pivotal role in driving local and national economies while also supporting the livelihoods of the working poor, women, youth, and vulnerable groups.

It’s no surprise that many Filipinos want to open their own small businesses. A recent survey by Philippine research firm OCTA Research showed that 81% of adult Filipinos want to be entrepreneurs. This desire to start their own businesses reflects the recognition of the opportunities and potential that MSMEs offer, not only in terms of economic growth but also in empowering individuals and communities.

If you’re one of the Filipinos who want to try their hand at starting their own businesses, here are some tips that can help you get started.

Starting an MSME in the Philippines

The first step of every aspiring entrepreneur is deciding what kind of business to open and where to open it if you plan on having a physical storefront. It’s essential to conduct thorough research whether there’s a market for your product or service, enough foot traffic and if the location is appropriate for it.

Aspiring entrepreneurs can also explore a hybrid phygital (a portmanteau of physical and digital) setup including offering online payments or e-commerce options to widen reach and market.

Second, once you’ve decided on the business and where to open it, get your necessary documentation and permits. In the Philippines, businesses are required to register with the Department of Trade and Industry (DTI), if they’re a sole proprietorship, or with the Securities and Exchange Commission (SEC) if it’s a partnership or a corporation.

Businesses also need to get a Mayor's permit or municipal license from the city or municipality where the establishment is located. They also need to register with the Bureau of Internal Revenue (BIR) to ensure proper taxation. If they plan on employing other people to help run the business, registrations with other government agencies such as the Department of Labor and Employment (DOLE) and Social Security System (SSS) are also required.

This may seem like a lot of steps but these registrations and permits ensure that you’re able and willing to run your business properly and legally by following applicable laws and regulations. For a full list of registration and permit requirements, DTI has compiled a list here.

Beyond securing the location and required permits, an important step when it comes to running a business is to protect your business from any unwanted incidents including injuries, burglaries, and accidents. Consider getting small business insurance like NegosyoCare. Created by regional insurtech Igloo in partnership with Malayan Insurance and GCash, NegosyoCare is an insurance product specifically designed to protect MSMEs.

“MSMEs are the backbone of the economy, but they often run on tight budgets and have limited access to financing. This puts them at risk when unexpected events come knocking and disrupt their operations. That's why having small business insurance, like NegosyoCare, is so important. It offers affordable and accessible coverage, giving these businesses the protection they need without breaking the bank,” said Mario Berta, Igloo Philippines Country Manager.

Available via GCash’s GInsure marketplace, NegosyoCare premiums begin at P160 for one-month coverage and up to P525 for one-year coverage. It provides coverage for accidental deaths, total permanent disability due to accident, and disablement or dismemberment due to accident for up to P50,000. Benefits also include medical reimbursement for accidents for up to P5,000, fire cash assistance for P10,000, and coverage for burglary and housebreaking for P10,000.

These tips only scratch the surface of what it takes to run a business in the Philippines, but by taking these steps, aspiring entrepreneurs can set themselves up for success and remember: protect your small business with NegosyoCare, available at the GCash GInsure Marketplace.

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About Igloo:

Igloo is the first full-stack insurtech firm to emerge from Singapore. It has offices in Singapore, Indonesia,  Thailand,  The  Philippines,  Vietnam  and  Malaysia  and  tech  centres in China and India.  With a mission of making insurance accessible for all, the firm leverages big data, real-time risk assessment, and end-to-end automated claims management to create B2B2C insurance solutions for platform companies and insurance companies. Igloo’s insurance solutions enable companies  to  eliminate  their  exposure  to operational  risk,  create  new  revenue  streams,  and optimise  and  enhance  existing  products  and  services.  Igloo  has  partnered  with  over  55  well-known   brand   names   across   the   markets   in   various   verticals,   including   insurance, telecommunications, e-commerce, hospitality, health tech and financial services.

For more information, please visit https://www.iglooinsure.com/.

Economic Optimism is Driving Asia’s Consumers Back In Stores

20 March 2023, SINGAPORE – WGSN, the global authority on trend forecasting, has published its annual “Asia Shopper Forecast 2023” report highlighting the Asian consumer preferences and profiles that will impact consumer decision making in 2023 and beyond.

The forecast is meant to help brands, businesses, and marketers to strategize and create meaningful experiences catered to the consumers of tomorrow. 

“As we enter 2023, the effects of a global economic crisis will manifest and always-rising consumer expectations will force businesses in the region to find new drivers of growth. Just as mobility in Asia-Pacific (APAC) returns to pre-pandemic levels, Asian shoppers will continue to prioritize travel and look to heading out In-Real-Life (IRL), while retailers will need to offer powerful counterpoints to digital fatigue. At the same time, the uptake of digital technologies that commenced during the pandemic, will continue to enable consumers to move seamlessly between online and offline channels.  We will also begin to see a growing desire among Asian consumers to make the most out of the present by finding respite in a variety of experiences despite the global economic slowdown,” said Jess Tang, Senior Consultant of APAC, WGSN.

A region with a changing consumer behavior

In the Philippines where much of the pandemic restrictions are already lifted, major mall developers are reporting that consumer traffic has reached up to 95% of pre-COVID levels in the third quarter of 2022, according to a 2023 retail property market outlook report by real estate company Colliers Philippines.

The same report saw more foreign and local retailers opening physical stores in malls due to the rising consumer traffic and anticipated increase in purchasing power. Colliers expects the food and beverage segment to account for 50% of upcoming mall retailers while fashion, accessories, beauty, and health will account for 27%.

This shows that consumers in the Philippines and in the region are now coming back to physical stores with many craving IRL, sensory, and engaging experiences. Savvier decision makers will also emerge with more conscious buying decisions and mobile will be key to reaching consumers with convenience and speed.

The key Asia shopper behavioral trends to watch for 2023 and beyond are: 

• Sensory adventurers – IRL experiences are now a key motivator for APAC consumers to head out and shop. After increased time spent online, sensory adventurers are getting out and about in 2023, seeking in-person experiences that foster creativity, excitement and tactile moments.

• Phygital (physical + digital) connectors – During the pandemic, retailers looked to shift online to connect with many first-time digital shoppers. Now as consumers are gradually venturing out, phygital connectors are still looking to the convenience of technology, and want the best of both online and offline shopping.

• Thrifty indulgers – While APAC consumers feel uncertain and anxious about their future and the economy, thrifty indulgers will spend effort on hunting for products and services that create micro moments of indulgence and bring them joy on a limited budget.

• Present hedonists – The shocks of Covid-19 and global political and economic uncertainty have given way to the emergence of ‘live for now’ values. This cohort of present hedonists is now prioritising their present wants to enjoy life to its fullest post-pandemic.

• The conversationalists – Evolving from last year’s Social explorers, the social-driven conversationalists are now deepening their relationships with brands by forging hyper-personal connections and building conversations and trust via private messaging. 

• Inclusivity advocates – The social justice movement that gathered momentum in 2020 has had a meaningful impact on consumer values. Moving ahead, the inclusivity advocates will spend more based on their social values, supporting minority-owned brands and investing in underrepresented communities.

• Mindful re-assessors – A growing cohort of younger shoppers in Asia are reassessing what post-pandemic living means and accepting there will be no return to ‘normal’. The pandemic has impacted their perspective on what is considered important in life, and mindful re-assessors are looking to change the way they live and work.

Developed using its proprietary methodology to identify the signals of change and evaluate, verify and forecast trends, WGSN works with over 440 industry experts globally to map influencers, disruptors and changemakers to deliver clear and specific action points. WGSN’s consumer sentiments are selected using WGSN’s unique STEPIC framework: examining changes in society, technology, the environment, politics, industry and creativity to identify the macro forces that will drive the emotional sentiments in the years to come.

A copy of the sample report can be found here: link

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ABOUT WGSN

WGSN is the global authority on consumer, lifestyle and product design trends, helping brands around the world create the right products at the right time for tomorrow’s consumer. 

WGSN’s trusted forecasts power outstanding product design, enabling our customers to create a better future. Our services cover consumer insights, beauty, consumer tech, fashion, food and drink, and interiors forecasting, data analytics and expert advisory.

WGSN is an Ascential company. Visit wgsn.com

ABOUT ASCENTIAL 

Ascential delivers specialist information, analytics and ecommerce optimization platforms to the world’s leading consumer brands and their ecosystems.

Our world-class businesses improve performance and solve problems for our customers by delivering immediately actionable information combined with visionary longer-term thinking across Digital Commerce, Product Design and Marketing. We also serve customers across Retail & Financial Services.

With more than 2,000 employees across five continents, we combine local expertise with a global footprint for clients in over 120 countries. Ascential is listed on the London Stock Exchange.

Collaboration: A Key in Creating Sustainable Agri-Enterprises

Limited market information and market access are two major obstacles to increased smallholder farmers’ income. According to studies, farmers in grassroot communities often lack access to profitable, value-added markets. In the absence of critical supporting functions, such as infrastructure and service provision – farmers struggle to transform their traditional subsistence farms into a feasible commercially oriented production. Buyers, on the other hand, such as wholesalers, find it difficult to get the quantity and quality of produce that they need for processing on a timely basis. Because of this challenge, SM Foundation collaborated with various government agencies, and engaged various SM business units such as the SM Development Corp. (SMDC), SM Supermalls and SM Markets to ensure that local farmers under the Kabalikat Sa Kabuhayan (KSK) program have venues where they can sell their produce amid the COVID-19 pandemic.

From training KSK participants in practicing sustainable farming technologies via technology transfer and product development, SMFI, together with various SM business units used the power of collaboration to create farm-market linkage - which intends to create a powerful driver of rural poverty reduction.

Team social good

The Good Guys Market is a weekend market set up in SMDC properties to connect small-scale farmers directly with consumers—condo residents. This initiative links around 26,000 small-scale farmers directly with consumers.

Together with SM Supermalls, SMFI launched the Green Lane initiative. Led by the wives of the KSK farmers, the social enterprise offers a wide variety of quality yet affordable indoor and landscape plants which cater to every enthusiast’s preference. In addition, the team also launched the KSK Farmers’ Market Day to provide farmers with market exposure in select SM Malls nationwide.

Meanwhile, SMFI also partnered with SM Markets in creating market for onion farmers. Through the partnership, SMFI was able to establish specialized onion pop-up booths creating a stable market for small scale onion farmers.

Millions of smallholder farmers are seeking ways to improve the productivity of their farms and to improve their market performance. Modern farming technologies, paired with market linkage, such as the SM KSK, plays a vital role in improving the livelihood of small-scale farmers and their families.

SM Foundation’s Kabalikat Sa Kabuhayan (KSK) is SMFI’s Social Good program on sustainable agriculture that intends to uplift the lives of Filipinos in grassroot communities through sustainable agriculture via technology transfer, product development and farm-market linkage. To date, the program has trained more than 28,500 farmers from more than 900 cities/municipalities nationwide.

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MSMEs Find a Strong Partner for Growth in GCash Pro

As the country enters a new period with now lightened restrictions, many have become hopeful,with a more positive outlook for this year. As key players for economic recovery, this shift also enables micro-, small-, and medium-sized enterprises (MSMEs) to find new  opportunities that can help them overcome challenges and grow their business.   

Knowing that more people are now more inclined to do digital purchases, GCash, the country's leading mobile wallet, now offers GCash Pro, a digital business solution that helps small entrepreneurs future-proof and expand their business. "We need to be aware of the challenges faced by these entrepreneurs and  strengthen our position as a business partner for growth, beyond payments," GCash president and chief executive officer Martha Sazon said. 

 

GCash continues to enable business owners to provide seamless service to their customers and also track sales and increase their wallet limit, among others.

For as low as P99, business owners can avail of BizStarter99 which is a monthly subscription-based offer that will let them upgrade their business operations. Business owners will no longer have to worry about reaching their wallet limit in accepting payments. With BizStarter99, they can accept more payments from customers with an upgraded wallet limit of P500k. Apart from this, the subscription also helps them in managing their revenues and expenses as entrepreneurs are given up to 5X cashback on bank transfers, giving them up to P75 savings monthly. They also get free personal insurance coverage up to P50,000 — ensuring that they have proper assistance in times of need. All business owners have to do is to head over to www.gcash.com/promos/gcashprobizstarter99, click apply, and fill up the form. Applicants just need to make sure that their GCash account has P99.

 

 

Another service that GCash PRO provides for MSMEs is Payment Links which is a platform that lets business owners do real-time tracking and safely move their funds from receiving payments, to processing refunds, to making withdrawals — all through a dashboard. Likewise, Payment Links also gives their customers a convenient and seamless way of paying as they receive the links via messaging apps. They can easily pay the exact amount. The transaction is safe and secure as payments are only released to the merchant once the customer receives their goods. Business owners can sign up to payment links by registering through www.getpaid.gcash.com. Once verified via email, they can already start generating payment links.

 

"After reaching acquisition targets, launching new products and growing our presence in the MSME community, it's imperative to sustain this momentum and leap forward to more growth opportunities," Sazon said.  

 

At end-December last year, GCash had 55 million registered users, more than double the 20 million users it had in January 2020. It also recorded 17 million peak daily transactions last year,  up from only 6 million daily transactions in 2020. Along with this, GCash also currently caters to about 4.5 million merchants and social sellers who benefit from using GCash for their business needs.

 

Head over to www.gcash.com/business now to learn more and make it G!

 

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About GCash

GCash (G-Xchange, Inc.) is the #1 Financial App in the Philippines. Through the GCash App, customers can easily purchase prepaid airtime; pay bills at over 600 partner billers nationwide; send and receive money anywhere in the Philippines, even to other bank accounts; purchase from over 2.5M partner merchants and social sellers; and get access to savings, credit, insurance and invest money all at the convenience of their smartphones. GCash is a wholly-owned subsidiary of Mynt (Globe Fintech Innovations, Inc.) since 2015.

GCash was recognized by The Asian Banker (TAB) in 2021 for its outstanding digital financial inclusion programs impacting more than 55 million Filipinos in the country today.

More Courses Now Available in TESDA Online Program

Taguig City – The Technical Education and Skills Development Authority (TESDA) is continuously expanding its online training program as more courses are now available in the platform.

As of October 2021, there are now 114 courses in the TESDA Online Program (TOP), according to the data released by e-TESDA.

Among the new courses integrated in the platform are International Labor Organization’s (ILO) Job Readiness, English as a Medium of Instruction, Using Educational Technology in the English Language Classroom and Microsoft’s Digital Literacy.

The TOP is a web-based platform that offers free Massive Open Online Courses (MOOCs) for the technical education and skills development of the Filipino workforce.

Through the use of information and communication technologies, the TOP provides an effective and efficient way to deliver technical education and skills development services to Filipinos and widen their chances of employment or sources of livelihood.

Meanwhile, the COVID-19 pandemic has also pushed Filipinos to register in the TOP. From its launching in 2012 up to October 2021, the TOP now has 3,443,530 registered users.

Since the government imposed travel restrictions due to COVID-19in March 16, 2020 up to October 2021, there are 2,006,923 Filipinos who registered in the TOP, which is over the half of the accumulated registrants since 2012.

In June last year, TESDA Secretary Isidro Lapeña led the launching of “TESDA Abot Lahat ang OFWs” program which aims to help upskill Overseas Filipino Workers (OFWs) who are being affected by the COVID-19 pandemic.

President Rodrigo Duterte, through his state-of-the-nation-address, ordered TESDA to empower OFWs especially those repatriated due to COVID-19pandemic.

Data, also released by e-TESDA, showed that a total of 163,750 OFWs and their dependents have registered in the TOP from March 2020 to August 2021.

With this, Lapeña encouraged everyone to avail of the agency's online courses to remain productive amid the mobility restrictions due to COVID-19pandemic.

“I invite the public, especially those who have lost their jobs or those trying to venture into a new livelihood, to try enrolling in our online classes. This is offered for free. I’m sure you can find a course from the many options that will best suit your need,” Lapeña said.

For those interested to register or view the list of available courses,just visit https://www.e-tesda.gov.ph/.

Enrollees will be given a certificate of completion after finishing a course.However, those who wish to receive a National Certificate must undergo competency assessment in TESDA-accredited assessment centers.

Three Shopee Sellers Gear Up for 9.9 Super Shopping Day to Scale their Business

MANILA, SEPTEMBER 8, 2021 - The current global situation brought about significant lifestyle changes: more people are working from home, consumers are shopping online for their convenience, and business owners are transitioning to online and e-commerce platforms to stay afloat. Shopee, the leading e-commerce platform in Southeast Asia and Taiwan, shares three sellers who found success online with Shopee and how they are preparing for the much-anticipated 9.9 Super Shopping Day. 

Obra Ni Juan: Supporting Employees and their Families

Obra Ni Juan, a local clothing store, halted their operations inside a leading mall when the pandemic hit. They decided to shift to online selling to continue their business, launching their Shopee store last June 2021. Obra Ni Juan started to make their products available to a bigger and wider audience while continuously generating sales even with their physical stores being closed. “Because of Shopee, our employees are able to continue providing for their families despite these trying times.”

They are content with the Shopee Seller experience as Shopee provided them with an assigned Incubation Manager who guides them through the onboarding process and supports them in maximizing the different tools they can use to increase sales and foot traffic. With 9.9 approaching, Obra Ni Juan says, “We are bolstering our stocks for our existing products and we have been continuously preparing new items and designs to offer to our Shopee customers. We will also utilize other Shopee marketing incentives such as free Shopee Ad Credits; which leads to clicks that are converted to actual sales and continue to utilize the available marketing tools to scale our business.” 

Cleanstar: Building Customer Loyalty 

Cleanstar is a one-stop shop for all dental floss needs that supplies affordable, innovative, and high-quality dental floss pick products. During the early stages of their business, they saw Shopee as an opportunity to extend their reach. “By regularly attending the online webinars organized by Shopee and accessing helpful resources on educational hubs, we managed to set up our Shopee online store. The key is utilizing everything that Shopee offers and to just be consistent in what you are doing.” 

Cleanstar leverages Shopee Live and In-App Business Insights the most. “Through Shopee Live, we can discuss our product line to our customers and also educate people regarding oral health which helped us gain more followers. Through In-app Business Insights, we also get to monitor the overall performance and health of our store through data and inform us on which aspects we can improve on, and allows us to reply to customers’ feedback about our products. It’s really humbling to see the growth in our follower numbers, and how they give feedback every time they order.”

With the number of orders they were receiving, Cleanstar eventually decided to hire a team just for fulfilling Shopee orders. This coming 9.9, Cleanstar is preparing its stocks early to fulfill orders without the hassle. They also put up ads on the site to improve the visibility of the products.

Martipaps Gift Shop: Increased Daily Orders

Martipaps Gift Shop started selling on Shopee in 2016. They sell various kinds of toys from building blocks and toy cars to mini kitchen sets and pop-up tent playhouses. In the past, they used to do meet-ups and pick-ups, but it took up too much time. “The time spent on doing meet-ups was transformed by selling on Shopee because of its free shipping and Shopee guarantee. A door-to-door cash-on-delivery service where buyers can feel at ease with their purchase. Martipaps saw an increase in sales as they managed to save time on doing meet-ups to focus on managing their store on Shopee.” 

Ever since joining Shopee, her orders grew from one shipment a day to about 100 packages daily. She encourages aspiring entrepreneurs to try being a Shopee seller. “Start small. Start from the things you love, because if you love what you are doing you will never get tired of it. You will look for more exciting things, improvements, and additions to make your shop better. Utilize all the tools that Shopee offers - they are like helping hands that can support us to succeed in the online selling business.”

Shopee 9.9 Super Shopping Day

The Shopee 9.9 Super Shopping Day is one of the much-anticipated sales of the year. Aside from cost-saving deals, Filipinos can enjoy added rewards and convenience by going cashless with ShopeePay. It is an all-in-one e-wallet that shoppers can use to Buy Load, Pay Bills, and Scan to Pay at thousands of merchants nationwide. This September 9, users can enjoy exclusive ShopeePay promotions such as up to 50% cashback on bills payment; up to 50% off on mobile load; and ShopeePay ₱1 Deals from Puregold, Seaoil, Potato Corner, and many more. 

For more deals this 9.9 Super Shopping Day, visit https://shopee.ph/m/99.  

Download the Shopee app for free via the App Store or Google Play.

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About Shopee

Shopee is the leading e-commerce platform in Southeast Asia & Taiwan. Shopee connects shoppers, brands, and sellers across Asia and other fast-growing markets, empowering anyone to buy and sell anywhere and at any time. 

 

Shopee offers an easy, secure, and engaging experience that is enjoyed by millions of people daily. It offers a wide product assortment, supported by integrated payments and logistics, as well as popular entertainment features tailored for each market. Shopee is also a key contributor to the region’s digital economy with a firm commitment to helping brands and entrepreneurs succeed in e-commerce.

 

Shopee is a part of Sea Limited (NYSE:SE), a leading global consumer internet company. In addition to Shopee, Sea’s other core businesses include its digital entertainment arm, Garena, and digital financial services arm, SeaMoney. Sea’s mission is to better the lives of consumers and small businesses with technology.