PH named worst country to launch startups
MANILA, PHILIPPINES — A recent study revealed that the Philippines is the worst country to begin a startup business in.
According to Business Name Generator, a digital asset under Adventrum, the high procedure costs (23.3%) of the gross national income (GNI) per capita and a high business tax rate of 25% pushed the Philippines to the bottom of the list.
Additionally, the study said that the country’s low quality of life — 81 from a possible 240 — could negatively impact productivity, employee engagement, and job satisfaction.
Business Name Generator spokesperson Chloe Chai said, “Entrepreneurs must carefully consider the economic, demographic, and cultural factors of potential locations.”
“They must also evaluate the legal and regulatory environment, including taxes, labor laws, and zoning regulations, and how these will impact their operations,” she added.
However, QBO Innovation Hub Executive Director Katrina Chan believes the Philippines startup industry is booming.
In an interview with ANC, Chan said that starting a business in any country is difficult.
“It’s a lot of hard work, and even when you do everything right, it is still very, very risky.”
She also pointed out that, despite its ranking, the Philippines received US$1 billion in tech investment for the second year in a row.
Moreover, the QBO official believes that the bottom five countries on the list are “not the worst but the most challenging environment” where businesses can see that there are still a lot of opportunities for growth.
Egypt, Vietnam, South Korea, and India joined the Philippines in the bottom five, while the Czech Republic, Finland, Sweden, Estonia, and Slovakia rounded up the top five ideal countries to launch a start-up company.
