New legislation is opening the doors for innovative entrepreneurs, but digital transformation is the key to accelerating startup growth, said the Department of Information and Communication Technology as it called for a stronger push for new technology at the first-ever Philippine Startup Week.
PHSW2019 both showcased the Filipino startup community and provided them a venue to explore further growth through innovation and government assistance. It is the first-ever collaborative effort between the DICT, the Department of Science and Technology, the Department of Trade and Industry, and various partners from the private sector.
The highlight of PHSW2019 is DICT’s Tech Advantage summit held at the Crowne Plaza in Ortigas last November 21. Tech Advantage was not only a knowledge-sharing platform for digital technologies, it was a venue to emphasize an increased vigor towards more public-private partnerships in the technology space.
“We at the DICT trust that utilizing, developing, and harnessing technology will only accelerate the growth and evolution of our Philippine startup ecosystem,” said Assistant Secretary for Digital Philippines, Emmanuel Rey R. Caintic, as he reaffirmed the government’s commitment to startups.
Digital transformation is still young in the Philippines, but the FinTech Philippines Association (FPh) has noticed a growing amount of knowledge and talent consolidating in the Philippines and has sought to bring them together to change the way business is done for the better.
“Now we see the best and the brightest in the world moving to the Philippines,” said Amor Maclang, executive director of FPh. “We are very fortunate to serve as the gateway for technology companies and Philippine businesses to experience and take part in a regional and global ecosystem.”
George Royeca, Angkas Chief Transport Advocate, also echoed the desire to work together, urging that digital businesses need not see each other as competition. “Focus on solving a problem. Your competitor right now is not your actual industry competitor, your competitor is everybody that’s analog,” said Royeca. “What you need to do is work together as an industry, like FPh, and push together.”
In turn, Sprout Solutions is particularly keen on pushing for the adoption of digital technologies in the Philippines. During the summit, the company announced that the payroll module of their services is free for companies with less than 50 employees–a move to push young startups towards digital transformation.
“We were a startup ourselves not too long ago, so we really understand how difficult it can be in the beginning,” said Guiterrez. “We’ve always wanted to help businesses, and we really believe that going digital will help them focus on growing.”
For Jove Tapiador, co-founder of FPh, there is a wealth of opportunities to solve problems through innovation in the Philippines. He noted that various international development agencies have supported the growth of electronic payment startups in the country. “Startups are a key to long-lasting economic development,” said Tapiador. “We believe that the startup community is potentially the 4th leg of economic growth in the Philippines.”
With Republic Act 1137–known as the Innovative Startup Act–set to offer development programs and incentives to both startups and enablers, starting a Filipino digital business will have more support in the future from both the public and private sector.
“Unfortunately, most of our applications are from abroad, such as Facebook and Google, while there are very few that are locally generated, like Angkas,” said DICT Undersecretary for Operations, Eliseo Rio. “We need more local apps like Angkas,” he stressed.
While the government has taken interest in helping the private sector grow, MyEG Philippines President Ronald Aquino talked about his desire to improve government services through his one-stop solution for e-government automation and payment services.
“With a strong DICT, and with the passage of the IRR for the Ease of Doing Business Act, I think we are in a good position really to make this happen,” said Aquino.
Atty. Mark Gorriceta from Gorriceta Law provided Tech Advantage attendees with a comprehensive roadmap on how to navigate government compliance as a startup. He remains optimistic that local technology companies will prosper in the future.
“The intention there is good. In ASEAN, we have one of the highest tax rates at 30%,” noted Gorriceta as he discussed the proposed changes in corporate tax. “Being aware this far ahead will allow you to strategize and plan your financials.”
When asked to discuss the skepticism towards adopting new technologies in the Philippines, GeiserMaclang Marketing Communications Inc.’s co-founder and Chief Innovation Officer Brad Geiser expressed the importance of tackling perceptions before pursuing profits.
“Reputation precedes revenue. Trust-barriers, both domestic and abroad, are high when it comes to things that disrupt and change the way we live,” said Geiser. “If we want to support the local tech movement, we have to work vigorously to change technology’s reputation.”
Tech Advantage made one thing clear: both the government and the startup community are looking towards collaboration. “It works better when we work together. Private industry makes a difference, government makes a difference, but together we can collaborate better as a whole,” said Mark Vernon, Chairman of FPh, ending the summit with optimism towards the future of Philippine technology.