Best Cities to Start a Business in the Philippines

Building your own business takes a tremendous amount of preparation and careful planning. From choosing the type of product or services that you want to offer, studying your target market and to even doing your homework about the industry that you’re planning to venture into are essential in the early stages of your research.

However, one factor that often leads most new entrepreneurs to failure is their neglect of this one important decision when finally taking the step to make their dream into a reality: choosing the most practical and strategic place to start a business.

The Philippines is made up of over seven thousand islands, divided into several regions. These places, although belonging to the same nation, are geographically scattered and culturally different from one another. That is why, depending on the industry that you plan on venturing into as well as the type of business that you want to operate, there’s always perfect location for your enterprise.

To give you several informed ideas, here are some of the best cities to start a business in the Philippines that you should look into.

Makati City

Dubbed as the “Wall Street” of the Philippines, Makati is considered as the country’s center for business and commerce. At the heart of the city, you’ll observe numbers of young professionals, tourists and foreign nationals walking along the busy and dynamic streets of this economically successful locality.

Residential condominiums and offices of multinational and Filipino companies from several industries occupy the highest buildings and business establishments of the city. This is not only because it is a number one choice as a business location for the most ambitious start-ups today, but because of the place’s record of economic stability – making it a magnet for investors and buyers. The proofs of these are the thousands of business enterprises currently thriving in the city.

Makati has a population of approximately 583,000 and is a friendly and safe city for local and foreign residents who have found the interest and excitement in living the fast-paced life of the metro. Business ideas with huge potentials in this busy metropolis are those that can cater to the needs of an international and culturally diverse market with an always “on the go” lifestyle.

Quezon City

Recently recognized as one of the Top Asian Cities of the Future and the Most Business-Friendly Local Government Unit in the country by the Philippine Chamber of Commerce, Quezon City holds bright and optimistic promises for new and seasoned business owners.

The city, with a population of 2.9 million (according to the 2015 census) is an ideal location for young entrepreneurs who want to tap into a variety of demographics. Schools, business centers, and residential establishments can be found in this booming metropolis – providing a huge potential for products and services that offer convenience, fun, and culinary adventures.

Most importantly, the local government’s support to business owners can be seen in the policies that they implement to provide a healthy business environment to entrepreneurs and investors. For instance, aspiring entrepreneurs no longer have to go through the long and tiring process of registering their business and getting permits, thanks to a one-stop shop launched by the local government where owners can easily complete the process in just an hour.

Cebu City

The “Queen City of the South” is not just a top tourist destination for foreigners and local travelers, but it is also a prime destination for business. Aside from being one of the country’s biggest trading capitals, it’s an ideal commercial spot that can compete against business centers in Metro Manila – with the major advantage of less hassle from the Philippine capital’s annoying traffic jams.

The city is dotted with several business centers like the Cebu Business Park as well as the city’s famous I.T. Park – a home to several international business outsourcing offices in Asia. Moreover, Cebu City has a lot to offer to both local and international markets, with successful sectors from a variety of industry, thanks to the city’s trading accessibility and lower operating costs.

Cebu Province (composed of different major cities like Cebu City, Lapu-Lapu City, and Mandaue City) is considered as the 5^th most populated provinces in the Philippines. Moreover, Cebu City is home to the top universities and colleges of the region, so businesses that can answer to the demands of a younger demographic can fully find their success here. As a top Philippine travel destination, owners of goods and services beneficial to the booming travel industry and growing tourist population can accomplish so much in this wonderful locality.

Davao City

Davao is the home city of President Rodrigo “Roa” Duterte, but this is not the reason why this peaceful city made it to this list. Recently, Davao has set a new record for the most number of businesses (40,000 businesses) that brought in a whopping business investment value of PhP 270 million to the city.

Davao earned its title as the safest city in the country, thanks to its local government’s ironclad will to impose policies and ordinances that prioritize the safety of their citizens – and this is the main advantage that also benefits future and present business establishments. Needless to say, stability in both the economic and political sectors is a good factor that easily boosts investor confidence.

Several companies and manufacturers have extended their approval to invest in Mindanao, Davao’s home region, not only because of its rich natural resources but also because of the place’s convenient accessibility to trade and transport.

Agriculture, mining, tourism, fisheries, and its abundance in palm oil make Davao and Mindanao as a whole a promising location for business owners who want to venture into these industries.

Knowing your market means understanding the culture

Whether you’re a Filipino or an expat trying to start their first business in the Philippines, knowing and carefully choosing the location of your enterprise should never be taken lightly. More importantly, if you want to build a successful business in the country, you have to know more about its culture, the locals, and their different lifestyles – because these are the factors that will help you fully understand your market.

Good luck and we wish you the best in your future endeavors.