THE Philippines’ entrepreneurship ecosystem lags behind over half of the world and suffers from a low firm birth rate, an economist noted.
Kevin Chua, senior economist of the World Bank, during the third Slingshot Cebu Innovation Conference, attributes this to the policy burden of government regulations, which is one of the reasons for the current condition of the country’s entrepreneurship ecosystem.
“It’s less bureaucratically fun in the Philippines,” he said.
Still, he said there are various support programs from the government that are being poured in for innovative startups.
He added that Filipinos don’t lack entrepreneurial spirit.
“The perceived Filipino entrepreneurial traits are above world averages,” he said.
Department of Trade and Industry Export Marketing Bureau Director Senen Perlada agreed, saying startups need to scale up and provide a sustainable economy for the country.
“More often than not, we are bogged down with dysfunctional bureaucracies and hierarchies,” he said.
Perlada said that with the passage of Republic Act 11032 or the Ease of Doing Business, the low firm birth rate will be addressed.
“With that, I think we might be able to be at par with most of the other countries that are in the WEF (World Economic Forum) with regards to competitiveness,” he said.
The Philippines ranks 76th out of 140 economies in the WEF Global Competitiveness Report and scores low on the pillars measuring an economy’s enabling environment.
Perlada said that the country doesn’t lack creativity and innovation for startups.
“We have been lagging behind. We have to be deliberate about this because other countries have been really assertive and sort of aggressive in attracting startups from all over the world,” he said.
DTI aims to foster a culture of entrepreneurship and collaboration, address legal and regulatory barriers, bolster government support through services, access to capital and resources, strengthen existing institutions that support the startup ecosystem and establish a Philippine innovation economic zone.
“Things are gradually changing. Pinoys are already collaborating and now they realize that you don’t have to be afraid to expose yourself,” he said. (JOB)