MANILA, May 26 (Xinhua) -- A supportive ecosystem for startups has been established in the Philippines and it continues to evolve, providing a platform for the development of innovative enterprises, according to a new Asian Development Bank (ADB) report released on Friday.
The report said there are about 700 active startups in the Philippines, a significant increase from only 100 in 2015, with fintech and e-commerce dominating the startup landscape in the Southeast Asian country as in others.
"Most are active in fintech, media and entertainment, and e-commerce. Other market segments are emerging but still in the early stages of development," said the Manila-based bank's report, adding that startups with high development impact on education (edtech), health (healthtech), agriculture (agritech) and the environment (greentech) are emerging.
"Startup innovations in these sectors support human capital development by improving health and education, assist poor people in rural areas by increasing farm productivity, and help create a cleaner environment through mitigation and adaptation to climate change," added the report.
"Promoting innovation is seen as a key strategy for the Philippines to recover from the pandemic, accelerate its growth, and achieve high-income status by 2040," the report said, adding that startups can play a vital role in these processes through their innovative capabilities.
In the Philippines, venture capital provided by large corporations was the earliest investment source for startups, which remains a primary funding source today.
"There is a need to attract investors for agritech, greentech, edtech, and healthtech to give these sectors a greater chance of development," said an ADB economist, who collaborated on the study with local researchers.