Manila, Philippines, May 28, 2025 / PRNEWSWIRE/ – Little Philippine businesses continue to stand out as one of the most dynamics in the Pacific Asia region, with a 77 percent growth that reports in 2024 and 89 percent who hopes to expand this year.
CPA Australia Small Business Survey 2024 – 25 – Philippines Infographies
These key findings, of the latest survey of small companies in Asia-Pacific conducted by one of the world’s largest professional accounting agencies, CPA Australia. This upward performance is greatly attributed to a client -centered mentality.
However, challenges such as restricted access to finance and the adoption of slower technology compared to other markets in the region are holding some businesses.
Last year, the greatest number of small philippines in growth since 2019. Reflecting this improved feeling, 41 percent of respondents increased their workforce in 2024, and 57 percent plans to hire more employees in 2025.
Customer loyalty and satisfaction remain key drivers of the success of small businesses in the Philippines. Almost half (46 percent) of the Philippine respondents cited customer loyalty as their higher growth factor, while 37 percent selected better customer satisfaction.
Rufus Pinto, an accountant qualified by Australia de CPA who works in the Philippine Finance Industry, said: “Small businesses in the Philippines are thriving due to their exceptional approach focused on the client, which helps them retain loyal customers and attract new.
“In general, the economy maintained constant growth last year, driven by strong national consumption, which created many opportunities for small businesses.”
Pinto said that the youth profile of the owners of small Philippine businesses was a key advantage. “Our young population is a key driver of the dynamic economy,” he said. “Philippines has one of the profiles of smaller small businesses in the region and its strong entrepreneurship is promoting the growth of the sector.”
Reflecting confidence in commercial perspectives, 28 percent of Filipino respondents expect a strong growth in foreign market revenues in 2025, a maximum of three years that exceeds many regional counterparts.
“With a young and English -speaking workforce and a strong work ethic, the Philippines remains a main destination for subcontracting services of international companies, especially for services based on the voice and client service roles. Small businesses should continue to take advantage of these strengths to attract more customers abroad,” he said.
Despite the promising perspective and labor trends, small philippine businesses continue to delay their regional counterparts in digital adoption. In 2024, 62 percent of respondents reported that they obtained more than 10 percent of their online sales income, below the average surveyed of 67 percent.
Although 74 percent received more than a tenth of their income from digital payment technologies such as Dragonpay and GCASH, near the regional average (75 percent), only 13 percent sought advice from IT consultants last year, well below the average Asia-Pacific of 28 percent.
“With a large group of talents and an focus on connecting people to people, small philippine businesses tend to prioritize personal connections on digitalization and automation,” Pinto said. “Challenges such as limited Internet access in rural areas, a large non -banking population and cash dependence and remittances also hinder digitalization.”
However, the benefits of technological investment are clear. Among the small Philippines that invested in technology in 2024, 69 percent reported better profitability, well above the average of Asia and the Pacific of 56 percent. This placed the second of the Philippines among all the markets surveyed.
The growing costs remain the main challenge, with 40 percent of respondents who cite it as a key barrier. Access to finance is also an obstacle. While 65 percent sought external financing in 2024, only 22 percent found easy to obtain, the lowest result in the region. This trend is expected to persist.
“Banks are still the main source of financing, however, only 22 percent of respondents named them as their main lender,” Pinto said.
“When requesting bank financing, documents generally require to demonstrate how the funds and credibility of the borrowers will be used. Small Philippine businesses must establish ambitious long -term objectives and create well -prepared commercial plans to achieve them. These are persuasive and solid documents to obtain bank loans.
“Consulting professionals, including accountants who have the designation of internationally recognized CPA, can help improve financial records and address technical problems such as taxes.”
The Asia-Pacific companies survey of CPA Australia collected opinions of 4,236 small businesses in 11 Asia-Pacific markets in November and December 2024, including 310 of the Philippines. This is the 16 of CPA Australiath Annual survey of problems and feelings of small businesses since 2009.
About CPA Australia
Founded in 1886, CPA Australia is one of the largest professional accounting bodies in the world that represents more than 175,000 members working in more than 100 countries and regions worldwide, including more than 20,000 members in Southeast Asia. CPA Australia advances the interests of its members through education and the exchange of knowledge, the development of professional networks, the leadership of thought and promotion of the value of the members of CPA Australia to employers, government, regulators and the public. The designation of CPA Australia denotes strategic business leadership and is recognized and valued throughout the world. More information available in www.cpaaustralia.com.au
