PH startup ecosystem rebounds after four

PH startup ecosystem rebounds after four-year decline

MANILA, Philippines — After four straight years of slipping in global startup rankings, the Philippines reversed course in 2026, climbing one spot to 63rd in the latest Global Startup Ecosystem Index.

The improvement, however, comes as Southeast Asia’s leading startup ecosystems continue to pull further ahead, highlighting both the country’s growing strengths and the challenges that remain.

The Global Startup Ecosystem Index, published annually by research platform StartupBlink, ranks 100 countries and more than 1,500 cities based on indicators such as startup activity, funding, exits and the business environment.

In an analysis of the 2026 rankings, Dr. Rogelio Alicor Panao, an associate professor at the University of the Philippines Diliman and an Inquirer data scientist, described the country’s improved standing as “a sign of cautious recovery in a region where neighbors are sprinting ahead.”

While the Philippines posted an ecosystem growth rate of 11.7 percent — slightly above the global average of 10.3 percent — its pace lagged behind several Southeast Asian neighbors. Vietnam recorded 67.9 percent growth, Thailand 62.6 percent and Singapore 24.4 percent, according to the StartupBlink report.

The figures underscore a broader regional trend. Although the Philippines has halted its four-year decline in the rankings, neighboring ecosystems are expanding at a significantly faster rate.

“The Philippines’ 2026 ranking suggests the country has the grassroots breadth, but may still be lacking the anchor hub and scaling velocity to compete with regional powerhouses,” Panao said.

Startup activity expands beyond Metro Manila

Despite modest overall growth, the latest index also points to one of the Philippines’ strongest advantages: the breadth of its startup ecosystem across cities.

“The Philippines leads Southeast Asia in one key metric: city breadth,” Panao said.

Seven Philippine cities made StartupBlink’s global ranking of the top 1,000 cities this year, the highest number among Southeast Asian countries.

READ: DTI rallies 37 startups for boot camp

The rankings also show startup activity spreading beyond the capital.

“Naga, Davao and Cagayan de Oro all posted solid gains, while Iligan and San Mateo debuted as new entrants,” Panao said.

The broader geographic representation suggests that entrepreneurial activity is becoming more dispersed, with emerging ecosystems gaining visibility alongside Metro Manila.

Strengths amid regional competition

Beyond its expanding city footprint, the Philippines also performed well in several ecosystem indicators.

Panao said the country “punches above its weight in Startup Support (3rd in SEA) and Ecosystem Attractiveness (10th in Asia-Pacific).”

Among industry sectors, education technology emerged as the country’s strongest performer, ranking 42nd globally.

READ: Emerging startup trends in the Philippines

The findings suggest that while the Philippine startup ecosystem remains smaller than those of some regional peers, it continues to build strengths in support mechanisms and sectoral competitiveness.

Ecosystem value remains behind regional peers

The analysis also highlights the difference in scale between the Philippines and some of Southeast Asia’s largest startup ecosystems.

“The Philippines’ ecosystem value now stands at $11 billion, but still far behind those in Indonesia and Vietnam,” Panao said.

Ecosystem value reflects the overall economic scale of a country’s startup sector, including factors such as startup performance, investment activity and ecosystem maturity, as measured by the StartupBlink index.

Although the Philippines recorded positive growth this year, the gap in ecosystem value illustrates why regional competitors continue to hold stronger positions in the global rankings.

Recovery, but more ground to cover

For Panao, ending the country’s four-year decline is an encouraging development, but the latest rankings also point to the work needed to sustain that momentum.

“Breaking the four-year slide is a welcome start,” he wrote.

READ: DTI, P&G join hands to scale up PH startups

Panao added that “closing the gap will require faster growth beyond Metro Manila, stronger inflows of global investment, and a sustained effort to translate the country’s advantages into lasting competitiveness.” /dm