In the last few weeks, there has been an onslaught of significant news that can easily dishearten any entrepreneur or investor. From the Great Resignation, rising oil prices, weakening of the peso, and inflation, among other things, one can’t help but think if it is still a good time to invest in the country. Moreover, the rise of COVID cases in the country.
It is true that we're living in extraordinary times, so these surprises are kind of expected. With all these factors working in tandem, it is often a standard business practice to put a halt on pursuing big dreams (especially those that are backed on disruptive technologies) and focus on what works and how to keep them going.
But even in a downturn, there are still opportunities that exist. It is a matter of recognizing these opportunities for what they are, and capitalizing on them.
Cryptocurrency companies such as Binance, Axie Infinity, and Yield Guide Games, for example, are facing a fresh round of scrutiny about their viability. Binance received calls for a ban from groups over the volatility of cryptocurrencies and the platform's lack of a Virtual Asset Service Provider (VASP) license. Some users are now questioning the long-term viability of play-to-earn platforms like Axie Infinity and Yield Guild Games.
The press these two companies receive may be too worrisome, but it is also important to take a look at how they respond to the attention. Binance, for one, has made positive efforts to gain operational licenses in the country. Yield Guild Games, on the other hand, shifted its focus on inspiring more entrepreneurs and enthusiasts to venture into content creation for the Web3 space.
And while the uncertainty in a still-yet-to-end pandemic has forced even institutions like ING to make an exit, optimism is still prevalent, at least in the startup industry. According to the data from the 2022 Philippine Venture Capital Report, the Philippines is ready to become a “tech exporter,” and will trend that way, but that positive change could take its cue from startups and developers.
Also, more government support is underway. In a recent statement, senator and principal author Loren Legarda laments about the long overdue Philippine Innovation Act budget for startup development after it received zero funding since the law was signed in 2019.
Legarda said on Tuesday she will push for an amendment to the 2023 General Appropriations Act if she sees no funding for Republic Act (RA) 11293 or the Philippine Innovation Act, win the National Expenditure Program. The Philippine Startup Development Program will be at the center of the law’s implementation, together with its other benefits, such as Startup Venture Fund, Grants-in-aid, subsidies, Startup BOSS (Startup Business One-Stop Shop), and Startup Investment Development Plan.
Read more about the the Philippine Innovation Act here.