Startups and Entrepreneur Hub: Discovering the Davao Hub

The famous Davao City, the most densely populated city in Mindanao and the third largest city in the Philippines, is the regional center of the entire Davao Region. It is known for its busy and buzzing economic activities that feature modern amenities and progressing urban build-up. In fact, it is considered one of the most important economies in the country’s Southern islands and ranks among the top most significant urban centers in the Philippines.

Discovering Davao City

In recent years, Davao City gained the most popularity because of its connection with the former President of the country. More people had gained interest in the city which became the model of the leadership that brought particular people in the seats of power. Good words have spread all over the Philippines on how Davao City has grown throughout the years.

Indeed, the economic development and growth has improved a lot in the past decade. Even though the reason behind are still up for debate, Davao City is now an emerging urban center that is one of the richest in the country. Once a quiet rural area, this city is now a pattern of success that other provinces are trying to follow.

Davao City is not just creating buzz throughout the nation. In fact, it is also being recognized by the international community for its future forward approach to law and order. In 2013, the city has been acknowledged by the Association of Southeast Asian Nations (ASEAN) for being the first 100% smoke-free metropolitan area in the region. It might sound a simple rule to follow but in reality, it is one that many cities all over the world have been struggling to implement. The fact that Davao City succeeded in it is a significant progress to take note of.

Which is probably one of the reasons that the same community recognized Davao City as the Brunei-Indonesia-Malaysia-Philippines East ASEAN Growth Area and the Financial and Trade Hub of the Southern Philippines. The fast and rapid progress that Davao City showed throughout the years encouraged many businessmen to try investing in this area with the hope of making it in the Philippines’ southern capital.

Davao Hub for Startups and Entrepreneurs

The Davao Hub is a hotspot for many budding business startups and entrepreneurs in recent years. The Philippine Statistics Authority (PSA) released a recent report about the milestone that the city achieved when it comes to economic growth.

In 2017, Davao City was able to hit double-digit, 10.9% to be precise, specifically coming from the industrial and service sectors in the region. This number showed a significant increase coming from the previous performance of 9.5%. Among the many regions in the Philippines, Davao City is now officially ranked as one of the fastest growing economies in the land.

Why Business Works in Davao City

With all stunning performance that Davao City is showing, it does not come as a surprise that many business people—aspiring and seasoned alike—are on the hunt for ideal business opportunities in the this area. Aside from receiving positive word-of-mouth from many successful ventures already, there are surely reasons that make this city a hotspot for growth.

So what makes Davao City a viable place for business? Here are some of the factors that makes Davao City a good set-up for startups and veteran entrepreneurs.

Investing in Davao Hub Requires Lesser Capital

In contrast to making business investments in the country’s capital region, the capital needed to fund startups or new ventures in the province is significantly smaller. One of the top reasons behind this is the cost of land is smaller in Davao City and other provinces which is a huge factor to the business expenses. Davao City’s population density is not as massive as Manila, hence the relatively lower demand for these land spaces.

Since most of the provinces in the Philippines is close in proximity to agricultural areas, access to to raw materials is easier as well. For businesses such as restaurants and other startups related to food, it might be a great choice to maximize this advantage. On top of this, fresh produce is easier to find and takes cheaper expense because of the shorter transport.

Davao Region is Close to Neighboring Countries

Davao City, located in the southern part of the country, is closer to other Southeast Asian countries which makes it one of the top choices for aspiring entrepreneurs to get exported goods from. This region is rich in resources that are good for export quality which are being sought by other countries with high-income economies such like Singapore.

This can also benefit the country in reverse. When the nation is in a crisis and needs to import produce and goods from other neighboring countries, Davao is one of the closest hubs from other Southeast Asian exporters. For an instance, countries that are famous for textile and apparel industry like Indonesia is closer to Davao City than the capital which benefits those who are in fashion sector.

The Increasing Trend in Tourist Population

Davao City may be famous these days for being a highly urbanized province in the Philippines, but it is also rich in natural wonders. Many tourists all over the world are flocking to Davao region to wander and explore the beauty and charm this area has.

Upcoming Developments In the Pipeline

Many might be wondering how the housing situation will be once they decide to do the big move of starting a business venture in Davao City. Fret not because there are actually plenty of real estate developments in the pipeline in Davao City. It is in fact another factor that contributes to the city’s growth—the surge of real estate developers building properties left and right.

Many of these developments are meant for commercial use such as office spaces for Business Process Outsourcing (BPO) companies that will be creating a hub in Davao region. This opens the region and its local residents to more job opportunities

Aside from commercial spaces, condominium properties are also in the works. These properties are attracting more laborers and even entrepreneurs to make the move to the up and coming city of Davao. I like a win-win situation; more residents means more opportunities for both local and global entrepreneurs.

The Rise of Davao City Startups and Entrepreneurs

There is no doubt that Davao City is one of the top business hubs that are good for both starting and veteran entrepreneurs. With a dash of creativity and skill in business, one can expect a return of investment in the up and coming city of Davao.

As Davao City continues to emerge, developers are now ready to embark on building luxury real estate properties in the area. Get to know the upcoming projects in the lineup! To know more, follow their social media pages for the latest updates.

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