Manila, Philippines – Small businesses in the Philippines reported strong growth in 2025 and remain optimistic about their prospects for 2026, although access to external funding continues to pose a challenge, according to findings released by CPA Australia.
The findings showed that 79 per cent of small businesses in the Philippines recorded growth in 2025, the highest result since 2019 and the fourth-highest among the 11 markets covered.
Confidence in future performance was also high, with 89 per cent of respondents expecting their businesses to grow in 2026. This was the highest growth expectation among the markets surveyed.
The positive outlook reflects several factors, including a focus on customer experience, innovation and export opportunities, as well as the influence of younger entrepreneurs.
Nearly 47 per cent of small business owners in the Philippines are under the age of 40, compared with the average of 38 per cent across the markets surveyed. Younger business owners were also more likely to pursue growth strategies such as adopting digital tools, investing in innovation, exploring overseas markets and improving customer satisfaction.
“Small business owners in the Philippines continue to demonstrate remarkable resilience and optimism. Their willingness to innovate, embrace new technologies and focus on customer experiences is helping drive business growth despite a challenging global environment,” said Rufus Pinto, CPA member and Group Head of Enterprise Services at BDO UniBank.
Technology investments support profitability
Although small businesses in the Philippines lag some developing economies in overall technology adoption, those investing in technology are reporting positive financial outcomes.
The findings showed that 68 per cent of small businesses said technology investments improved profitability in 2025, exceeding the average of 56 per cent across the markets surveyed.
Digital payment adoption, however, remains relatively limited. While 73 per cent of small businesses received at least 10 per cent of their sales through digital payment platforms, cash transactions continued to account for a substantial share of revenue.
Around 77 per cent of businesses received at least half of their sales in cash, the highest proportion among the markets surveyed.
The results indicate that technology investment can contribute to business efficiency and competitiveness, despite gaps in digital payment adoption.
Access to finance remains a concern
Access to external funding continues to be a challenge for small businesses in the Philippines.
About 64 per cent of businesses required external funding in 2025, broadly in line with the average of 61 per cent across the markets surveyed. However, the Philippines ranked as the least accessible market for small businesses seeking finance, with the challenge expected to continue into 2026.
Limited access to capital could constrain businesses’ ability to invest in technology and workforce development. The findings also indicated that business owners were more likely to seek advice from personal networks than professional advisers, potentially reflecting difficulties in accessing external financial support.
“Small businesses remain the lifeblood of the Philippine economy – driving innovation, creating jobs, and sustaining communities. By ensuring access to adequate capital and professional advisory support, we empower these enterprises not only to grow, but to transform – embracing technology and expanding their reach to compete more effectively in both local and global markets,” said Erwin Vincent G. Alcala, CPA member and Trustee of Saint Paul School of Professional Studies – Leyte and St. Peter’s College – Ormoc City.
Despite funding constraints and uneven technology adoption, the findings point to continued growth potential among small businesses in the Philippines, supported by strong business confidence, entrepreneurial activity and investment in innovation.
