According to recent data, the Philippines is one of the fastest-growing economies in the world. This growth has led to a surge in entrepreneurial activity, with many individuals seeking to start their own business.

If you’re wondering what small business you can start in the Philippines, there are many options to consider. From online stores to traditional brick-and-mortar businesses, the opportunities are endless. 

In this article, we will explore some of the best small business ideas in the Philippines that will kickstart your entrepreneurial journey! 

What small business can I start in the Philippines?

Some of the popular small businesses in the Philippines these days are related to food, rentals, health and beauty, and home-based services.

Of course, the kind of small business that’s best for you depends on your skill set, resources, and the kind of market you’re familiar with.

We detail some of these ideas in the list below!

1. Food-Related Small Businesses in the Philippines

Pros

The Philippines is a country that is passionate about food. This passion for food creates a massive demand for various food products and services, from simple street food to high-end dining.

Another advantage of food-related small businesses is the flexibility and versatility in terms of location and target market. Food products can be sold in different locations, like food stalls or food trucks, allowing entrepreneurs to reach different target markets.

Food-related small businesses also have the opportunity to offer unique and personalized products that cater to the taste and preferences of target customers.

Certain food products, such as baked goods and desserts, have high profit margins, providing a profitable business venture. Entrepreneurs can leverage this potential by producing quality products that meet their customers’ expectations.

Lastly, food-related small businesses provide an opportunity for creativity and innovation. 

Entrepreneurs can explore new and exciting flavors, cooking techniques, and presentation styles, creating unique and memorable food experiences for their customers.

Cons

One significant challenge is the high competition in the industry. The food industry in the Philippines is highly competitive, and entrepreneurs need to develop unique selling propositions to stand out from their competitors.

Starting a food-related business also requires an initial capital investment for equipment and supplies. Entrepreneurs need to invest in commercial-grade equipment and quality ingredients to produce quality food that meet the customers’ expectations.

In addition, food-related small businesses need to comply with government regulations on food safety and hygiene. Failure to comply with these regulations can result in penalties or, worse, closure of the business.

Seasonal fluctuations in demand for certain food products also pose a challenge for entrepreneurs. For example, demand for ice cream may decrease during rainy seasons, while demand for warm soups may increase.

Lastly, food-related small businesses require a labor-intensive and time-consuming production process. Entrepreneurs need to invest time and effort in preparing food products, ensuring consistency in quality, and meeting customers’ expectations.

With that in mind, here are some food business ideas you can start:

1. Street Food

Potential Monthly Earnings: Php 15,000 – Php 30,000

Starting a street food business in the Philippines is profitable because of the country’s culture of eating on the go. Filipinos love to grab a quick bite while going about their daily activities, and street food is the perfect solution for this. 

Street food is a very popular and in-demand market in the Philippines, with a diverse range of food options like kwek-kwek, isaw, and fishball. 

By offering unique and tasty variations of traditional Filipino street food, you can easily differentiate yourself from the competition and capture a loyal customer base.

Another advantage of starting a street food business is that it is ideal for those who are looking for a part-time business or a side hustle. 

You can set up your stall during the weekends or evenings, allowing you to maintain a full-time job while still earning extra income. 

This flexibility is desirable for those who are starting a small business for the first time and want to minimize risk.

Lastly, location is critical in this business, so entrepreneurs skilled at scouting high-traffic areas early on will have a significant advantage.

2. Catering

Potential Monthly Earnings: Php 50,000 – Php 100,000

The catering business is an excellent choice for entrepreneurs who love to cook and enjoy providing delicious food for events and special occasions. It is also a great business for those who want to have a flexible schedule and be their own boss.. 

Filipinos love to celebrate with their family and friends, and food is essential to these celebrations. This provides a significant demand for catering services that can provide high-quality and tasty food for these events – whether at home or elsewhere.

Another advantage of the food catering business is that it allows for a wide variety of menu options, depending on the needs and preferences of the client. 

This means that you can specialize in a particular type of cuisine or offer a diverse range of dishes to cater to different tastes. 

By providing excellent service and high-quality food, you can establish a loyal customer base that will help grow your business through word-of-mouth referrals.

This business is suited for those with excellent organizational and management skills. It is also essential to have a passion for cooking and providing exceptional service to clients. 

Moreover, networking skills and building strong client relationships are vital in this industry.

3. Eateries

Potential Monthly Earnings: Php 15,000 – Php 50,000

One of the main reasons why the eatery business is a profitable venture in the Philippines is due to the country’s high population density, with many people living in urban areas. 

These urban areas have a high demand for quick and affordable food options, making eateries a popular choice for many Filipinos, particularly students, and low-income workers.

Another advantage of the eatery business is that it allows for a wide range of menu options, from traditional Filipino dishes to international cuisine, depending on the target market. 

It also provides flexibility in terms of location, as eatery businesses can be set up in various settings, from commercial areas to university areas.

4. Meat Shops

Potential Monthly Earnings: Php 30,000 – Php 80,000

One of the main reasons the meat retailing business is a profitable venture in the Philippines is due to the country’s high consumption of meat products. 

The country is known for its meat-based dishes such as adobo, lechon, and sisig, among others. Therefore, meat shops have a broad customer base, including households, restaurants, and other food establishments.

Another advantage of the meat retailing business is its high-profit margins due to the relatively low cost of raw materials. This allows entrepreneurs to price their products competitively and make a substantial profit. 

Additionally, the demand for meat products is relatively stable throughout the year so entrepreneurs can count on consistent sales.

5. Healthy Meal Delivery

Potential Monthly Earnings: Php 50,000 to Php 150,000

With the growing concern for health and wellness, healthy meal delivery services and diet delivery programs have become popular in the Philippines. 

The meals are prepared and delivered to the customers’ doorsteps, making it a convenient and time-saving option for busy individuals who want to maintain a healthy diet.

This kind of service thrives on a loyal customer base. Customers who are satisfied with the quality and taste of the meals are likely to become regulars, contributing to the business’s long-term success.

This is suited for those passionate about healthy food and who have an understanding of nutrition and flavor.

2. Rental Business Ideas for the Philippine Market

Pros

Rental businesses offer several advantages, including a steady income stream from recurring rentals, the ability to offer a wide range of rental options, and the flexibility to adjust rental rates depending on market demand and seasonality. 

Rental businesses can also benefit from passive income as the rental property or equipment is leased out without the need for active management. 

Furthermore, rental businesses provide value to clients through added convenience and savings compared to purchasing expensive equipment or property outright.

Cons

Firstly, rental businesses require an initial capital investment for equipment or property acquisition, which can be significant. 

Additionally, there is a risk of damage or loss to rental items, which can require repair or replacement. Rental businesses also need to establish proper agreements and contracts with renters, which can require legal consultation and documentation. 

Moreover, maintenance and repair costs may increase over time, cutting profits. Finally, competition can be high, requiring differentiation through unique offerings or pricing strategies.

Rental businesses have become increasingly popular due to their low overhead costs and potentially high profitability. Here are some rental business ideas worth exploring:

1. Piso Wi-Fi 

Potential Monthly Earnings: Php 10,000 – Php 40,000

Piso Wi-Fi is a business model that offers affordable internet access to people in the Philippines. The service operates on a pay-per-use basis, with customers paying one peso for every minute of internet access. 

One of the advantages of the Piso Wi-Fi business model is the low start-up cost. Entrepreneurs can start this business with minimal investment in equipment and infrastructure. 

They only need to set up a Wi-Fi hotspot and install the necessary hardware and software to offer internet access to customers.

Another advantage of the Piso Wi-Fi business model is the potential for high profitability. 

The demand for affordable internet access in the Philippines is high, and the pay-per-use model allows entrepreneurs to earn revenue based on the amount of internet usage. 

The Piso Wi-Fi business model best suits entrepreneurs who understand the technology and infrastructure required to set up a Wi-Fi hotspot. 

Additionally, entrepreneurs should be able to identify areas where internet access is limited or expensive to maximize the business’s potential.

2. Videoke Machine Rental

Potential Monthly Earnings: Php 30,000 – Php 45,000

Videoke is a popular form of entertainment in the Philippines. It has become a staple at parties, family gatherings, and corporate events. 

The demand for videoke machines has created a business opportunity for entrepreneurs to provide rental services. The videoke machine rental business allows individuals and companies to rent videoke machines for a limited period of time.

Entrepreneurs can start this business with minimal investment in equipment and infrastructure. They only need to purchase or rent videoke machines and other equipment, such as microphones and speakers, to offer rental services.

The videoke machine rental business is best suited for entrepreneurs who are good at networking and marketing. The success of this business relies heavily on building a solid customer base and marketing the services effectively. 

They should also have a good understanding of the technology and equipment required to provide high-quality videoke services.

3. Costume Rental

Potential Monthly Earnings: Php 15,000 – Php 50,000

The demand for costume rental services is high in the Philippines, as many Filipinos enjoy dressing up in costumes for various events and celebrations.

One of the advantages of the costume rental business is the high demand for costumes in the Philippines. Filipinos are known for their love of festivals and celebrations, and many of these events require costumes. 

By offering a wide variety of costumes, entrepreneurs in this industry can take advantage of the high demand and generate a significant amount of revenue.

The costume rental business is best suited for entrepreneurs who are creative and passionate about fashion and design. 

Entrepreneurs with a good eye for design who can create unique and eye-catching costumes will have an edge over the competition. They should also have a good understanding of marketing and advertising to promote their services effectively.

4. Storage Rental

Potential Monthly Earnings: Php 50,000 – Php 150,000

The demand for storage rental services is high in the Philippines, as many Filipinos live in small apartments or houses with limited storage space.

One advantage of this business is the recurring revenue stream. Once a customer rents a storage unit, they are likely to use it for an extended period, generating a steady income for the business owner. 

Also, storage rental businesses can charge premium rates for climate-controlled units or extra security features like 24-hour surveillance cameras.

The storage rental business best suits entrepreneurs who understand the real estate industry. Entrepreneurs who can identify strategic locations for storage facilities and market their services effectively is a big plus. 

5. Airbnb Rental 

Potential Monthly Earnings: Php 28,000 – Php 100,000

The Airbnb rental business has the potential for high profitability. Property owners can generate a significant amount of revenue by renting out their homes or apartments on a short-term basis. 

They can also charge premium rates for properties located in popular tourist destinations or properties with unique features.

Another advantage of this business is the flexibility it offers to property owners. They can choose to rent out their property full-time or part-time, allowing them to earn income while still using the property for personal use. 

They can also set their own rental rates and establish rules for renters, giving them more control over their property.

3. Home-Based Online Small Businesses

Pros

One of the pros of a home-based online small business is the low start-up cost, which makes it accessible to aspiring entrepreneurs with limited capital. 

The convenience of running a business from home also allows for flexibility in terms of working hours and location, making it an attractive option for those who want to balance work and personal life.

Another advantage is the minimal overhead expenses since there is no need for physical space rental, utilities, and other related costs. Home-based online businesses can also target a wide range of markets as long as they have access to the internet.

Cons

The online market is highly competitive, and standing out from competitors can be challenging. 

This leads to the need for continuous learning and innovation and a strong understanding of digital marketing strategies to drive traffic and sales to the business.

Another disadvantage is the dependence on technology and a reliable internet connection, which can affect business operations. 

Also, the lack of human interaction and networking opportunities can be a challenge for those who thrive on face-to-face interactions.

The internet’s growth and technological advancements have allowed many Filipinos to start their own home-based online businesses. Here are some online business ideas that you can consider for your home-based venture.

1. Medical Transcription

Potential Monthly Earnings: Php 20,000 – Php 50,000

Medical transcription involves transcribing the audio files of doctors and other medical professionals into written documents. It’s an essential service that helps ensure accurate record-keeping of patient medical history, diagnoses, and treatment plans.

This business can be easily started with minimal capital investment, as all you need is a computer and a reliable internet connection.

The demand for medical transcription services is expected to grow in the coming years, driven by an aging population, increasing healthcare demand, and technological advancements. 

The business can be profitable, as medical transcriptionists are typically paid on a per-line basis, and rates can vary based on the complexity of the audio file.

To start a successful medical transcription business, you must have a keen understanding of medical terminology and excellent typing as well as listening skills. 

You should also be proficient in using transcription software and be able to work with a variety of audio file formats. It is also essential that you understand medical billing and coding, as this is often a related service that can be offered to clients.

2. Software and Mobile App Development

Potential Monthly Earnings: Php 50,000 – Php 200,000

Software and mobile app development is a booming industry in the Philippines. It is a great business idea for those passionate about technology and programming. 

The Philippines’ highly skilled and educated IT workforce provides cost-effective software development services for both local and international clients due to their proficiency in programming languages and software development frameworks. 

The business model involves outsourcing software development services involves contracting with a third-party provider in the Philippines to handle the development, maintenance, and support of software products or applications. 

The provider’s team of IT professionals works remotely to provide services such as custom software development, web and mobile app development, software testing and quality assurance, and technical support. 

This model allows companies to access high-quality IT services at a lower cost while focusing on their core business operations.

3. Online Selling

Potential Monthly Earnings: Php 10,000 – Php 100,000

Online selling allows businesses to reach a wider audience without needing a physical store. 

One of the advantages of online selling is the low start-up cost compared to traditional brick-and-mortar businesses. This makes it an ideal business for people who want to start their own business but have limited capital.

Another advantage of online selling is operating 24/7 without an additional workforce. 

With the help of e-commerce platforms like Lazada and Shopee, business owners can easily manage their online stores, process orders, and monitor their sales without needing a physical presence.

The key to online selling success is identifying a niche market and choosing the right products to sell. A strong social media presence is also important to promote the products and attract customers. 

While online selling has many benefits, it has its challenges. Competition can be fierce, and staying on top of market trends and customer preferences is critical to staying ahead of the competition. 

4. Vlogging

Potential Monthly Earnings: Php 5,000 – Php 500,000

Vlogging or video blogging has gained immense popularity in recent years as more and more people turn to the internet for entertainment, education, and inspiration. 

With the rise of video-sharing platforms such as YouTube, Facebook, and TikTok, it has become easier for individuals to create and share their video content. 

Vlogging involves creating videos that showcase a person’s experiences, knowledge, opinions, and perspectives on a particular topic or niche. It is a form of digital storytelling that allows people to connect with their audience more personally.

It can be lucrative for those passionate about creating video content and building an audience. Successful vloggers can earn money through ad revenue, sponsorships, affiliate marketing, and selling their own merchandise or digital products. 

To succeed in vlogging, it is crucial to identify a niche that you are passionate about and that has an engaged audience. Some popular niches include beauty and fashion, travel, food, technology, and personal development.

Vlogging requires some investment in equipment and software, such as a camera, microphone, video editing software, and a good internet connection. 

It also requires creativity, storytelling skills, and consistency in producing content. Vloggers must engage with their audience, respond to comments and feedback, and build a strong online presence through social media and other channels.

5. Dropshipping

Potential Monthly Earnings: Php 20,000 – Php 100,000

Dropshipping is a retail fulfillment method where an online store sells products, and the goods are shipped directly from the supplier or manufacturer. 

The store owner does not hold any inventory and only orders products from the supplier or manufacturer after the customer places an order. The supplier or manufacturer then ships the product directly to the customer.

One of the most significant advantages of dropshipping is the low overhead costs since the store owner does not need to invest in inventory or storage space. 

Another advantage is the ability to offer a wide array of products without the need to manage inventory or shipping logistics. 

Additionally, dropshipping allows for a flexible work schedule since store owners can work from anywhere as long as they have a computer and an internet connection.

To start a successful dropshipping business, it is important to research and find reliable suppliers with high-quality products. In addition, finding a profitable niche and selecting in-demand products can help increase the chances of success. 

Developing a user-friendly website with an intuitive and secure checkout process can also help improve the customer experience and lead to repeat business.

4. Health and Beauty Businesses

Pros

One of the advantages of this type of business is the high demand for health and beauty services. With a growing focus on self-care and personal grooming, many people are willing to pay for professional services that can help them look and feel their best.

Health and beauty businesses also offer opportunities to specialize in niche areas of the industry, such as hair styling, makeup artistry, skincare, and wellness. 

This allows entrepreneurs to differentiate themselves from competitors and potentially charge higher prices for their services. There is potential for repeat business and customer loyalty, as clients often require regular appointments.

Flexible scheduling and work arrangements are another advantage of health and beauty businesses. Entrepreneurs can often set their own schedules and work from home or a rented space, allowing for a better work-life balance. 

Furthermore, specialized services in the health and beauty industry have the potential for high-profit margins, particularly in niche markets.

Cons

Health and beauty businesses require significant investment in training and certification to provide high-quality services. 

Additionally, entrepreneurs must keep up with the latest trends and technologies to stay competitive, which may require additional training and education.

High competition in many areas of the health and beauty industry is another challenge, with many small businesses and established brands vying for market share. 

This means that entrepreneurs must invest in marketing and branding efforts to stand out from competitors.

Health and beauty businesses also heavily rely on personal skills and abilities, which can limit business growth. Entrepreneurs may struggle to scale their business if they are the sole provider of their services. 

In addition, entrepreneurs must invest in high-quality equipment and products, which can be expensive and impact profit margins.

From makeup, hair styling, and wellness services, there is a wide range of beauty and health businesses ideas to consider.

1. Beauty Salon/Barber Shop

Potential Monthly Earnings: Php 50,000 – Php 200,000

The demand for beauty salons and barber shops has been steadily increasing in the Philippines, making it a profitable venture.

There are different services that a beauty salon or barber shop can offer, such as haircuts, styling, coloring, and treatments. 

Additionally, they can provide services like manicures, pedicures, and facials. Offering a range of services will attract more customers and help build customer loyalty.

One key advantage of a beauty salon or barber shop business is that it can be operated at different scales. It can be run as a small, home-based business or a large enterprise with multiple branches. 

Depending on the entrepreneur’s preference, the business can also be operated full-time or part-time.

To make the business profitable, it is essential to ensure that the salon or barber shop is located in a high-traffic area where there is a lot of foot traffic. 

2. Hair and Makeup Services

Potential Monthly Earnings: Php 10,000 – Php 50,000

Many people need professional styling, whether for special events like weddings and proms or everyday purposes such as headshots and business events. 

By starting a hair and makeup service, you can tap into this demand and help people feel their best.

To get started, you will need to have the necessary certifications and equipment to provide hair and makeup services. This may include training in hair styling, makeup application, and tools like brushes, hair dryers, and curling irons. 

You may also need to invest in high-quality makeup and hair products to ensure that your clients look and feel their best.

One advantage of starting a hair and makeup service is that it can be a relatively low-cost business. You can start by offering your services to friends and family and gradually build up your clientele through referrals and marketing efforts. 

Over time, you can expand your business by hiring additional stylists and offering services like nail treatments or facials.

3. Spa/Massage Services

Potential Monthly Earnings: Php 20,000 – Php 100,000

The Philippines has a growing demand for wellness services, bolstered by a culture that values relaxation and self-care. 

There are several types of spas in the Philippines, including day spas, destination spas, and medical spas. Day spas are the most common, offering massages, facials, and body treatments. 

Destination spas offer similar services but are usually located in resorts or hotels. On the other hand, medical spas provide more specialized services like laser treatments, Botox injections, and other medical procedures.

You need to have a good location, excellent service, and a relaxing ambiance when starting a spa/massage therapy business. You should also ensure that your staff is well-trained and experienced in providing your services. 

4. Soap-Making Business

Potential Monthly Earnings: Php 10,000 – Php 50,000

Soap-making is an industry that has gained considerable momentum over the years due to the increasing demand for handmade, organic, and eco-friendly skincare products. 

Starting a soap-making business in the Philippines can be a great idea, as the country has a rich natural resource of coconut and palm oil, which are widely used in soap production.

Various soap-making classes and workshops can provide hands-on training and guidance on starting the business.

Soap-making businesses can be operated from home with minimal start-up costs and low overheads. Marketing can be done through social media platforms, and products can be sold online or at local markets. 

By focusing on natural ingredients and attractive packaging, soap makers can establish a loyal customer base that appreciates the benefits of organic skincare.

Of course, it is essential to know the materials and ingredients required for the production process, including the safety precautions.

5. BONUS: Other Service-Based Ideas

1. Sari-Sari Store

Potential Monthly Earnings: Php 10,000 – Php 20,000

A sari-sari store is a small convenience store commonly found in the Philippines. It typically sells a wide variety of products, including snacks, drinks, canned goods, toiletries, and household items. 

These are popular among Filipinos because they offer affordable and accessible products, especially for those living in rural areas where supermarkets are not readily available.

Starting a sari-sari store can be profitable as long as it is located in a strategic area and managed effectively. 

One advantage of a sari-sari store is its low overhead costs, making it a low-risk investment for those who want to start a small business. 

However, it is essential to consider factors such as location, competition, and the target market when setting up a sari-sari store.

To maximize profitability, sari-sari store owners need to be knowledgeable about their products, pricing, and inventory management. 

They should also establish good relationships with suppliers to ensure a steady supply of products at a reasonable cost. 

With good management, a sari-sari store can provide a steady source of income for the owner and contribute to the local economy by providing accessible products and services to the community.

2. Laundromats

Potential Monthly Earnings: Php 30,000 – Php 100,000

A laundry business can be a great business idea in the Philippines, especially in densely populated urban areas where many people seek convenience.

There are different types of laundry businesses, including drop-off services, coin-operated machines, and mobile laundry services. 

Drop-off services are popular, where customers drop off their laundry at the store and pick it up when it is ready. 

Coin-operated machines are suitable for high-traffic areas, such as apartment buildings. At the same time, mobile laundry services can offer convenience to busy customers who prefer their laundry to be picked up and dropped off.

Since laundry services are needed all year round, a laundry business has the potential for year-round profitability.

The key to this business’s success is offering customers competitive pricing and quality service. Promoting the business through flyers, online advertising, and word-of-mouth can also help to generate new business. 

Additionally, implementing eco-friendly practices like using energy-efficient equipment and biodegradable detergents can be an excellent way to attract environmentally-conscious customers and set the business apart from competitors.

3. Digital and Offset Printing Services

Potential Range Monthly Earnings: Php 20,000 – Php 100,000

Digital and offset printing are two of the most sought-after businesses in the printing industry, as the demand for printed materials remains high despite the growth of digital media.

The digital printing process uses digital files to produce high-quality prints. In contrast, offset printing uses plates to transfer ink onto paper. 

These processes produce various printed materials such as brochures, business cards, flyers, banners, and other marketing materials.

Establishing partnerships with other businesses, such as event planners and advertising agencies, can help expand the customer base and increase revenue. 

4. Computer and Cellphone Repair Services

Potential Range Monthly Earnings: Php 10,000 – Php 50,000

Computer and cellphone repair services are in high demand today as almost everyone owns at least one electronic device. 

With the high cost of purchasing a new device, repairing them has become a more affordable and practical option. This is where computer and cellphone repair services come in.

Starting a computer and cellphone repair business requires technical knowledge of different electronic devices, the ability to diagnose problems, and the skills to repair them. 

These services, which can be provided in-store or on-site, include repairing damaged screens, replacing batteries, fixing software issues, and more.

5. Personal Shopper Service

Potential Monthly Earnings: Php 5,000 – Php 50,000 

A personal shopper is someone who shops for another person based on their preferences and needs. This business idea has gained popularity recently as people have become increasingly busy and are looking for ways to simplify their lives. 

As a personal shopper, you can offer a range of services, from shopping for clothes and accessories to groceries and gifts.

One of the advantages of starting a personal shopping business is that you can start with minimal investment. You only need a computer, phone, and transportation to get started!

You can also work from home, which means you can save on rent and other expenses. Additionally, the business can be flexible, and you can choose your own working hours.

Personal shopping services can be profitable as it can offer a higher fee for a specific service. You can charge a fee for your time, a percentage of the total purchase, or a combination of both. 

In addition, you can build a loyal client base, which can lead to repeat business and referrals.

6. Residential/Commercial Cleaning Services

Potential Monthly Earnings:  Php 15,000 – Php 25,000

Residential and commercial cleaning services are essential in keeping living and working spaces clean and hygienic. 

These types of businesses involve the provision of professional cleaning services for residential homes, offices, and other commercial spaces. 

The business model typically involves offering cleaning services on a one-time or recurring basis. Clients may include individuals, businesses, and property management companies.

The demand for cleaning services has increased in recent years due to the busy lifestyle of many people, making it difficult for them to perform regular cleaning tasks. 

---

Starting a business requires hard work, dedication, and willingness to take risks. You can turn your passion into a living and thriving enterprise with the right idea, mindset, and support. 

If you have any thoughts or suggestions on other profitable small business ideas in the Philippines, feel free to share them in the comments below!