Google Philippines’ study reveals the enormous potential of digital businesses.
According to economics consultancy firm AlphaBeta, if given the opportunity to establish a business with minimum capital through a digital platform, Filipinos might earn PHP5 trillion by 2030.
The business recently completed research for Google Philippines that looked at the economic impact of digital technologies, particularly in non-tech sectors.
“According to a study, the pandemic has effectively pushed the digital revolution forward by five years internationally, allowing the Philippines to surf the next digital wave.” According to the AlphaBeta report released to the public on October 19, 2021, “it is critical for policymakers to recognize the potential economic benefit of technological applications for the Philippines and the necessary efforts to attain it.”
Digital transformation, if effectively utilized, has the potential to unlock PHP5 trillion (USD101.3 billion) in yearly economic value by 2030.
“Technologies that help businesses mitigate the economic repercussions of the Covid-19 epidemic and other similar events” might account for PHP3.5 trillion, according to the paper.
To fully realize its digital promise, the government should focus on three areas of action, according to the study: improving digital skills training and education, speeding digital adoption and innovation, and boosting digital trade prospects.
Google Philippines director Bernadette Nacario stressed the importance of digital adoption in unlocking new opportunities and gaining resilience in the post-pandemic future at the media briefing.
She believes that, in addition to its immediate economic effects, the pandemic will have long-term consequences for three aspects of the Philippine economy: the emergence of a hybrid workplace that supports digital freelancing, the acceleration of the shift to digital payments, and severe disruptions to small business operations.
“By giving businesses access to global markets, equipping them with digital capabilities to conduct electronic transactions, and allowing them to work remotely,” she continued, “technology can help businesses manage the long-term economic implications of the Covid-19 pandemic while remaining resilient against future similar events.”
Services and tools
Entrepreneurs whose businesses grew amid the height of quarantine restrictions last year, according to Nacario, used Google’s accessible tools and services.
“We are humbled that higher sales and millions of internet connections bring over PHP578 billion in annual benefits to local businesses, consumers, and the wider society,” she said.
Germano’s Chilli, which began in 2008 to recreate the sensation of eating the chili garlic sauce in restaurants at home, was one of the firms that benefited from the digital training program.
At the time, the concept was novel, and the company struggled to build brand awareness.
Owner Gerome Panlilio admitted that it was difficult for him to break into the larger merchant sector when he first started, but that he improved his techniques after attending a Google Philippines conference in 2018.
On Google Search and Maps, he was introduced to the free Business Profile (previously Google My Business).
His products became discoverable on Google Search thanks to the free function, increasing awareness, and driving queries for Germano’s Chilli.
“The epidemic tested our business, but we were able to adapt and service clients online utilizing the information and tools I learned at Google’s training class.” In reality, export demand for my products remains consistent, and sales in large supermarkets continue to perform well,” Panlilio said, according to Google Philippines.
Germano’s Chilli’s internet sales peaked at 3% before the pandemic, but they’ve risen to 15% in the last year and a half.