Strong growth and optimism among small businesses in the Philippines

• Small businesses show strong growth momentum and optimism for 2026.
• Technology investments are paying off.
• Access to external funding remains a challenge.

SINGAPORE, April 13, 2026 /PRNewswire/ -- Small businesses in the Philippines are entering 2026 with strong momentum and optimism, according to the latest annual Asia-Pacific Small Business Survey by global professional accounting body CPA Australia.

The survey found that 79 per cent of Philippines' small businesses reported growth in 2025, the strongest result since 2019 and the fourth-highest among the 11 markets surveyed.

Looking ahead, confidence among small businesses in their own prospects remains exceptionally strong. 89 per cent expect their businesses to grow in 2026, the highest growth expectation across all surveyed markets.

This positive outlook reflects underlying strengths within Philippines' small business sector. This includes a strong focus on customers, innovation, export opportunities and the positive impact of younger entrepreneurs.

Nearly 47 per cent of small business owners are under the age of 40, above the survey average of 38 per cent. Survey data consistently shows that younger business owners are more likely to pursue high-growth strategies such as adopting digital tools, investing in innovation, engaging with overseas markets and improving customer satisfaction.

Rufus Pinto, CPA member and Group Head of Enterprise Services at BDO UniBank said: "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."

Although small businesses in the Philippines lag some developing economies in overall technology adoption, those that invested are seeing clear benefits.

The survey found that 68 per cent of small businesses reported that technology investments improved profitability in 2025, surpassing the survey average of 56 per cent.

Digital payment adoption remains lower than most developing economies, with 73 per cent of small businesses receiving at least 10 per cent of sales through digital payment platforms. Cash transactions continue to play a significant role, with 77 per cent of businesses receiving at least half of their sales in cash, the highest percentage among the surveyed markets.

Despite these gaps in digital adoption, the strong profitability outcomes suggest that technology investments remain an important driver for enhanced efficiency and competitiveness among small businesses.

Access to finance continues to be a key challenge for small businesses in the Philippines.

About 64 per cent of small businesses required external funding in 2025, broadly in line with the survey average of 61 per cent. However, the Philippines was ranked as the least easy market for small businesses to access finance among those surveyed, a challenge that is expected to persist in 2026.

This may limit the ability of some small businesses to invest in technology or upskill their workforce. The findings also highlighted that business owners are more likely to seek advice from trusted personal networks rather than professional advisers. This may partly reflect the challenges associated with accessing external financial support.  

Erwin Vincent G. Alcala, CPA member and Trustee of Saint Paul School of Professional Studies – Leyte and St. Peter's College – Ormoc City emphasized: "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."

Overall, the survey findings suggest that while small businesses in Philippines are navigating global headwinds, their strong growth outlook, optimism, entrepreneurial mindset and willingness to innovate position them well for the year ahead.

About the survey

CPA Australia's 17th annual Asia-Pacific Small Business Survey was conducted among small business owners/senior managers during November and December 2025 to identify the characteristics of successful small businesses across the region. The findings for the survey come from 4,166 small businesses in 11 markets. From the commencement of the survey in 2009, we have surveyed over 50,000 small businesses across the region. These include Australia, Mainland China, Hong Kong SAR, India, Indonesia, Malaysia, New Zealand, Philippines, Singapore, Taiwan region and Vietnam.

About CPA Australia

CPA Australia is Australia's leading professional accounting body and one of the largest in the world. We have more than 176,000 members in over 100 countries and regions. Our core services include education, training, technical support and advocacy. CPA Australia provides thought leadership on local, national and international issues affecting the accounting profession and public interest. We engage with governments, regulators and industries to advocate policies that stimulate sustainable economic growth and have positive business and public outcomes. A CPA is a Certified Practising Accountant. More at cpaaustralia.com.au

SOURCE CPA Australia