Government Grants and DTI Startup Assistance

How Entrepreneurs Can Access Public Support to Launch and Scale in the Philippines

Introduction: The Philippine Government’s Growing Commitment to Startups

In the last decade, the Philippines has made significant strides toward building a supportive environment for startups. Recognizing that entrepreneurs are key drivers of economic development, innovation, and job creation, the government — particularly through the Department of Trade and Industry (DTI) — has developed a wide range of initiatives to help early-stage businesses succeed.

These programs are not only open to Filipino nationals, but many are also accessible to foreign entrepreneurs who choose to build their businesses in the country. From seed grants and capacity-building workshops to international exposure and incubation programs, public-sector support has become a powerful ally for startups across the archipelago.

In this article, we’ll explore the most relevant government grants and DTI-led startup support programs available in the Philippines today.

Part 1: Overview of the DTI’s Role in the Startup Ecosystem

What is the Department of Trade and Industry (DTI)?

The DTI is a cabinet-level agency of the Philippine government responsible for promoting trade, industry, and investment. Over time, its mandate has expanded to include support for micro, small, and medium enterprises (MSMEs), including startups.

Startup Development Program (SDP)

DTI’s flagship effort to support tech startups falls under the Startup Development Program (SDP), which includes:

• Capacity-building seminars and training

• Financial grants and innovation vouchers

• Market access support

• Inclusion in startup expos and overseas pitching events

• Mentorship from successful entrepreneurs

This program operates under DTI’s Competitiveness and Innovation Group (CIG) and collaborates with other agencies like DICT and DOST.

Part 2: Government Grants Available to Startups

1. Startup Grant Fund (SGF)

Launched in collaboration with the Department of Science and Technology (DOST), the SGF provides non-dilutive grants to early-stage startups that need support in building prototypes or preparing for commercialization.

• Amount: PHP 500,000 to PHP 1 million

• Eligibility: Tech-based startups with working MVPs

• Process:

  • Submit business proposal to DOST regional office

  • Pass technical panel evaluation

  • Sign MOA and begin project implementation

This is especially useful for startups in science, agriculture, fintech, healthtech, and manufacturing sectors.

2. SSP (Startup Support Program for Startups)

DTI launched the SSP under Republic Act No. 11337 (Innovative Startup Act), offering financial support for:

• Office space rental

• Internet and utility subsidies

• Travel grants for international exposure

• Training expenses

Startups may apply through recognized Startup Enablers like accelerators, incubators, or universities.

3. DTI OTOP Program for Product-Based Startups

OTOP (One Town, One Product) is ideal for startups developing consumer goods such as food, fashion, or wellness products.

• Offers design enhancement, branding support, and trade fair access

• Run by DTI regional offices, often in coordination with LGUs

• Open to both sole proprietors and corporations

While not a cash grant, OTOP assistance can drastically reduce go-to-market costs.

4. Livelihood Seeding Program (for Non-Tech Startups)

For startups serving rural or underserved areas, the Negosyo Serbisyo sa Barangay program provides:

• Starter kits

• Capital infusion

• Training and mentorship

• Available even to informal entrepreneurs transitioning to formal business

Part 3: Government-Backed Incubation and Acceleration

1. QBO Innovation Hub

Though technically a public-private partnership, QBO (pronounced “kubo”) is supported by DTI, DOST, and IdeaSpace. It provides:

• Bootcamps for early-stage founders

• Incubation programs with mentor support

• Coworking spaces and access to investors

• Specialized tracks (e.g., for female founders, social impact startups)

Foreigners can participate as long as they are registered and operating in the Philippines.

2. FABLABs and Regional Innovation Centers

DTI and DOST jointly support a network of FabLabs (Fabrication Laboratories) and R&D innovation centers across provinces. These centers provide:

• 3D printing, prototyping tools, and digital fabrication machines

• Training in product development and design thinking

• Access to local mentors and university R&D support

Ideal for hardware, design, and manufacturing startups.

3. DTI Global MSME Academy

This is a virtual and physical training platform offering:

• Free webinars, workshops, and online courses

• Modules on e-commerce, logistics, finance, and export readiness

• Certificates that can strengthen future funding applications

Startups aiming to scale regionally can benefit from the academy’s export mentoring programs.

Part 4: How Foreign Entrepreneurs Can Benefit

Legal Eligibility

Foreigners may legally register a business in the Philippines if:

• They own less than 40% of a company in sectors on the Foreign Investment Negative List, OR

• They invest at least $200,000 USD as a 100% foreign-owned enterprise

Startups operating in export, tech, or BPO spaces can qualify for full foreign ownership with lower capital requirements.

Access to Programs

• Foreign-owned startups registered with the SEC or DTI may apply for DOST/DTI programs.

• Participation in QBO, IdeaSpace, or regional startup hubs is open regardless of nationality.

• However, some financial grants may prioritize or require Filipino-majority ownership.

Visas and Residency

• Start-Up Visa (in development): Under Republic Act 11337, a special startup visa for foreign founders is being developed to attract more international entrepreneurs.

• Special Resident Retiree Visa (SRRV) and Special Investor’s Resident Visa (SIRV) are alternatives.

Part 5: Additional Government Partners Supporting Startups

1. DICT (Department of Information and Communications Technology)

• Runs the Digital Startup Development Program

• Focus on cybersecurity, e-government, and emerging tech

• Organizes hackathons, online training, and innovation grants

2. DOST (Department of Science and Technology)

• Main driver of R&D grants

• Manages TAPI (Technology Application and Promotion Institute)

• Supports tech transfer and commercialization of inventions

3. PhilDev Foundation

Though non-governmental, it partners with USAID and DTI to offer:

• Startup bootcamps for university teams

• Seed funding for high-impact social enterprises

• Tech4ED and Build to Scale programs for rural innovation

Part 6: How to Apply for Government Startup Assistance

Step-by-Step Guide

1. Identify the Right Program

   • Are you product-based, tech-based, or service-based?

   • Do you seek funding, mentoring, or facilities?

2. Register Your Business

   • DTI (for sole proprietors) or SEC (for corporations)

   • Secure BIR TIN, Mayor’s Permit, Barangay Clearance

3. Prepare Documentation

   • Business plan or pitch deck

   • Company profile, registration papers

   • MVP (for tech grants) or product samples (for OTOP)

4. Apply via Regional DTI or Partner Incubator

   • Some programs require endorsement from a “Startup Enabler”

   • Schedule interviews, pitch sessions, or site validation visits

5. Report Progress

   • After receiving support, submit monthly/quarterly reports

   • Compliance increases eligibility for future programs

Part 7: Real-World Examples of Government-Backed Startups

1. Edukasyon.ph

Received support from QBO and DOST to build a scalable edtech platform now used by millions of students.

2. Cropital

Agritech social enterprise backed by PhilDev and IdeaSpace, helping connect farmers to investors.

3. Bantay Bukid

Community-driven environmental startup in Davao supported by local LGU and DTI for their eco-tourism initiatives.

These startups benefited not only from funding, but also from mentorship, national exposure, and inclusion in international startup showcases.

Part 8: Opportunities and Challenges Ahead

Opportunities

• Increased Budget: The 2024 national budget allocates more funds for MSME and startup support.

• Startup Visa Rollout: Could attract more global talent and investors.

• Digital Transformation Push: Government is incentivizing tech adoption in key industries.

Challenges

• Bureaucracy: Application processes can be complex or delayed.

• Awareness: Many founders, especially in provinces, are unaware of programs.

• Fragmentation: Different agencies = different rules and paperwork.

Conclusion: A Growing Ecosystem with Real Support

For entrepreneurs looking to start or scale in the Philippines, the government offers a surprisingly rich ecosystem of support — from grants and training to infrastructure and global exposure.

Whether you’re a Filipino founder with a bold idea or a foreign innovator exploring Southeast Asia, programs from DTI, DOST, DICT, and their partners can provide the boost you need.

✅ Start with a clear idea.
✅ Register properly.
✅ Apply with purpose.
✅ Deliver results — and more support will come.

The Philippines is ready to support its next wave of entrepreneurs. Will you be one of them?