15 Small Business Ideas in the Philippines You Can Start With Small Capital

15 Small Business Ideas in the Philippines You Can Start With Small Capital

For sure, aspiring entrepreneurs have come up with several small business ideas that they can start in the Philippines, given that our country has a lot of small businesses and they contribute a huge percentage to our economy.

Starting a business can be an exciting undertaking and a great step towards financial freedom, but many people are hesitant to do it because they think it requires a big chunk of capital.

The truth is that you can start a business with as little as a few thousand pesos. This blog will discuss fifteen small business ideas in the Philippines that you can start with small capital, but can easily grow into something big.

15 Small Business Ideas in the Philippines

1. Sari-sari Store

Capital needed: Php10,000-Php50,000

Probably the most typical small business idea in the Philippines is a sari-sari store. 

This type of business is quite simple to start up because you can build your own storefront in front of your home. 

You may sell just about any kind of products that Filipinos require for daily life, from cooking oil to shampoo. You may even open a loading operation within the shop to get more cash.

Or you can take your sari-sari store to the next level and launch an online grocery store where your customers can purchase directly on your website and have the products delivered right to their doorstep.

2. Homemade Palamig Business

Capital needed: Php500-Php5,000

One of the best small capital business ideas in the Philippines is selling ice-cold beverages. 

Palamig is a hit for Filipinos, especially during summer but it can be offered all year long especially if you live close to a place of worship, a school, or a business or office complex.

Or if you can stretch your budget up to Php10,000, you can start an online milk tea business, which is really popular among Gen Z and millennials today.

3. Cellphone Loading Business

Capital needed: Php1,000-Php5,000

One of the easiest small business ideas to put up that requires a small amount of capital. 

Don’t expect to make much money from this endeavor, though, unlike other small business ideas in the Philippines. 

If you have a cellphone loading business, you receive a commission from each transaction that ranges from 3% to 13% of your earnings.

4. Home-Cooked Meals

Capital needed: Php1,000-Php8,000

One of the small business ideas you can do at home in the Philippines is selling home-cooked food, especially if you enjoy cooking. 

Although it takes time, you only need Php1,000 to start this business. You can start by advertising them online and cooking meals only on a made-to-order basis.

5. Face Mask Business

Capital needed: Php2,000-Php11,000

Face masks are now a necessity for individuals all around the world due to the Covid-19 pandemic’s onslaught.

With a small amount of investment, you can get your face mask business up and running in no time. 

You can produce face masks using simple materials. About 15 face masks may be made from a yard of 44-inch wide fabric, which sells for between Php120 and Php150 per yard. 

The cost will, of course, differ based on the fabric type.

This is a great way to make some extra money or set up a small business in the Philippines, even with limited capital.

6. Barbeque Stand Business

Capital needed: Php2,000-Php5,000

Typically, your front yard is the ideal site for a barbeque stand or ihawan business, especially if you live in a busy neighborhood with lots of foot traffic. 

Customers for your BBQ stall may include your own neighbors, commuters, or random onlookers.

You can lower your capital depending on what you want to sell and grill—be it  isaw, betamax, or adidas.

You can also take this small business idea up a notch and sell some grilled burgers in the Philippines. It is a popular comfort food among Filipinos that is “better than fast food”.

7. Online Tutoring Business

Capital needed: Php2,000-Php30,000

With the rise of online learning, there’s a growing demand for tutors who can provide quality instruction and support to students studying online.

This is a great small business idea in the Philippines because you can work with students from all over the world, which gives you the opportunity to build a global clientele. 

Plus, all you need to get started is a computer, a quality webcam, headphones, and a stable internet connection (assuming you’re already knowledgeable about the subject you’ll be tutoring), so there’s no need for a large sum of capital.

And because you can work from anywhere, you can operate your business entirely online, which makes it a very convenient and flexible option.

8. Cake and Pastry Business

Capital needed: Php3,000-Php5,000 (if you already have the equipment)

A cake and pastry business may be the best small business idea in the Philippines for you if you like baking during your free time. 

This type of business can be run from home, making it a low-cost option to get started. 

And with the right recipes and some creativity, you can create delicious and eye-catching cakes and pastries that will have your customers coming back for more.

9. Plant Shop

Capital needed: Php5,000-Php15,000

Another small business idea in the Philippines that you can start with a small capital is a plant shop. It requires relatively little upfront investment, and with a little creativity, you can turn it into a thriving business.

To get started, you’ll need a selection of plants, pots, and other supplies. Here are some examples:

  • Cacti and succulents – 30 pieces for under Php2,000
  • Marigolds – Php50 each
  • Forget-me-nots – Php100 each
  • Orchids – Php130 each
  • Caladiums and snake plants – Php100 to Php200 
  • Aglaonema, money plants, and fortune plants – less than Php500 each.

Once you have your inventory, you can start selling to customers both online and in person. 

If you’re selling online, consider setting up a shop on an eCommerce platform like Prosperna. You can easily set up your own website without coding skills in a matter of minutes.

10. Fruit and Vegetable Business

Capital needed: Php5,000-Php15,000 

This small business idea in the Philippines is a great way to get started in the food business with little to no overhead costs. 

Aside from the fact that there are several producers of fruits and vegetables in the country, setup is simple and quick. 

You can begin with a small stall at a farmers’ market or a roadside stand. Or run an online delivery system where your products can be delivered straight to your customer’s doorstep.

Sell Filipino favorites, including apples, mangoes, and bananas. Or trade cauliflower, broccoli, lettuce, sweet potatoes, carrots, seedless grapes, etc. to a more niche market like vegetarians or health enthusiasts.

11. Beauty Products Reselling Business

Capital needed: Php5,000-Php20,000

If you love makeup and beauty products but lack the funds to create your own brand, then reselling them can be a great small business idea in the Philippines. 

With a small amount of capital, you can buy products from established beauty supply stores or online retailers and then resell them at a markup to your customers. 

This business can also be run entirely online and reach a wide audience of potential customers through online marketplaces or an all-in-one eCommerce platform.

However, this market is already a little bit crowded, so you’ll need to be able to differentiate your health and beauty business

Try to:

  • Research and find out what products are popular, and then source them from reliable suppliers. 
  • Offer products that are of high quality and in demand.
  • Provide competitive prices and good customer service, and you’ll soon build up a loyal customer base.

12. Web Design Business

Capital needed: Php5,000-Php30,000

If you’re creative, have an eye for design, and have a good understanding of HTML and CSS, a web design business might be the best small business idea in the Philippines for you. 

You can start with a small investment of time and money. Then grow your business at your own pace, either through online advertising, social media, or word-of-mouth. 

13. Delivery Courier Services

Capital needed: Php5,000-Php80,000

As more Filipinos choose to purchase online, the demand for delivery services in the country is growing. 

With this type of small business idea in the Philippines, it is important to have a reliable vehicle and insurance in case of any accidents.

Customers view delivery as an integral aspect of their purchasing experience; therefore, your courier service must handle packages carefully while in transit and make on-time deliveries to keep your customers happy.

14. Online Ukay-Ukay Business

Capital needed: Php10,000-Php30,000

This is one of the best small business ideas in the Philippines because you can easily source affordable yet fashionable ready-to-wear clothes anywhere, especially from Taytay or Divisoria.

You can then sell it on Facebook, Instagram, or online marketplaces like Lazada, Shopee, Carousell, or eBay. 

You can also set up your own website and find success in online ukay-ukay business with the help of Prosperna’s All-In-One eCommerce platform. It gives you the ability to reach a wide audience of potential customers. 

With an online store, you can sell to people all over the world, rather than being limited to selling locally.

You can even put your own personal touch on your branding and be creative and stylish in your business. 

15. Meat Shop

Capital needed: Php15,000-Php20,000

A meat store is a good option if you reside in an area where the market is rather distant. Take processed meats like tapa, tocino, longganisa, and others as a starting point. 

Price them reasonably to provide a healthy profit margin.

Also, for only Php20,000 in startup capital, you can easily begin selling poultry meat. Simply include pork and beef as your business expands.


Do small businesses in the Philippines pay taxes?

Any individual or corporate taxpayer who engages in business is eligible to apply for BMBE certification under the BMBE Act of 2002 as long as their total assets do not exceed P3 million. In addition to having access to financial aid, training, and technology transfer, they are free from the minimum wage and income tax laws.

Are business permits required for small businesses?

Whether it is a sole proprietorship, standard domestic corporation, one corporation (OPC), or partnership, it will be necessary to secure a business permit for the business. Also, the business permit requirement will apply irrespective of the type of business model.

Final Thoughts

It can be a bit overwhelming to start your own business. If the idea of raising large amounts of money has kept you from starting your own business, try the small business ideas above and grow from there.

The great thing about it is that they’re all low-cost (all under P50,000), so you can start your business even if you’re on a tight budget.

Additionally, if finding a physical location is a concern of yours, remember that you can always start online. Not only is it more convenient, but with the help of an eCommerce platform like Prosperna, it’s easy to set up as well.

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Dennis Velasco

Dennis Velasco

Dennis Velasco is the CEO and Founder of Prosperna, an all-in-one eCommerce platform for Philippine businesses. As a technology evangelist at heart, Dennis is super passionate about helping MSMEs "level the playing field" with technology. Feel free to connect with him on Facebook and LinkedIn.

Dennis Velasco

Dennis Velasco is the CEO and Founder of Prosperna, an all-in-one eCommerce platform for Philippine businesses. As a technology evangelist at heart, Dennis is super passionate about helping MSMEs "level the playing field" with technology. Feel free to connect with him on Facebook and LinkedIn.

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