Business name registration in pandemic year 2020 rose 48.69 percent as economic difficulties drove Filipinos to think of ways to augment income.
Data from the Department of Trade and Industry (DTI) showed that business name registration, the first step in starting a single proprietorship business, during the pandemic year reached 916,163 from 637,577 in 2019.
Notably, the growth was led by sole proprietorships that intend to go into online retail business. Of the total business name registration, 88,574 approved registrations were for online businesses. This reflected a whopping 5,294 percent growth from only 1,642 online businesses that registered in 2019.
As of March 15 this year, DTI business name registration for online businesses already reached 7,525 or 8.5 percent of the total business name registration in 2020.
DTI Undersecretary Ruth B. Castelo said the growth in online retail businesses is driven by demand for online shopping.
“Most consumers are now opting for online retail shopping instead of going to physical stores for fear of infection. We have seen the constant rise of online transactions over the last several years. Together with the increase in the number of online shoppers come the increase in the number of registered online businesses,” said Castelo.
Castelo expressed hope that online businesses will respect and fulfill their obligation to consumers to deliver exactly what is purchased and to make sure that they have an effective after sales service provided. The DTI is also strengthening its rules and enforcement against unscrupulous traders engaged in online retailing.
“This will help increase consumer confidence not only in their business but also in online shopping and eCommerce in general,” she said.