Registered business names down 7% in September

In September, the number of business names registered with the Philippine Department of Trade and Industry (DTI) declined by 7% compared to the same period last year, according to DTI data. The total number of registrations fell to 68,677, down from 73,705 in September 2022. Of these, 60,140 were new business names, while 8,537 were renewals.

The wholesale and retail trade sector, which includes repair of motor vehicles, motorcycles, and personal goods, saw the highest number of filings at 34,343. Accommodation and food service activities came in second with 9,723 registrations, followed by manufacturing with 4,244 filings.

Economist Michael Ricafort of Rizal Commercial Banking Corp. suggested that the decline in business name registrations could be due to weather disruptions, slower economic growth, and higher interest rates and prices caused by the ongoing Middle East conflict. He noted that from January to September, the number of registered business names increased by 7% to 916,523, indicating potential organic growth in sales and earnings for major companies and nationwide expansion.

Ricafort also mentioned that improved government infrastructure spending could stimulate the economy and create jobs, leading to more business opportunities. However, he cautioned that risks such as the super El Niño and the minimum wage in Metro Manila may negatively impact new business openings or result in business closures. Ricafort believed that the increased business activities during the Christmas holiday season, which is typically the busiest in a year, would generate more business opportunities.