32 Micro and Small Business Ideas You Can Start with Low Capital in 2021
Published: June 22, 2021 | Updated: July 21, 2021 | Posted by: Moneymax | Personal Finance
Because of social media and the changing interests of consumers, demand for products and services continues to grow. Filipinos are more open to new brands and establishments, allowing the business industry to flourish more quickly. In fact, over 99% of registered businesses in the Philippines are micro, small, and medium enterprises (MSMEs). This number may have grown during the lockdown as more small businesses launched online.
Table of Contents
- Small Business Ideas in the Philippines You Can Start with 10k
- Small Business Ideas in the Philippines You Can Start Under 20k
- Small Business Ideas in the Philippines You Can Start Under 50k
- Small Business Ideas in the Philippines You Can Start Under 100k
- Have a Bigger Budget? Here are More Negosyo Ideas
- Final Thoughts
Small Business Ideas in the Philippines You Can Start with 10k
Homemade Beverage or Palamig Business
Start-up cost: PHP 500 to PHP 5,000
Items to invest in: Ingredients, purified water, containers, plastic bottles
Selling ice-cold drinks is one of the low-cost yet profitable negosyo ideas in a tropical country like the Philippines. Ice-cold milk teas, coffees, and fruit drinks are a hit during summer, but can be sold all year round. For as low as PHP 500, you can start selling your drink concoction.
Start-up cost: PHP 1,000 to PHP 8,000
Items to invest in: Meal ingredients, plastic containers, kitchenware
Selling home-cooked meals is one of the most enjoyable low capital business ideas, especially if you have a passion for cooking. It’s time-consuming, but you would only need a capital as low as PHP 1,000 for this business.
You can advertise your meals online on social media for a start and only cook meals on a made-to-order basis.
Cellphone Loading Business
Start-up cost: PHP 5,000 to PHP 8,000
Items to invest in: Basic phone, retailer SIM card, starting balance of PHP 5,000
Perhaps one of the easiest small business ideas to put up is a cellphone loading business. For as low as PHP 5,000, you can start earning at home or even at the office.
However, unlike other small business ideas in the Philippines, don’t expect to earn much from this venture. As a load retailer, you get your earnings through a commission, which can be 3% to 13% per transaction. For example, a prepaid load worth PHP 50 may deduct PHP 47 from your load wallet, leaving you with a PHP 3 profit, depending on your chosen telecommunications company.
Small Business Ideas in the Philippines You Can Start Under 20k
Fruit and Vegetable Business
Start-up cost: PHP 5,000 to PHP 15,000
Items to invest in: Fruits and vegetables for selling, packaging, weighing scale, business phone
If you’re looking for small capital business ideas in the Philippines, try selling fruits and vegetables. Aside from the fact that there are many fruits and vegetable suppliers in the country, it’s easy and quick to set up. You can also start one under PHP 20,000.
Whether you’ll have a physical fruit and vegetable store or an online one, you just need to have the goods, price them accordingly, and start selling. Stock up on Pinoy favorites like mangoes, bananas, and apples. Make sure to sell the most commonly used vegetable ingredients as well.
If you wish to cater to a more specific clientele (vegetarians, health buffs, etc.), you can also sell their top fruit and veggie essentials like cauliflower, broccoli, lettuce, sweet potatoes, carrots, seedless grapes, and many more.
Start-up cost: PHP 15,000 to PHP 20,000
Items to invest in: Meats to sell, freezer, knives, weighing scale
If you live in an area where the market is a bit far away, a meat shop can be one of the best small business ideas for you this 2021. You can start with processed meats like tapa, tocino, longganisa, and more with prices that will also give you a good profit margin.
For a small investment of PHP 20,000, you can also start selling poultry meat, and then just add in pork and beef when your business grows.
Start-up cost: PHP 5,000 to PHP 15,000
Items to invest in: Plants to sell, pots, soil, planting tools
Do you love plants and know how to propagate them successfully? One of the best small capital business ideas in the Philippines that you can explore is selling plants.
If you have adequate space in an accessible area, like near main roads, you can put up your own nursery or plant shop and display your plants for sale there. You can also have an online plant shop. Less space is required, and you’ll still reach your target customers online who enjoy urban gardening.
Start small with cactus and succulents. You can get around 30 pieces for less than PHP 2,000 from a good supplier. If you scout for a good supplier outside Metro Manila, you can get a good deal on the most popular plants in the Philippines (marigolds for PHP 50 each, Forget Me Nots for PHP 100 each, or orchids for PHP 130 each). Caladiums and snake plants can be bought for PHP 100 to PHP 200. You can also get fortune plants, money plants, and aglaonema for less than PHP 500 each.
Consider the care requirements as well when choosing which plants to sell. Start with a few plants that you know will do well and have a big market.
Lugaw / Arroz Caldo/ Goto Business
Start-up cost: PHP 2,000 to PHP 11,000
Items to invest in: Ingredients and takeaway packaging
Lugaw, arroz caldo, and goto are undoubtedly among the most favorite comfort foods of Filipinos. Not only are they easy to prepare. They’re also delicious and made with affordable ingredients.
If you have a special lugaw, arroz caldo, or goto recipe that you know will be a hit, then start selling and earning from it. Sell from home or set up an online store to reach more customers. You can make it as special as you want with all the delicious toppings, or just serve the classic and traditional style that everyone loves and enjoys.
Barbecue Stand / Ihawan Business
Start-up cost: PHP 5,000 to PHP 15,000
Items to invest in: Food to be grilled, sauces, charcoal, stainless grill, tongs, barbeque sticks, takeaway packaging
Usually, the best location for a barbecue stand or ihawan business is right outside your home. Especially if you live in a busy area with a lot of foot traffic. Your customers can be your own neighbors, or even commuters or people who happen to pass by your barbecue stand.
Depending on what you want to sell and grill, your capital can be even lower. For example, if you want to sell isaw, betamax, or adidas, you can already start with a capital of PHP 3,000.
If you want to sell pork cut meat, chicken, or seafood, then you’ll need to have a much bigger investment. Always go for a good supplier with high quality products. Moreover, work on your marinades and dipping sauces―they’re usually what customers keep coming back for!
Milk Tea Business
Start-up cost: PHP 6,000 to PHP 15,000
Items to invest in: Electric sealer, film sealer, cups, milk tea shaker, straws, milk tea ingredients and syrups, measuring cups and scoops
Love milk tea? Now, you can have your own milk tea business with less than PHP 20,000.
The great thing about milk tea is that it’s popular all year round. And Filipinos find it hard to resist a delicious and refreshing milk tea when they’re thirsty, hungry, or both!
There are many sellers online offering milk tea business packages, complete with equipment, utensils, and supplies. You can set up shop at home or have a small stall or cart built. Take orders online and offer both pickup or delivery options. It’s really up to the scope and size of your milk tea business.
Face Mask Business
Start-up cost: PHP 2,000 to PHP 11,000
Items to invest in: Tight weave cotton fabric, elastic, sewing materials
Do you love making something functional yet beautiful with your hands? Why not make handmade washable face masks as a business?
For face masks, invest in tightly woven cotton fabric as a material to make them more effective against droplets. You can choose different kinds of patterns or designs that will appeal to your target market. Maybe choose prints with kawaii characters that children will love, or bold prints for the creative types, or classic and understated colors for those who like simple and minimalist designs.
A yard of 44-inch wide fabric can make around 15 face masks, and it costs around PHP 120 to PHP 150 per yard. The price will vary depending on the type of fabric, of course. But don’t forget to price your time, too. Whether it took you five minutes or 30 minutes to make one face mask, make sure to factor in your skill and speed.
Small Business Ideas in the Philippines You Can Start Under 50k
Beauty Products Reselling Business
Start-up cost: PHP 5,000 to PHP 20,000
Items to invest in: Beauty products for reselling, smartphone
The country’s beauty industry is worth a whopping PHP 152 billion and is expected to reach PHP 213 billion by 2023. If you’re a beauty enthusiast but don’t have a huge capital to start your own brand, you can resell beauty products instead.
With a budget of PHP 5,000, you can start reselling products from more popular brands like Skin Magical, Human Heart Nature, Avon, and Ryx Skincerity. This is one of the easiest businesses you can start with PHP 50,000 or less at home.
Online Tutoring Business
Start-up cost: PHP 2,000 to PHP 30,000
Items to invest in: Computer, quality web camera, headphones, microphones
Thanks to the internet, learning has become more accessible even in the comforts of our home. With an online tutoring business, you can teach students and budding enthusiasts via Zoom or Skype. Take advantage of this business idea now that we’re mostly staying at home.
It is one of the small business ideas in the Philippines perfect for teachers, musicians, and artists who would like to share their knowledge with a large audience. Assuming you have the expertise, all you need to start this business is a computer, a good quality webcam, headphones, and a stable internet connection.
Piso Wi-Fi Vending Machine
Start-up cost: PHP 17,000 to PHP 30,000
Items to invest in: Internet hotspot device and unlimited broadband plan
It isn’t an exaggeration to say that Filipinos can’t live without an internet connection—we spend an average of 10 hours and 56 minutes online per day, according to the Digital in 2021 report. This makes a Piso Wi-Fi business one of the best small business ideas in the Philippines.
Enterprising people can take this as an income-earning opportunity by running a Piso Wi-Fi business that provides an affordable internet connection. This is one of the negosyo ideas that are cheaper to set up than an internet cafe. Simply purchase a coin-operated internet vending machine that serves as a hotspot and charge a fee per minute/s of internet use. For example, your rate could be PHP 1 per 5 minutes, PHP 5 per 30 minutes, or PHP 10 per hour.
Sales of a Piso Wi-Fi business can go anywhere from PHP 6,000 to PHP 40,000 a month.
Start-up cost: PHP 20,000 to PHP 30,000+
Items to invest in: Vlogging camera, microphone, tripod, video editing software
Do you have a knack for hosting or storytelling? Be a vlogger—earn income using your talent and a few video production equipment with only a small capital.
You can start vlogging with a smartphone that can shoot high-resolution videos, create interesting content, and share your video on YouTube, Instagram, or your personal blog. Your content can be anything you’re passionate about, like travel, humor, or sports. Or you may want to share advice to fellow moms, makeup tutorials, or whatever you think is worth sharing.
To earn income through vlogging, sign up for a Google Adsense account and start earning from ads displayed on your videos.
Web Design Business
Start-up cost: PHP 5,000 to PHP 30,000
Items to invest in: Computer, design software
You can start a web design business and cater to startup companies wanting to build their own websites. You can also offer your services to individuals who want their own websites for personal use. This is one of the simplest small business ideas in the Philippines that you can start at home.
If you already have the industry experience and skills, the startup cost can be as low as PHP 5,000 for additional tools you may need. Profit for this business ranges from PHP 20,000 to PHP 50,000, depending on your client.
Online Fashion Boutique
Start-up cost: PHP 15,000 to PHP 35,000
Items to invest in: Products for reselling, camera, smartphone, stable internet connection
Clothes, shoes, bags, accessories, and beauty products are among the most sought-after items by online shoppers. You can explore starting your own buy and sell business.
Find cheap yet trendy RTW clothes from Taytay Tiangge or Divisoria, for instance, and then sell them via Facebook, Instagram, or online marketplaces like Lazada, Shopee, Carousell, or eBay. You can also set up your own website using an e-commerce platform like Shopify.
Invest in a camera that takes high-quality photos, so the products on your website will attract prospective customers.
Cake and Pastry Business
Start-up cost: PHP 3,000 to PHP 5,000 if you already have equipment / PHP 30,000 to PHP 40,000 if you still have to invest in equipment and materials
Items to invest in: Oven, mixer, cake pans, cupcake liners, decorating tools, cooling rack, measuring spoons, mixing bowls
Do you like baking during your free time? Why not turn this hobby into a profitable business? A cake and pastry business is a great way to earn money at home. With capital as low as PHP 3,000, you can create tasty bread and pastry you can sell online.
Start by determining your target market and identifying your specialty. Don’t forget to find a supplier who can provide ingredients at a low price and build a Facebook or Instagram page to help you advertise your business.
Bills Payment Business
Start- up cost: PHP 5,000 to PHP 45,000
Item to invest in: Point-of-sale (POS) device
Great small business ideas in the Philippines solve customers’ biggest pain points, like not having to go to payment centers to pay bills or send money.
You can run a digital payment business offering bills payment, remittance, and mobile e-loading services to your neighborhood. This business with low capital can earn you an average monthly income of PHP 10,000 and recoup your investment from one to eight months.
If you already own a sari-sari store, eatery, internet shop, or any small business, this is a great way to boost your income.
Personal Shopping Services
Start-up cost: PHP 10,000 to PHP 45,000
Items to invest in: Smartphone, laptop, vehicle
Often called “pasabuy,” personal shopping is popular among customers who don’t want to go out to shop. As a personal shopper, you’ll be asked to look for and buy specific items—from simple grocery products to bulkier items such as furniture. Personal shoppers charge between 10% to 15% of the total purchase price.
To start a personal shopping business, you need to know your way around malls and other shopping establishments. You also need to invest in a vehicle such as a motorcycle to make transportation a little bit easier. You can advertise your services on Facebook groups, or you can create a website for your business.
Small Business Ideas in the Philippines You Can Start Under 100k
Bicycle Shop Business
Start-up cost: PHP 50,000 and up
Items to invest in: Bicycles, bicycle parts, tools
While the Philippines isn’t as bicycle-friendly as other countries, the demand for bicycles is growing, especially since cycling is now viewed as a safe and efficient travel mode in the new normal.
Aside from selling bicycles, you can offer rentals, repair, and tools. The capital for this kind of small business starts at PHP 100,000, depending on what products and services you want to offer. Setting up your shop in a high foot traffic area or near a biking destination can help boost your chance for profit.
Start-up cost: PHP 70,000 and up
Items to invest in: Cleaning products and equipment
There is a steady demand from customers for a car wash service. This is a great business idea if you know your way around cars and auto detailing. You can set up a car wash business in an area with high foot traffic to maximize your business’ potential growth. A car wash is one of the negosyo ideas ideal for car lovers.
Start-up cost: PHP 5,000 to 80,000+
Items to invest in: Smartphone, motorcycle, or bicycle
Demand in delivery services in the country continues to increase as more and more people choose to shop online. Consumers consider the delivery as part of their shopping experience, so it’s important that a courier takes care of the parcels during transit and deliver them on time.
This type of small business idea can have you spending PHP 5,000 to PHP 80,000 on one vehicle needed for deliveries. You can partner with an online shop to deliver its items or advertise your services on social media.
Have a Bigger Budget? Here are More Negosyo Ideas
Meal Plan and Delivery
Start-up cost: PHP 30,000 to PHP 100,000
Items to invest in: Kitchenware, plastic containers, meal ingredients, delivery vehicle
Release the inner chef in you and turn your food passion into a profitable business with a meal plan and delivery business. You can target busy professionals who don’t have the time to cook healthy and tasty meals, even when working from home.
You can offer weekly meal plans with three dishes delivered every day for seven days. The startup cost for small business ideas in the Philippines like this one can go as much as PHP 100,000, depending on the meals you plan to offer and the equipment you need to cook meals.
Home Cleaning and Repair Services
Start-up cost: PHP 50,000 to PHP 100,000
Items to invest in: Cleaning and repair tools, disinfectants, protective gear
You can start a cleaning and repair business that caters to professionals leading a fast-paced lifestyle. Some of the services you can offer are appliance repair services, housekeeping, and even plumbing.
Aside from tools, disinfectants, and protective gear, you may need the necessary training to do home repairs and housekeeping. It can cost a significant amount, but there are online classes you can take for free such as the ones offered by TESDA.
Hair and Grooming Home Services
Start-up cost: PHP 50,000 and up
Items to invest in: Hair products, quality grooming equipment
A home service salon is perfect if you’re a hairdresser wanting to start their own business. Aside from haircuts, you can offer treatments like hair coloring, rebonding, and perming.
Some of the products you need to get for this business are hair products and quality grooming equipment. You should also be updated about the latest hairstyle trends to better serve your customers and their grooming needs.
Graphic Design and Video Editing Business
Start-up cost: PHP 70,000 to PHP 150,000
Items to invest in: Graphic tablets, design software, PC or laptop
The rise of Filipino Youtube influencers and vloggers means there is also a growing need for graphic design and video editing. You can use your creativity in design and video editing to start a small business.
With a budget starting PHP 70,000, you can tap startup businesses here and abroad for their multimedia needs. Aside from editing and design skills, you need to invest in a powerful computer, graphic tablets, and industry-standard graphic programs for this business. It’s one of the small business ideas in the Philippines that require an extra set of skills.
Local Grocery Store Business
Start-up cost: PHP 70,000 to PHP 200,000
Items to invest in: Grocery items, shelves, plastic bags, label makers, refrigerator
A local grocery store is like a sari-sari store, only bigger. This business idea can set up back between PHP 70,000 to PHP 200,000, depending on the store’s size and location. However, its profit margin is 20 to 30% if the business is booming.
You can set up a local grocery store in an area where the local market is quite far. You can also offer services like online shopping and delivery to stand out from the traditional local grocery stores.
T-Shirt Printing Business
Start-up cost: PHP 80,000 to PHP 200,000
Items to invest in: Computer, printer for pigment ink, printer for sublimation ink, heat press, silkscreen line table, rotary press, flash dryer, frames, squeegees, t-shirts
It’s easy to earn from a t-shirt printing business, especially if you already have connections within companies and organizations. Apart from customized tees, you can also focus on printing office uniforms, jerseys, hoodies, and canvas bags.
However, before putting up this kind of business, it is best to learn different printing methods (digital printing, silkscreen, direct to garment) for a more specialized venture. You can start your business in a spacious garage at home or rent a small commercial space.
Laundry Shop Business
Start-up cost: PHP 70,000 to PHP 250,000
Items to invest in: Washing machines, dyers, baskets, detergents
A laundry shop offering pickup and delivery services is a perfect small business idea in the Philippines if you live near condominiums and business districts. Despite working from home, individuals may find it hard to squeeze in household chores during office hours.
Laundry shops typically charge PHP 150 to PHP 250 for 8kg of laundry, including washing, drying, and folding. Pickup and delivery may incur delivery charges, but you can offer this service for free as a promotion deal.
For your reference, here is a laundry shop business plan sample:
- Decide on a type of laundry business. Do you want a laundromat or a wash and fold service?
- Think about your business name. Brainstorm and choose a catchy yet unique business name.
- Write a business plan. Create a comprehensive overview and actionable plan for your laundry business.
- Find a location. This is very important. Apart from location, choose a commercial space with good plumbing and water line hook ups.
- Register your business. You need to prepare for this step whether you’re franchising or starting a laundry business on your own.
- Get the proper permits and licenses. You’ll need a business permit from both the mayor and barangay of your chosen location.
- Get the proper equipment. A huge chunk of your capital will go to this so prepare and budget wisely.
- Market your laundromat. Take advantage of free platforms like Facebook and Instagram when promoting your laundry shop business.
Pest Control Services
Start-up cost: PHP 100,000 to PHP 250,000
Items to invest in: Pest extermination equipment, pest control products, protective gear
Pests exist everywhere and can compromise our health and sanitation. A pest control service helps eliminate these unwanted pests, protecting households and businesses from infestation. You can offer fumigation, termite control, and rodent control to residential and commercial customers with one of these small business ideas in the Philippines.
Food Cart Franchise
Start-up cost: PHP 50,000 to PHP 300,000
Items to invest in: Whatever item you think can improve your business. Franchisers usually provide equipment and initial supplies to help start this kind of business.
Food carts offering one or two products typically start at a franchise fee of PHP 50,000, which includes equipment, training, and marketing support. More popular food cart franchises can cost as much as PHP 300,000.
When investing in a food cart business, choose a location with good foot traffic such as malls, terminals, and cafeterias. Also, don’t forget to secure an emergency fund for unforeseen circumstances. Remember that real profit only comes in once you’ve earned the money you’ve invested in your franchise fee.
Water Refilling Station
Start-up cost: PHP 100,000 to PHP 350,000
Items to invest in: Water refilling machine, slim water bottles, round water bottles, heat gun, stickers, delivery vehicle
If you find a place with no water station or is far from one, take the opportunity and put up a water refilling business. There is a high demand for clean and drinkable water, especially in rural areas.
With a budget of PHP 100,000 you can franchise a water refilling station like Crystal Clear or Bluewaters. Starting your own brand, on the other hand, can cost as much as PHP 350,000. The investment is worth the money, though. Water is highly profitable and does not expire unlike other products in the market.
Find any small business ideas in the Philippines that suit you? Which businesses made it to your top ten best small business ideas? With strategy and creativity, you can be your own boss even with low capital.
But before setting up a business, determine your target market. Make sure to explore different negosyo ideas that not only suit your needs but are also highly profitable. Once you do that, you can use your savings as capital. Or you can find a business loan with competitive rates to help you raise funds for your small business.
Fund Your Small Business with a Personal Loan
Kickstart your small business with the help of a personal loan. Compare your options and apply for free at Moneymax!
-  Small businesses, big economic impact (Inquirer.net, 2020)
-  Cosmetics & toiletries industry in Philippines forecast to be worth US$4.2bn in 2023, says GlobalData (GlobalData, 2019)
-  Filipinos remain most active internet, social media users globally — study (Inquirer.net, 2021)
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