The Mistakes European Companies Make When Entering the Philippines

About the authors

Melboy Pangan

Table of Contents

When we advise European founders and CEOs on Philippine market entry, the story is almost always the same:
They underestimate the cultural gap — not the business opportunity.

The Philippines is promising but highly relational, meaning market entry is as much about people as it is about strategy.

Here are the most common mistakes we see among EU firms expanding into the Philippines:

1. Assuming European speed and structure will translate directly

European leaders expect:

  • clear deadlines
    • direct communication
    • consistent follow-through
    • independent decision-making

The Philippines operates with:

  • relational decision-making
    • indirect communication
    • harmony over confrontation
    • greater need for guidance

This is not incompetence.
It is culture.

And culture always wins over process — unless the strategy accounts for it.

2. Misinterpreting silence and politeness as agreement

One Dutch client once told us, “They said yes in the meeting but nothing happened.”

We explained that “yes” in the Philippines often means:

  • “I heard you”
    • “I respect you”
    • “I don’t want conflict”
    • “I am not ready to share my concern”

This is why European firms struggle.

Market entry requires cultural translation, not just operational planning.

3. Choosing partners based on credentials, not trust

The Philippines has many “middlemen,” “consultants,” and “connectors.”

EU firms often choose:

  • whoever responds first
    • whoever speaks confidently
    • whoever has titles or networks

But the Philippines runs on credibility, not CVs.

We help EU firms:

  • vet partners
    • validate capabilities
    • understand reputational risk
    • build sustainable relationships

Good partners accelerate market entry.
Wrong partners destroy it.

4. Underestimating government and regulatory nuances

European firms are often surprised by:

  • longer processing times
    • layered approvals
    • informal steps
    • the importance of personal rapport

We help companies map this entire process realistically so they don’t lose time, money, or momentum.

If you want to enter the Philippine market with confidence and cultural clarity, we can guide you end-to-end.

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