19 Jul Investing in Cagayan de Oro City: Booming Reasons and Businesses to Start Your Own Business Ideas in CDO
If anyone needs serious reasons for anyone to invest in Cagayan de Oro or start their own business ideas in the city, there are at least three that can be cited.
In the Entrepreneur Magazine’s February 2015 issue, Cagayan de Oro was one of three cities cited in a feature article titled, “Three Surprising Cities and Boom Towns That are Best for Business” (Victoria Vizacarra). The findings are based from studies by the KMC MAG Group, an International Associate of Savills and an award-winning real estate firm in the Philippines. The findings surprisingly found that the local government’s five-step business processing time for registration, licensing, and permits to average just over 51 minutes.
CDO also has a high employment rate of 94.4 percent, higher than the Manila and national average. This is mostly thanks to new investments and businesses that numbered 17,973 as of 2011 alone. The city’s unique population and also plays a key role; though numbering only 602,000 as of a 2010 census, the average Cagayanon worker is young and college educated, thanks again mostly to its 4 universities and other major colleges.
This population is also fed by migration and workers from all over Northern Mindanao, also coming from quality universities and colleges in the region that easily pushes the population number to a million. With more investments coming in annually, some 6,904 new jobs are created and filled up.
The United Nation’s Human Settlement’s Programme (UN Habitat) named Cagayan de Oro as an “emerging city of tomorrow” during the World Urban Forum in Colombia last May 2014. CDO was the only Philippine city to be cited in the top 10, ranking 9th overall. The main reason cited was the growing real estate property business in the city that was keeping pace with the city’s growing population of nearly 700,000 and seen to approach a million due to influxes from Northern Mindanao areas. Also cited was the fast acceleration of new businesses and industries at an annual growth rate of 9.2 percent.
In 2013, the NCC, or National Competitiveness Council, named Cagayan de Oro as the most competitive city in 2012 and 2013, out of a total of 50 cities in the Philippines. Aside from being number 1 in this category, CDO also came out 3rd in governance efficiency, 3rd in infrastructure, and 7th in economic growth. Because of Cagayan de Oro in general, Northern Mindanao became 7th overall for regional economy in the Philippines.
If the abovementioned isn’t enough to get you going, perhaps these top business and investment sectors in CDO will give you further reason:
Laguindingan International Airport
Though cited as an international airport, the newly opened Laguindingan Airport (June 15, 2013) is still undergoing expansion and growth, giving locals and franchises ample business opportunities within and without the airport.
Compared to the old Lumbia Airport that it replaced, business opportunities are better, and with expansion coming to truly accommodate international flights comes the opportunities for restaurants, cafes, “pasalubong” and souvenir shops, and other small businesses that can be accommodated from within.
Outside, more businesses can be set up.
The business possibilities look endless as this international airport will grow each year to serve the air travel and air freight needs of Northern Mindanao.
Business Processing and Outsourcing
Referred to as the “BPO” sector, Cagayan de Oro’s business processing and outsourcing sector has been one of the fastest growing sectors in the city’s economic growth.
From just 3 registered companies in 2009, that number is up to 10 as of 2014.
Amazingly, only four are national or foreign owned, the rest being local investors that have tapped the young IT graduates from the city’s schools to form their own IT and Web Development companies that serve foreign based clients.
Food Service, Retail, and Service Sector Businesses
Admittedly, the biggest growth comes from these sectors which took advantage of the rise and expansion of the city’s four major malls and its surrounding areas.
Coupled with this is the economic growth of urban residential areas such as Puerto, Lapasan, Kauswagan, Bulua, and Upper Carmen and Carmen proper, which are all seeing a rise in the number of food service, retail, and service businesses.
For instance, S & R Membership Warehouse Shopping will soon be opening a branch in Bulua, this even after the failed warehouse shopping venture of Makro in Kauswagan, which was eventually taken over by Savemore Grocery.
CityMall Commercial Center will also be opening a new mall complex in Bulua. Both are expected to start construction in two months. Both business ventures opens up more opportunities in the surrounding areas for such businesses as boarding houses, house rentals, small eateries, fast food chains, convenience stores, and other service oriented small businesses.
Corrales Avenue and the so-called “Mall Belt”
Along Corrales Avenue and Extension, many people already notice the mushrooming of restaurants, eateries, cafes, convenience stores, motorcycle shops, and even hostels and hotels.
This again, opens up more opportunities for locals, franchisers, and investors to open up a business on one of the city’s fastest growing avenues, one that was so residential and quiet some 10 years ago.
And who doesn’t know the up and coming second SM Mall that has begun construction at the former site of the Coca-Cola plant along C.M.
Recto Avenue/National Highway, just a stone’s throw away from the Limketkai Center. With the targeted opening of this SM Mall, C.M. Recto Avenue, from the corner of Apolinar Velez Street all the way to the Lapasan Agora Road/Recto Avenue crossroads will become what is so far being termed as the “mall belt” since three of the city’s four malls are already located in this area.
These four examples have been mentioned here because by far they offer the widest range of business possibilities for both locals and investors. However, there are other features and possibilities in the city if you only scout around for business opportunities. In fact, the growing number of local businesses sprouting around is a testament that anything is possible if you just put your mind and effort into it.