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STATISTICS ON MSMEs: AN OVERVIEW OF THE STATUS OF

SMALL BUSINESSES IN THE PHILIPPINES

Number of Establishments

As of 2006 count, there are 783,065 business enterprises operating in the Philippines. Of these:
 Micro, small, and medium enterprises (MSMEs) - 99.7% (780,469)
o Micro enterprises - 92% (720,191)
o Small - 7.3% (57,439)
o Medium - 0.4% (2,839)
 Large enterprises - 0.3% (2,596)

Sectoral Distribution

Of the 780,469 MSMEs in operation in 2006:

 Wholesale and retail trade industries - 391,215 business establishments
 Manufacturing - 116,361
 Hotels and restaurants - 97,926
 Real estate, renting, and business activities - 45,293
 Community, social, and personal services - 44,658

These industries accounted for about 89.1% of the total number of SME establishments.

Top 5 sub-industries in the manufacturing sector in terms of MSME establishments in 2006:

 Manufacture of food products and beverages - 55,007 establishments
 Manufacture of wearing apparel - 15,623
 Manufacture of fabricated metal products except machinery and equipment -12,986
 Manufacture and repair of furniture - 7,188
 Manufacture of other non-metallic mineral products - 5,143.

These sub-industries accounted for 82.4% of the total number of MSMEs in the manufacturing
sector.

Geographical Spread of MSMEs

Of the number of MSMEs in operation in 2006:

 National Capital Region (NCR) - 194,549 business establishments
 Region 4-A (CALABARZON) - 113,581
 Region 3 (Central Luzon) - 84,175
 Region 6 (Western Visayas) - 46,195;
 Region 1 (Ilocos) - 44,085.

These top five (5) locations accounted for about 61.8% of the total number of MSME
establishments in the country.

Prepared by: Mar B. Cruz

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Employment

MSMEs generated a total of 3,327,855 jobs in 2006 versus 1,657,028 for the large enterprises. This
indicates that MSMEs contributed almost 70% of the total jobs generated by all types of business
establishments that year. Of these:
 micro enterprises - 33.5% or 1,667,824 jobs
 small enterprises - 25.7% or 1,279,018
 medium enterprises - 7.6% or 381,013

By industry sector, MSMEs in the:

 Wholesale and retail trade - 1,181,525 jobs
 Manufacturing - 644,927
 Hotels and restaurants - 427,153
 Real estate, renting, and business activities - 242,122
 Education - 180,265

By geographical scope, MSMEs in the:

 National Capital Region (NCR) - 1,173,464 jobs
 Region 4-A (CALABARZON) - 452,168
 Region 3 (Central Luzon) - 311,226
 Region 7 (Central Visayas) - 219,937
 Region 6 (Western Visayas) - 184,398

Sales and Census Value-Added

MSMEs contribute around 30% of the total sales and census value-added in the manufacturing industry,
according to the National Statistics Office (NSO) 1994 documents.

Exports Contribution of MSMEs

MSMEs account for 25% of the country’s total exports revenue*. It is also estimated that 60% of all
exporters in the country belong to the MSME category. MSMEs are able to contribute in exports through
subcontracting arrangement with large firms, or as suppliers to exporting companies.

*Source: Bridging the Gap: Philippine SMEs and Globalization, Small Enterprises Research and Development Foundation
(SERDEF), Inc., and UP-ISSI, 2001

Source: http://dti.gov.ph/dti/index.php?p=321

Prepared by: Mar B. Cruz