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Number of Establishments: Ge-Em: Entrepreneurial Mind CHAPTER 5: Encouraging Entrepreneurship in The Philippines

The document summarizes statistics about small and medium enterprises (MSMEs) in the Philippines from the Philippine Statistics Authority for 2018. It finds that 99.52% of all business establishments are MSMEs, with most being micro enterprises. The top industries for MSMEs are wholesale/retail, accommodation/food, and manufacturing. Most MSMEs are located in the National Capital Region and regions 3, 4, 6, and 7. Together MSMEs generate 63.19% of national employment. MSMEs also account for 25% of national exports, often through subcontracting or supplying larger exporters.

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53 views1 page

Number of Establishments: Ge-Em: Entrepreneurial Mind CHAPTER 5: Encouraging Entrepreneurship in The Philippines

The document summarizes statistics about small and medium enterprises (MSMEs) in the Philippines from the Philippine Statistics Authority for 2018. It finds that 99.52% of all business establishments are MSMEs, with most being micro enterprises. The top industries for MSMEs are wholesale/retail, accommodation/food, and manufacturing. Most MSMEs are located in the National Capital Region and regions 3, 4, 6, and 7. Together MSMEs generate 63.19% of national employment. MSMEs also account for 25% of national exports, often through subcontracting or supplying larger exporters.

Uploaded by

Yeho Shua
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© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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GE-EM: ENTREPRENEURIAL MIND

CHAPTER 5: Encouraging Entrepreneurship in The Philippines

Number of Establishments

The 2018 List of Establishments of the Philippine Statistics Authority (PSA) recorded a total of
1,003,111 business enterprises operating in the country. Of these, 998,342 (99.52%) are MSMEs and
4,769 (0.48%) are large enterprises. Micro enterprises constitute 88.45% (887,272) of total MSME
establishments, followed by small enterprises at 10.58% (106,175) and medium enterprises at 0.49%
(4,895).

Sectoral Distribution

The top five (5) industry sectors according to the number of MSMEs in 2018 were: (1) Wholesale and
Retail Trade; Repair of Motor Vehicles and Motorcycles (461,765); (2) Accommodation and Food
Service Activities (144,535); (3) Manufacturing (116,335); (4) Other Service Activities (66,162); and (5)
Financial and Insurance Activities (46,033). These industries accounted for about 83.62% of the total
number of MSME establishments.

Geographical Spread of MSMEs

Majority of the MSMEs can be found in the National Capital Region (NCR) with 203,312 (20.36%)
business establishments, Region 4-A (CALABARZON) with 148,196 (14.84%), Region 3 (Central
Luzon) with 116,073 (11.63%), Region 7 (Central Visayas) with 70,395 (7.05%), and Region 6 (Western
Visayas) with 61,590 (6.17%). These top five (5) locations accounted for about 60.05% of the total
number of MSME establishments in the country. Regional concentration of MSMEs is largely
associated with economic activity and population size.

Employment

Together, these MSMEs generated a total of 5,714,262 jobs or 63.19% of the country’s total
employment. The micro enterprises produced the biggest share (28.86%) closely followed by small
enterprises (27.04%) while medium enterprises were far behind at 7.29%. Meanwhile, large enterprises
generated a total of 3,328,801 jobs or 36.81% of the country’s overall employment.

In terms of regional distribution, majority of the jobs are generated by MSMEs in the National Capital
Region (NCR) with 1,621,685 jobs; followed by MSMEs in Region 4-A (CALABARZON) with 824,283;
Region 3 (Central Luzon) with 605,056; Region 7 (Central Visayas), 449,775; and Region 6 (Western
Visayas), 318,467.

By industry sector, MSMEs in the Wholesale and Retail Trade; Repair of Motor Vehicles and
Motorcycles sector generated the most number of jobs with 2,040,774 followed by Accommodation and
Food Service Activities (882,455), Manufacturing (767,831), Financial and Insurance Activities
(316,226), and Education (301,970).

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: https://www.dti.gov.ph/dti/index.php/2014-04-02-03-40-26/news-room/179-workshop-on-market-
access-for-MSMe-set
-End of Chapter 5-

Prepared by:

Louella Martina B. Era, BSPA


Faculty, College of Business and Accountancy
[email protected]

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