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The document summarizes key statistics about micro, small, and medium enterprises (MSMEs) in the Philippines from a 2019 report. It states that 99.5% of businesses in the Philippines are MSMEs, with most being micro enterprises. The top five industry sectors for MSMEs are wholesale/retail, accommodation/food, manufacturing, other services, and finance. Most MSMEs are located in the National Capital Region, CALABARZON, Central Luzon, Central Visayas, and Western Visayas. MSMEs generate 62.4% of national employment.

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Mary Grace Monforte Baligod
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54 views7 pages

Submitted To - M-WPS Office

The document summarizes key statistics about micro, small, and medium enterprises (MSMEs) in the Philippines from a 2019 report. It states that 99.5% of businesses in the Philippines are MSMEs, with most being micro enterprises. The top five industry sectors for MSMEs are wholesale/retail, accommodation/food, manufacturing, other services, and finance. Most MSMEs are located in the National Capital Region, CALABARZON, Central Luzon, Central Visayas, and Western Visayas. MSMEs generate 62.4% of national employment.

Uploaded by

Mary Grace Monforte Baligod
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as DOCX, PDF, TXT or read online on Scribd
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Submitted to: Mr.

Pacito Moneda Sto Tomas

Submitted by: Mary Grace Monforte Baligod


Essay:

1. One of the most obvious ways in which businesses differ is their size. Most of us know
some businesses that are very small – one-person businesses or micro-businesses of
fewer than five people. Examples may include a single person running, for example, a
web design company, a hairdresser’s or a small catering business, or a small retailer,
such as a craft shop or a florist, employing just one or two other people. Small and
medium-sized enterprises actually make up over 90% of the number of businesses in
most countries (although they do not employ over 90% of all employees or make over
90% of all business deals). At the other end of the scale are businesses that are very
large – multinational corporations employing thousands of people and operating in
many different countries. We are familiar with at least the names of some, such as
Microsoft, Samsung, Siemens, Renault, and many more both well-known and less well-
known large corporations. And then there are many businesses of all sorts of sizes in
between.In small and medium-sized enterprises (SMEs) employ fewer than 250
people. ... SMEs are further subdivided into micro enterprises (fewer than 10
employees), small enterprises (10 to 49 employees), medium-sized enterprises (50 to
249 employees). Large enterprises employ 250 or more people.

2. Sole Proprietorship is type of business entity that is owned and run by one individual
– there is no legal distinction between the owner and the business. Sole Proprietorships
are the most common form of legal structure for small businesses.General
Partnership,an association between two or more people in business seeking a profit.
Partnerships can be created with little formality, but because more than one person is
involved, a partnership agreement should be created. A partnership agreement
stipulates the terms of the partnership by formalizing rules for profit/loss sharing,
ownership percentages, dissolution terms, and management rights among many other
things.Limited Liability Company (LLC) A hybrid between a corporation, general
partnership, and sole proprietorship. Owners of an LLC are called members. Members
may include individuals, corporations, other LLCs and foreign entities. Most states
permit an LLC with only one owner, called a “single member LLC.”Corporations (C-Corp
and S-Corp).Corporations are the most complex business structure. A corporation is a
legal entity that is separate and independent from the people who own or run the
corporation, namely shareholders. A corporation has the ability to enter into contracts
separate from that of the shareholders, but it also has certain responsibilities such as
the payment of taxes. Corporations are generally more appropriate for larger
established companies with multiple employees or when other factors apply (i.e.
corporation sells a product or provides a service that could expose the business to
sizable liability). Ownership is designated by issuing shares of stock .

3. First, manufacturing organizations produce physical, tangible goods that


can be stored in inventory before they are needed. By contrast, service
organizations produce intangible products that cannot be produced ahead
of time.Manufacturers can separate the production of a product from its
actual use, whereas the actual performance of a service typically occurs at
the point of consumption, differences between service and manufacturing
organizations: the tangibility of their output; production on demand or for
inventory; customer-specific production; labor-intensive or automated
operations; and the need for a physical production location. However, in
practice, service and manufacturing organizations share many
characteristics. Many manufacturers offer their own service operations and
both require skilled people to create a profitable business.

4.Wholesale trade is concerned with buying goods from manufacturers or


dealers or producers in large quantities and selling them in smaller
quantities to others who may be retailers or even consumers. Wholesale
trade is undertaken by wholesale merchants or wholesale commission
agents.Retail trade is concerned with the sale of goods in small quantities
to consumers. This type of trade is taken care of by retailers. In actual
practice, however,manufacturers and wholesalers may also undertake
retail distribution of goods to bypass the intermediary retailer, by which
they earn higher profits.

5.The Agriculture, Forestry & Fishing sector comprises establishments


primarily engaged in growing crops, raising animals, harvesting timber, and
harvesting fish and other animals from a farm, ranch, or their natural
habitats. The establishments in this sector are often described as farms,
ranches, dairies, greenhouses, nurseries, orchards, or
hatcheries.Agricultural support activities include establishments that
perform one or more activities associated with farm operation, such as soil
preparation, planting, harvesting, and management, on a contract or fee
basis. Excluded from the Agriculture, Forestry, Hunting and Fishing sector
are establishments primarily engaged in agricultural research and
establishments primarily engaged in administering programs for regulating
and conserving land, mineral, wildlife, and forest use.
ACTIVITY

The 2019 List of Establishments of the Philippine Statistics Authority (PSA)


recorded a total of 1,000,506 business enterprises operating in the country.
Of these, 995,745 (99.5%) are MSMEs and 4,761 (0.5%) are large
enterprises. Micro enterprises constitute 89% (891,044) of total MSME
establishments, followed by small enterprises at 10% (99,936) and medium

enterprises at 0.5% (4,765).

MSME by establishments

Sectoral Distribution

The top five (5) industry sectors according to the number of MSMEs in 2019
were: (1) Wholesale and Retail Trade; Repair of Motor Vehicles and
Motorcycles (462,492); (2) Accommodation and Food Service Activities
(144,024); (3) Manufacturing (115,387); (4) Other Service Activities
(65,918); and (5) Financial and Insurance Activities (46,100). These
industries accounted for about 83.35% 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 202,011 (20.2%) business establishments, Region 4-A (CALABARZON)
with 148,017 (14.8%), Region 3 (Central Luzon) with 115,877 (11.6%),
Region 7 (Central Visayas) with 70,227 (7%), and Region 6 (Western
Visayas) with 61,513 (6.1%). These top five (5) locations accounted for
about 59.7% of the total number of MSME establishments in the country.
Regional concentration of MSMEs is largely associated with economic
activity and population size.
Employment/ Distribution

Together, these MSMEs generated a total of 5,510,760 jobs or 62.4% of the


country’s total employment. The micro enterprises produced the biggest
share (29.8%) closely followed by small enterprises (25.2%) while medium
enterprises were far behind at 7.4%. Meanwhile, large enterprises
generated a total of 3,315,575 jobs or 37.6% 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 1,538,106 jobs; followed
by MSMEs in Region 4-A (CALABARZON) with 797,399; Region 3 (Central
Luzon) with 586,508; Region 7 (Central Visayas), 431,056; and Region 6
(Western Visayas), 307,831
By industry sector, MSMEs in the Wholesale and Retail Trade; Repair of
Motor Vehicles and Motorcycles sector generated the most number of jobs
with 1,984,227 followed by Accommodation and Food Service Activities
(805,081), Manufacturing (747,114), Financial and Insurance Activities
(307,316), and Education (303,314).

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.

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