Number of Establishments
Based on 2014 figures provided by the Philippine Statistics Authority (PSA), there are 946,988 establishments in the Philippines. Of these, 99.6% (942,925) are micro, small, and medium enterprises (MSMEs) and the remaining 0.4% (4,063) are large enterprises. Of the total number of MSMEs, 90.3% (851,756) are micro enterprises, 9.3% (87,283) are small enterprises, and 0.4% (3,886) are medium enterprises.
Majority of the 942,925 MSMEs in 2014 are in the wholesale and retail trade; repair of motor vehicles and motorcycle industries with 437,205 business establishments; accommodation and food services with 127,518; followed by manufacturing with 117,642; other service industries with 60,668; information and communication with 39,107, financial and insurance activities with 35,691; human health and social work activities with 27,962; professional, scientific and technical activities with 18,603; education with 17,811; and, administrative and support services with 16,296. These industries accounted for about 95.3% of the total number of MSME establishments.
Geographical Spread of MSMEs
Majority of the MSMEs in operation in 2014 can be found in the National Capital Region (NCR), with 210,039 business establishments; Region 4-A (CALABARZON) with 144,909; Region 3 (Central Luzon) with 105,476; Region 7 (Central Visayas) with 66,190; and Region 6 (Western Visayas) with 54,094. These top five (5) locations accounted for about 61.6% of the total number of MSME establishments in the country.
MSMEs generated a total of 4,891,836 jobs in 2014 versus 2,897,421 for the large enterprises. This indicates that MSMEs contributed almost 62.8% of the total jobs generated by all types of business establishments that year. Of these, 30.5% or 2,372,678 jobs were generated by micro enterprises; 25.5% or 1,986,823 by small enterprises; and 6.8% or 532,335 by medium enterprises.
By industry sector, MSMEs in the wholesale and retail trade, repair of motor vehicles and motorcycles generated the most number of jobs with 1,734,823 in 2014 followed by MSMEs in manufacturing, 786,268; accommodation and food services, 678,275; education, 274,750; and financial and insurance services, 238,438.
Majority of the jobs are generated by MSMEs in the National Capital Region (NCR) with 1,573,463 jobs; followed by MSMEs in Region 4-A (CALABARZON), 703,005; Region 3 (Central Luzon), 485,748; Region 7 (Central Visayas), 377,734; and Region 6 (Western Visayas), 266,707.
Sales and Census Value-Added
In terms of value-added, the MSME sector contributed 35.7%1 of the total with manufacturing contributing the largest share of 6.87%. Wholesale and retail trade and repair contributed 6.58% followed by financial intermediation with a share of 6%. Within the sector, small enterprises accounted for the largest share of 20.5%. Medium enterprises followed with a share of 10.3% while micro enterprises registered a share of 4.9%. Among small enterprises, wholesale and retail trade and repair contributed with the most with a share of 4.07% followed by manufacturing with a share of 3.82% while financial intermediation was next with a share of 3.35%. For medium enterprises, manufacturing accounted for the biggest share of 2.77% followed by electricity, gas, and water with a share of 1.92% and financial intermediation with 1.87%. For micro enterprises, wholesale and retail trade and repair represented the largest contribution of 1.73%.
Exports Contribution of MSMEs
MSMEs account for 25% of the country’s total exports revenue2. 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.
1 MSMED Plan 2011-2016
2 Source: Bridging the Gap: Philippine SMEs and Globalization, Small Enterprises Research and Development Foundation (SERDEF), Inc., and UP-ISSI, 2001.
Data Source: Philippine Statistics Authority