MICRO, SMALL AND MEDIUM ENTERPRISES (MSMES)

Statistics
Number of Establishments    
As of 2011 count, there are 820,255 business enterprises operating in the Philippines. Of these, 99.6% (816,759) are  micro, small, and medium enterprises (MSMEs) and the remaining 0.4% (3,496) are large enterprises. Of the total number of MSMEs, 91.0% (743,250) are micro enterprises, 8.6% (70,222) are small enterprises, and 0.4% (3,287) are medium enterprises.

Sectoral Distribution
Majority of the 816,759 MSMEs in operation in 2011 are in the wholesale and retail trade, repair of motor vehicles and motorcycle industries with 383,636 business establishments; followed by manufacturing with 111,765; human healthe and social services, financial and insurance, and othor service industries with 109,440; accomodation and food services with 105,123; and, information and communication, administrative and support services, professional scientific and technical, education, arts and recretion industries with 85,554. These industries accounted for about 97.2% of the total number of SME establishments.

Geographical Spread of MSMEs
Majority of the MSMEs in operation in 2011 can be found in the National Capital Region (NCR), with 211,974 business establishments; Region 4-A  (CALABARZON) with 122,562; Region 3 (Central Luzon) with 83,279; Region 7 (Central Visayas) with  50,078; and Region 6 (Western Visayas) with 47,166. These top five (5) locations accounted for about 63.1% of the total number of MSME establishments in the country.
Employment
MSMEs generated a total of 3,872,406 jobs in 2011 versus 2,473,336 for the large enterprises. This indicates that MSMEs contributed almost 61.0% of the total jobs generated by all types of business establishments that year. Of these, 45.9% or 1,778,353 jobs were generated by micro enterprises; 42.4% or 1,642,492 by small enterprises; and 11.7% or 451,561 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 1,313,051) in 2011 followed by MSMEs in manufacturing, 648,592; accomodation and food services, 539,319; education, 234,394; and, financial and insurance services, 193,081. 

Majority of the jobs are generated by MSMEs in the National Capital Region (NCR) with 1,439,275 jobs; followed by MSMEs in Region 4-A (CALABARZON), 506,134; Region 3 (Central Luzon), 353,872; Region 7 (Central Visayas), 258,012; and Region 6 (Western Visayas) 206,108.

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.

Click here to download the 2011 MSME Statistics.
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1 MSME Development Plan 2011-2016
2
Bridging the Gap: Philippine SMEs and Globalization, Small Enterprises Research and Development Foundation (SERDEF), Inc., and UP-ISSI, 2001.
Thursday, April 17, 2014 5:56PM GMT+8

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