2018 MSME STATISTICS
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).
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.
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).
Sales and Census Value-Added
In terms of value added, the MSME sector contributed 35.7% 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 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 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.
Data Source: Philippine Statistics Authority (PSA)
You may also view the latest available data on the Number of Establishments and Total Employment by Region, Industry and Employment Grouping: 2018 List of Establishments from the PSA and the 2018 Philippine MSME Statistics in Brief.