Very small establishments accounts for more than 90 percent of the total number
The total number of establishments in operation during the year 2000 was estimated to be about 820,960, generating employment of about 6 million. Dominating the total number (747,740 or 91.1 %) were micro establishments, each employing less than 10 workers. Small establishments, each employing 10 – 99 workers, numbered 67,166 (8.2 %), while only 3,070 (0.4 %) were medium establishments, with employment size of 100 – 199. Only 2,984, or 0.4 percent, were employing 200 or more workers and were considered large establishments.
In terms of employment generation, micro, small and medium establishments absorbed 69.6 percent of the workers in the formal sector, with respective contributions of 36.7, 25.8 and 7.1 percent. On the other hand, 30.4 percent of the workers were employed in large establishments.
NCR and neighboring regions dominate the formal sector
Being the center of industrial and business activities in the country, it is not surprising to find NCR having the greatest contribution to the total number of establishments and to total employment, compared to the corresponding figures recorded for the other regions. The micro establishments at NCR accounted for 22.5 percent of the number of micro establishments in the country; while small and medium establishments have respective shares of 43.8 and 46.9 percent. Large establishments in the metropolis accounted for about half of the total number of large establishments in operation in the country.
Following NCR was the Southern Tagalog Region (Region 4), which had respective shares of 18.2, 12.9 and 16.3 percent of the micro, small and medium establishments. Large establishments in the region accounted for only 17.0 percent. Third in the ranking was Central Luzon Region (Region 3) with respective contributions of 11.0, 8.6, 7.2 and 6.2 percent.
In the Visayas, Region 7 and Region 6 were the greatest contributors, while Regions 11 and 10 were leading in Mindanao.
In terms of employment, the dominance of NCR was more defined, with micro establishments in the region absorbing 30 percent of employment in the same type of establishments. Respective shares of small and medium establishments were more sizeable at 46.2 and 46.5 percent. Majority (51.0 %) of employment in large establishments were at NCR.
Region 4 and Region 3 were again far second and third with respective shares of 17.1 and 10.8 percent of employment in micro establishments. The two regions accounted for 12.6 and 8.0 percent, respectively, of employment in small establishments. Employment in the region in medium and large establishments accounted for 16.5 and 16.4 percent; while corresponding figures for Region 3 were 7.4 and 5.6 percent only.
Again, Regions 7 and 6 were the leading regions in the Visayas, while Mindanao was dominated by Regions 11 and 10.
Wholesale and Retail Trade establishments are the most numerous
Majority (53.3 %) of the 820,960 establishments in operation in 2000 were in the Wholesale and Retail Trade, followed by Manufacturing establishments, contributing 15.3 percent to the total count. Other industries accounted for the following shares in the total number of establishments: Hotels and Restaurants, 10.9 percent; Other Community, Social and Personal Services Activities, 5.0 percent; Real Estate, Renting and Business Activities, 4.9 percent; Health and Social Work, 3.5 percent; Financial Intermediation, 2.9 percent; and Transport, Storage and Communications, 1.9 percent. The remaining sectors had combined share of only 2.3 percent.
In terms of size of establishments in the sector, 95.2 percent establishments in the Wholesale and Retail Trade were micro establishments, while small, medium and large establishments were accounting for respective shares of only 4.6, 0.1 and 0.07 percent. On the other hand, establishments in the manufacturing sector tended to be relatively larger, with percentage distribution of 86.9, 11.3, 0.9 and 1.0 percent, respectively.
Wholesale and Retail Trade has the largest employment, but Manufacturing follows very closely
Since establishments in the Wholesale and Retail Trade were primarily very micro, the sector was able to absorb only 1.8 million workers, or 30.3 percent of the total, with 62.2 percent working in micro establishments. On the other hand, Manufacturing showed a reversal as it employed a total of 1.6 million workers, or 26.9 percent of the workers. In addition, 45.9 percent of Manufacturing workers were working for large establishments, in contrast to only 12.0 percent for the Wholesale and Retail Trade.
Hotels and Restaurants was still third as far as work generation was concerned with the sector employing 485 thousand workers, 93.6 of them in micro, small or medium establishments. Workers in the Real Estate, Renting and Business Activities numbered about 431 thousand, with 59.0 percent in micro, small and medium establishments.
Compared to the other large sectors, relatively larger number of workers in this sector, or 41.0 percent were working in large establishments. A similar pattern may be noted for Transport, Storage and Communications with only about half of the workers employed in micro, small or medium establishments and the other half working for large establishments.
Sectors that are dominated by workers in micro, small and medium establishments were: Other Community, Social and Personal Services with 87.2 percent of its workers in the said type of establishments; Financial Intermediation, 73.6 percent, Health and Social Work, 71.1 percent, Education, 63.4 percent; and Fishing, 60.4 percent. On the other hand, sectors that were dominated by workers in large establishments were Mining and Quarrying with 66.8 percent of its workers employed in large establishments; Construction, 66.6 percent; Electricity, Gas and Water Supply, 62.7 percent; and Forestry, 54.7 percent.
Industry Description
A - Agriculture, Hunting and Forestry
B - Fishing
C - Mining and Quarrying
D - Manufacturing
E - Electricity, Gas and Water
F - Construction
G - Wholesale and Retail Trade, Repair of Motor Vehicles, etc.
H - Hotels and Restaurants
I - Transport, Storage and Communications
J - Financial Intermediation
K - Real Estate, Renting and Business Services
M - Education
N - Health and Social Work
O - Other Community, Social and Personal Service Activities