Miscellaneous business activities dominated the industry

1. The 2000 Census of Philippine Business and Industry covered a total of 37,087 real estate, renting and business activities establishments in 1999. Of the total, 94.11 percent (34,904) were small establishments with an average total employment (ATE) of less than 20 and 5.89 percent (2,183) were large establishments with ATE of 20 or more.

2. Establishments involved in miscellaneous business activities (K74) like legal, accounting, bookkeeping activities; advertising; investigation and security activities; and related technical consultancy comprised the largest number of establishments with 21,481 or 57.92 percent of the total count for the sector. This was followed by renting of machinery and equipment without operator; personal and household goods (K71) with 10,509 or 28.33 percent. On the other hand, research and development (K73) had the least number with only 82 establishments. Figure 1 shows the distribution of real estate, renting and business activities establishments by industry division.

   

   Establishments were highly concentrated in the National Capital Region

3. As expected, the real estate renting and business activities establishments were concentrated in the National Capital Region (NCR) with 15,537 (41.89 percent). The Autonomous Region in Muslim Mindanao (ARMM) had the least with only 48 establishments. Figure 2 shows the distribution of establishments engaged in real estate, renting and business activities by region.

   

   Majority of real estate renting and business activities workers are paid employees.

4. During the census year, the total workforce in establishments in real estate, renting and business activities was recorded at 400,021 workers. Majority (91.3 percent or 365,383) of them were paid employees and 8.7 percent (34,638) were unpaid workers.

5. Miscellaneous business activities absorbed three-fourths (302,478) of the total workforce in the real estate, renting and business activities sector. Research and development (K73) registered the lowest number with 3,186 workers.

6. The National Capital Region (NCR) provided the biggest share in employment at 68.8 percent (275,084) of the total. This was followed by Southern Tagalog (Reg. IV) and Central Visayas (Reg. VII) at 6.2 percent (24,913) and 4.7 percent (18,731), respectively. On the other hand, the Autonomous Region in Muslim Mindanao (ARMM) managed to employ only 142 workers, the lowest among the regions.

   Research and development employees received the highest average monthly compensation.

7. Compensation paid by all real estate, renting and business activities establishments amounted to P 34.6 billion, which is equivalent to an average monthly compensation of P 7,902 per paid employee.

8. Having the biggest number of employees, miscellaneous business activities, (K74) also reported the biggest amount of compensation with P 25.4 billion or 73.2 percent of the total. Research and development (K73) recorded the lowest amount of P 572 million.

9. Research and development (K73) employees received an average monthly compensation of P 15,161. Employees in computer & related activities and real estate activities also received an average compensation of more than P10,000 per month, i.e. P11,481 and P10,843, respectively. Table A displays the average monthly compensation per paid employee by industry division.

   PSIC  CODE	Industry Division	Average Monthly  Compensation Per  Paid Employee
   K	Real estate renting and business activities	P 7,902
   K70	Real estate activities	P 10,843
   K71	Renting of machinery and equipment without       operator, personal and household goods	P 4,012
   K72	Computer and related activities	P 11,481
   K73	Research and development	P 15,161
   K74	Miscellaneous business activities	P 7,476

10. At the regional level, the National Capital Region (NCR) disbursed the biggest amount of P 29.1 billion (83.9%) in total compensation, while the Autonomous Region in Muslim Mindanao (ARMM) spent the least with only P 2.4 million or 0.01 percent.

    Top earner in 1999 were establishments engaged in miscellaneous business activities

11. Total revenue earned by all real estate, renting and business activities establishments amounted to P 177 billion in 1999.

12. Top earners in 1999 were establishments engaged in miscellaneous business activities (K74) with P 81.8 billion or 46.2 percent of the total. Real estate activities companies (K70) followed with P 77.0 billion (43.5 percent). Research and development (K73) had the lowest share with P 1.35 billion (0.76 percent). Figure 3 shows the revenue and costs of real estate, renting and business services establishments by industry division.

    

    Real estate, renting and business activities establishments located in NCR registered the highest revenue and expenditure

13. Bulk of the revenue was generated by establishments in the National Capital Region (NCR) at 84.6 percent (P 149.8 billion) of the sector?s total. The Autonomous Region in Muslim Mindanao (ARMM) generated the lowest revenue at 0.02 percent (P 37.5 million).

14. Excluding compensation paid to employees, about P 95.8 billion was spent to operate and maintain all real estate, renting and business activities establishments in 1999.

15. The National Capital Region (NCR) registered the biggest expenditure of P 80.7 billion or 84.2 percent of the sector?s total costs.

    Revenue per peso cost was valued at P 1.85

16. Revenue per peso cost (measured by the ratio of total revenue to total costs) was estimated at P 1.85.

17. Miscellaneous business activities (K74) generated the highest revenue per peso cost at P 2.15 while real estate activities (K70) recorded the least at P 1.62. Figure 4 shows the revenue per peso cost by industry division.

    

    Gross additions to fixed assets reached P 9.2 billion

18. Gross additions to fixed assets of real estate, renting and business activities reached P 9.2 billion. Miscellaneous business activities (K74) recorded the highest with P 4.2 billion (45.8 percent). Research and development activities (K73) reported the least with P 41.8 million (0.45 percent).

    Subsidies totaled to P 750.9 million

19. Total subsidies received by real estate, renting and business activities establishments was P 750.9 million. Research and development (K73) and miscellaneous business activities (K74) received the highest share with P 264.3 million and P 211.2 million, respectively.

TECHNICAL NOTES:

Scope and Coverage:

The 2000 Census of Philippine Business and Industry (CPBI) aimed to collect benchmark information on economic activities of establishments in the entire country. It has the calendar year 1999 for its reference period. One of the fourteen (14) sectors covered in the census was the real estate, renting and business activities (Sector K). The sector is composed of real estate activities (K70); renting of machinery and equipment without operator; personal and household goods (K71); computer and related activities (K72); research and development (K73); miscellaneous business activities (K74).

All real estate, renting & business services establishments nationwide with average total employment (ATE) of 20 and over were covered on a 100 percent basis and those with ATE of less than 20 were selected using probability proportional to size sampling.

Response Rate

The 2000 CPBI covered 5,960 real estate, renting and business services establishments with a response rate of 60 percent. Adjustments for non-response were made through imputations.

Concepts and Definitions of Terms

Establishment - An economic unit under single ownership or control, i.e., under a single entity, engaged in one or predominantly one kind of economic activity at a single fixed location, and having permanency of assets in its premises during the operation. It is also defined as the unit that is engaged in the production of the most homogenous group of good and services, usually at one location, but sometimes over a wider area, for which separate records are available that can provide data concerning the production of these goods and services and the materials, labor and physical resources used in this production.

Real Estate Establishment - Realtor, developer, agency, broker, lessor or companies engaged in the operating, developing, subdividing, buying and selling of real estate.

Business Services Establishment - Office, agency or firm engaged in (a) rental and leasing of machinery and equipment, audio-video machines, tapes and records, sports and recreational equipment; (b) computer-related activities; (c) legal accounting, bookkeeping, research and development, advertising and other technical services; (d) cleaning of offices, shops and factories; (e) photographic activities; and (f) basic and general research in the biological, physical and social sciences.

Economic Activity - Is the activity of the establishment as classified under the 1994 Philippine Standard Industrial Classification (PSIC). The main activity refers to the activity that contributes the biggest or major portion of the gross income or revenue of the establishment.

Average Total Employment (ATE) - The sum of the number of persons who worked in or for this establishment for each month of the year divided by 12 regardless of the number of months this establishment was in operation in 1999.

Paid Employees - Include full-time and part-time employees, employees on sick or maternity leave and on paid vacation or holiday, employees working away from the establishment and paid by and under the control of the establishment and employees on strike.

Unpaid Workers - Include working owners who do not receive regular pay, apprentices and learners without regular pay, and persons working for at least 1/3 of the working time normal to the establishment without regular pay.

Salaries and Wages - Payments in cash or in kind, prior to deduction for employee?s contribution to SSS/GSIS, withholding tax, etc. Included are total basic pay, vacation, sick, maternity leave pay, overtime pay and other benefits.

Revenue - The value of products/by-products sold and/or services rendered to others whether paid in cash or is considered as receivable by this establishment. It includes goods transferred and/or services rendered to other establishment belonging to the same enterprise as this establishment.

Costs - Refers to all expenses excluding compensation incurred during the year whether paid or payable. Valuation should be at market price including taxes and other charges, net of discounts, rebates, returns and allowances. Goods received from and services rendered by other establishment of the same enterprise are valued as though purchased.

Gross Additions to Fixed Assets - Sum of cost of new and used fixed acquired during the year, cost of alteration and improvements done by others and cost of fixed assets produced by the establishment less the value of sales of fixed assets during the year.

Fixed Assets - Physical assets expected to have productive life of more than one year and intended for use and or being used by the establishment. Included are land, buildings, fixtures, machinery, tool, furniture, office equipment, vehicles and the like.

Capital Expenditures - For fixed assets include cost of acquisition of new and used fixed assets, fixed assets produced by the establishment for its own use; major alterations, additions and improvements to fixed assets, whether done by others or done on own account

Inventories - Refer to stocks of goods owned by or under the control of the establishment as of a fixed date, regardless of where the stocks are located. Valuation should be at current replacement cost in purchaser?s price at the indicated dates. Replacement cost is the cost of an item in terms of its present price rather than its original price.

Change in Inventories - This is equivalent to the total value of inventories at end of the year less the value at the beginning of the year.

Subsidies - These are special grants in the form of financial assistance or tax exemption or tax privilege received from the government to aid and develop an industry.

Source:  National Statistics Office
             Manila, Philippines