Number of Establishments

1. The final results of the 2009 Annual Survey of Philippine Business and Industry (ASPBI) conducted nationwide covered a total of 9,908 establishments. As shown in Figure 1, Private elementary education garnered the highest number of establishments at 3,771 (38.1%). Private secondary education followed with 2,526 (25.5%) while the least number of establishments were those engaged in Private adult and other education with 1,050 (10.6%).

   

   Employment

2. Employment reached a total of 311,876. Out of this total, 304,674 or 97.7 percent were paid employees while the remaining 7,202 or 2.3 percent were working owners and unpaid workers.

3. Figure 2 shows that Private higher education had the most number of employees with 149,147 or 47.8 percent of the total followed by Private secondary education with 80,546 employees (25.8%). The least number of employees were employed by Private adult and other education with 10,498 or 3.4 percent.

   

4. The sector recorded an average number of 31 workers per establishment. Private higher education had the largest at 105 followed by Private secondary education with 32. Private adult and other education, however, ranked last as to average number of workers per establishment at 10.

   Compensation

5. Total compensation paid by Private education amounted to PHP57,192.8 million, translating to an average annual compensation of PHP187,718 per employee.

6. Across industries, Private higher education paid the highest average annual compensation of PHP240,702 per employee followed by Private secondary education with PHP 170,262. On the other hand, establishments providing Private elementary education provided the lowest average annual pay of PHP101,028 per employee.

   

   Revenue

7. Revenue generated by the sector reached PHP126,629.6 million. Private higher education contributed the biggest share with PHP78,408.6 million or 61.9 percent of the total revenue. Second biggest revenue generating industry was Private secondary education with PHP27,340.5 million or 21.6 percent. The least revenue was generated by Private adult and other education with PHP3,513.8 million or 2.8 percent.

   Cost

8. Total cost (excluding compensation) incurred by the sector in 2009, amounted to PHP50,311.2 million. Private higher education incurred the highest cost of PHP30,040.9 million (59.7%). Private adult and other education had the lowest cost of PHP1,975.0 million (3.9%). Figure 4 on the next page shows the revenue generated and cost incurred by Private Education sector by industry group.

   

   Revenue per Cost

9. Revenue-cost ratio, the revenue generated per peso cost amounted to PHP2.52. Among industries, Private elementary education, recorded the highest with PHP2.62 indicating PHP2.62 revenue per peso cost. On the other hand, Private adult and other education had the lowest with PHP1.78 revenue per peso cost.

   Value Added

10. Value added for the sector was estimated at PHP87,682.0 million. Almost PHP55,692.9 million or 63.5 percent of the total value added was contributed by Private higher education. Private adult and other education had the lowest with PHP1,733.2 million. Figure 5 displays the distribution of value added by industry group.

    Labor Productivity

11. Value added per worker, a measure of labor productivity, was valued at PHP281,144. Figure 5 shows that among industries, Private higher education had the highest labor productivity of PHP 373,409 while the Private elementary education had the lowest with PHP134,463.

    
     

    Gross Additions to Tangible Fixed Assets

12. Gross addition to tangible fixed assets totaled to PHP12,477.9 million with the Private higher education industry recording the highest amount of PHP8,452.0 million or 67.7 percent of the total. Private adult and other education had the least gross additions to tangible fixed assets with PHP231.0 million or 1.9 percent. 

    Change in Inventory

13. Change in inventories, defined as the value of ending inventory less the beginning, amounted to negative PHP57.2 million, which means that beginning inventory was higher than the ending inventory for the sector. Among industries, Private secondary education had the highest change in inventory with PHP32.5 million. Private elementary education had the lowest with a negative PHP56.1 million. 

    Subsidies

14. Subsidies in 2009 reached PHP1,014.6 million with the government providing the highest to the Private secondary education amounting to PHP592.8 million (58.4%), followed by Private higher education with PHP245.5 million or 24.2 percent. Private adult and other education received the least subsidy from the government with PHP5.2 million or 0.5 percent of the total.

TECHNICAL NOTES

Introduction

The 2009 Annual Survey of Philippine Business and Industry (ASPBI), conducted in 2010 with 2009 as reference year, is one of the continuing activities of the National Statistics Office. It will be a source of benchmark levels on the structure and trends of economic activities in the country for the year 2009. Particularly, the data from ASPBI will be used in constructing national and regional income accounts in the country, determining and comparing regional economic structures, and formulating plans and policies of the government in the attainment of economic goals..

The conduct of the ASPBI is governed by legislative acts and presidential directives, specifically Commonwealth Act No. 591 which was approved on August 19, 1940..

Scope and coverage

The 2009 ASPBI covered establishments engaged in 14 economic sectors classified under the Amended 1994 Philippine Standard Industrial classification (PSIC) namely:

• Agriculture, Hunting and Forestry

• Fishing

• Mining and Quarrying

• Manufacturing

• Electricity, Gas and Water Supply

• Construction

• Wholesale and Retail Trade; Repair of Motor Vehicles, Motorcycles and Personal and Household Goods

• Hotels and Restaurants

• Transport, Storage and Communications

• Financial Intermediation

• Real Estate, Renting and Business Activities

• Private Education

• Health and Social Work

• Other Community, Social and Personal Service Activities

The scope of the ASPBI was confined to "formal sector" only, which consists of the following:

• Corporations and partnership

• Cooperatives and foundations

• Single proprietorships with employment of 10 or more

• Single proprietorships with branches

Like all other establishment surveys conducted by the NSO, the 2009 ASPBI used establishment as the unit of enumeration. It is defined as "an economic unit under a single ownership or control, i.e. under a single legal entity, engaged in one or predominantly one kind of economic activity at a single fixed location."

Classification of Establishments

Before the actual selection of samples, the establishments listed in the frame were classified based on economic organization EO), legal organization (LO), industrial classification, employment size, and geographic location.

Economic organizations relates to the organizational structure or role of the establishment in the organization. The following are the types of economic organization:

• Single establishment is an establishment which has neither branch nor main office

• Branch only is an establishment which has a separate main office located elsewhere

• Establishment and main office, both located in the same address and with branches elsewhere

• Main office only is the unit which controls, supervises and directs one or more establishments of an enterprise

• Ancillary unit other than main office is the unit that operates primarily or exclusively for a related establishment or group of related establishments or its parent establishment and provides goods or services that support but do not become part of the output of those establishments

The legal organization provides the legal basis for ownership of the establishment. The following are the types of legal organization:

• Single Proprietorship refers to a business establishment organized, owned, and managed by one person, who alone assumes the risk of the business enterprise. The establishment name is that of a person, or it has words such as Owner, Proprietor or Operator

• Partnership refers to an association of two or more individuals for the conduct of a business enterprise based upon an agreement or contract between or among them to contribute money, property or industry into a common fund with the intention of dividing profits among themselves. The establishment name includes words such as Owners , Partners, Limited or LTD., Associates or ASSOCS

• Government Corporation is a private corporation organized for private aim, benefit or purpose and owned and controlled by the government. The establishment name included words such as Corporation or CORP., INCORPORATED or INC

• Private Corporation is a corporation organized by private persons. The establishment name includes words such Corporation or Corp, Incorporated or INC

• Cooperative - the establishment name includes words such as Cooperative or COOP

The industrial classification of an economic unit is determined by the activity from which it derives its major income or revenue. The amended 1994 PSIC is utilized to classify units according to their economic activities.

The amended 1994 PSIC consists of an alpha character and 5 numeric digits. The alpha character, which represents the major division, is denoted by the characters A to Q. The first two numeric digits represent the division; the first three numeric digits, the group; the first four digits, the class; and the 5 digits, the sub-class.

The size of the establishment is determined by its total employment (TE). The following are the employment size classification used in the 2009 ASPBI:

The geographic or physical location of the establishments was classified in accordance with the Philippine Standard Geographic Code (PSGC) as of December 30, 2006 which contains the latest updates on the number of regions, provinces, cities, municipalities and barangays in the Philippines.

The geographic domains of the 2009 ASPBI for establishments with TE of 20 and over are the 17 administrative regions while the whole country serves as the geographic domain for establishments with TE of less than 20.

Hence, the samples of the 2009 ASPBI with TE of 20 and over shall provide data for 17 administrative regions. For samples with TE less than 20, the data that will be presented is limited only at the national level.

Response Rate

A total of 1,337 or 99.33 percent of sample establishments responded. These include receipts of "good" questionnaires, partially accomplished questionnaires, reports of closed, moved out or out of scope establishments.

Concepts and Definition of Terms

Economic activity or business is the activity of the establishment as classified under the amended 1994 Philippine Standard Industrial Classification (PSIC). Generally, the main activity of the establishment is the establishment's principal source of income. If the establishment is engaged in several activities, its main activity is that which earns the biggest income or revenue.

Total Employment is the number of persons who worked in or for this establishment as of November 15, 2009.

Paid employees are all persons working in the establishment and receiving pay, as well as those working away from the establishment paid by and under the control of the establishment. Included are all employees on sick leave, paid vacation or holiday. Excluded are consultants, home workers, workers receiving pure commissions only, and workers on indefinite leave.

Salaries and wages are payments in cash or in kind to all employees, prior to deductions for employee's contributions to SSS/GSIS, withholding tax, etc. Included are total basic pay, overtime pay, and other benefits.

Revenue is the value of goods, products/by-products sold and/or services rendered to others whether paid in cash or is considered receivable by the establishment. Valuation of products/by products sold should be in producer's price (ex-establishment), net of discounts and allowances, including duties and charges but excluding subsidies. It also include goods transferred and/or services rendered to other establishment belonging to the same enterprise as the said establishment which should be treated as sales or as if sold to a customer; and revenue from products on a contractual basis from materials supplied by the establishment.

Cost refers to all expenses excluding compensation incurred during the year whether paid or payable. Valuation should be at purchaser's 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.

Fixed assets are physical assets expected to have productive lives of more than one year and intended for use and/or being used by the establishment. Included are land, buildings, other structures and land improvements, transport equipment, machinery and equipment, furniture, fixtures, and other fixed assets.

Book Value of Tangible Assets is the initial value or acquisition cost of tangible fixed assets less the accumulated depreciation.

Gross additions to fixed assets is the sum of cost of new and used fixed assets 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.

Value Added is gross output less intermediate input. Gross output for private education establishments is the sum of the total revenue (less interest income, rent income from land, dividend income, royalty income and franchise income), capital expenditures of fixed assets produced on own account and change in inventories. Intermediate input is equal to the sum of the following cost items: materials and supplies purchased; fuels, lubricants, oils and greases purchased; electricity and water purchased; cost of industrial services done by others; cost of non-industrial services done by others; goods purchased for resale; research and experimental development expense; environmental protection expense; royalty fee; franchise fee and other cost.

Inventories refer to the stocks of goods owned by and 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 is equivalent to the total value of inventories at the end of the year less the value at the beginning of the year.

Subsidies are special grants in the form of financial assistance or tax exemption or tax privilege given by the government to aid and develop an industry or production and to protect it against competition.

Source;   National Statistics Office
                 Manila, Philippines