Total Number of establishments nears a million mark
The 2012 LE contains information on about 945,000 establishments operating in 17 geographic regions in the country in 2012 and employing about 7.81 million persons. (See technical notes for the scope and coverage of the LE.)
Wholesale and Retail Trade; Repair of Motor Vehicles and Motorcycles had the most number of establishments
As shown in Figure 1, nearly half (46.3%) of the total number or 437,293 establishments were engaged in Wholesale and Retail Trade; Repair of Motor Vehicles and Motorcycles (G). Next in rank in terms of the number of establishments was Accommodation and Food Service Activities (I) contributing 13.4% or 126,200 establishments and closely on the third rank was Manufacturing (C) with 118,766 establishments or 12.6% of the total. With less than a thousand, Electricity, Gas, Steam, and Air conditioning Supply (D) had the least with only 987 establishments or 0.1% of the total number of establishments in 2012.
In terms of major industry grouping: there were 8,814 establishments engaged in Agriculture (Sector A); 126,248 were engaged in Industry (Sectors B to F); and 809,942 were engaged in Services (Sectors G to S). These imply that, for every 100 establishments, about 86 were engaged in Services, 13 were engaged in Industry and only 1 was engaged in Agriculture. (Figure 2)
NCR still the hub of Philippine business and industry
Despite of the observed growth in other regions of the country, the National Capital Region (NCR) still continued to be the hub of Philippine business and industry with a total of 212,408 establishments or 22.5% of the total number of establishments in 2012. The two regions adjacent to NCR, CALABARZON (Region 4A) and Central Luzon (Region 3), had the next biggest count with 145,518 (15.4%) and 105,580 (11.2%) establishments, respectively.
Close to 35.8% of the total number of establishments engaged in Agriculture were located in Central Luzon and CALABARZON, while, 35.0% of the total number of establishments engaged in Industry and 38.5% of the total number of establishments engaged in Services, were located in NCR and CALABARZON.
Cebu topped the list of provinces with the most number of establishments
Cebu province topped the list of provinces outside NCR with the most number of establishments. Also included in the top 10 were 8 provinces from Luzon and 1 province from Mindanao.
The dominant sectors in the top 10 provinces were Wholesale and Retail Trade: Repair of Motor Vehicles and Motorcycles (G), Accommodation and Food Service Activities (I) and Manufacturing (C).
Figure 3 is a thematic map showing the provinces which had the most number of establishments in each region.
Majority of the establishments were owned by single proprietors
Majority of the establishments in 2012 were owned by single proprietors as indicated by the 82.6% (780,887 establishments) share of single proprietorship in the distribution of establishments by legal organization (Figure 4). More than 14% or 132,795 establishments were owned by stock corporations, of which, 60,735 or 45.7% were located in NCR.
About 8 out of 10 were classified as single establishment
There were 782,932 establishments classified as ‘single establishment’ in 2012, which comprised 82.8% of the total number of establishments. The number of branches listed was 127,085 which accounted for 13.4% of the total number of establishments. Among those classified as ‘branch’ in 2012 LE, 59,569 or 46.9% were engaged in Wholesale and Retail Trade: Repair of Motor Vehicles and Motorcycle (G).
On the other hand, only 5,482 or 0.6% were classified as ‘main office only’, 25,037 or 2.6% were classified as ‘establishment and main office in the same address’. The remaining 4,468 or 0.5% were classified as ‘ancillary units’. (Figure 5)
Medium and large establishments combined, comprised less than 1% of the total number of establishments
By employment grouping, there were 844,760 (89.4%) establishments classified as micro (with employment of 1 to 9); 92,025 (9.7%) were classified as small (with employment of 10 to 99); 4,136 (0.4%) were classified as medium (with employment of 100 to 199) and; 4,083 (0.4%) were classified as large (with employment of 200 and over).
The concentration of large establishments was in NCR where 1,813 or 44.4% of the establishments with employment of 200 and over were located. Aside from NCR, significant counts of large establishments were also located in CALABARZON (Region 4A) and Central Visayas (Region 7) with 701 and 417 large establishments, respectively.
Majority of these large establishments were engaged in either Manufacturing (C), Administrative and Support Activities (N) or Wholesale and Retail Trade; Repair of Motor Vehicles and Motorcycles (G) with 1,141 (27.9%), 848 (20.8%), 482 ( 11.8%) large establishments, respectively.
About a quarter of the total employment was generated by Wholesale and Retail Trade; Repair of Motor Vehicles and Motorcycles establishments
Wholesale and Retail Trade; Repair of Motor Vehicles and Motorcycles (G) surpassed other sectors with generated employment of almost 1.97 million, about a quarter or 25.2% of the total 7.81 million employment in 2012. (Figure 6)
The Manufacturing (C) ranked second which employed about 1.60 million persons or 20.6% of the total employment. Third in rank was Administrative and Support Activities (N) with about 0.96 million work force or 12.3% share to the total employment in 2012.
The least contributor was Water Supply, Sewerage, Waste Management and Remediation Activities (E) which generated less than 40,000 employment or only 0.5% of the total.
The 3 sectors with the biggest average employment per establishment were: Electricity, Gas, Steam and Air Conditioning Supply (D) with an average of 73 employees per establishment; Mining and Quarrying (B) with an average of 60 employees per establishment and; Administrative and Support Activities (N) with an average of 55 employees per establishment.
Agriculture had the lowest total employment but highest in terms of average employment per establishment
Roughly 5.6 million persons were employed by the Services sectors which comprised 71.6% of the recorded total employment. The Industry sectors employed a bit less than 2 million persons or 25.3% of the total employment. The lowest was the employment generated by the Agriculture sector which was nearly 237,000 or only 3.0% of the total employment. (Figure 7)
Conversely, in terms of the average employment, Agriculture sector had the highest with an average of 27 employees per establishment. The Industry and Services sectors had 16 and 7 average employees per establishments, respectively.
Each establishment in NCR employed about 14 persons on the average
Establishments located in NCR had employed about 3.0 million persons or 39% of the total employment. This shows that, on the average, each establishment in NCR employed about 14 persons in 2012.
The next highest employment generation was recorded by the establishments in CALABARZON which employed a total of 1.2 million. Establishments in Central Visayas (Region 7) and Central Luzon followed with total employment of 0.65 million and 0.64 million, respectively. Those in ARMM had the least with only about 39,000 total employment.
TECHNICAL NOTES
The National Statistics Office’s (NSO) List of Establishments (LE) is a register of establishments operating all over the country. It contains identification data, classification data, and maintenance and linkage data for each establishment unit in the register.
The Updating of the List of Establishments (ULE) is a regular activity of the NSO. It involves updating through comprehensive field work (door-to-door canvassing), feedbacks from previous censuses and surveys, and mail inquiry. Updating includes (1) capturing and listing of characteristics of “new” establishments; (2) updating of the status and characteristics of “old” establishments; (3) de-listing “closed” establishments that should no longer form part of the LE and (4) identifying out-of-scope units on the LE database.
The 2012 ULE was conducted in preparation for the NSO’s 2012 Census of Philippine Business and Industry (CPBI) and other establishment/enterprise surveys. It involved two updating strategies - complete enumeration of establishments not covered in the 2011 ULE (except those barangays with no qualified establishments as certified by their barangay chairmen) and field verification of “no matched” establishments (establishments not listed in the LE) from the Securities and Exchange Commission (SEC) 2011 edition of Top 25000 Corporations located in 2011 ULE areas. The total number of barangays covered (including those barangays certified to have no qualified establishments to be listed) was about 35,000 (83% of the total number of barangays). Generally, the listing operation was from May 2 to June 16, 2012.
The Establishment Inquiry Form was utilized in both strategies. The complete enumeration strategy also utilized a listing sheet for proper monitoring and controlling of the enumeration and the establishments listed. It also used the masterlist of establishments for matching the establishments captured, for validating status and characteristics of establishments already listed in the LE, and for checking completeness of coverage of establishments in the ULE areas.
The NSO’s 2012 LE was the final result of the 2012 ULE activities.
OBJECTIVES
The 2012 ULE aims to provide the following:
1. updated list of establishments/enterprises with information on their characteristics;
2. distribution of establishments/enterprises;
3. information on business births and deaths and other business demographic indicators; and
4. list of emerging industries
LEGAL AUTHORITY
The 2012 ULE is undertaken by authority of the following:
Commonwealth Act No. 591 (An Act to Create a Bureau of the Census and Statistics, to Consolidate Statistical Activities of the Government therein) approved and took effect on August 19, 1940
Empowering the Bureau, among other things, to prepare for and undertake all censuses of population, agriculture, industry and commerce.
Section 3 of Commonwealth Act No. 591 states that:
“… Any person who fails or refuses to accomplish, mail or deliver such questionnaire or form received by him to the Bureau of the Census and Statistics or any person who in accomplishing any such questionnaire or form, knowingly gives data or information which shall prove to be materially untrue in any particular, or any person who signs such questionnaire or form after it has been accomplished in the knowledge that it is untrue in any particular shall upon conviction, be punished…
Presidential Decree No. 418 dated March 20, 1974
Reconstituting the Bureau of the Census and Statistics as a new agency to be known as the National Census and Statistics Office, under the administrative supervision of the National Economic and Development Authority.
Executive Order No. 121 (Reorganization Act of the Philippine Statistical System) dated August 4, 1987
Renaming the National Census and Statistics Office (NCSO) to National Statistics Office (NSO) which shall be the major statistical agency responsible for generating general purpose statistics and undertaking such censuses and surveys as may be designated by the National Statistical Coordination Board.
Executive Order 5 (Strengthening the National Statistics Office) approved on July 29, 1998
Authorizes the Office to delegate more substantive and administrative functions to the field offices to transform them from a mere data collection arm to statistics-producing units. Refocus the functions of the central office units towards developmental planning, design and analysis of designated statistical activities as well as other surveys and statistical studies requested by government agencies and international organizations.
CONFIDENTIALITY OF INFORMATION
Section 4 of Commonwealth Act No. 591 states that:
“… Data furnished to the Bureau of the Census and Statistics will be kept STRICTLY CONFIDENTIAL and shall not be used as evidence in court for purposes of taxation, regulation or investigation; nor shall such data or information be divulged to any person except authorized employees of the Bureau of the Census and Statistics, nor shall such data be published except in the form of summaries or statistical tables in which no reference to an individual, corporation, association, partnership, institution or business enterprise shall appear. Any person violating the provisions of this section shall upon conviction, be punished by a fine of not more than six hundred pesos, or by imprisonment for not more than six months, or by both…”
ECONOMIC UNITS LISTED
The listing unit for the 2012 ULE is the establishment. An establishment is defined as an economic unit, which engages, under a single ownership or control, i.e. under a single entity; in one or predominantly one kind of economic activity at a single fixed physical location. Thus, stores, shops, factories, mining companies, electric plants, transport companies, radio stations, hotels, restaurants, banks, insurance companies, real estate development companies and the like are considered establishments.
Ambulant peddlers and hawkers and movable stall either along a public road or in a market place, as they do not have a fixed business location, are not considered as establishments.
Similarly, open stalls in shopping centers, malls and markets are not to be listed as they do not have permanency of business location.
Individual professionals and technical workers or craftsmen who do not maintain fixed offices or shops are also excluded.
CLASSIFICATION OF ESTABLISHMENTS
An establishment may be classified according to its: economic organization, legal organization, industry, employment size, and geographic location.
1. ECONOMIC ORGANIZATION
The EO relates to the organizational structure or role of the establishment in the organization. The following are the types of EO:
Single establishment (EO = 1) is an establishment which has neither branch nor main office. It may have ancillary unit/s other than main office located elsewhere.
Branch only (EO = 2) is an establishment which has a separate main office located elsewhere.
Establishment and main office (EO = 3) is one which is both located in the same address and with branch/es elsewhere.
Main office only (EO = 4) is an ancillary unit which controls, supervises and directs one or more establishments of an enterprise.
Ancillary unit other than Main Office (EO = 5) is a unit undertaking purely ancillary activity, i.e., productive activity undertaken with the sole purpose of producing one or more common type of services for a related establishment or group of related establishments or its parent establishment.
2. LEGAL ORGANIZATION
The LO or business organization refers to the legal form of the economic entity that owns the establishment. This provides the legal basis for ownership. The following are the types of LO:
Single Proprietorship (LO = 1) – refers to a business establishment organized, owned and managed by one person, who alone assumes the risk of the business enterprise.
Partnership (LO = 2) – 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.
Government Corporation (LO = 3) also called Government-Owned or Controlled Corporation (GOCC) – refers to a corporation organized for private aim, benefit or purpose with the government as the majority stockholder, regardless of whether they are stock or non-stock corporations.
Stock Corporation (LO = 4) – refers to an ordinary business corporation organized by private persons, created and operated for the purpose of making a profit which may be distributed in the form of dividends to stockholders on the basis of their invested capital.
Non Stock, Non-Profit Corporation (LO = 5) – refers to a business corporation which does not issue stock to its members and are created not to profit but for the public good and welfare. Of this character are most of the religious, social, charitable, educational, literary, scientific, civic and political organizations and societies.
Cooperative (LO = 6) – refers to an organization composed primarily of small producers and/or consumers who voluntarily join together to form a business enterprise which they themselves own, control and patronize.
Others (LO = 7) – refers to an organization not classified in any of the above classification. It includes private associations, foundations, Non-Governmental Organizations, or other forms of legal organizations.
3. INDUSTRIAL CLASSIFICATION
The 2012 ULE utilized the latest 2009 PSIC to classify establishments according to their economic activities. The 2009 PSIC was patterned after the UN International Standard Industrial Classification (ISIC) Rev. 4 (officially released by the United Nations Statistics Division on August 11, 2008 for adoption by countries), but with some modifications to reflect national situation and requirements. It was approved for adoption by government agencies and instrumentalities through NSCB Resolution No. 2 Series 2010 signed on February 10, 2010.
4. GEOGRAPHICAL CLASSIFICATION
Establishments are also classified by geographic area using the Philippine Standard Geographic Code (PSGC), as of December 31, 2011. The PSGC contains the latest updates on the official number of regions, provinces, cities, municipalities and barangays in the Philippines.
5. SIZE OF ESTABLISHMENT
The size of an establishment is determined by its total employment (TE). The following are the employment size classification:
SCOPE AND COVERAGE
The following table enumerates the scope and coverage of the 2012 ULE by industry section as defined by the 2009 PSIC. Included in the table are economic units which need special attention with respect to their listing and/or industrial classification.
SOME LIMITATIONS
Branches of Banks (Other Monetary Intermediation – PSIC K6419) were included but were not updated in the 2012 LE.
