Micro establishments accounted for the highest share to the total number of establishments

The final results of the 2020 Annual Survey of Philippine Business and Industry (ASPBI) showed that there were 237,367 establishments in the formal sector of the economy. Micro establishments accounted for 152,641 establishments or 64.3 percent of the total number of establishments.  This was followed by small and large establishments with 77,334 establishments (32.6%) and 4,014 establishments (1.7%), respectively.  Medium establishments recorded the least number of    3,378 establishments (1.4%). (Figure 1 and Tables A and 1)

Large establishments employed the highest number of workers

The total employment for all establishments reached 6,066,273 workers in 2020.  Of the total workforce, large establishments employed the highest number of 3,009,851 workers (49.6%), followed by small establishments with 1,967,309 workers (32.4%). Micro establishments employed 620,335 workers (10.2%), while medium establishments hired the least number of 468,778 workers (7.7%). (Figure 2 and Table 1)

In terms of employment per establishment, the country registered an average number of 26 workers per establishment in 2020.  Large establishments had an average number of 750 workers per establishment. Medium establishments reported 139 workers per establishment, while small and micro establishments registered average numbers of 25 workers and four workers per establishment, respectively. (Tables A and 2)

Large establishments received the highest average annual compensation

The total compensation paid by all establishments in the formal sector to their employees reached PhP 1.90 trillion in 2020. This translates to an average annual compensation of PhP 317.02 thousand per paid employee. (Tables A,1, and 2)

More than half of the total compensation was paid by large establishments with PhP 1.17 trillion or 61.6 percent of the total compensation. This was followed by small establishments paying PhP 455.45 billion (23.9%) total compensation, medium establishments paying PhP 144.44 billion (7.6%), and micro establishments paying PhP 131.01 billion (6.9%). (Tables A, 1, and 2)

In terms of average annual compensation, large establishments paid the highest average of PhP 391.22 thousand per paid employee, exceeding the national average in 2020. This was followed by medium  establishments paying an average annual compensation of PhP 309.11 thousand per paid employee, small establishments paying PhP 234.16 thousand per paid employee, and micro establishments paying PhP 220.36 thousand per paid employee. (Figure 3 and Tables A and 2)

Large establishments had the highest share to total revenue and total expense

The total revenue earned by all establishments in the formal sector was estimated at PhP 18.70 trillion in 2020. Meanwhile, these establishments incurred a total expense of PhP 16.77 trillion in 2020. (Tables A and 1)

Large establishments generated the highest revenue of PhP 9.17 trillion (49.1%) and incurred a total expense of PhP 8.13 trillion (48.5%). This was followed by small establishments with PhP 5.83 trillion (31.2%) total revenue and PhP 5.25 trillion (31.3%) total expense, medium establishments with total revenue of PhP 1.97 trillion (10.5%) and total expense of PhP 1.81 trillion (10.8%), and micro establishments generating the lowest total revenue and total expense of PhP 1.72 trillion (9.2%) and PhP 1.58 trillion (9.4%), respectively. (Figure 4 and Table 1)

All establishments in the formal sector generated a revenue per peso expense ratio of 1.11 in 2020. This means that for every peso spent in the business operations of all establishments in 2020, a revenue of PhP 1.11 was generated.

Among employment group, large establishments recorded the highest revenue per peso expense ratio of 1.13. This was followed by small establishments with revenue per peso expense ratio of 1.11. On the other hand, both micro and medium establishments recorded a revenue per expense ratio of 1.09. (Table 2)

Large establishments received the highest government subsidies

Subsidies are special grants in the form of financial assistance or tax privilege given by the government to aid and develop an industry.

Total subsidies received by all establishments in the formal sector in 2020 amounted to PhP 50.78 billion. Large establishments received the highest subsidies amounting to PhP 33.46 billion (65.9%). Small and medium establishments received PhP 8.29 billion (16.3%) and PhP 8.20 billion (16.1%) subsidies, respectively. Micro establishments on the other hand, received the lowest subsidies from the government worth PhP 823.93 thousand (1.6%). (Table 1)

DIVINA GRACIA L. DEL PRADO, PhD
Assistant Secretary
Deputy National Statistician
Sectoral Statistics Office