The rise in the number of home-based businesses, resellers, first-time and serial entrepreneurs has never been more pronounced than during this pandemic.
These are the micro, small and medium enterprises (MSMEs), which as they say, make up the backbone of the economy.
The numbers don’t lie.
MSMEs generated a total of 5,380,815 jobs or 62.66 percent of the country’s total employment with micro enterprises producing the biggest share at 29.38 percent.
In a report, the Department of Trade and Industry, total business registrations and renewals increase from 1.9 million in 2019 to 1.7 million in 2020 and 2 million as of August 2021 based on the consolidated report of the Department of Interior and Local Government from the local government units.
About 859,772 business name registrations were filed at the DTI as sole proprietorships of which 859,772 or 90 percent were new.
Another 53,484 were registered under the Barangay Micro-Business Enterprises.
The Philippine Statistics Authority (PSA) recorded a total of 957,620 business enterprises operating in the country as of 2020, of which 952,969 (99.51 percent) are MSMEs. Micro enterprises constitute 88.77 percent (850,127) of total MSME establishments, small enterprises at 10.25 percent (98,126) and medium enterprises, 0.49 percent (4,716).
The top three industry sectors that MSMEs engage in are in wholesale and retail trade; repair of motor vehicles and motorcycles; accommodation and food service and; manufacturing.
Majority of the MSMEs can be found in the National Capital Region (NCR) with 201,123 or 21.10 percent business establishments followed by Region 4-A (CALABARZON) , Region 3 (Central Luzon), Region 7 (Central Visayas) and Region 6 (Western Visayas)
MSMEs account for 25 percent of the country’s total exports revenue.
MSMEs in NCR alone generated 1,531,256 jobs. By industry sector, MSMEs in the wholesale and retail trade; repair of motor vehicles and motorcycles sector generated the most number of jobs with 1,941,115.
It is also estimated that 60 percent of all exporters in the country belong to the MSME category. MSMEs are able to contribute in exports through subcontracting arrangement with large firms, or as suppliers to exporting companies.
Jobs
These MSMEs generated a total of 5,380,815 jobs or 62.66 percent of the country’s total employment with micro enterprises producing the biggest share (29.38 percent).
MSMEs in NCR alone generated 1,531,256 jobs. By industry sector, MSMEs in the wholesale and retail trade; repair of motor vehicles and motorcycles sector generated the most number of jobs with 1,941,115.
In terms of value added, the MSME sector contributed 35.7 percent of the total with manufacturing contributing the largest share of 6.87 percent.
Within the sector, small enterprises accounted for the largest share of 20.5 percent. Among small enterprises, wholesale and retail trade and repair contributed the most with a share.
