The 2020 List of Establishments of the Philippine Statistics Authority (PSA) recorded a total of 957,620 business enterprises operating in the country. Of these, 952,969 (99.51%) are MSMEs and 4,651 (0.49%) are large enterprises. Micro enterprises constitute 88.77% (850,127) of total MSME establishments, followed by small enterprises at 10.25% (98,126) and medium enterprises at 0.49% (4,716).

Sectoral Distribution

The top five (5) industry sectors according to the number of MSMEs in 2020 were: (1) Wholesale and Retail Trade; Repair of Motor Vehicles and Motorcycles (445,386); (2) Accommodation and Food Service Activities (134,046); (3) Manufacturing (110,916); (4) Other Service Activities (62,376); and (5) Financial and Insurance Activities (45,558). These industries accounted for about 83.77% of the total number of MSME establishments.

Geographical Spread of MSMEs

Majority of the MSMEs can be found in the National Capital Region (NCR) with 201,123 (21.10%) business establishments, Region 4-A (CALABARZON) with 139,363 (14.62%), Region 3 (Central Luzon) with 111,262 (11.68%), Region 7 (Central Visayas) with 65,682 (6.89%), and Region 6 (Western Visayas) with 57,469 (6.03%). These top five (5) locations accounted for about 60.33% of the total number of MSME establishments in the country. Regional concentration of MSMEs is largely associated with economic activity and population size. 

Employment 

Together, these MSMEs generated a total of 5,380,815 jobs or 62.66% of the country’s total employment. The micro enterprises produced the biggest share (29.38%) closely followed by small enterprises (25.78%) while medium enterprises were far behind at 7.50%. Meanwhile, large enterprises generated a total of 3,206,011 jobs or 37.34% of the country’s overall employment.

In terms of regional distribution, majority of the jobs are generated by MSMEs in the National Capital Region (NCR) with 1,531,256 jobs; followed by MSMEs in Region 4-A (CALABARZON) with 773,668; Region 3 (Central Luzon) with 574,709; Region 7 (Central Visayas), 415,273; and Region 6 (Western Visayas), 294,191.

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 followed by Accommodation and Food Service Activities (775,120), Manufacturing (732,030), Financial and Insurance Activities (306,283), and Education (295,789).

Sales and Census Value-Added

In terms of value added, the MSME sector contributed 35.7% of the total with manufacturing contributing the largest share of 6.87%. Wholesale and retail trade and repair contributed 6.58% followed by financial intermediation with a share of 6%. 

Within the sector, small enterprises accounted for the largest share of 20.5%. Medium enterprises followed with a share of 10.3% while micro enterprises registered a share of 4.9%. Among small enterprises, wholesale and retail trade and repair contributed the most with a share of 4.07% followed by manufacturing with a share of 3.82% while financial intermediation was next with a share of 3.35%.

For medium enterprises, manufacturing accounted for the biggest share of 2.77% followed by electricity, gas and water with a share of 1.92% and financial intermediation with 1.87%. For micro enterprises, wholesale and retail trade and repair represented the largest contribution of 1.73%.

Exports Contribution of MSMEs

MSMEs account for 25% of the country’s total exports revenue. It is also estimated that 60% 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.

Data Source: Philippine Statistics Authority (PSA) 

You may also view the 2020 Philippine MSME Statistics in Brief​. 

For a copy of the 2020 List of Establishments (LE), you may contact the Service and Industry Census Division of the Philippine Statistics Authority (PSA) at sicd.staff@psa.gov.ph.

For other MSME-related information, you may contact the Bureau of Small and Medium Enterprise Development (BSMED) at bsmed@dti.gov.ph.