Miscellaneous business activities have the biggest number of establishments
A total of 35,194 establishments engaged in real estate, renting and business activities were covered in the 2003 Annual Survey of Philippine Business and Industry. About 33,714 or 95.8 percent of the total figure were establishments with average total employment (ATE) of less than 20 and 1,480 or 4.2 percent were establishments with ATE of 20 or more.
Among the industry divisions, miscellaneous business activities (K74) like legal, accounting, bookkeeping activities; advertising; investigation and security activities; and related technical consultancy comprised the largest number of establishments accounting for almost three fifths (20,439 or 58.1%) of the total count for the sector. Far next was renting of machinery and equipment without operator; personal and household goods (K71) with 10,234 or 29.1 percent, followed by real estate activities (K70) with 2,963 or 8.4 percent. On the other hand, research and development (K73) had the least number with only 45 establishments (0.1%). Figure 1 shows the sector's distribution of establishments by industry division.
Majority of workers are employed in miscellaneous business activities
The sector employed a total workforce of 356,536 workers in 2003. Of the total, 331,134 (92.9%) were paid employees and 25,403 (7.1%) were working owners or unpaid workers.
Being the largest in number, miscellaneous business activities (K74) employed more than three-fourths (271,585 or 76.2%) of the total workforce. Far next were real estate activities (K70) and renting of machinery and equipment without operator; personal and household goods (K71) with 32,551 or 9.1 percent and 30,396 or 8.5 percent, respectively. Meanwhile, research and development (K73) registered the least with 3,473 workers or 1.0 percent.
Workers in computer and related activities receive the highest monthly pay
In 2003, the sector paid a total compensation of Php39 billion, equivalent to an average monthly pay of Php9,808 per paid employee.
Industry wise, miscellaneous business activities (K74) paid the highest compensation of about Php28.6 billion accounting for almost three-fourths (73.4%) of the sector's total. Computer and related activities (K72) placed second with Php4.1 billion (10.6%). Real estate activities (K70) ranked third with Php4.1 billion (10.5%). In contrast, research and development (K73) reported the lowest amount of Php446.7 million (1.1%).
Workers in computer and related activities (K72) received the highest monthly compensation of Php19,564; followed by those in research and development (K73), Php10,737 and real estate activities (K70), Php10,448. However, employees involved in renting of machinery and equipment without operator: personal and household goods (K71) received the lowest monthly pay of Php6,803. Table A displays the average monthly compensation per paid employee by industry division.
Table A. Average Monthly Compensation Per Paid Employee By Industry Division: 2003
| PSIC Code | Industry Division | Average Monthly Compensation Per Paid Employee |
| K | P 9,808 | |
| K70 | Real estate activities | P 10,448 |
| K71 | Renting of machinery and equipment without operator; personal and household goods | P 6,803 |
| K72 | Computer and related activities | P 19,564 |
| K73 | Research and development | P 10,737 |
| K74 | Miscellaneous business activities | P 9,288 |
Miscellaneous business and real estate activities contribute the biggest share in revenue and costs
Gross revenue realized by the sector reached Php153.2 billion in 2003.
Bulk of the revenue was generated by establishments engaged in miscellaneous business activities (K74) with Php72 billion (47%) and real estate activities (K70) with Php56.3 billion (36.7%). On the other hand, research and development (K73) had the least share with Php635.4 million (0.4%).
Total operating costs (excluding compensation paid to employees) incurred by the sector amounted to Php87.7 billion in 2003.
Having the biggest share in revenue, real estate activities (K70) and miscellaneous business activities (K74) also had the largest proportion in costs with Php42.7 billion (48.7%) and Php28.2 billion (32.2%), respectively. On the contrary, research and development (K73) incurred the least cost of Php366 million (0.4%). Figure 2 shows the sector�s distribution of revenue and costs by industry division.
Revenue per peso cost is valued at Php1.75
For every peso spent, Php1.75 was earned by the real estate, renting and business activities sector.
The highest revenue per peso cost was noted in miscellaneous business activities (K74) at Php2.55; while the lowest, in real estate activities (K70) and renting of machinery and equipment without operator; personal and household goods (K71), at Php1.32. Figure 3 shows the revenue per peso cost by industry division.
Value added totals to Php82 billion
Total value added derived by establishments engaged in real estate, renting and business activities amounted to Php82 billion in 2003.
Among the industry divisions, miscellaneous business activities (K74) reported the highest value added comprising almost three fifths (Php48.7 billion or 59.4%) of the total. Real estate activities (K70) ranked second with Php23 billion (28%) and computer and related activities (K72) ranked third with Php6.2 billion (7.6%). On the other hand, research and development (K73) had the least with Php337.2 million (0.4%).
Gross additions to fixed assets reaches Php31.1 billion
Gross additions to fixed assets acquired by real estate, renting and business activities establishments totaled to Php31.1 billion.
Real estate activities (K70) recorded the biggest gross additions to fixed assets amounting to Php24.9 billion (80.1%). Miscellaneous business activities (K74) followed with Php3.9 billion (12.6%). On the other hand, research and development (K73) registered the least with only Php19.7 million (0.1%).
Change in inventories amounts to P392.6 million
Total change in inventories (ending less beginning inventory) amounted to Php489.1 million in 2003.
Real estate activities (K70) and miscellaneous business activities (K74) recorded a positive change in inventories of Php550.6 million and Php123.9 million, respectively; while all other industries registered negative values.
Subsidies granted by government amounts to Php380.7 million
Total subsidies granted by government to support real estate, renting and business activities sector was Php380.7 million in 2003.
Research and development companies (K73) received the largest amount of subsidies with Php167.1 million representing more than two fifths (43%) of the total figure. Real estate activities (K70) closely followed with Php159.8 million (42%). However, computer and related activities (K72) recorded the least with Php7.7 million (2%).
TECHNICAL NOTES
Scope and Coverage
The 2003 Annual Survey of Philippine Business and Industry (ASPBI) was conducted to collect information on the structure and trends of economic activities in the entire country for the year 2003. Covered were establishments engaged in economic activities as defined under the 1994 Philippine Standard Industrial Classification (PSIC). These establishments were classified into 14 sectors, one of which was Real estate, Renting and Business Activities (Sector K). The sector is composed of establishments engaged in real estate activities (K70); renting of machinery and equipment without operator; personal and household goods (K71); computer and related activities (K72); research and development (K73); and miscellaneous business activities (K74).
All real estate, renting and business activities establishments nationwide with average total employment (ATE) of 100 and over were covered on a 100 percent basis and those with ATE less than 100 were selected using simple random sampling.
Response
A total of 1,656 or 89.37% responded out of the 1,853 samples drawn for the sector. Adjustments for non-response were made through imputations.
Concepts and Definition of terms
Establishment is an economic unit, which engages under a single ownership or control, i.e. under a single legal entity, in one, or predominantly one kind of economic activity at a single fixed location.
Economic activity or business is the activity of the establishment as classified under the1994 Philippine Standard Industrial Classification (PSIC). The main activity refers to the activity that contributes the biggest or major portion of the gross income or revenue of the establishment.
Total Employment is the number of persons who worked in or for the establishment as of November 15, 2003.
Paid employees are all persons working in the establishments receiving pay as well as those working away from the establishment when paid by and under the control of the establishment. Included are persons working as full-time or part-time and those employees on sick leave or maternity leave, paid vacation or holiday. Excluded are consultants, home workers and workers receiving commission only.
Unpaid workers include working owners who do not receive regular pay, apprentices and learners without regular pay, and persons working without regular pay for at least one third of the working time normal to the establishment.
Salaries and wages are payments in cash or in kind, prior to deduction for employee's contribution to SSS/GSIS, withholding tax, etc. Included are total basic pay, vacation, sick, maternity leave pay, overtime pay, and other benefits.
Revenue refers to cash received and receivables for goods sold and services rendered.
Cost refers to all expenses (excluding compensation) incurred during the year whether paid or payable. Valuation should be at market 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
Gross additions to fixed assets refer to the cost of acquisition of fixed assets acquired in 2003 less the value of sales of fixed assets during the year.
Fixed assets are physical assets expected to have productive life of more than one year and intended for use and/or being used by the establishment. Included are land, buildings, fixtures, machinery, tool, furniture, office equipment, vehicles, and the like.
Capital expenditures refer to the cost of acquisition of fixed assets acquired in 2003 whether or not full payments have been made.
Subsidies are special grants in the form of financial assistance or tax exemption or tax privilege given by the government to develop an industry or production and to protect it against competition.
Inventories refer to stocks of goods owned by or 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 as a derived indicator is computed as the value of ending inventory less the value of beginning inventory.
Value Added is the total revenue plus capital expenditures (own account) plus change in inventories less total costs (net of indirect taxes, interest, bad and doubtful debts and depreciation).
The detailed tables at the national and regional levels are available upon request from the Industry Statistics Division, National Statistics Office, 4th Floor Solicarel Bldg II, Ramon Magsaysay Blvd., Sta. Mesa, Manila Tel. No. (062) 716-39-32.
Detailed Statistical Tables Source: National Statistics Office
Manila, Philippines
