Session on Business Registers for Developing and Transition Economies

1
The List of Establishments of the
Philippines
Prepared by Elsie B. Solidum, Chief
Statistical Sampling and Operations Division,
National Statistics Office
2
OUTLINE OF PRESENTATION

• Introduction
• What is the LE?
• Legal Authority
• Historical Background
• Availability of LE statistics

3
OUTLINE OF PRESENTATION (continued)

• II. Listing Units
• Establishments and its Taxonomy
• Classification Standards Used
• Scope and coverage
• Items of Information
• III. Machine Processing Systems

4
OUTLINE OF PRESENTATION (concluded)

• IV. Issues and Concerns
• use of administrative/ secondary
• sources
• machine processing system
• V. What needs to be done

5
What is the List of Establishments (LE)?

• called master List of Establishments
• (LE)
• DATABASE of establishments in the country for a
  reference year

6
Legal Authority

• Commonwealth Act No. 591 (August 19,1940)
• Presidential Decree 418 (March 20, 1974)
• Executive Order 121 (August 4, 1987)
• Executive Order 352 (July 1, 1996)
• Executive Order 5 (July 29, 1998)

7
Legal Authority (continued)

• 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

8
Legal Authority (continued)

• Commonwealth Act No. 591

• Section 3 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

9
Legal Authority (continued)

• Commonwealth Act No. 591

• Section 4 states that
• Data furnished to the Bureau of Census and
  Statistics by an individual, corporation,
  partnership, institution or business enterprise
  shall not be used as evidence for or against the
  individual, corporation, partnership, institution
  or business enterprise from whom such data
  emanates nor shall such data or information be
  divulged to any person except authorized
  employees of the Bureau of the Census and
  Statistics, acting in the performance of their
  duties, nor shall such data be published except
  in the form of summaries or statistical tables in
  which no reference to an individual ,
  corporation, partnership, institution or business
  enterprise shall appear. Any person violating
  the provisions of this section shall, upon
  conviction, be punished by fine of not more
  than six hundred pesos or by imprisonment for not
  more than six months, or by both

10
Legal Authority (continued)

• Presidential Decree No. 418 dated March 20, 1974
  
• Reconstituting the Bureau of 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

11
Legal Authority (continued)

• Executive Order No. 121 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

12
Legal Authority (concluded)

• Executive Order No. 352 Designation of
  Statistical Activities that shall generate
  critical data for decision-making by Government
  and Private Sector, dated July 1, 1996

Approving activities and statistics been
designated by NSCB for adoption by the government.
13
Legal Authority (concluded)

• Executive Order No. 5 Strengthening the
  national Statistics Office, dated July 29, 1998

Refocused the functions of the Office towards
development planning.
14
Historical Background Creation/Updating the LE

• Regular activity of Industry and Trade Statistics
  Department of the NSO
• available records for 1989 to 2010

• Comprehensive updating usually undertaken prior
  to a census of establishments
• earliest ULE was for the 1961 Census

15
Historical Background Creation/Updating the LE
(concluded)

• Updating strategies
• Door-to-door canvassing
• Mail Inquiry
• Decentralized Registry of Establishment System
  (DRES)
• Reports and feedbacks from other establishments
  surveys
• Administrative sources (started 1996)

16
Availability of LE Statistics

• Preliminary 4 months after reference year
• Final 7 months after the reference year
• Initial List of Enterprises 10 months after
  reference year (starting 2013)

17
II. Listing Unit

• Establishment
• 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 location.

18
II. Listing Unit

• Kind of Activity Unit
• No restriction in respect of the geographic
  area in which a given kind of activity is carried
  on by a single legal entity

19
Taxonomy of establishments

• Economic Organization
• Legal Organization
• Size
• Industrial Classification
• Geographic Classification

20
Size of establishments

• According Total Employment (TE)

TE Code Total Employment
0 1 4
1 5 9
2 10 19
3 20 49
4 50 99
5 100 199
6 200 499
7 500 999
8 1000 1999
9 2000 and over
21
Size of establishments (concluded)

• According to Assets

Asset Size Code Asset Size
1 P3M and below
2 P3,000,001 to P15M
3 P15,000,001 to P100M
4 Above P100M
22
Classification Standards Used

• Industrial classification
• 2009 Philippine Standard Industrial
  Classification (PSIC), based on ISIC rev4,
  starting 2010

• Geographic classification
• Official Philippine Standard Geographic
  Classification (PSGC) for the reference year

23
Scope and Coverage
Section A Agriculture, Forestry and Fishing
SCOPE COVERAGE
All economic activities All establishments (EO 1 to 5) Includes listing of National Irrigation Administration Philippine Coconut Authority Philippine Fisheries Development Authority

24
Scope and Coverage (continued)
Section B Mining and Quarrying
SCOPE COVERAGE
All economic activities All establishments (EO 1 to 5)

25
Scope and Coverage (continued)
Section C Manufacturing
SCOPE COVERAGE
All economic activities All establishments (EO 1 to 5)

26
Scope and Coverage (continued)
Section D Electricity, Gas, Steam and
Air Conditioning Supply
SCOPE COVERAGE
All economic activities All establishments (EO 1 to 5) Includes listing of power substations electric cooperatives National Power Corporation

27
Scope and Coverage (continued)
Section F Construction
SCOPE COVERAGE
All economic activities All establishments (EO 1 to 5) Includes listing of Philippine National Construction Corporation Excludes listing of construction/project sites

28
Scope and Coverage (continued)
Section G Wholesale and Retail Trade
Repair of Motor Vehicles
and Motorcycles
SCOPE COVERAGE
All economic activities, except retail sale via stalls and markets (G478) All establishments (EO 1 to 5), except Sari-Sari stores with no regularly paid employee Includes listing of National Food Authority

29
Scope and Coverage (continued)
Section H Transportation and Storage
SCOPE COVERAGE
All economic activities, except jeepney and AUV operation (H49321), tricycle, calesas, pedicabs operation (H49322) All main offices and single establishments (EO 1, 3, 4) i.e., excluding branches and ancillary units. Includes listing of Main office of foreign airlines

30
Scope and Coverage (continued)
Section H Transportation and Storage
SCOPE COVERAGE
All economic activities All establishments (EO 1 to 5)

31
Scope and Coverage (continued)
Section J Information and Communication
SCOPE COVERAGE
All economic activities All establishments (EO 1 to 5) Excludes listing of branches and ancillary units of telecommunications activities (J61)

32
Scope and Coverage (continued)
Section K Financial and Insurance Activities
SCOPE COVERAGE
All economic activities, including activities of holding companies except central banking (K64110) All establishments (EO 1 to 5) Excludes listing of branches and ancillary units of Monetary intermediation (K641) Life and Non-Life Insurance companies (K651) Life and Non-Life Reinsurance companies (K652) Pre-need plan activities Insurance agents and brokers Insurance activities, n.e.c. (K662)

33
Scope and Coverage (continued)
Section L Real Estate Activities
SCOPE COVERAGE
All economic activities All establishments (EO 1 to 5)

34
Scope and Coverage (continued)
Section M Professional, Scientific and
Technical Activities
SCOPE COVERAGE
All economic activities All establishments (EO 1 to 5)

35
Scope and Coverage (continued)
Section N Administrative and Support
Service Activities
SCOPE COVERAGE
All economic activities All establishments (EO 1 to 5) Excludes listing of branches and ancillary units of Security and investigation agencies (N80) Janitorial agencies (N81291) Travel agencies and tour operators (N791) Other reservation service and related activities (N799)

36
Scope and Coverage (continued)
Section P Education
SCOPE COVERAGE
All economic activities, except public education services All establishments (EO 1 to 5)

37
Scope and Coverage (continued)
Section Q Human Health and
Social Work Activities
SCOPE COVERAGE
All economic activities, except public medical (Q8611), dental and other health services (Q8621) All establishments (EO 1 to 5)

38
Scope and Coverage (continued)
Section R Arts, Entertainment, and Recreation
SCOPE COVERAGE
All economic activities All establishments (EO 1 to 5)

39
Scope and Coverage (concluded)
Section S Other Service Activities
SCOPE COVERAGE
All economic activities, except activities of membership organizations (S94) All establishments (EO 1 to 5)

40
Out of Scope
Section O Public Administration and Defense
Compulsory Social Security
Section S Other Service Activities
Section T Activities of Households as
Employers Undifferentiated Goods and
Services Producing Activities of Households
for Own Use
Section U Activities of Extra-territorial
Organization and Bodies

• Ambulant peddlers and hawkers

41
Items of Information
Categories of Information

• Identification Information
• Contact Information
• Classification Information
• Maintenance and Linkage Information

42
Items of Information

• Identification Data

1. ECN (Establishment Control No.)
2. Establishment Serial No. (ESN)
3. Business name
4. Registered name
5. Address
6. Tax Identification No. (TIN)

43
Items of Information

• Contact data

• Address
• Telephone No.
• Fax No.
• E-mail address
• Website (starting 2009)

44
Items of Information

• Contact data

• Street code
• Name of economic area
• Economic area code
• Building Serial No. (BSN)

45
Items of Information

• Classification Data

• Province code
• Municipality code
• Barangay code
• Description of main activity
• Economic activity code

46
Items of Information

• Classification Data

• Economic organization code
• Legal (form of) organization code
• Nationality of owner/s
• Total employment
• Number of paid employees
• Total assets
• Year started operation

47
Items of Information

• Maintenance and linkage data

• Name of main office
• Address of main office
• Province, Municipality, Barangay code of main
  office
• Name of reporting unit
• Address of reporting unit
• Province-Municipality code of reporting unit

48
Items of Information

• Maintenance and linkage data

• Name of Parent Company
• Address of Parent Company
• Source of Information
• Current Status
• LE Indicator

49
III. Machine Processing Systems

• Maintenance of the List of Establishments System
  (MLE)
• DRES

50
III. Machine Processing Systems (continued)

• Maintenance of the List of Establishments System
  (MLE)

• integrative computer processing system for
  updating and maintaining establishment records
  on the LE database

51
III. Machine Processing Systems (continued)

• Decentralized Registry of Establishments System
  (DRES)

• Computerized processing system of business
  permits application from LGUs

52
III. Machine Processing Systems (concluded)

• Decentralized Registry of Establishments System
  (DRES)

• developed in response to

- the need for a uniform systematic
business permit and licensing operation
- NSOs need for improved updating
of the list of establishments at
minimal cost

53
IV. Issues and Concerns

• Use of administrative /secondary sources
• Difficulty in accessing data files
• File layouts not in sync with LE database

54
V. What needs to be done

• Review of scope and coverage to address need for
  MSME statistics
• Operationalize concept of enterprise and data
  items to be collected

55
V. What needs to be done (continued)

• Overhaul of the MLE
• Migration of the MLE database to a more secure
  database environment MySQL
• Fields for additional variables needed for the
  construction of the list of enterprises
• Linking to available administrative sources data
  base

56
V. What needs to be done (concluded)

• Enhancement of the DRES
• Revision of the system
• DRES advocacy (with financial resources provided)
  to small municipalities with no computerized
  system

57
Thank you!
Maraming salamat po!
Session on Business Registers for Developing and
Transition Economies Geneva September 2, 2013