The List of Establishments of the Philippines Prepared

The List of Establishments of the Philippines Prepared by: Elsie B. Solidum, Chief Statistical Sampling and Operations Division, National Statistics Office Session on Business Registers for Developing and Transition Economies Geneva September 2, 2013 1

OUTLINE OF PRESENTATION I. Introduction • What is the LE? • Legal Authority • Historical Background • Availability of LE statistics Session on Business Registers for Developing and Transition Economies Geneva September 2, 2013 2

OUTLINE OF PRESENTATION (continued) II. Listing Units • Establishments and its Taxonomy • Classification Standards Used • Scope and coverage • Items of Information III. Machine Processing Systems Session on Business Registers for Developing and Transition Economies Geneva September 2, 2013 3

OUTLINE OF PRESENTATION (concluded) IV. Issues and Concerns • use of administrative/ secondary sources • machine processing system V. What needs to be done Session on Business Registers for Developing and Transition Economies Geneva September 2, 2013 4

What is the List of Establishments (LE)? • called master List of Establishments (LE) • DATABASE of establishments in the country for a reference year Session on Business Registers for Developing and Transition Economies Geneva September 2, 2013 5

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) Session on Business Registers for Developing and Transition Economies Geneva September 2, 2013 6

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 Session on Business Registers for Developing and Transition Economies Geneva September 2, 2013 7

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… Session on Business Registers for Developing and Transition Economies Geneva September 2, 2013 8

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…” Session on Business Registers for Developing and Transition Economies Geneva September 2, 2013 9

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 Session on Business Registers for Developing and Transition Economies Geneva September 2, 2013 10

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 Session on Business Registers for Developing and Transition Economies Geneva September 2, 2013 11

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. Session on Business Registers for Developing and Transition Economies Geneva September 2, 2013 12

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. Session on Business Registers for Developing and Transition Economies Geneva September 2, 2013 13

Historical Background : Creation/Updating the LE • Regular activity of Industry and Trade Statistics Department of the NSO Ø available records for 1989 to 2010 • Comprehensive updating usually undertaken prior to a census of establishments Ø earliest ULE was for the 1961 Census Session on Business Registers for Developing and Transition Economies Geneva September 2, 2013 14

Historical Background : Creation/Updating the LE (concluded) • Updating strategies Ø Door-to-door canvassing Ø Mail Inquiry Ø Decentralized Registry of Establishment System (DRES) Ø Reports and feedbacks from other establishments surveys Ø Administrative sources (started 1996) Session on Business Registers for Developing and Transition Economies Geneva September 2, 2013 15

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) Session on Business Registers for Developing and Transition Economies Geneva September 2, 2013 16

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. Session on Business Registers for Developing and Transition Economies Geneva September 2, 2013 17

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 Session on Business Registers for Developing and Transition Economies Geneva September 2, 2013 18

Taxonomy of establishments • Economic Organization • Legal Organization • Size • Industrial Classification • Geographic Classification Session on Business Registers for Developing and Transition Economies Geneva September 2, 2013 19

Size of establishments • According Total Employment (TE) TE Code 0 1 2 3 4 5 6 7 8 9 Total Employment 1– 4 5– 9 10 – 19 20 – 49 50 – 99 100 – 199 200 – 499 500 – 999 1000 – 1999 2000 and over Session on Business Registers for Developing and Transition Economies Geneva September 2, 2013 20

Size of establishments (concluded) • According to Assets Asset Size Code Asset Size 1 2 3 4 P 3 M and below P 3, 000, 001 to P 15 M P 15, 000, 001 to P 100 M Above P 100 M Session on Business Registers for Developing and Transition Economies Geneva September 2, 2013 21

Classification Standards Used l Industrial classification 2009 Philippine Standard Industrial Classification (PSIC), based on ISIC rev 4, starting 2010 l Geographic classification Official Philippine Standard Geographic Classification (PSGC) for the reference year Session on Business Registers for Developing and Transition Economies Geneva September 2, 2013 22

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 Session on Business Registers for Developing and Transition Economies Geneva September 2, 2013 23

Scope and Coverage (continued) Section B – Mining and Quarrying SCOPE COVERAGE All economic activities All establishments (EO 1 to 5) Session on Business Registers for Developing and Transition Economies Geneva September 2, 2013 24

Scope and Coverage (continued) Section C – Manufacturing SCOPE COVERAGE All economic activities All establishments (EO 1 to 5) Session on Business Registers for Developing and Transition Economies Geneva September 2, 2013 25

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 Session on Business Registers for Developing and Transition Economies Geneva September 2, 2013 26

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 Session on Business Registers for Developing and Transition Economies Geneva September 2, 2013 27

Scope and Coverage (continued) Section G – Wholesale and Retail Trade; Repair of Motor Vehicles and Motorcycles SCOPE All economic activities, except retail sale via stalls and markets (G 478) COVERAGE All establishments (EO 1 to 5), except Sari-Sari stores with no regularly paid employee Includes listing of: National Food Authority Session on Business Registers for Developing and Transition Economies Geneva September 2, 2013 28

Scope and Coverage (continued) Section H – Transportation and Storage SCOPE All economic activities, except jeepney and AUV operation (H 49321), tricycle, calesas, pedicabs operation (H 49322) COVERAGE 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 Session on Business Registers for Developing and Transition Economies Geneva September 2, 2013 29

Scope and Coverage (continued) Section H – Transportation and Storage SCOPE COVERAGE All economic activities All establishments (EO 1 to 5) Session on Business Registers for Developing and Transition Economies Geneva September 2, 2013 30

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 (J 61) Session on Business Registers for Developing and Transition Economies Geneva September 2, 2013 31

Scope and Coverage (continued) Section K – Financial and Insurance Activities SCOPE All economic activities, including activities of holding companies except central banking (K 64110) COVERAGE All establishments (EO 1 to 5) Excludes listing of branches and ancillary units of: Monetary intermediation (K 641) Life and Non-Life Insurance companies (K 651) Life and Non-Life Reinsurance companies (K 652) Pre-need plan activities; Insurance agents and brokers; Insurance activities, n. e. c. (K 662) Session on Business Registers for Developing and Transition Economies Geneva September 2, 2013 32

Scope and Coverage (continued) Section L – Real Estate Activities SCOPE COVERAGE All economic activities All establishments (EO 1 to 5) Session on Business Registers for Developing and Transition Economies Geneva September 2, 2013 33

Scope and Coverage (continued) Section M – Professional, Scientific and Technical Activities SCOPE COVERAGE All economic activities All establishments (EO 1 to 5) Session on Business Registers for Developing and Transition Economies Geneva September 2, 2013 34

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 (N 80) Janitorial agencies (N 81291) Travel agencies and tour operators (N 791) Other reservation service and related activities (N 799) Session on Business Registers for Developing and Transition Economies Geneva September 2, 2013 35

Scope and Coverage (continued) Section P – Education SCOPE COVERAGE All economic activities, All establishments (EO 1 to 5) except public education services Session on Business Registers for Developing and Transition Economies Geneva September 2, 2013 36

Scope and Coverage (continued) Section Q – Human Health and Social Work Activities SCOPE COVERAGE All economic activities, All establishments (EO 1 to 5) except public medical (Q 8611), dental and other health services (Q 8621) Session on Business Registers for Developing and Transition Economies Geneva September 2, 2013 37

Scope and Coverage (continued) Section R – Arts, Entertainment, and Recreation SCOPE COVERAGE All economic activities All establishments (EO 1 to 5) Session on Business Registers for Developing and Transition Economies Geneva September 2, 2013 38

Scope and Coverage (concluded) Section S – Other Service Activities SCOPE COVERAGE All economic activities, All establishments (EO 1 to 5) except activities of membership organizations (S 94) Session on Business Registers for Developing and Transition Economies Geneva September 2, 2013 39

Out of Scope Section O – Public Administration and Defense; Section S – Other Service Activities Compulsory Social Security 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 l Ambulant peddlers and hawkers Session on Business Registers for Developing and Transition Economies Geneva September 2, 2013 40

Items of Information Categories of Information § § Identification Information Contact Information Classification Information Maintenance and Linkage Information Session on Business Registers for Developing and Transition Economies Geneva September 2, 2013 41

Items of Information l Identification 1. 2. 3. 4. 5. 6. Data ECN (Establishment Control No. ) Establishment Serial No. (ESN) Business name Registered name Address Tax Identification No. (TIN) Session on Business Registers for Developing and Transition Economies Geneva September 2, 2013 42

Items of Information l Contact data Address Telephone No. Fax No. E-mail address Website (starting 2009) Session on Business Registers for Developing and Transition Economies Geneva September 2, 2013 43

Items of Information l Contact data Street code Name of economic area Economic area code Building Serial No. (BSN) Session on Business Registers for Developing and Transition Economies Geneva September 2, 2013 44

Items of Information l Classification Data Province code Municipality code Barangay code Description of main activity Economic activity code Session on Business Registers for Developing and Transition Economies Geneva September 2, 2013 45

Items of Information l 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 Session on Business Registers for Developing and Transition Economies Geneva September 2, 2013 46

Items of Information l 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 Session on Business Registers for Developing and Transition Economies Geneva September 2, 2013 47

Items of Information l Maintenance § § § and linkage data Name of Parent Company Address of Parent Company Source of Information Current Status LE Indicator Session on Business Registers for Developing and Transition Economies Geneva September 2, 2013 48

III. Machine Processing Systems • Maintenance of the List of Establishments System (MLE) • DRES Session on Business Registers for Developing and Transition Economies Geneva September 2, 2013 49

III. Machine Processing Systems (continued) • Maintenance of the List of Establishments System (MLE) Ø integrative computer processing system for updating and maintaining establishment records on the LE database Session on Business Registers for Developing and Transition Economies Geneva September 2, 2013 50

III. Machine Processing Systems (continued) • Decentralized Registry of Establishments System (DRES) Ø Computerized processing system of business permits application from LGUs Session on Business Registers for Developing and Transition Economies Geneva September 2, 2013 51

III. Machine Processing Systems (concluded) Ø Decentralized Registry of Establishments System (DRES) • developed in response to: - the need for a uniform systematic business permit and licensing operation - NSO’s need for improved updating of the list of establishments at minimal cost Session on Business Registers for Developing and Transition Economies Geneva September 2, 2013 52

IV. Issues and Concerns • Use of administrative /secondary sources Ø Difficulty in accessing data files Ø File layouts not “in sync” with LE database Session on Business Registers for Developing and Transition Economies Geneva September 2, 2013 53

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 Session on Business Registers for Developing and Transition Economies Geneva September 2, 2013 54

V. What needs to be done (continued) • Overhaul of the MLE Ø Migration of the MLE database to a more secure database environment My. SQL Ø Fields for additional variables needed for the construction of the list of enterprises Ø Linking to available administrative sources data base Session on Business Registers for Developing and Transition Economies Geneva September 2, 2013 55

V. What needs to be done (concluded) • Enhancement of the DRES Ø Revision of the system Ø DRES advocacy (with financial resources provided) to small municipalities with no computerized system Session on Business Registers for Developing and Transition Economies Geneva September 2, 2013 56

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