Closed establishments may have shifted — Lopez

Published November 24, 2021, 4:20 PM

by Bernie Cahiles-Magkilat

Some 100,000 establishments or 10 percent of the one million registered enterprises in the National Capital Region (NCR) that have remained closed despite the reopening of most sectors at higher operating capacity may have shifted to other business models, Trade and Industry Secretary Ramon M. Lopez said.

Lopez said this during a radio interviews as results of the DTI latest survey in October in Metro Manila showed a higher number of businesses that remained closed despite the easing of mobility restrictions. Lopez himself was surprised because previous surveys already showed lower number of 4 to 5 percent closed establishments every time lockdowns were eased up.

Lopez could only surmise that these establishments must have really shutdown their operations permanently. However, he noted that consolidated business registration from various local government units in Metro Manila showed a big jump.

Lopez explained that the 1 million registered NCR establishments are data from the Philippine Statistics Authority.

But, Lopez noted that these closed enterprises must have opened new businesses and shifted their business models that are pandemic proof. There is also the possibility of new entrepreneurs that have joined the entrepreneurship.

Based on the consolidated LGU registration, there were 1.7 million establishments from 1.5 million in 2019. This further went up to 2 million at present.

He attributed the increase to closed establishments that must have shifted to e-commerce and are engaged in delivery services. “So, while there are establishments that closed there are also that opened new businesses,” he said.

The DTI chief also said that the LGU data captures the micro establishments with no formal business location, while the PSA data only includes those that with permanent business address and those of the DTI. But even then, Lopez noted that LGU business registration or those establishments that were issued Mayor’s Permit was already growing at 200,000 annually in the past five years.