Study on the Economic Development of Selected
Cities in Mindanao
City Information Baseline
City of Koronadal
I.
City
Economic/ Investment Information
Baseline
a.
Number of establishments by type of business
Based on the masterlist of
businesses of the City of Koronadal, as of January 2006, there are 5,239 registered business
establishments in the city. Of these,
248 or 4.73% are new and 4,991 are
existing.
However, 68.87% of the registered
establishments or 3,608 establishments
have not yet renewed or have ceased
operations. This means that only
31.13% have registered either as
new or renewals as of the time the
data was given. This information
is significant since it shows the
lack of sustainability of a large
portion of the business ventures.
|
Table
1: Number of Establishments
per Type of Business - Koronadal
|
|
Type of Business
|
New
|
%
|
Renew
|
%
|
Totals
|
%
|
|
Manufacturing
|
6
|
2.42%
|
64
|
1.28%
|
70
|
1.34%
|
|
Production
|
4
|
1.61%
|
15
|
0.30%
|
19
|
0.36%
|
|
Services
|
120
|
48.39%
|
619
|
12.40%
|
739
|
14.11%
|
|
Trading
|
118
|
47.58%
|
685
|
13.72%
|
803
|
15.33%
|
|
No
Data
|
|
0.00%
|
3,608
|
72.29%
|
3,608
|
68.87%
|
|
Totals
|
248
|
4.73%
|
4,991
|
95.27%
|
5,239
|
100.00%
|
Source: BPLS Masterlist, Koronadal
The data also shows that business activities in Koronadal are largely services and trading. Manufacturing
and production activities account
for a very small piece of the pie.
b.
Number of establishments by classification (micro, small,
medium, large)
The classification for this section is based on the
capital structure/ gross sales classification
ranges for Barangay Micro business
(less than 50,000), Micro (50,001
to 3,000,000), small (3,000,001
to 15,000,000), medium (15,000,001
to 150,000,000), and large (more
than 150,000,000). There is no correlation
with the number of employees that
will determine if the establishment
rightfully falls into the said classification.
Further, the classification is based
on capital and gross sales figures
instead of strictly amount of capital
used by DTI for classification.
For lack of detailed data, this
classification is used to provide
a basis for differentiation of the
scale of business.
Using this classification, data will show that business
in Koronadal City
is largely Barangay micro business
and Micro levels. A total of 1,631
business establishments have registered
out of the 5,239 in the cumulative
masterlist of businesses in the city.
|
Table
2 - Number of Establishments
per Classification - Koronadal
|
|
|
|
|
|
|
|
|
|
|
RANGE
|
NEW
|
%
|
RENEW
|
%
|
TOTALS
|
%
|
|
-
|
50,000
|
127
|
51.21%
|
136
|
2.72%
|
263
|
5.02%
|
|
50,001
|
3,000,000
|
116
|
46.77%
|
1,120
|
22.42%
|
1,235
|
23.57%
|
|
3,000,001
|
15,000,000
|
5
|
2.02%
|
94
|
1.88%
|
99
|
1.89%
|
|
15,000,001
|
100,000,000
|
-
|
0.00%
|
29
|
0.58%
|
29
|
0.55%
|
|
over
|
100,000,000
|
-
|
0.00%
|
4
|
0.10%
|
5
|
0.10%
|
|
No Data
|
|
|
0.00%
|
3,608
|
72.29%
|
3,608
|
68.87%
|
|
Totals
|
|
248
|
4.73%
|
4,991
|
95.27%
|
5,239
|
100.00%
|
Source: BPLS Masterlist, Koronadal
c.
Number of establishments by capitalization
The number of establishments by capitalization in the
data is only for newly registered
establishments. There is no data
given for capitalization of renewal
businesses.
Based on the data, Barangay Micro business accounts
for the majority of establishments
newly registered, closely followed
by Micro business level establishments.
This shows an active grassroots
enterprise situation in the city.
However, it also shows weakness
of
Small, Medium and Large enterprise
investment.
d.
Number of establishments by Gross Sales/ revenues
Based on the data given, the bulk of establishments
have gross revenues within the Micro
Business range. The trend for renewals
is similar to the new businesses
with the Micro business sector leading
the way. What is alarming in this
data is that 72% have not renewed
their business registration. The
city has not made an analysis of
this figure, although they agree
that this is possibly due to the
business fall-out rate. (Table 2)
e.
Trend of number of establishments registered
Data on the number of business establishments show a
steady trend of increase in number
of registered businesses averaging
about 6.6% every year compared to
previous year.
Table 3.
Koronadal
City No. of Registered Business Establishments 2000 – 2004
|
Item
|
2000
|
2001
|
2002
|
2003
|
2004
|
|
No.
of Business Establishments
|
|
1,563
|
1,677
|
1,819
|
1,913
|
|
Annual
Rate of Increase
|
-
|
-
|
1.07
|
1.08
|
1.05
|
Source: TAF Field Report
f.
Revenue
trend for past 3-5 years for business
permit and other revenues
Table 4. Koronadal City Business Tax
and RPT collections, 2000 – 2004
|
Item
|
2000
|
2001
|
2002
|
2003
|
2004
|
|
Business
Tax Collection, P
|
12,717,812.17
|
12,930,691.93
|
14,842,497.61
|
14,205,146.67
|
19,034,224.07
|
|
RPT
Collection, P
|
7,393,959.26
|
11,276,617.94
|
10,907,851.48
|
11,370,957.79
|
10,275,275.24
|
Source: TAF Field Report
Table 5. Computed annual
rate of increase from previous year
|
Item
|
2000
|
2001
|
2002
|
2003
|
2004
|
|
Business
Tax Collection, P
|
|
1.01
|
1.15
|
0.95
|
1.34
|
|
RPT
Collection, P
|
|
1.52
|
0.96
|
1.04
|
0.90
|
Average: Business Tax Collection
= 1.11 and RPT Collection =1.10
The figures will show that the trend for collection
of the Business Tax and RPT are
not steady. This may be due to shifting
focus on the part of the LGU in
the collection of these taxes and
other sources of income.
g.
Industry sector share of Economy
In terms of contribution to the local economy, the Trading
sector is the biggest contributor
in value of gross sales. For the
new capital infusion, Services sector
accounted for the greater value
contribution with almost 60% of
the new capital infused into the
economy as shown in Table 6 below.
