THE business sector in Davao Region is undergoing significant changes in the post-pandemic era, marked by a surge in micro establishments, persistent employment challenges, and a sharp decline in e-commerce, according to the latest Annual Survey of Philippine Business and Industry (ASPBI).
The 2022 survey, conducted nationwide in April 2023, assessed business activities and workforce trends, comparing them to previous years, including the peak of the pandemic.
Growth in establishments
Davao Region recorded 15,100 formal sector establishments in 2022—a 29.1 percent jump from 11,696 in 2020 and a 1.6 percent increase from the previous year.
The services sector led this expansion with 13,229 establishments, growing by 2.5 percent. Meanwhile, the industry and agriculture sectors saw slight declines, with establishment numbers dropping by 5.1 percent and 3.5 percent, respectively.
Micro businesses on the rise
Micro establishments drove most of the growth, making up 70.5 percent of all businesses (10,646). Small businesses followed with 4,084 establishments (27 percent), while medium and large enterprises remained minimal at 174 (1.2 percent) and 196 (1.3 percent), respectively.
Employment challenges
Although more businesses opened, total employment in 2022 fell to 282,425 workers, down from 301,611 in 2020. However, employment grew seven percent from 2021, signaling a slow but steady recovery—though still below pre-pandemic levels.
Revenue growth
In 2022, businesses generated P903.43 billion in revenue, marking a 30.6 percent increase from 2021. Despite employment challenges, profitability improved, with businesses earning P1.15 for every peso spent.
E-commerce decline
One of the most striking trends was the 92.3 percent drop in e-commerce sales. From a pandemic-driven peak of P15.72 billion in 2020, online sales plummeted to P1.21 billion in 2022. This steep decline indicates a return to in-person shopping as movement restrictions lifted and consumer habits shifted back to pre-pandemic norms.
Mixed economic recovery
Despite this challenge, the ASPBI reflects a mixed recovery in Davao Region’s economy.
While the number of businesses has grown and revenues have rebounded in some industries, employment remains below pre-pandemic levels, indicating the region has yet to fully restore its workforce.
Certain sectors continue to struggle to regain pre-crisis employment numbers.
Additionally, e-commerce—once a key growth driver—has sharply declined, leaving a gap that needs to be addressed. DEF
