This study explores the factors that determine SMEs employment growth in the Philippines and examines if SMEs are an engine of growth It is hypothesized that size age exports sales growth region and industry could stimulate firm’s employment growth Hypotheses are tested using the data obtained from the World Bank Enterprise Survey for the Philippines which was conducted for a geographic and industry cross section of businesses in 2009 and a sample of 1326 companies A multiple regression analysis is conducted in different levels: aggregate regional industrial and size levels Results indicate that as hypothesized only sales growth and age drive employment growth Contrary to expectations SMEs are not an engine of employment growth for this sample