financial managqement among sari-sari store owners in toril, davao city

7/25/2019 Financial Managqement Among Sari-sari Store Owners in Toril, Davao City

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Financial Management among Sari-Sari Store Owners in Toril, Davao City

An Undergraduate Thesis

Presented to the Faculty o the

College o Accounting !ducation

Su"mitted #y$

Arcon, Cris %ouie S&

Montante, 'eginald T&

() - *+


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ABSTRACT

In the Philippines, existence of sari-sari stores can be seen anywhere. Along with that,

issues are also prevalent. When a company experience losses, they can no longer

cope to it and end up to termination of its existence because of its poor financial

management. This paper aims to determine the level of financial management among

sari sari store owners in Toril, !avao "ity. !ata was gathered from #$$ %ari-%ari

store owners by the use of survey &uestionnaire. Their level of awareness for

'inancial (anagement were analy)ed by the use of mean, profile of the respondents

were measured by fre&uency and null hypothesis was tested by the use of '-test. The

result of this study revealed that in terms of sex, financing and operating show that

male or female have significant difference on financial management. In terms of the

age, financing, operating and investing show no significant difference. *astly, in

terms of educational attainment, it shows that the three variables agreed that there isa significant difference. As a whole, the researcher found out that there is significant

difference between the level of 'inancial (anagement and the respondent+s profile.

eywords 'inancial management, t-test, sari sari store owners, Toril, !avao "ity,

Philippines


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CHAPTER 1

INTRODUCTION

Rationale of the Study

Small and Medium !nterrises are very oular and can "e a great actor in an

economy esecially in a develoing nation .'ama/rishnan, *(01& Dierent

literatures concerning on small irm2s inancial management have a great num"er and

studied "y dierent researchers and are comle3 in nature& A study made "y 4aida

and Chand .*(*1 ocused mainly on the several ro"lems that would aect the

survival and e3istence o "usiness "ut orget to include the actors aecting the

inancial management and "road on its nature& 5ome6 .*(*1 emhasi6ed the lac/ o

training o sari 7 sari stores and the si6e o it to comete with other /inds o

esta"lished "usiness& 8hile a study "y 8il/ie .*(*1 said that most stores have

insuicient und due to lac/ o investment and conscious rice entrereneur would

li/e to "uy goods at historical cost or them to gain at the same time& For this research

aer, we would li/e to concentrate to a retail "usiness seciically called sari 7 sari

store and the level o inancial management alied "y store owner o it, to imrove

the /nowledge a"out inancial management o small enterrise and i inancial

management sari 7 sari store owners in Toril, Davao City conorm with the inancial

management o dierent laces&

Objectie of the Study

This study will determine the level o Financial Management o Sari-Sari

Store owners in Toril, Davao City&

Seciically, this study will see/ to achieve the ollowing o"9ectives$


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(& To determine the roile o Sari-Sari Store owners in terms o$

(&( Se3

(& Age

(&0 !ducational Attainment

& To determine the level o Financial Management in terms o$

&( :nvesting

& Financing

&0 Oerating

0& To determine the signiicant dierence "etween the level o Financial

Management and the resondents2 roile

Re!ea"ch Hy#othe!i!

There is no signiicant dierence "etween the level o inancial management

and the resondents2 roile&

Si$nificance of the Study

The study o Financial Management on Sari-Sari Stores in Toril, Davao City

can "e relevant to the "usiness management& This study can "e helul in dierent

/inds o "usiness seciically small enterrises& :n addition, this study will "e

"eneicial to the ollowing$

Sto"e O%ne"!& The result o the study will "e rimarily "eneicial to them which

would hel store owners in their decision ma/ing as they manage their "usiness&

&utu"e Ent"e#"eneu"!'The result o the study will encourage uture entrereneurs

having a small "udget to engage to "usiness and can have an idea on how to start their

own "usiness&

(endin$ Co)#any& The result o the study will widen their /nowledge in terms o

small enterrises in ac;uiring o unds&


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Cu!to)e"!& The result o the study will ma/e the "usiness eective and eventually

the customers will "e served accordingly and satisactorily&

The Re!ea"che"!' The result o the study will give /nowledge to them as the

researchers would want to have their own "usiness and on how to ma/e an eective

inancial management&

Othe" Re!ea"che"' The result o the study will hel other researcher on their uture

studies as reerence&

Definition of te")!

Sa"i*!a"i !to"e 7 reer to microenterrise with no emloyee and having a starting

caital asset o PhP 0,*** or less&

&inancial +ana$e)ent7 it is an alication o management s/ills and /nowledge

"eing alied "y the owners in governing their "usiness in terms o investing,

inancing and oerating&

To"il, Daao City7 it is a lace in the Philiines, Mindanao area secially located in

Davao City District 0 where the study was conducted&

P"ofile 7 ersonal identiication o resondents that may aect the inancial

management alied corresonding to se3, age and educational "ac/ground&

CHAPTER -

RE.IE/ O& RE(ATED (ITERATURE


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Related (ite"atu"e!

This section eatures dierent studies regarding the eect o owners roile

secially age, gender and educational "ac/ground in inancial management, level o

inancial management and the dierence o owners roile towards the level o

inancial management& The deinition o inancial management and some ro"lems

encountered o it is irst discussed& The owners2 roile secially age, gender and

educational "ac/ground that may aect inancial management is thoroughly

reviewed& 4e3t, the level o inancial management o sari-sari store owners& %astly,

the dierence o sari 7 sari store owners roile towards the level o inancial

management&

&inancial +ana$e)ent'Meredith .**01 said that inancial management is

one o the areas o management which lay the undamental role to the ulillment o

any small "usiness& :n addition, Peel, Poe and 8ilson .**(1, inancial management

and roita"ility can also "e called as li;uidity and roita"ility& Amin .*(*1

ac/nowledged that there are trou"les "eing aced "y :ndian retailers that hold "ac/

their success& :ndustry in :ndia aced lac/ o ower suly, lac/ o credit management

and corrution&

Small "usinesses li/e retail store really aid a nation on its escalation& The si6e

doesn2t matter "ecause it allows le3i"ility and more raidly decision - ma/ing

"ecause o its distinctiveness o innovation, drive and cometence .1&

Owning a small "usiness has an advantages and disadvantages& Advantages

li/e one can2t ire you? one decides your wor/ schedule, gain thorough understanding

and oortunities a"out "usiness& Disadvantages li/e money and savings

consumtion, demanding duties and unli/a"le e3erience losing caital .Collins,


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*(01& : a small enterrise "e unsuccessul, the ma9or causes is lac/ o lanning,

unacceta"le inancing and oor management& 8hen starting a small "usiness, there

are only two ossi"ilities, achievement or ailure& #ecause o its si6e, mismanagement

will certainly result its own death and it cannot learn rom its own mista/es

.%ongenec/er, Moore and Palich, **>1&

A$e' 5enerally, traditional amily "usiness that can "e considered ailed still

"eing sustained "y middle and old-aged retailers& Their urose is not or earnings

anymore "ut to carry on their amily legacy .8atson and !verett, (+++1&

The tyical lie o a small "usiness is @ years& A inding says that +* o the

ailed "usinesses are less than (* years& An age o a "usiness certainly associated to

ailure .Peterson and Shulman, (+B01&

The research in the Organi6ation or !conomic Co-oeration Develoment

.*(1 who ound out that "ecause o limited wor/ e3erience, young eole ace

more ro"lems than older men "elieving that they have stronger attachment to the

world o "usiness&

0ende"' 5ender is another demograhic issue which could inluence credit

management ractices along with micro-enterrises& al/ias .**B1 ostulated that in

relation to entrereneurial connection and "usiness ossession, there is still an

imortant and methodical ga "etween genders& !vans and 8inston .**B1 made a

similar claim to that o al/ias .**B1& :n their study on loan delin;uency among

small "usiness owners in 5hana, they initiate that single college educated women

managed their credit more ractically than "oth men in general and married women&

:n **0, a"out (,((,>B or 0>&B ercent o total emloyment women

articiated in la"or orce and 0*&0 ercent o it are women entrereneurs .Arias,


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**1& 'ichardson .**)1 comared women to men in Arica& 5ender doesn2t matter

"ut women have inerior access to their own resources, timely "usy and less access to

ormal education and s/ills training& Oortunities to women are much lower than

men and they aced harder access to suort&


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*(*1& Small "usinesses should invest urther on ;uality they are giving to customer

"ecause customer contentment will "e a great advantage in their oeration .Foreman 7

Pec/, **@1&

According to Eeitun, Tian and


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should innovate "ecause o ast develoment o convenience store, a sti cometition

is resent& Sari-sari stores should manage with the ast varying taste o the customers&

:n :ndia, small enterrises have a uni;ue advantages li/e it ocus more on somewhat

small mar/et and acilitate an eective usage o resources o caital and s/ills which

might remain unutili6ed& .Shah and 1 According to 'ichardson .**)1,

in Eam"ia, eole would rather decide to unction in an inormal "asis "ecause it2s

easier to trade outside the ormal ramewor/s or registration, ta3ation and regulation&

For 'ama/rishnan .*(01, most o the small enterrises unction wea/ "ecause it

lac/s roer comutation o total e3enses, total revenue, roit etc&, or they do not

/ee an organi6ed record&

&inancin$& :n ac;uiring source o unds or small "usiness, it is a steady

diiculty to them most o the time& This might "e due to the small aroval rate o the

"an/s& #esides, deaults o the good comanies is due to the "orrowers who use the

unds or ersonal "eneits at e3ense o the comany which caused the "an/s now to

"e more vigilant in reviewing loans to lessen deaults& :n Central #an/ o Malaysia,

they introduced a micro-inance illustration which is suited or small "usiness in the

state o Malaysia that constitutes B* o the "usiness& .Aris, **1 The scheme o 'm

@** to 'm @*,*** with no collateral desired& owever, roer credit management is

innate or solvency and continued e3istence o microenterrises& .Aris, **1 :t will

develo credit worthiness which imroves uture inancing accessi"ility& .Assel"ergh,

**1

The ma9or source o caital or their enterrise is "orrowing or even own

savings in Micro-enterrises in Malaysia& .5an"old, **B1 Malaysian micro-

enterrises contended that the trou"le aced in o"taining inancing included

inade;uate inancial trac/ record and insuicient documents to suort loan


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alications& .Aris, **1 Small enterrise is a roita"le mar/et and it can "e develo

more "y unloc/ing its otentials& 4ations are now lending to this /ind o enterrise

.:nternational Finance Cororation, *(*1&

:n Australia, government and industry give attention to small "usinesses as a

new avenue "ecause o its great otential in the industry .Coulton, **1& Caital

start-u doesn2t matter "ecause in Malaysia small and medium enterrise is

considered as the "ac/"one o the industry "ecause o its continual contri"ution to the

e3ansion o their economy .Aris, **1& Financing a "usiness, an owner should have

a good standing in which it is their source to cover the unds needed .Miculeac,

*(01&

Theo"etical &"a)e%o"

O/oye and !6ugwu .**+1 studied that roile such as age, gender and

educational "ac/ground o the owner o an enterrise have an imlication on their

management& 8ith e3osure to undamental ractices o management, it imarts

ositively on the erormance o the "usiness& #ased on their study, they ound out

that se3ual characteristics do not inluence the level o s/ills "ut educational

accomlishment do& Their learning will "e the theoretical oundation to veriy the

level o inancial management among sari-sari store owners in Toril, Davao City&

Conce#tual &"a)e%o"

Owners Profle

Age

Sex Educa!onal

Aa!n"en

#e$el o% &!nanc!al

'anage"en

(n$es!ng &!nanc!ng O)era!ng


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&i$u"e 12 Conce#tual &"a)e%o" !ho%in$ the a"iable! of the !tudy

This ramewor/ would merely ela"orate the study o level o inancial

management among sari-sari stores in Toril, Davao City& The 3 varia"les o this study

are the sari-sari store owner2s roiles which comrise the age, gender and educational

"ac/ground&

The level o inancial management may vary deending on the age o the sari-

sari store owners& :t2s li/e age which will hel determine how e3erienced they were

as an owner and how they aly inancial management to their store&

Male and emale have dierent ercetion a"out a "usiness and they "oth

have their wea/nesses and strengths when ma/ing a decision& :n the level o inancial

management, gender will "e a great actor to the magnitude o alication&

%astly will "e the educational attainment& School learning will enhance the

/nowledge on how to roerly aly the inancial management& !ducational

attainment esecially when an owner is a roessional has great actor&

%evel o inancial management in terms o investing, inancing and oerating

should "e measured& These terms will "e the "asis on how to roerly aly inancial

management& :nvesting will measure how an owner will use its asset to grow much

aster in a roer venture and e3ercising the most otential eort o an asset&

Financing will measure how to ac;uire own resources and the ris/s o it& Oerating

will measure the roductivity o the "usiness&

CHAPTER3

+ETHODS


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This section resents methods and rocess in terms o research design,

research resondents, research instrument, data gathering rocedures and the

statistical tool& The researcher also identiied the roile o the resondents and the

eriod that the study was conducted& All the stes are e3lained "ased on interview

and o"servation in the conduct o data gathering&

Re!ea"ch De!i$n

This study used the descritive 7 survey method in designing the research as

most aroriate& According to Huen, Schidmt and Terao .*(01, descritive study

uses techni;ues which involve comarison grous to roduce a samle and rovide

seciic and clear inormation regarding the study& This is to o"tain inormation

concerning the status o the henomena and to descri"e with the condition o the

situation& Descritive studies evaluate the resem"lance and distinction among

henomena to ind out i certain actors or situation tend to accomany certain

dealings, circumstances or rocesses&

Re!ea"ch Re!#ondent!

The resondents were (** sari-sari store owners residing in Toril, Davao City&

As the resondents, they were chosen "asically "y the availa"ility and nearest to the

roonents& 'esearchers aimed to /now the level o inancial management among

sari-sari store owners in Toril, Davao City&

Re!ea"ch In!t"u)ent!

This study used ;uestionnaire as the rime source o inormation in gathering

data to meet the seciic o"9ectives "y listing ;uery which was duly validated and

resented or relia"ility& The drat o the ;uestionnaire was constructed "y the

researcher and the revisions were adated&


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These lists o ;uestions were distri"uted to owners which were illed "y their

corresonding answers in the ;uestions& There were ;uestions as/ed irst with their

ersonal inormation, saving caa"ility, to "udget their sources, ayment o de"ts and

income generation&

Data Interpretation

*ange o% 'eans +escr!)!on (ner)rea!on

4,21 - 5,0 .er/ !g Sar!-Sar! sore owner as excellen

)rac!ce and

nowledgeale o% fnanc!al

"anage"en

3,40 - 4,20 !g Sar!-Sar! sore owner as $er/ good

)rac!ce

and nowledge o% fnanc!al

"anage"en

2,61 - 3,40 'oderae Sar!-Sar! sore owner as adeuae

)rac!ce

and nowledge o% fnanc!al

"anage"en

1,81 - 2,60 #ow Sar!-Sar! sore owner as arel/

adeuae

)rac!ce and nowledge o% fnanc!al

"anage"en


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1,00 - 1,80 .er/ #ow Sar!-Sar! sore owner as l!le

adeuae

)rac!ce and nowledge o% fnanc!al

"anage"en

Data 0athe"in$ P"ocedu"e

The rocedure was systematically arranged in ac;uiring inormation rom the

resondents& The ollowing are the acilitated stes ollowed "y the researchers in

gathering o data$

(& The researcher as/ed ermission to every store owners to conduct study through

visiting the location and "y showing the letter o aroval or or in;uiry which will "e

done rom the eriod o Fe"ruary, *()&

& The researcher conducted an initial interview with the owner o the sari-sari stores on

the same day& The discussion would "e a"out the "asic inormation a"out the "usiness

and a"out customers2 inormation&

0& Ater the initial conversation, the researcher will start to distri"ute the ;uestionnaire to

the resondents with corresonding seciication that is relevant to the conduct o

research& The owner e3lained to the researcher their low o every transactions and

the inormation gathered served as the additional data or the study&

)& The researcher "rowsed the internet or inut inormation that is signiicant and will

suort the study& The data gathered are related on the inancial management& :n

achieving the o"9ective o this study, the researcher will useli"rary techni;ue through

research "y the use o "oo/s, 9ournals, and rior thesis samles in gathering data as a

source o inormation and the related studies o inancial management on sari-sari

stores&

Stati!tical Tool


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This study emloyed statistical treatment such as Fre;uency and Percentage,

Mean, F-test and Descritive Analysis& These tools were used to identiy whether to

accet or re9ect the null hyothesis& The ollowing tools were used in this study$

&"e4uency and Pe"centa$e& This tool was used in the study to get the

summari6ed num"er o the same grou o resondents rom the total resondents& :n

this study, it was used to determine the roile in terms o age, se3 and the educational

attainment o the resondents& Percentage was used to identiy its ortion in (**

ercent&

+ean& This was used to determine the level o Awareness o Financial

Management& This is to identiy the average o the resonse o the resondents

according to the indicators such as always, sometimes, hal, seldom and never&

&*te!t' This was used to determine the level o inancial management in a

"usiness& This is to identiy i there is signiicant dierence "etween the level o

inancial management in terms o investing, inancing and oerating to the roile

such as age, gender and educational attainment o the owner&


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CHAPTER 5

RESU(TS AND DISCUSSION

This chater shows the results o the survey conducted "y the researcher and

its ollowing discussions& A summary o the demograhic characteristics .5ender, Age

and !ducational Attainment1 o the resondents are reorted in the irst arts& Then

the second art shows level o awareness o inancial management o the sari 7 sari

store owners in terms o investing, inancing and oerating& %astly, it shows the

correlation "etween the sari 7 sari store owners2 roile and their level o awareness o

inancial management&

TAB(E 1

Re!#ondent!6 P"ofileDe!c"i#tie .a"iable &"e4uency 7f8 Pe"centa$e 798

0ende"

Male (* (*

Female +* +*

TOTA( 1:: 1::9

A$e

(+-@

>-0 ( (

00-0+ ( (

)*-)> 0 0

)-@0 (> (>

@)->* (+ (+

>(-> + +

>B-)

TOTA( 1:: 1::9

Educational Attain)ent

!lementary %evel > >

!lementary 5raduate 0 0

igh School %evel ( (

igh School 5raduate ) )

College %evel + +College 5raduate @ @


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More than a ;uarter .+1 o the resondents surveyed were College level,

telling that most o entrereneurs engaged in sari 7 sari store "usiness have the "asic

education and uninished college education needed to run their "usiness& College

levels are now more active in sari 7 sari store "usiness& According to .


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0"and +ean 3'1& Financing a "usiness, an owner should have a

good standing in which it is their source to cover the unds needed .Miculeac, *(01&


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TAB(E 3

Si$nificant Diffe"ence bet%een the (eel of &inancial +ana$e)ent and the

Re!#ondent!6 P"ofile

Proile

%evel o Financial

Management

t-value P-Ialue :nterretation

Se3

:nvesting (&B *& 4ot Signiicant

Financing (&++0 *&*)+ Signiicant

Oerating @&+0 *&*( Signiicant

F-Ialue

Age

:nvesting *&)++ *&B00 4ot Signiicant

Financing (&*B@ *&0+ 4ot Signiicant

Oerating *&>>@ *&*( 4ot Signiicant

!ducational

Attainment

:nvesting *&B@> *&*0@ Signiicant

Financing *&+ *&*( Signiicant

Oerating *&+@ *&**0 Signiicant

:n terms o gender, there is no signiicant dierence "etween investing and se3

o the resondents which signiies that whether male or emale, it has no dierence

"etween them& For inancing and oerating or the se3 o resondents, there is

signiicant dierence "etween them& 5ender really matters and there will "e a great

dierence "etween male and emale& This result was agreed earlier where gender roles

on SM!2s erormance has develoed considera"ly over (@ years .Carter, **(1& And


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it conorms to what


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&INDIN0S, CONC(USION AND RECO++ENDATION

This chater resents the rundown o the research done, the conclusions drawn

and the recommendations made as an outgrowth o this study&

Su))a"y &indin$!

(& #ased on the roile o Sari 7 sari store owners, it showed that emale sari 7

sari store owners dominate or have greater num"er comared to the male one& Sari 7

sari store owners were mostly run "y owners aging rom )* 7 )> which are middle-

age eole& #ased on the data gathered, sari 7 sari store owners in Toril, Davao City

are mostly college level&

& Sari 7 Sari store owners in terms o investing and oerating showed high level

o inancial management which means, sari 7 sari store owners in Toril, Davao City

has very good ractice and /nowledge o inancial management& 8hile in inancing, it

resulted in a very high which means sari7sari store owners have e3cellent ractice and

/nowledge o inancial management&

0& Signiicant dierence was esta"lished "etween resondent2s educational

attainment and in gender in terms o inancing and oerating with the sari-sari store

owner2s inancial management& :n contrast, there is no signiicant dierence

esta"lished on the other varia"les under study& :t imlies that regardless o

resondents2 age, their inancial management is the same&

Conclu!ion

#ased on the inding stated, the ollowing general and relevant conclusions

were drawn& :t2s showed that most o the resondents were emale and accordingly,

engaged to "usiness o sari 7 sari store since naturally women are devoted, more

careul and thrity& This e3lanation will "e suorted according to were ound as most


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owners o the "usiness& This simly ela"orate that aside rom having another source

o income, this age would thin/ o saving or their uture and to "e insured or having

an easy-made "usiness or them to "e roductive or ecuniary interest& Due to the

diiculty o having a 9o", college level individual would ac;uire this /ind o "usiness&

According to


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For the lending comany, this will "e the "asis or them to have an oen arms

relation to lend or the starting caital to sari-sari store owners&

Customer should "uild more close relation and trust with them as it goes to

show that sari-sari stores in Toril, Davao City have high inancial

management& This would result to greater income or owners and hi/e to

economic a"undance as a whole&

These enumerated guidelinesKolicies with regard to inancial management

may "e o hel to those who are currently sari-sari store owners in Toril,

Davao City and to the researchers who lan to ut u a "usiness&

Future researchers may conduct research to veriy the soundness o the

indings o this study&

financial managqement among sari-sari store owners in toril, davao city

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