Sample REVIEW OF RELATED LITERATURE

foundation in building their strategies towards their business in order to maximize profits which
could lead them to increase the level of productivity on their business.
There are various types of business ownership one of these is sole-proprietorship. It is the
simplest and most common business venture. Many engaged in this type of ownership since they
can automatically decide for themselves without considering someone’s opinion for as long as
they have their own start-up capital. The owner can easily use his or her assets and income
anytime. He or she makes his or her own decision regarding business matters.
The extent of the business exclusively relies upon the proprietor. However, there are also
disadvantages in this form of ownership, since the capital was provided by one person the
business resources are limited. There is also limitation when it comes to his or her knowledge in
running the business and he or she has unlimited liabilities as well as he or she is responsible to
all creditors (Lao Ong, 2016).
For some reason, some start their own business operation because they are strained by
employment rules. Some wants to earn while at home. Self-employment gives them the freedom
to use their talents and express their creativity (Haber, Lamas & Lichtenstein, 1987). It maybe in
urban or rural areas in starting a business (Gindling & Newhouse, 2014). It is quite possible to
distinguish the difference among self-employment, small business, entrepreneurial and family
business ventures (Sharma & Madan, 2014). ). The self-employed have higher levels of job
satisfaction (Yu, Orazem & Jolly, 2014). In addition, when they use family resources it is more
likely in sole proprietorship ( Haynes, Walker, Rowe & Hong, 1999).
Moreover, the most common source of capital are personal savings and loans from
financial institutions ( Neeley & Van Auken, 1995). Aside from financial capital, entrepreneurs
take into considerations are human and social capital ( Pennings, Lee & Van Witteloostuijin ,
1998). Human capital refers to educational attainment and experiences of the owner (Kato,
Okamuro& Honjo, 2015). Social capital focuses on personal contacts and exchanges, it has great
effect on both individual’s level of involvement and psychological stress (Bian & Wang, 2016)).
On the other hand, low income return is possible due to lower human capital (Kramer
& Kramer, 2016). Self-employed workers are more pressured and stressed, they lack in sleep for
over thinking work and have less leisure (Millán, Millán & Román, 2016). When it comes to
survival, those without past unemployment encounter yet had experienced work, who entered
self-employment with underlying capital (Millán, Congregado & Román, 2014).
The success of small business relies on how the entrepreneur manages and operates the
kind of business one owns. In Philippines, there were many forms of businesses managed by
most sole proprietors and have applied different strategies on addressing to different kinds of
problems their business have faced and different practices were applied for their firms to be more
productive and to be easily approached by customers. Since entrepreneurship was considered as
one of the popular means in promoting economic growth and development (Huang et al., 2016),
However, sole proprietorship is the predominant choice for entrepreneurial firms because it
allows for quick decision-making and low monitoring cost among investors (Baik, Lee, & Lee,
2015). In the study of Lorenciana (2015), the Department of Trade and Industry Cebu have seen
that year to have an increased number of sole proprietorship in their locality.
A study conducted about the Purified Water Business in Batangas City was being notable
by considering operation initiatives in improving operational performance in terms of marketing,
management, technical, and financial aspects (Macatangay et al., 2015). In Taal, Batangas, were
Sole proprietors investing high amount of capital with nominal number of employees, they also
have encountered tough competitions as common problem but then have applied operational
practices in addressing different problems being faced (Celis et al., 2015). In the same locality,
Tourism studies conducted by Ylagan & Laguador (2014), establishing business enterprises were
being more concerned.
In the study of Agustin (2016), it was discovered that in Tuguegarao City, Mall of the
Valley, that the stall owners deliver quality products and services despite of some difficulties that
were being faced, they were still be able to show that in terms of social responsibility, they still
have practiced entrepreneurship in satisfying the consumer.
GRJ Trading, a single proprietorship managed by Mr. Percival Dimaano Alfonso at
Angono, Rizal is a company of retailing of used Japan Surplus parts (“Retailer of used japan
surplus parts,” n.d.).
A duly registered sole proprietorship organization namely Zarahemla Engineering and
Construction (ZEAC) is licensed by the Construction Industry Authority of the Philippines
Engaged in General Building Construction which located in Sampaloc, NCR City of Manila
(“Gen Bldg Contr,” n.d.).
In Cagayan de Oro City, the sole proprietorship business namely Incremental General
Merchandise caters all hardware and construction materials and is committed in environmental
responsibility towards growth of the community as they produce financial rewards (“Incremental
general merchandise,” n.d.).
In Metro Manila, the company of Saragate-Fruits is a sole proprietorship owned by Dr.
Eric M. Villamar who is a CPA and now currently employed at Philippines women’s university.
This company is enticed with very passionate employees who dedicated to provide the whole
community with great services on the demand of fruits and also with very affordable price
(“Food,” n.d.).
Geefarm Trading at Naga City, Camarines Sur, is a type of business that is sole
proprietorship which carries housekeeping/ cleaning chemicals and janitorial supplies for
residential, commercial, institutional and industrial applications; preventive maintenance used
and also an authorized provincial distributor of cleaning chemicals and housekeeping products
(“Trading and general merchandise,” n.d.).
In the five provinces in Surigao del Sur, through the application of marketing practices
of micro food vendors in their business, most of the products were considered fresh however the
price was based on their desired profit and majority position in the public areas (Mercado &
Mercado, 2016).
Owners of different businesses prefer to consider first on the things that the environment
may benefit in the type of business they would raise. In the feasibility study on establishing a
resort in Camiguin Island by Abajon et al., (2014), owned by a sole proprietor, have considered
different factors that could possibly be benefited by the society, economy and environment.
According to (2015), Micro, Small and Medium Enterprises here in the Philippines need
to assist their strategies on improving profitability and even the use of financial performance
information in making critical conditions in the firm, and by this, they may continually play an
important role in the growth of economy.

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foundation in building their strategies towards their business in order to maximize profits which

could lead them to increase the level of productivity on their business.

all creditors (Lao Ong, 2016).

likely in sole proprietorship ( Haynes, Walker, Rowe & Hong, 1999).

self-employment with underlying capital (Millán, Congregado & Román, 2014).

productive and to be easily approached by customers. Since entrepreneurship was considered as

that year to have an increased number of sole proprietorship in their locality.

by considering operation initiatives in improving operational performance in terms of marketing,

being more concerned.

have practiced entrepreneurship in satisfying the consumer.

GRJ Trading, a single proprietorship managed by Mr. Percival Dimaano Alfonso at

surplus parts,” n.d.).

A duly registered sole proprietorship organization namely Zarahemla Engineering and

Construction (ZEAC) is licensed by the Construction Industry Authority of the Philippines

(“Gen Bldg Contr,” n.d.).

general merchandise,” n.d.).

In Metro Manila, the company of Saragate-Fruits is a sole proprietorship owned by Dr.

residential, commercial, institutional and industrial applications; preventive maintenance used

(“Trading and general merchandise,” n.d.).

important role in the growth of economy.

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