TABLE OF CONTENTS

Page

Tittle .................................................................................. i

Approval Sheet .................................................................................. ii

Table of Contents .................................................................................. iii

CHAPTER 1

Introduction ................................................................................... 1

Statement of the problem .............................................................. 2

Significance of the Study .............................................................. 3

Scope and Limitation of the study ................................................... 3

Definition of Terms ......................................................................... 3

CHAPTER II

Review Related of Literature ........................................................... 5

CHAPTER III

Research Deign ............................................................................... 6

Research Locale .............................................................................. 7

Subject of the study .......................................................................... 8

Sampling Technique ......................................................................... 8

Statistical Treatment of the Data ………………………………………. 8

REFERENCES .............................................................................................................. 9

QUESTIONNAIRE ........................................................................................................... 12
 Chapter I

ABSTRACT

This study aims to determine the status and conditions of small and

medium enterprises (SMEs) as predictors in empowering the rural

communities of City of Mati, Davao Oriental. Specifically, it aimed to

describe SMEs’ organizational variables, and assess their conditions in

terms of membership/ownership structure; leadership; policies, systems

and procedures; resource mobilization; linkages and networking;

communication systems; determine the level of empowerment of rural

communities with SMEs along the aspects of material, perceptual and

relational changes; and find out whether significant relationship exist

between the organizational variables and the level of empowerment.

INTRODUCTION

There is no universal definition of micro-enterprises, but there are some

agreements regarding their general characteristics. These are very small scale of

operation, low level of technology, low access to finance and managerial capacity. A

micro enterprise represents the smallest economic unit which functions

independently, manages its own investment capital, and involves a manufacturing,

commerce or service activity (Christen, 1989).

Micro Enterprises have long been recognized as a significant source of job

creation around the world. Micro-enterprise play a varying function at different

phases of economic development around the world, but they are especially crucial

for emerging countries (Beck et al., 2005).

In a society where labor is plentiful but capital is scarce, micro-enterprises

have risen to play a vital role in creating jobs and increasing capital creation they are

some of the reasons why micro and small businesses are so important. Micro-

enterprise play an important role in a country's development. These industries, on

the whole, constitute a stage in th e transition from traditional to contemporary

economics and also micro-enterprises are labour intensive comparatively and thus

create more job opportunities per unit of capital employed. It is therefore that leaving

a side highly capital intensive industries involving most sophisticated technological

and the building up of economic and social infrastructural facilities it is which help

enlargement of job opportunities (Ibid 2000).

City of Mati is a commercial town where various chances will be created

through the expansion of micro enterprises. Despite this, the rate of growth has been

shown to be below expectations (Oromia Micro Enterprises, manual 2003-2006).

Given the above arguments, the researcher attempts to conduct the study

involving the level of the growth of selected Micro-enterprises in the City of Mati,

Davao Oriental.

STATEMENT OF THE PROBLEM

The main objective of this study is to determine the growth of selected micro-

enterprises in the City of Mati. Specifically, this seeks to answer the following:

1. What is the demographic profile of the respondents?

2. What is the classification of micro-enterprises in the City of Mati in terms of;

 2.1 Number of product lines

2.2 Capitalization

2.3 Financial support

3. What is the level of growth of micro enterprises in the City of Mati in terms of;

3. 1 Sales

3.2 Assets

3.3 Number of employees

SIGNIFICANCE OF THE STUDY

The study's findings are expected to be useful in identifying the numerous issues that

hinder the growth of micro-enterprise

o The researcher expects that the study's suggestions and recommendations

will assist the concerned body by bringing the sector's information to light.

o Provide useful data for the government and other concerned parties to take

corrective action.

o Academicians and researchers will value the study's findings, which can be

used as a platform for future research and studies.

SCOPE AND LIMITATION OF THE STUDY

This research will focus on the registered micro enterprises of the four

barangays in City of Mati, which are Barangay Central, Barangay Matiao, Barangay

Dahican, Barangay Sainz. The researchers will collect data from the selected

respondents of the selected barangays in the City of Mati through a stratified

sampling.
DEFINITION OF TERMS

1. Micro-Enterprise – represents the smallest economic unit which functions

independently, manages its own investment capital, and involves a

manufacturing, commerce or service activity.

2. City of Mati – A place where micro-enterprises are located.

Chapter II

REVIEW RELATED OF LITERATURE

In order to address the aim of the research, it is importance to established a

sound literature base around which the study was built. This chapter presents a

review of the literature related to the purpose of the study, and is organized

according to the following specific objectives of the study. The review was

undertaken in order to eliminate duplication of what has been done and provide a

clear understanding of existing knowledge base in the problem area.

Micro enterprise are critical to the Philippine economy's development. Micro

enterprise offer an opportunity for job development, employment, and possibly

poverty alleviation. According to the law the micro-enterprises are critical to the

economic development they are the stepping stone in the formation of the

development of Filipino entrepreneurial talent. This act also aims to incorporate the

informal sector through granting specific incentives to these firms therefore giving

them a chance to be part of the main stream of the economy. The law endeavours to

strengthen the micro-enterprise is a tant amount in having more jobs and livelihood

for the people and more so better quality of life for the Filipino people. According to
Reyes (2012) in her study entitled “Rural Micro-Enterprise Promotion Program: An

Assessment on the Impact of the Financing Delivery Role of Small Business

Corporation to MSMEs in Albay, Ragay and Sipocot CamarinesSur”, R.A. 9178

otherwise known as the Barangay Micro Business Enterprise Act of 2002 provided

assistance to the micro businesses through offering incentives and benefits for these

firms. One major incentive is the income tax exception awarded to the registered

micro-enterprises. The aim of the law is to incorporate the micro enterprises to the

mainstream economy since they contribute a lot to the economic growth. Also, its

aim is to strengthen the said sector thus leading to job creation, livelihood and better

quality of life of Filipinos. (Reyes, 2012)

In addition, the creation of job opportunities and the expansion of economic

activity are considered significant development strategies. MEs are increasingly

being viewed as employment creators around the world. An effective ME sector,

according to global experience, is beneficial to industrial growth and a flexible

industrial structure (Hall 2001). They're the foundations of a thriving entrepreneurial

economy. MEs not only help to alleviate poverty and provide jobs in many

economies, but they also promote large-scale industry through entrepreneurship

development (Joneja 2000). Through miicro-enterprises, the ILO has actively

assisted its member nations in establishing new work possibilities. According to the

International Labour Organization, this sector helps to achieve numerous national

development goals in a variety of ways, including raising GDP per capita (ILO/UNDP

2000). As a result, ILO member countries around the world have taken a variety of

actions to promote and grow this industry in their respective countries. The

robustness of micro enterprises contribution to job creation is a common phenomena

in most development countries, but the scale varies between 70 percent and 95

percent in Africa and 40 percent to 70 percent in Asia-Pacific nations (Ahmed 2003).

Chapter 3

METHODOLOGY

Research Design

This study is a quantitative research that is focused on gathering numerical

data and generalizing it across groups of people or to explain a particular

phenomenon (USC Libraries, 2017). This study used survey method which

commonly utilized survey questionnaire for gathering the information from the

respondent.

Research Locale

The study will be conducted in City of Mati, Davao Oriental specifically to the

four (4) barangays namely; Barangay Central, Barangay Sanz, Barangay Matiao,

and Barangay Dahican

Map of Davao Oriental

Source: LGU City of Mati

Subject of the study

The subject of the study are the owner of micro-enterprises in City of Mati.

The respondents of this study will depend upon those who are engaged to the micro

enterprises.

Sampling Technique

The researchers will collect data from the selected respondents of the

selected barangays in the City of Mati through a stratified sampling.

Statistical Treatment of the Data

The study will be carried out using primary data. The statistical tools to be

used in the study are:

Frequency Distribution.

This will be used in determining the demographic profile and classification of

microenterprises in the City of Mati.s

Mean - This will be used in analyzing the level of growth of micro-enterprises in the

City of Mati.
 Chapter 4

RESULTS AND DISCUSSION

This chapter provides the tables and graph of all the indicators mentioned in

the questionnaire. This provides the clear presentation to easily emphasize the

results. Thus, all of these show the difference of each indicator.

Objective 1

Table 1. Frequency Distribution of Sex

Sex Frequency Percentage Cumulative Percent
Female 51 51 51
Male 49 49 100
Total 100 100

The table shows that 51% of business owners are female and 49% are male.

The graph shows that majority of the business owners are female and few are male.

SEX

Male Female
49% 51%
Table 2. Frequency Distribution of Age
Frequenc Percentag Cumulative
Age y e Percent
25 years old and
below 20 20 20
26-30 years old 32 32 51
31-40 years old 30 30 81
41 years old and
above 18 18 100
Total 100 100

The table shows that 32% of the respondents are ages from 26 to 30 and the

lowest range are ages 41 years and above. The graph shows that majority of the

respondents, ages 26-30 years old, the lowest, ages 41 and above.

AGE

41 years old and 25 years old and be-

above low
19% 19%

31-40 years old 26-30 years old

30% 32%
Table 3. Frequency Distribution of Highest Degree Earned
Highest Degree Percentag Cumulative
Earned Frequency e Percent
Primary 24 24 24
Secondary 33 33 57
Tertiary 36 36 93
Others 7 7 100
Total 100 100

The table shows that majority of the respondents are tertiary level, some are

secondary level and few have others. The graph shows that 36% of the

respondents are tertiary level, 33% are secondary level, 24% are primary

level and 7% others.

HIGHEST DEGREE EARNED

Others
7% Primary
24%

Tertiary
36%

Secondary
33%
Objective 2

Table 4. Frequency Distribution of Type of Business

Ownership
Type of Business Frequenc Percentag Cumulative
Ownership y e Percent
Sole Proprietorship 52 52 52
Partnership 33 33 85
Corporation 15 15 100
Total 100 100

The graph above shows the types of business ownership. Most of the

establishments are sole proprietorships, with an average of 52% based on the

conducted survey, followed by partnerships at 33%, and lastly, cooperation. This

means that the most well-run establishments are owned by one person.

TYPES OF BUSINESS OWN-

ERSHIP

Corporation
15%
Sole Propri-
etorship
Partnership 52%
33%
Table 5. Classification of Micro Enterprises Product
Lines
Number of Product Frequenc Percentag Cumulative
Lines y e Percent
5 and below 45 45 45
6 and above 55 55 100
Total 100 100

The graph shown that the frequency distribution of number of product line in

which the micro business has the most dominant number of product line have 55% in

which their product lines is 6 and above while the remaining has lesser than the

average. This means that micro, small and medium enterprises are highly capable in

recovering its investments based on the current and anticipated financial conditions

of the business. This further means that the ROI of the MSMEs are quite good and is

on the safe level.

NUMBER OF PRODUCT LINES

5 and below
6 and above 45%
55%
Table 6. Frequency Distribution of Type of Business
Capital
Frequenc Percentag Cumulative
Business Capital y e Percent
100,000 and
below 19 19 19
200,000-500,000 38 38 57
600,000-
1,000,000 19 19 76
1,000,000 and
above 24 24 100
Total 100 100

The graph shown that most of the entrepreneur’s in the said scoop have a

capital worth of 200,000-500,000 with the percentage of 38%, followed by 24% with

the capital of 1,000,000 and above, nevertheless the lowest percentage got 19% in

which the capital is 100,000 below and 600,000- 1,000,000.

BUSINESS CAPITAL

100,000 and below

1,000,000 and above 19%
24%

200,000-500,000
600,000-1,000,000 38%
19%
Table 7. Frequency Distribution of Type of Financial
Support
Frequenc Percentag Cumulative
Financial Support y e Percent
Bank Financing 9 9 9
Cooperative Loan 32 32 41
Government
Loan/Grant 19 19 60
Family Support 40 40 100
Total 100 100

Presented in table 7 are the result of the descriptive analysis, showing the

parameters of financial support of the micro, small and medium enterprises in City of

Mati. The majority of the finances (32%) are came from family support not from debt

which interpreted as capable for profit and growth. The result indicates that the

MSMEs in Mati City are capable of not just on the profit generation aspect, but also

on the firm’s ability to ensure return of investment, maintaining afloat, and paying its

debts.

FINANCIAL SUPPORT

Bank Financing
9%
Family Support
40% Cooperative Loan
32%

Government Loan/Grant
19%
Objective 3

The item with the highest mean score is sells product with an affordable price,

which has a mean score of 4.56 implies is in term of revenue regeneration. The

result reveals that the owners and proprietors of micro, small and medium

enterprises in Mati are capable of capital and profit generation, which can be used as

a source of fresh funds for the establishment or investment of business activities.

Table 8. Level of Growth of Micro Enterprises in Mati City in

terms of Sales

Frequency Descriptive
Sales Mean
1 2 3 4 5 Equivalent
This establishment…
Generates a daily sale of
10,000 and above 0 0 10 44 46 4.36 Strongly Agree

Increases online sales through

social media 0 4 13 32 51 4.30 Strongly Agree

Uses promo on chosen

products as strategy to arouse
0 2 12 34 52 4.36 Strongly Agree
costumers’ buying decision

Sells product at a very

affordable price 0 0 6 32 62 4.56 Strongly Agree

Considers the quality of their

products that’s why they aimed 0 0 3 40 57 4.54 Strongly Agree
for costumers’ satisfaction
Overall 4.42 Strongly Agree
 Presented in table 9 are the data on performance of the micro, small and

medium enterprises in terms of its assets. The overall weighted mean for this

dimension is 4.27, which is interpreted as High. The result indicates that in the

aspect of asset, the MSMEs in City of Mati are produced and are ensured to be of

increase of finances and inventories, thus highlighting the fact that the asset is one

of the considerations of the micro, small and medium enterprises’ operations.

Table 9. Level of Growth of Micro Enterprises in Mati City in

terms of Asset
Frequency Descriptive
Asset Mean
1 2 3 4 5 Equivalent
This establishment…
As accurate monetary savings
finances the purchases of
0 0 22 47 31 4.09 Agree
necessary merchandise for sale

Possess a comprehensive
inventory of your operating
0 1 10 56 33 4.21 Strongly Agree
infrastructure assets

Maintain this inventory on a

periodic basis 0 0 3 42 55 4.52 Strongly Agree

Comprises a building that is in

the possession of the proprietor 0 1 22 45 32 4.08 Agree

Maintain and update the asset 0 0 9 35 56 4.47 Strongly Agree

inventory
Overall 4.27 Strongly Agree
 This table determine that 4.38 of the respondents of the micro-enterprises

was answered strongly Agree. This means that as a whole, the firm’s ability to

ensure a well-delineated organizational structure and ensuring a sound human

resource management system will enable a business to spur to its desired growth. In

addition, as the firm recognizes the external environment to be of great influence of

the business enterprise and the way of life of the people are the most determining

forces towards the growth of the micro, small and medium enterprises alike.

Table 10. Level of Growth of Micro Enterprises in Mati City in terms of Number of
Employee

Frequency Descriptive
Number of Employee Mean
1 2 3 4 5 Equivalent
This establishment…
Provides adequate human
resources to facilitate the daily
0 0 10 40 50 4.40 Strongly Agree
transactions of the business

Gives a good quality of medical

insurances like SSS, Phil health
0 0 7 48 45 4.38 Strongly Agree
etc.

Gives opportunities for

promotion raises, and bonuses 0 2 14 37 47 4.29 Strongly Agree

Encouraged to come up with

new and better ways of doing
0 0 8 47 45 4.37 Strongly Agree
things

Have clear communication to

the team on goals and 0 0 4 45 51 4.47 Strongly Agree
performance
Overall 4.38 Strongly Agree
 Chapter 5

Conclusion

Based on the problem analysis, we found that most of SMEs in Laguna are facing

financial problems. The financial foundation is weak because of three reasons. First, SMEs

in Mati City have a difficulty to obtain loan. Second, SMEs have difficulty in accessing other

financial resources. Third and last, SMEs lack financial management capabilities. These

three reasons have a direct and serious effect on the financial foundation of SMEs .

Our research also finds that there are four main problems faced by SMEs.

These are weak financial foundation, weak market positioning, low level of product

development, and insufficient support system. These problems are not separate but

are interrelated. As a result, it is difficult for SMEs to expand business. To minimize

these problems, we recommend that the government should do the following: (1)

open seminars to improve managerial and technical skills; (2) provide preferential

treatment for the financial needs of SMEs; (3) strengthen relationships and promote

networking among SMEs; and (4) improve the information service delivery in terms

of quantity, quality, and accessibility.

 Recommendation

For the entrepreneurs and potential investors, calculated risk is a good

measure of maximizing owner's equity. The results of this study can help them to

identify the possible key areas to focus when establishing businesses in Mati City.

As investment in Mati City is encouraged by its local leadership, the study can be

used by these people to fully understand opportunities for investment with minimal

risk at stake. For the buyers and customers, they are encouraged to patronize local

products and services manufactured and delivered by their own micro, small and

medium enterprises in order to revitalize their operations and to keep them standing

despite micro- and macroeconomic ordeals and challenges. Their patronage is the

key towards their continuity. They shall likewise be encouraged to promote the

products and services of the MSMEs in their area. For the provincial and local

governments, they are encouraged to promote and intensify the promotion,

campaign and support towards micro, small, and medium enterprises in their area.

Likewise, they are also encouraged to fund trainings and seminars to market and

promote the products and services offered by their respective MSMEs and support

research activities by funding them towards the continuity of their enterprises. They

are also expected to boost programs to these enterprises (MSMEs) in their

expansion ventures. On the basis of the findings of the study, it is recommended that

similar studies be conducted in other regions of the country to derive findings that

may either support or refute the conclusions arrived at. These studies would cover
more enterprises in the service sectors such as, but not limited to, the emerging

information and communication, finance and insurance services.

SURVEY QUESTIONNAIRE

on

“THE GROWTH OF SELECTED MICRO-ENTERPRISES IN THE CITY OF MATI”

Dear Respondents,

Good day!

We, the 4th year students of Bachelor of Science in Business Administration

major in financial management of the Davao Oriental State University, are currently
conducting a business research entitled “ The Growth of Selected Micro-Enterprises
in the City of Mati”.

In line with this, we would llike to request your good self to answer this
questionnaire so we can draw accurate results for our research. Indeed, your honest
participation on this request will make a great contribution for the realization of this
endeavor.

Rest Assured that all respponses will be treated with confidentiality and will
be used for research purposes only.

The Researchers
I. Profiling

Directions: Please tick (/) on the space provided that best qualify your answer.

Name (Optional): Sex: Age:

Highest Degree Earned: Primary Secondary

Tertiary Others, please specify

II. Classification of Micro-enterprises

1. What is the type of your business ownership?

Sole proprietorship ___________ Partnership ______________

Corporation _______________

2. How many product lines does your business have?

5 and below 6 and above

3. How much is your business capitalization?

100,000 and below 200,000 to 500,000

600,000 to 1,000,000 1,000,000 and above

4. Where did you get your financial support?

Bank financing Cooperative loan

Government loans/grants ____________ Family Support _____________

III. Level of Growth of Micro enterprisesin the City of Mati.
For each startement, please check the appropriate box that best describes your
current belief based on the following rating scale (5) strongly agree (4) agree (3)
agree nor disagree (2) disagree (1) strongly disagree

(5) (4) (3) (2) (1)

SALES Strongly Agree Agree nor Dis Strongly
agree disagree agree diagree

This establishment......

Generates a daily sales

of 10,000 and above

Increases online sales

through social media

Uses promo on chosen

products as strategy to
arouse costumers’
buying decision

Sells product at a very

affordable price

Considers the quality of

their products that’s
why they aimed for
costumers’ satisfaction
 (5) (4) (3) (2) (1)
ASSET Strongl Agree Agree Dis Strongly
y agree nor agree diagree
disagre
e

This establishment......

As accurate monetary savings

finances the purchases of
necessary merchandise for sale

Possess a comprehensive
inventory of your operating
infrastracture assets

Maintain this inventory on a

periodic basis

Comprises a building that is in the

possession of the proprietor

Maintain and update the asset

inventory
 (5) (4) (3) (2) (1)
NUMBER OF Strongly Agree Agree nor Dis Strongly
EMPLOYEE agree disagree agree diagree

This establishment......

Provides adequate human

resources to facilitate the
daily transactions of the
business

Gives a good quality of

medical insurances like
SSS, Phil health etc.

Gives opportunities for

promotion raises, and
bonuses

Encouraged to come up
with new and better ways
of doing things

Have clear communication

to the team on goals and
performance
 (5) (4) (3) (2) (1)
Number of Employees Strongly Agree Agree Dis Strongly
agree nor agree diagree
disagree

This establishment...

1. Provides adequate human

resources to facilitate the
daily transactions of the
business

2. Gives a good quality of

medical insurances like SSS,
Phil health etc.

3. Prefer to alternate or the

segregation of assigned
duties

4. Pay your salary based on

your duties

5. Give you a freedom of

speech to give more idea to
be more aggresive
References

Beinhart, E. (1994), “Micro enterprise development, Working paper no 8, Institute for

Conflict Analysis and Resolution, USA: George Mason University Bennett, R.J.

(1996), “SMEs and Public Policy: Present, Future Priorities and the Case of

Business Links”, paper presented to 19th ISBA National Small Firms Policy and

Research Conference, November 1996 Bennett, R.J. and McCoshan, A. (1994),

Local Empowerment and Business Services: Britain’s Experiments with Training and

Enterprise Councils, London: UCL Press Berkoff, B. (1974), “Foreword” to B.

Dinwiddy, Promoting African Enterprise, London: Croom Helm Berna, J.J. (1960),

Industrial Entrepreneurship in Madras State, Bombay: Asia Publishing

What is a Micro Enterprise: Objectives, Micro Financing in India, Videos (toppr.com)

154405158-final-rrl - chapter ii review of related literature this chapter presents a

review of related literature and studies relating to the | Course Hero

ILO, (2003). Ethiopian women entrepreneurs: going for growth, ILO, Addis Ababa.

Kathori, C. (1998). Research Methodology , 2 nd edition. New Delhi; Wiley Eastern

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