Chapter 5

SUMMARY, FINDINGS, CONCLUSIONS AND RECOMMENDATIONS

This chapter is a summary of the findings about the profile of the

respondents, the way they utilize money for various business activities, the level of

profitability, and the significant relationship of money utilization to the profitability of

micro businesses in Daet, Camarines Norte. From the findings, conclusions were drawn

and recommendations were advanced.

SUMMARY

The purpose of this study was to determine the significant relationship between

the money utilization to the profitability of micro businesses in Daet, which the

researchers list down the different business activities commonly performed by the micro

businesses. Also to provide money utilization strategies to improve profitability of the

business.

The researchers focused in having a better understanding of entrepreneur’s

perceptions about money utilization that affect the profitability of their micro business.

Various researchers had conducted several studies in this area (Ligthelm, 2012; Parilla,

2013; Mendoza, 2015; Hampel-Milagrosa, 2014; Chimucheka & Mandipaka, 2015;

Madelyn, Aplaon, Paguio and San Jose (2016); Barte, 2012; Gawali & Gadekar, 2017;

Rekish, 2013; Ndirangu, 2017.)

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 With the use of quantitative method of research, using the questionnaires, data

obtained were treated through Pearson product of correlation, percentage technique,

weighted mean and ranking. There are eight hundred fifty-five (855) micro businesses in

Daet and by using sample size calculator it resulted to a two hundred sixty-five (265)

respondents and it is stratified to different barangays of Daet, Camarines Norte. All of the

two hundred sixty-five (265) micro business owners and managers answered the

questionnaires given to them by the researchers.

PROBLEMS

PROBLEM 1. What is the profile of the respondents in terms of type of business, year of

operation, number of employee and source/s of capital?

Findings

a. 28.68% (76 out of 265) were service type, 55.85% (148 out of 265) were retail

which is the largest among the other types of business. 13.96% (37 out of 265)

were merchandising and the remaining 1.51% (4 out of 265) were

manufacturing.

b. In 265 micro businesses, there were 115 or 43.50% operating for 5 years and

less while 74 respondents answered that they were operating for almost 6-10

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 years, representing 27.79% of the total population. However, 23 or 8.68% of

the total populations operates only for 11-15 years. Lastly, 53 respondents

which represents 20% of micro businesses in Daet, Camarines Norte were

operating for more than 15 years.

c. 191 or 72.08% of the total micro businesses have employee/s of not more than

3. While 62 micro businesses or a total of 23.40% of the respondents have

employees of 4 to 6 and lastly, 12 micro businesses or 4.53% responds that

they have 7 to 9 employees.

d. Personal investment ranks 1 as the sources of capital of the businesses while

lending ranks as the 2nd and loan is in 3rd rank. Meanwhile, love money ranks

as the 4th sources of capital and government grant ranks as the last.

Conclusions

a. Among the registered micro businesses, retail is the most dominant type of

micro business in Daet, Camarines Norte. Most retail businesses are sundry

stores that can be found on every side of the town. It is because Daeteños have

a culture of tingi and also, for convenience of every neighborhood. They are

grabbing the opportunity of having a business by opening a retail store on

their own home, along with schools, terminals and in wet markets. After retail,

the service contains almost 30% of the total micro businesses. This type of

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 business includes eateries, massage parlors, repair shops and etc. Service

business are businesses that uses their skills and knowledge as their capital.

Another type of business that can be found in Daet is merchandising or also

known as “buy and sell”. This type of business are those who buy inventories

directly from its manufacturer and sell it afterwards. The least dominant type

is manufacturing because considering the area and the capital, most of the

manufacturing type can be considered as small or medium type of business.

b. Most of the micro business answered that they are operating from 1-5 years.

That only means that most of the micro business last below 5 years and after

that, business declines as years goes by. Some factors that affects the life of

micro businesses in Daet are tight competitions between business, strict

compliance of permits, licenses and taxes and Daeteños cannot established

loyalty due to taste and preference. Also, some people engaged themselves in

business without proper knowledge and experiences. And also based from the

results gathered, micro business who attains the age of more than 15 is greater

than those of 11 to 15 years. It is because as the business reached the years of

15 and above, it means that they already established a good strategy,

techniques and proper management that maintains their stability.

c. Most micro businesses have a number of 1 to 3 employees. As since the

dominant type of micro businesses is retail, some employees of micro

business are usually their relatives. And also, some micro businesses do not

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 require many employees because some owners can handle their businesses on

their own. On the other hand, those micro business who have 4 to 6 and 7 to 9

employees are those businesses who needs people in order to run their

business. Example of micro businesses that needed employees are eateries,

parlors, repair shops, some merchandising businesses and manufacturing type.

d. Most micro businesses open up their business in their own investment. It is

because putting up a micro business is easy with a small amount of capital.

Also, some owners do not like the idea of lending and loaning some money

because of the requirements and high interest. Also, some of them lend and

loans money only if they needed additional capital for their business. While

some businesses got their capital from their relatives (love money). However,

no businesses got their capital from the government.

PROBLEM 2. How do they utilize money for various business activity?

Findings

The study gathered the frequency usage of money in different business activities

of the 265 micro businesses and computed the weighted mean of each indicator. This is

served as basis to answer the main objective of the study which is to determine the

significant relationship of money utilization to the profitability of micro business in Daet,

Camarines Norte. The result shows that replenishing inventories has the highest weighted

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mean totaling of 3.80. While maintaining idle assets has the lowest weighted mean of

1.37.

Conclusions

The respondents agreed that every business should replenish their inventories.

Efficient inventory replenishment operation has a major impact on profitability. Sales

through shelf availability are affected by the accuracy and effectiveness of store ordering.

It also has an impact on handling, storage, and wastage costs in stores and in other parts

of the supply chain. Proper and efficient management of inventories may lessen the costs

and increase the profitability of the business. All micro business always replenishes their

inventories because it is the primary source of their profits, one reason why we use

money for everyday transactions.

On the other hand, the respondents disagreed that owners should maintain idle

assets. Based on the responses, their starting capital or working capital are too low to

have idle assets. They assured that every cash and equipment they have are circulating

and operating for the profitability of the business. Having a low resource cannot assure a

high rate of profitability. However, maintaining idle assets don’t have a major effect on

the profitability of the business because most micro businesses don’t have a large amount

of working capital.

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PROBLEM 3. What is the level of profitability?

Findings

The researchers gathered the level of the profitability of the 265 respondents

based on different profitability ratios and computed the weighted mean of each indicator.

This served as basis to answer the main objective of the study which is to determine the

significant relationship of money utilization to the profitability of micro business in Daet,

Camarines Norte. The result shows that the inventory turnover or age of inventory has the

highest weighted mean totaling of 3.91, while the operating profit margin has the lowest

weighted mean of 2.36.

Conclusions

The respondents agreed that every business should replenish their inventories.

Efficient inventory replenishment operation has a major impact on profitability. Sales

through shelf availability are affected by the accuracy and effectiveness of store ordering.

It also has an impact on handling, storage, and wastage costs in stores and in other parts

of the supply chain. Proper and efficient management of inventories may lessen the costs

and increase the profitability of the business. All micro business always replenishes their

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inventories because it is the primary source of their profits, one reason why we use

money for everyday transactions.

On the other hand, the respondents disagreed that owners should maintain idle

assets. Based on the responses, their starting capital or working capital are too low to

have idle assets. They assured that every cash and equipment they have are circulating

and operating for the profitability of the business. Having a low resource cannot assure a

high rate of profitability. However, maintaining idle assets don’t have a major effect on

the profitability of the business because most micro businesses don’t have a large amount

of working capital.

PROBLEM 4. Is there a significant relationship between the money utilization to the

profitability of the micro businesses in Daet?

Findings

A Pearson Moment of Correlation was calculated comparing the mean score of

the relationship between money utilization and profitability among micro businesses, a

significant relationship was found at (t(9)=-2.538,p=<0.032). Hence, the mean of the

usage of money (M=2.42, SD=0.82) was significantly related from the mean of the

profitability (M=2.81, SD=0.46). It implies that money utilization and profitability of

micro businesses in Daet is significantly related, therefore the researchers conclude that

the null hypothesis is rejected.

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Conclusions

There is a significant relationship between money utilization and profitability. It

means that usage of money is a factor that influence the performance of the micro

businesses based on their profitability. It is because money is the lifeblood of business,

and in everyday business activities, money is involved. In every inflow and outflow of

cash, many factors are affected and one factor is the profitability of business. By using

the money properly, it help the business to become more profitable and sustain its

stability in order to survive the tight competition in the market.

PROBLEM 5. What are the money utilization strategies that can recommend to improve

the profitability of micro business?

Findings

Based on the given strategies, the result shows that setting a financial planner

ranked 1st with a frequency of 219. While collecting accounts receivable is in the last

rank with a frequency of 22.

Conclusions

The respondents agreed that setting a financial planner can help your business

more profitable. This is their top recommended strategies because it helps the business to

be more organized. It may also avoid risks and some unnecessary costs that are incurred

in the business operation. Having a financial planner enables you to monitor your

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spending, tracks the performance of your business, helps you to have a good decision

making and forecast on your business.

Collecting accounts receivable is in the last rank of the recommended strategies.

Based on the responses from the respondents, collection of accounts receivable does not

increase your profitability because most of micro businesses doesn’t put interest and most

of them do not lend to their customers.

RECOMMENDATIONS

From the conclusions given, the researchers recommend the following for the

improvement of profitability of micro business with regards to their money utilization in

different business activities.

1. Conduct a seminar and workshop in partnership with Department of Trade and

Industries (DTI) for business students especially for entrepreneur students. This is

to train future entrepreneurs and to inject them knowledge and ideas about money

management and business operations. This will help those aspiring businessmen

to forecast what may happen in business and for them to be aware of different

money management strategies that improve their profitability and to attain

sustainability in their future businesses. This will allow them to be well equipped

before engaging in the business.

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2. Conduct a business plan competition for students to help them enhance their skills

in planning and to have an exposure to different situation that they can encounter

in business like preparation of required requirements in putting up a business,

conducting different business and money management strategies and etc. This

will help them to examine their knowledge about business management and this

will be a source of new ideas and knowledge for those aspiring businessmen for

them to acquire. Also, this might help them to reduce the risks that they may

encounter by acknowledging their errors and mistakes that will arise in their

business plan. This will allow them to be more flexible in different business

situations.

3. Conduct a seminar and workshops in partnership with Department of Trade and

Industries (DTI) for local entrepreneurs. This is to help them be more

knowledgeable about the systems and components of their existing businesses.

4. Make an online journal that contains tips, ideas and advices for students who are

conducting research and feasibility study and for entrepreneurs who wanted to put

up their business. In this way, the researchers can utilize the social media to help

them to manage their business properly and to share the knowledge and idea that

the researchers obtain from this study.

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5. It is important to have a financial planner on the business. This will allow them to

monitor the inflow and outflow of cash, track their income and expenses, plan

their future expenses and be guided to improve their business. This financial

planner can be a helping hand on how to utilize their money for their everyday

business’ activities.

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