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RESULTS AND DISCUSSION

Locale of the Study


The study was conducted on twelve areas in Cavite mainly General Emilio
Aguinaldo (Bailen), Alfonso, General Trias, Imus, Indang, Naic, Silang, Mendez,
Tagaytay, Dasmarias, Tanza and Rosario. These areas were chosen because it provides
the respondents needed to complete the study. Primary data were collected from the total
enumerated owners, managers and knowledgeable personnel for the information needed
for the demand for agricultural raw materials of small-scale home-based food industries.

Socio-demographic characteristics of small-scale home-based food industries


Gender - This section discusses the socio-demographic characteristics of smallscale home-based food industries. Surveyed respondents were dominated by 42 females
with 70 percent and the remaining 30 percent are 18 males from the total enumerated
respondents.
Age - The age of the surveyed respondents covered a wide range from 20 to 78
years old. Twenty three percent ranged from 20 to 36 years old, thirty percent of the
respondents ranged from 37 to 51, thirty-five percent fell in the age bracket of 52 to 67,
and 12 percent from the total respondents ranged from 68 to 78 years of age. This implies
that small-scale home-based food owners can operate business at early age.
Civil status - Majority of 78 percent was married, followed by 12 percent single,
8 percent of widowed and 2 percent of cohabitating. This indicates that a wide range of
small-scale home-based food owners are married.

Occupation - In terms of the type of works that the respondents are engaged in,
62 percent of the interviewed respondents were entrepreneurs, 18 percent were vendors, 7
percent were agents, 7 percent were employees and the other 7 percent were professionals
that include a teacher, a dentist, and managers. This shows that most of the small-scale
home-based owners are engaged in their business only. However, few of them still
manage to have other professions aside from their own businesses.
Number of dependents - The number of dependents ranged from 1 to 5 was 65
percent, twelve percent ranged from 6 to 9, two percent ranged from 10 to 14, dependents
that range from 20 to 24 were 3 percent, and 18 percent of the dependents ranged from
25 to 30. This result explains that most of the small-scale home-based owners support
their own and extended families. Moreover, some of our respondents were being
supported by their siblings or other family members.
Gross monthly Income - Surveyed respondents with gross monthly income that
ranged from PhP 4,000 to PhP 34,000 were 78 percent, eight percent ranged from PhP
35,000 to PhP 67,000 of their gross monthly income, another 8 percent ranged from PhP
68,000 to PhP 101,000 of their monthly income, 2 percent ranged from PhP 102,000 to
PhP 135,000, the other 2 percent ranged from PhP 136,000 to PhP 169,000 and the last 2
percent ranged from PhP 170,000 to PhP 204, 000 of their monthly income. This implies
that small-scale home-based food owners tend to have an average gross income of PhP
4,000 to PhP 34,000 monthly.
Educational Attainment - Majority of the surveyed respondents with 43 percent
finished college degree, followed by high school graduates who accounted 17 percent,
college levels which accounted 13 percent of the surveyed respondents, 12 percent for the

high school levels, 8 percent for the vocational graduates and 7 percent for the
elementary level. This proves that most of the information given by small-scale homebased owners is reliable.
Table 1. Socio-Demographic Profile Of Small-Scale Home-Based Food Owners
Sex
Frequency
Percentage
Female
42
70
Male
18
30
Age
20-36
37-51
52-67
68-84

14
18
21
7

23
30
35
12

Civil Status
Single
Married
Widowed
Legally Separated
Cohabitating

7
47
5
0
1

12
78
8
0
2

Occupation
Entrepreneur
Vendor
Agent
Employee
Professional

37
11
4
4
4

62
18
7
7
7

Number of Dependents
1-5
6-9
10 - 14
15 - 19
20 - 24
25 - 30

39
7
1
0
2
11

65
12
2
0
3
18

Continued... Table 1.
Gross Monthly Income
PhP 4,000 - PhP 34,000
PhP 35,000 - PhP 67,000
PhP 68,000 - PhP 101,000
PhP 102,000 - PhP 135,000
PhP 136,000 - PhP 169,000
PhP 170,000 - PhP 204, 000
Educational Attainment
Elementary Level
Elementary Graduate
High school Level
High school Graduate
Vocational Graduate
College Level
College Graduate

Frequency
47
5
5
1
1
1

Percentage
78
8
8
2
2
2

4
0
7
10
5
8
26

7
0
12
17
8
13
43

Business Information
This section describes the business information of small-scale home-based food
industries which contains years in operation, number of employees, working capital of
the business, initial capital of the business, source of capital of the business, nature of
business, agricultural raw materials used, the sources of agricultural raw materials used
and the preferences of the respondents in terms of sourcing the agricultural raw materials
(Table 2).
Table 2. Characteristics of Small-Scale Home-Based Food Industries
CHARACTERISTICS
Frequency
Percentage
Registration
Municipality
8
13
Municipality and DTI
17
28
Municipality and BIR
4
7
Municipality, DTI and BIR
21
35
DTI
10
17

Continued... Table 2.
Frequency
42
13
4
0
0
1

Percentage
70
22
7
0
0
2

Number of Employees
1-3
4-6
7-9

49
6
5

82
10
8

Working Capital of Business


500 - 100, 000
101,000 - 200, 000
201, 000 - 300, 000
301, 000 - 400, 000
401, 000 - 500,000

57
1
1
0
1

95
2
2
0
2

Initial Capital of Business


300 - 500,000
501,000 - 1,000,000
1,001,000 - 1,501, 000
1,501, 000 - 2,000, 000

58
0
1
1

97
0
2
2

Frequency
46

Rank
1

5
5
3
0

3
3
4
5

Years in Operation
1-9
10 - 17
18 - 26
27 - 35
36 - 44
45- 51

Sources of Initial Capital


Personal/Family Savings
Formal Lending
Institutions
Friends and Relatives
Business Income
Informal Money Lenders
Others

Registration of the business Small-scale home-based food industries are in


some way required to register their businesses in local level partly in the barangay area
to ensure that the quality of their products are safe to consume and to be purchased.
Thirty five percent were registered in the three main business registration agencies which
includes municipality, Department of Trade and Industry (DTI) and Bureau of Internal
Revenue (BIR), 28 percent were registered in both municipality and Department of Trade
and Industry (DTI). Seventeen percent were registered in Department of Trade and
Industry only while 13 percent were registered in the municipality and a total of seven
percent were registered in both municipality and Bureau of Internal Revenue.
Years in operation The years in operation ranged from one to 51 years.
Seventy percent were operating for one to nine years. Twenty two percent already existed
from 10 to 17 years whereas seven percent were functioning for 18 to 26 years and the
remaining two percent were operating for 45 to 51 years. This indicates that most of the
small-scale home-based food industries in Cavite were operating for a short period of
time.
Number of employees The number of employees considered as small-scale
home-based food industries was limited up to ten workers. The ranged of the number of
employees was from one to nine employees. Eighty two percent has a number of 1 to 3
employees, whereas ten percent has 4 to 6 employees and a total of eight percent has 7 to
9 employees.
Small-scale industries generate employment for a lot of people. Numerous
numbers of unemployed people found employment in small-scale industries.
(Ogechukwu, 2011).

Majority of the small-scale home-based food industries are producing and


marketing their products at the same time. They act as both the worker and the manager
of their businesses.
Working Capital of business The working capital of small-scale home-based
food industries ranged from 500 up until 500,000 for every production. Ninety five
percent of the working capital ranged from 500 to 100,000. Two percent for 101,000 to
200,000 another two percent for 201,000 until 300,000 and the remaining two percent
was for 401,000 to 501,000.
It explains that mainly small-scale home-based food industries tend to have a
working capital not exceeding one hundred thousand and not below five hundred pesos.
Initial Capital of business The initial capital of small-scale home-based food
industries ranged from 300 to 2,000,000 since they started their business. Ninety seven
percent extents from 300 to 500,000. Two percent each fall from the range of 1,001,000
to 1,500,000 and 1,501,000 to 2,000,000. This signifies that majority of small-scale home
based food industries tend to open up their business with an initial capital not less than
300 and not exceeding to 500,000.
Sources of Capital Small-scale home-based food industries have different
sources of initial capital in order to start their operation. Personal/Family savings were
the highest in rank to be followed by formal lending institutions. The least were friends
and relatives, business income, and informal money lenders. This explains that most of
small-scale home-based food industries are sourcing their initial capital to from their own
finances.

Nature of Business Ranked first in the nature of business was native delicacies
(puto, bibingka, suman, kalamay, bico, petche-petche, kutsinta). Next to that is peanut
butter followed by taho and tokwa then bananachips/banancue/turon. After that was
bukayo/balikutsa/cocojam. The least were atsara, bagoong and patis, ginger tea/turmeric,
tamarind candies, brewed coffee, cassava powder, malunggay products, oyster
mushroom, tubo and kaong vinegar (Table 3).
Table 3. Nature of Business of Small-Scale Home-Based Food Industries
Nature of Business
Frequency
Rank
19
1
Native Delicacies
8
2
Peanut Butter
8
3
Taho and Tokwa
5
4
Tablea
4
5
BananaChips/Bananacue/Turon
4
5
Bukayo and Balikutsa/Coco Jam
3
6
Atsara
2
7
Bagoong and Patis
2
7
Ginger Tea/Turmeric
2
7
Tamarind Candies
1
8
Brewed Coffee
1
8
Cassava Powder
1
8
Malunggay Products
1
8
Oyster Mushroom
1
8
Tubo
1
8
Kaong Vinegar

Agricultural Raw Materials Used Coconut with husk has the highest demand
to be used as agricultural raw material. It is merely used in producing native delicacies.
After that was peanuts used in making peanut butter and other candies, then cassava used
in making flour and native delicacies; followed by soya beans used for manufacturing
taho and tofu. Ube was next in line for producing ube jams. Banana leaves was the
middle in rank used as wrap for native delicacies. Next to it was cacao used to make

chocolates and tableas, followed by banana used in forming banana chips, turon and
banana cue. The slightest in rank were kaong vinegar used in atsara and vinegar alone.
After that was papaya used for atsara making. Alamang, dilis and galunggong are kinds
of fishes which were used to produce fish sauce and bagoong. Ginger was the main
ingredient in making turmeric/ginger tea. Tamarind was used in producing
sampaloc/tamarind candies. Coffee bean was used in manufacturing brewed coffee
powder, while malunggay was used for making flakes and malunggay powder.
Subsequently was mushroom and sugar cane used for producing tubo juice (Table 4).
Table 4. Lists of Agricultural Raw Materials Which are Commonly Used ay SmallScale Home-Based Food Industries
Agricultural Raw Materials
Frequency
Rank
Coconut (with husk)
19
1
Peanuts
10
2
Cassava
8
3
Soya Beans
7
4
Ube
7
4
Banana leaves
6
5
Cacao
5
6
Banana
4
7
Kaong Vinegar
3
8
Papaya
3
8
Alamang, Dilis, Galunggong,
2
9
Ginger
2
9
Tamarind
2
9
Coffee bean
1
10
Malunggay
1
10
Mushroom
1
10
Sugar cane
1
10

Most coconut with husk, cassava, ube, banana leaves, banana and papaya and
ginger were sourced inside the province particularly in public market near the area of the
small-scale home-based producers. They acquire it from public markets since they have

different qualities to choose from wherein prices may vary. Kaong vinegar was sourced
in Indang as it is grown and produced there. Alamang, dilis and galunggong which were
used to produce fish sauce and bagoong are acquired in the lower coast areas of Cavite
mainly in Rosario and Tanza. Brewed coffee produced by one of the respondents sourced
his agricultural raw material within his area of production particularly in Tagaytay since
this area was rich in coffee.
However, peanut which was ranked second to the highest was sourced in
Divisoria. Some of small-scale home-based producers acquire it in Dasmarias
specifically in Kadiwa Area since it was known as the main retailer of products that can
also be found in Divisoria. For some small-scale home-based producers, they prefer to
acquire it in Kadiwa Area given that it will cause them less amount of time and patience
when buying. Nevertheless, some small-scale home-based producers would still rather
source it from Divisoria as it will give them the expected quality they are looking for
when buying. Most small-scale home-based producers with products dealing with tofu,
are sourcing the soya beans in Divisoria. For tablea manufacturers who uses cacao as the
main agricultural raw material they procure it also in Divisoria. For the respondent who
produces oyster mushroom, the seeds were sourced in Bureau of Plant Industry. Tamarind
was also sourced in Divisoria. Sugarcane was obtained in Batangas because 30 tons is the
fixed demand for production in every month and there are no sources of sugarcane
provincially.
Sources of Agricultural Raw Materials Sixty eight percent of the small-scale
home-based food industries was sourcing their agricultural raw materials within the
province while the remaining 32 percent of the total respondents was acquiring their

agricultural raw materials outside the province. Small-scale home-based food producers
tend to source their agricultural raw materials inside the province because many of them
purchase only small quantity. However, most respondents who were sourcing outside the
province purchase large amount of agricultural raw materials. Also, large volumes were
produced depending on where and how they market their products (Table 5).
Table 5. Sources Of Agricultural Raw Materials Of Small-Scale Home-Based Food
Industries
Sources of Agricultural Raw Materials
Inside
Outside
General Emilio Aguinaldo (Bailen)
1
Alfonso
1
4
General Trias
1
1
Imus
3
1
Indang
9
2
Silang
3
1
Naic
1
Mendez
6
1
Tagaytay
7
Dasmarias
4
5
Tanza
3
3
Rosario
2
1
Frequency
41
19
Percentage
68%
32%

The certain reasons why small-scale home-based food industries prefer to acquire
inside the province were:
(a) Near the area of production agricultural raw materials tend to be always
available when the producer has its own supplier - particularly the farmers. They
often cultivate and supply their raw materials to small-scale home-based
producers which they know demands for their crops. According to Boehljea and
Brringb (2011) the agricultural sector is increasingly becoming a source of raw
materials for industries or sectors.

Public market was the main source of agricultural raw materials in each
municipality because it gives enough quantity, choice of quality and suppliers
known as suki when buying.
(b) Affordable, less effort and less operating expenses agricultural raw materials
which were bought by small-scale home-based producers were more likely to be
affordable since they can purchase it on their range target price; less effort and
less operating expense given that it will not be time consuming and no additional
fees (tracking) will be added.
It was said to be affordable for those who acquire inside specially those who
have their own suppliers since they can buy it at a very low cost and sometimes,
agricultural raw materials needed were supplied at home. This has been proven by
Piercy (1982) that many of our small manufacturers do not have properly defined
criteria for appointing their product distributors. They rely mainly on trust created
through relationships between the owners of the companies and the distributors.
(c) Cavite is the only source of raw materials with good quality there are
agricultural raw materials that can be grown and can only be found in Cavite
which posses good quality and appearance.
Indang produces kaong vinegar that was primarily used by small-scale
home-based food industries for their product. Several products are now
discovered and studied using kaong vinegar.
Various tablea manufacturers had been sourcing their raw materials in
Cavite before, but as time goes by, they observed that the quality and quantity of
agricultural raw materials they once need was not able to meet their demand since

they produced large amount by now. However, if there would be any inside source
that will be able to meet their taste preferences, they are more willing to source it
inside the province.
The certain reasons why small-scale home-based food industries prefer to acquire
outside the province were:
(a) Affordable for small-scale home-based food industries which are acquiring tons
of agricultural raw materials in every production, it is more affordable for them to
purchase outside the province since they need a large amount of raw materials for
their production. Thus, the quality and quantity of products they need can be
provided specially by Divisoria Market. However, they find it affordable since
they get it from direct suppliers and not from retailers.
(b) There are no sources of agricultural raw materials used inside the province
Small-scale home-based food industries specifically those who used agricultural
raw materials that are not produced in Cavite are sourcing from outside the
province given that they do not have any other options.
The agricultural raw materials that are not sourced inside the province are
peanuts, soya beans, cacao, tamarind, mushroom and sugarcane.
(c) Quality of products for small-scale home-based food producers who are after
the quality of products they acquire they source outside the province since they
want to use a high-quality for the products they are producing. Imported products
that are supplied in Divisoria are one of the main concerns they consider for the
production of their product.

Divisoria acquires new, fresh and imported products every day. For the
producers of tofu, they favour to source here since they consider the amount of
milk they need to get if the soya beans are fresh.
Where do you market your products?
The locale and people on where the products produced are explained in
this section. Small-scale home-based food industries were marketing their product
directly to the consumer/direct selling which was first in rank for some reason
producer directly markets the product to the consumer regardless of how large the
consumption may be. Trading the products with the usual clients by means of
giving them desirable result of the products consume (Estrella,2003). Direct
selling was followed by the retailers. Next to it were the specified places on where
the products are supplied particularly in Bazaar and Trade Fair, Catering services,
Restaurants, Pasalubong Centers, Groceries, Malls and some were exporting and
supplying it to other countries. This explains the idea of Ogechukwu (2011) about
small-scale which is to help bring about new goods and services and supply the
needs of large industries, which have to rely on the small-scale operators for
business success.
Next to it was public market, followed by hotels and supermarket and the least
was government agencies. (Table 6).
According to Pink (2001) Conceptually a home-based business can be
defined as any business entity engaged in selling products or services into the
market operated by a self-employed person.

Some of the small-scale home-based food producers who were selling


their products in the Bazaar/Trade Fair are also associated to One Town One
Product project of government. Through this program of our government, local
chief executives of each city and municipality take the lead in identifying,
developing and promoting a specific product or service, which has a competitive
advantage (Subia, 2012).
Table 6. Where Small-Scale Home-Based Food Industries Market Their Products
Frequency
Percentage
Directly to the consumer/direct selling
48
1
Retailers
30
2
Others
15
3
Public Market
14
4
Hotels
4
5
Supermarkets
4
5
Government agencies
3
6

Profitability of Small-Scale Home-Based Food Industries


Profitability Ratios. The profitability of the small-scale home-based food
industries in Cavite were measured using four kinds of profitability ratios particularly
Gross Profit Margin (GPM), Operation Profit Margin (OPM), Net Profit Margin (NPM)
and Return on Operating Expenses (ROE).
Table 7. Average profitability ratios in terms of gross profit margin of small-scale
home-based food industries in Cavite
PROFITABILITY RATIO
LOCALE OF THE STUDY
Gross Profit Margin (GPM)
Tanza
69%
GEA (Bailen)
67%
Dasmarias
60%
Alfonso
52%

Tagaytay
Indang
Mendez
General Trias
Rosario
Naic
Silang
Imus
Over-all Average

52%
52%
49%
49%
42%
39%
38%
34%
52%

Gross Profit Margin (GPM). The average GPM of the small-scale home-based
food industries was 52 percent which entails that for every peso invested in the business,
there was a profit of 52 centavos. The municipality of Tanza had the highest GPM which
was 69 percent. This implies that for every peso sales/revenue in the business, there was a
gross profit of 69 centavos. Municipality of General Emilio Aguinaldo (Bailen) had an
average of 67 percent GPM which shows that for every peso sales/revenue in the
business, there was a gross profit of 67 centavos. Next to that was the city of Dasmarias
with 60 percent GPM which verifies that for every peso sales/revenue in the business,
there was a gross profit of 60 centavos. It was followed by municipalities of Alfonso and
Indang together with the city of Tagaytay which have a common average of 52 percent
GPM which shows that for every peso sales/revenue in the business in each municipality
and city, there was a gross profit of 52 centavos. Subsequently, the city of General Trias
and the municipality of Mendez had an average of 49 percent GPM which indicates that
for every peso sales/revenue in the business from each municipality, there was a gross
profit of 49 centavos. After that was municipality of Rosario with an average of 42
percent which explains that for every peso sales/revenue in the business, there was a
gross profit of 42 centavos. Municipality of Naic had an average of 39 percent GPM

which shows that for every peso sales/revenue in the business, there was a gross profit of
39 centavos. Second to the least municipality was municipality of Silang with 38 percent
GPM. This implies that for every peso sales/revenue in the business, there was a gross
profit of 38 centavos. Lastly, city of Imus had the least GPM on all the selected areas of
the study, Imus had 34 percent GPM which implies that for every peso sales/revenue in
the business, there was a gross profit of 34 centavos (Table 7).
The gross profit margin measures the profit a business formulates from its cost of
goods sold. Described as a financial metric which is used to assess a firm's financial
health by revealing the proportion of money left over from revenues after accounting for
the cost of goods sold (Investopedia)
Table 8. Average profitability ratios in terms of operating profit margin of small-scale
home-based food industries in Cavite
PROFITABILITY RATIO
LOCALE OF THE STUDY
Operating Profit Margin (OPM)
GEA (Bailen)
31%
Dasmarias
29%
Mendez
26%
Tagaytay
26%
Alfonso
24%
Indang
24%
Imus
22%
Tanza
20%
Silang
6%
Rosario
5%
General Trias
-15%
Naic
-32%
Over-all Average
20%
Operating Profit Margin (OPM). The municipality with the highest average
OPM was General Emilio Aguinaldo (Bailen) which has 31 percent which shows that for
every peso worth of sales/revenue, there was a profit 31 centavos. Next to General Emilio
Aguinaldo (Bailen) was the city of Dasmarias which had an average of 29 percent OPM.

This explains that small-scale home-based food businesses generated 29 centavos for
every peso worth of sales/revenue. It was followed by municipality of Mendez and city of
Tagaytay with the same average of 26 percent OPM which implies that for that for every
peso worth of sales/revenue, there was a profit 26 centavos. Municipalities of Alfonso
and Indang also had similar averages which was 24 percent OPM which shows that that
for every peso worth of sales/revenue, there was a profit 24 centavos. City of Imus had an
average of 22 percent OPM which verifies that small-scale home-based food industries
make 29 centavos profit for every peso worth of sales/revenue. Followed by municipality
of Tanza with an average OPM of 20 percent which indicates that for every peso worth of
sales/revenue, there was a profit 20 centavos. Subsequently, municipality of Silang had
an average of 6 percent OPM which explains that for every peso worth of sales/revenue,
there was a profit 6 centavos. The last municipality with a least positive OPM was
Rosario with an average 5 percent. This proves that small-scale home-based food
industries still can profit even if it has 5 centavos for every peso worth of sales/revenue.
Two of the lowest OPM were municipalties of General Trias and Naic with an average of
negative fifteen percent and negative thirty-two percent which implies that for every peso
worth of sales/revenue, there was a loss of 15 centavos and 31 centavos. The average
OPM of the small-scale home-based food industries was 20 percent (Table 8).
The operating profit margin verifies how successful management has been at
generating income from operating the business. It involves utilizing strategic plans on
how money must be spent wisely.

Table 9. Average profitability ratios in terms of net profit margin of small-scale homebased food industries in Cavite
PROFITABILITY RATIO
LOCALE OF THE STUDY
Net Profit Margin (NPM)
GEA (Bailen)
30%
Dasmarias
27%
Mendez
25%
Indang
22%
Tagaytay
19%
Tanza
15%
Silang
14%
Imus
13%
Alfonso
4%
Rosario
4%
General Trias
-16%
Naic
-32%
Over-all Average
16%

Net profit margin The average NPM of small-scale home-based food


industries was 16 percent. The municipality with the highest NPM was General Emilio
Aguinaldo (Bailen) which was 30 percent which implies that for every peso
sales/revenue, there was a profit of 30 centavos. Followed by municipality of Dasmarias
with 27 percent NPM which indicates that for every peso sales/revenue, there was a profit
of 27 centavos. Municipality of Mendez had 25 percent NPM which explains that for
every peso sales/revenue, there was a profit of 25 centavos. Subsequently, municipality of
Indang followed which had 22 percent NPM. This shows that for every peso
sales/revenue, there was a profit of 22 centavos. City of Tagaytay had 19 percent NPM
which explains that there was a profit of 19 centavos for every peso sales/revenue.
Municipality of Tanza had an average of 15 percent NPM which verifies that for each
peso sales/revenue, there was a profit of 15 centavos. After municipality of Tanza was
municipality of Silang which had 14 percent NPM which indicates that small-scale homebased for industries makes 14 centavos profit for every peso sales/revenue. City of Imus

is not far from what municipality of Silang had. Imus had an average of 13 percent NPM
which shows that for every peso sales/revenue, there was a profit of 13centavos. The
lowest municipalities which had an average of both 4 percent NPM were municipalities
of Alfonso and Rosario. This implies that small-scale home-based food industries still
have 4 centavo profit in each municipality for every peso sales/revenue. The least NPM
of all the municipalities was General Trias with an average of negative 16 percent which
explains that for every peso sales/revenue, there was a loss of 16 centavos (Table 9).
In knowing the net profit margin, it can be a good way of comparing businesses in
the same industry,

since

such

industries

are

generally subject

to similar business conditions. However, the net profit margins are also a good way to
compare businesses in different industries in order to gauge which industries are
relatively more profitable (investowords.com).
Table 10. Average profitability ratios in terms of return on operating expenses of smallscale home-based food industries in Cavite
PROFITABILITY RATIO
LOCALE OF THE STUDY
Return on Operating Expenses (ROE)
Mendez
360.89%.
Tanza
204.03%.
Alfonso
194.03%.
Tagaytay
127.68%.
Dasmarias
120.1%.
Indang
105.94%.
General Trias
97.84%.
GEA (Bailen)
83.89%.
Silang
78.07%.
Rosario
65.69%.
Imus
56.58%.
Naic
-45%
Over-all Average
147%

Return on operating expenses (ROE) The municipality which had the


maximum ROE which was 360.89 percent was the municipality of Mendez. This
indicates that small-scale home-based food industries generate income of three hundred
sixty pesos and eighty nine centavos for every Php 100 operating expense in the business.
Followed by municipality of Tanza with 204.03 percent ROE which shows that for every
Php 100 operating expense in the business, there was a profit of two hundred four pesos
and three centavos. Next to it was municipality of Alfonso with an average of 194.03
percent ROE which explains that for every Php 100 operating expense, there was a profit
of one hundred ninety four and 3 centavos. It was followed by the city of Tagaytay with
127.68 percent ROE. This verifies that small-scale home-based food industries makes one
hundred twenty seven and sixty eight centavos income for every Php 100 operating
expense. City of Dasmarias had an average of 120.10 percent ROE. This explains that
for every Php 100 operating expense in the business, there was a profit of one hundred
twenty pesos and ten centavos. Municipality of had an average of 105.94 percent ROE
which pertains that for every Php 100 operating expense in the business, there was a
profit of one hundred five pesos and 94 centavos. Subsequently, municipality of General
Trias had an average of 97.84 percent ROE. This verifies that for every Php 100
operating expense in the business, there was a profit of ninety seven pesos and eighty
four centavos. To be followed by municipality of General Emilio Aguinaldo with of 83.89
percent ROE which describes those small-scale home-based food industries generated
income of eighty three pesos and eighty nine centavos for every Php 100 operating
expense in the business. After that, municipality of Silang had an average of 78.07
percent ROE. This verifies that for every Php100 operating expense in the business, there

was a profit of seventy eight and 7 centavos. The municipality of Rosario had an average
of 65.69 percent ROE which shows that there was a profit of sixty five pesos and sixty
nine centavos for every Php100 operating expense in the business. Next to it was City of
Imus which had 56.58 percent. It implies that for every Php100 operating expense in the
business, there was a profit of fifty six pesos and fifty eight centavos. The least ROE of
all the areas in the study was municipality of Naic with an average of negative 45%. This
indicates that there was a loss of fourty five pesos in every Php100 operating expense in
the business. The average ROE of small-scale home-based food industries was 147
percent which implies that for every Php 100 operating expense in the business, there was
a profit of one hundred forty-seven pesos (Table 10).
Return on Operating Expenses measures as what will be the cost to
operate a business in comparison to the income that the business brings in
(investopedia.com). Municipality of Mendez has the highest amount of profit among the
twelve selected areas in Cavite which shows that small-scale home-based producers in
this municipality is very profitable.
Table 11. Common Problems of Small-Scale Home-Based Industries
Frequency
Delayed Payment Of Customers
19
Small Number Of Customers
18
Limited Market
16
Lack Of Supply Of Agricultural Raw Materials
13
Delayed Supply Of Agricultural Raw Materials
10
Insufficient Space For Production
6
Lack Of Support From The Government
6
None/Lack Of Employees
2

Rank
1
2
3
4
5
6
6
7

Problems encountered by small-scale home-based food industries The


highest rank was the delayed payment of consumers to be followed by small number of

customers, limited market, then lack of supply of agricultural raw materials, delayed
supply of agricultural raw materials. Next to that was insufficient space for production
followed by lack of support from the government and the least was none/lack of
employees. Furthermore, there are other problems specified by small-scale home-based
producers listed in the table above (Table 11). This merely entails that most of the smallscale home-based food industries in Cavite were having a hard time to generate income
since most of the consumers are acquiring credit from them through the products they
produce.