Micro, small and medium enterprises (MSMEs) played important roles i

n t h e industrialization and economic growth of the Philippines.

About ! percent or Php .! trillion of the Philippines "#P of Php $.% trillion in &' came from retail,
which is composed largely of these enterprises. he number of this ind of business has boomed in the
past few years and e*enuntil now. his is with no doubt since putting up this ind of business re+uires
only a relati*elysmall amount of capital. ne widely nown e-ample for this MSME is the sari sari
store. his sari sari store is asmall con*enience store *ersion in the Philippines. t ser*ed as
the pantry e-tension of e*er yhousehold. /ecause any missing essential good 0 from basic
food items li e coffee, mil andsugar, to other necessities li e soaps, shampoo and
toothpaste 0 is easily purchased from thenearby sari sari store at affordably0portioned
+uantities. hese stores are commonly found in both rural and urban areas. About $! percent
of allsari0sari stores nationwide are located in residential areas and are typically operated
from a portion of the owner1s house (/onnin,&''2) Mar et research studies by A3 4ielsen reported
thatthe number of sari0sari

stores nationwide grew by an estimated 55 percent between $$% and&''', 2 percent in &''&,
! percent in &''!, and % percent in &''2 (Malapit,&''%).#espite the e-cess competition and limited
profitability, how can such stores continue togrow6 7hat are the factors behind this growth6 And
how do these factors affect the growth of sari 8 sari stores6 hese are the +uestions that
moti*ated the researchers to conduct this study.
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