CHAPTER THREE

METHODOLOGY

3.0 Introduction

The chapter was divided into research design, locate of the study, population of the study

sample size Sampling procedure, research instruments, reliability and validity, data, collection

methods and Data analysis

3.1 Research design

The research was based on quantitative research designs. A case study was chosen as the

most appropriate research strategy. Saunders et al (2003) define a case study as “a strategy for

doing research which involves an empirical investigation of a particular contemporary

phenomenon within its real life context using multiple sources of evidence”. This fitted well with

the researcher’s intention to investigate a real life issue through a variety of data collecting

methods. Jankowicz (2000) suggests the appropriateness of a case study when the thesis focuses

on a set of issues in a single organization. The qualitative research design was descriptive in

nature and enabled the researcher to meet the objectives of the study. A statement was used to

assign variables that would not adequately be measured using numbers and statistics. This

approach was adopted to enable the researcher get and analyze relevant information concerning

people’s opinions about the role of budgeting in financial performance of private enterprises.
3.2 Locale of the study

The study focused on the role of budgeting and financial performance of private sector

with specific reference to Liliw’s footwear industry. Liliw is considered tas the Tsinelas Capital

of the Philippines. The researchers chose Liliw’s footwear industry because the enterprises do

budgeting but some are doing it in an informal way or lack the knowledge about the budgeting

process itself.

3.3 Population of the study

The researcher conducted the study in Liliw’s footwear industry which had a total of 50

respondents. The researchers used a sample selected from the study population as representative

sample representing the entire study population of 70-80. This selection of sample size helped

the researchers to minimize resources such as; time and money in addition to other resources.

The researchers used a sample size of 50 respondents because it was enough for the study

to obtain reliable information.

3.6 Research Instruments

3.6.1 Questionnaire

According to Robson (1993), a questionnaire is commonly applied to research, designed to

collect data from a specific population or a sample from that population. Questionnaires are

commonly used as research instruments because of the distinct advantages they yield (Leary,

1995). The researchers therefore chose a descriptive research methodology and designed a

questionnaire to collect the required data.

3.8 Data collection methods

The study incorporated the use of various methods in the process of data collection in a

bid to come up with sound, concrete and credible research findings. The researcher therefore

amalgamated the use of questionnaire, and interviews in the process of collecting primary data

3.8.1 Questionnaires:

The questionnaire is a set of questions to which the respondents to which the respondents

were allowed to fill the questionnaire in their own time and this made respondents feel free to

give answers to sensitive questions. The questionnaire tool collected data from the Liliw’s

footwear enterprises from the study population. The questionnaire tool of data collection was

chosen because it was cheap to administer to respondents scattered over a large area and at the

same time the method provides information with maximum errors.

3.9 Data Analysis

Data analysis was done as follows;

Data editing; Editing involved sorting of the collected information in order to get information

that was relevant to the study variables. At this stage all the responses looked through by the

researcher while writing the useful information and ignored the useless as was provided by the

respondents.

Coding; after the data has been edited, it was then presented inform of frequency tables after

which the data was able to be ready for interpretation. Graphs and pie-charts were developed by

the use of computer packages as; Micro Soft Word and Micro Soft Excel. However, qualitative
data was analyzed by developing themes (headings) or sub themes, which was derived from the

study objectives.

Tabulation: After collecting all the necessary data, these data were coded and edited, analyzed

and rephrased to eliminate errors and ensure consistency. It involved categorizing, discussing,

classifying and summarizing of the responses to each question in coding frames, basing on the

various responses. This will be intended to ease the tabulation work. It will also help to remove

unwanted responses which would be considered insignificant. Data will be collected from the

field with the use of study instruments will be classified into meaningful categories. This enabled

the researcher to bring out essential patterns from the data that would organize the presentation.

Finally, a research report will be written from the analyzed data in which conclusions and

recommendations were made.

 The genders of the respondents are mostly female with a total number 42 against the male

gender with only 8 respondents. The position of the respondents were mostly the ones who

manage the day-to-day affairs of the organization with a total of 26 followed by others being the

owner and the one managing the organization with a total of 18. It can be concluded that most of

the respondents were the salesladies who are working when the survey has been conducted. The

number of the employees working in each enterprise starts from the range of 1-4, the respondents

who has a small scale of business clarified that they have suppliers for the footwear product and

some only have 2-3 workers whose responsible for the products being sold. Many of the

enterprises are established for more than 11 years ago and some are just emerging within the age

of 1-5 years. 43 out of 50 respondents checked that they’ve used budgeting but most of them are

using the informal type of budgeting. The respondents also indicated that they’ve been using

budgeting since the start of the business itself and having the owner as the one responsible for

the preparing the said budget which in fact that 72% of them has knowledge about accounting or

management. This would simply mean that the 28% are preparing budget for the sake of having

such budget.
 The most pinpointed reason for not preparing budget is the lack of knowledge regarding

to what budgeting really is and this is followed by preparing budget as to being costly to prepare.

Questioning the respondents if they believe "Budgeting has an impact in financial performance

of the business” has a landslide result of 48 out of 50, out of which 48 agrees to the statement.

Then 49 out of 50 knows the advantages and consequences of budgeting which then made the

respondents think of the importance preparing and application of budgeting thus leading to them

being convinced to prepare such. Attending seminars garnered the highest remark on how to

learn and apply budgeting.