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AMA COMPUTER COLLEGE

SENIOR HIGH SCHOOL

ACCOUNTANCY, BUSINESS AND MANAGEMENT

Chapter 1

THE PROBLEM AND ITS BACKGROUND

Introduction

Times has been hard for the small business owners. It seems like with each passing day,

small business owners become more cautious amid economic and financial uncertainty. The

owners are feeling less confident about their business conditions and future outlook and

becoming more reluctant to hire with technology, lacking the tools to improve efficiency. But

why do small business owners feel this way? What kinds of challenges are they facing in today's

economic and political climate?

The 21st century began with a series of various crisis. Government policy makers and

institutional leaders around the world have been heralded the small business sector as a primary

force leading economic recovery. Small business is integral to economic growth, and their

success is important. Information concerning success factors for small business owners will assist

policy makers and corporate managers to mitigate small business failures. In fact, getting it right

can mean excelling in a tough old world and so. Small business can be differentiating factor

between failure and success for all small companies.

Small business economics isn't something you find in the back of a library. Imprinted in a

30-year-old dusty book, nor is economics a black art, understood by the vital few. It is however,

an integrated cog for the small business strategy. You will see in our research the different kind of

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struggles facing a small businesses and how the negotiators deal with it. Some accomplishments

and achievements by small business owners will be seen in this research.

Background of the Study

First and foremost, a small business needs to stay true to its mission. A business without

a clear mission isn't much of a business at all. You need to go into it with a clear set of goals.

There are the times when it can be more profitable to serve a small- medium client. It all relies

upon your mission and what your small business aims to be. Also, focus on what's already

working for you and stick with it. There are times when being creative and taking risks are

necessary to the health and growth of your business. But if something is already doing well for

you, there's no reason to trash a good thing. In addition, you should know what not to do.

In managing a small business, the problems are always there like money management,

growing revenue, financing, marketing costs, balancing quality, etc. And as of my opinion, if you

have good quality in managing your own business, the struggles are just easy thing to you and

you can solve it with your staff in urgent time.

This research can help us to manage our small business in the near future. We chose this

topic because as an ABM student, of course were curious how the small business owners manage

their business struggles and how do they survive it.

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Statement of the Problem

The study aims to determine the struggles affecting small businesses at Wet and Dry

Market in Barangay Lawa. Specifically, the researchers sought to answer the following question:

1. How the struggles affects small businesses?

2. How the business owners overcome their problems?

Significance of the Study

The researchers believed that in one way or another, the study will benefit the following:

Entrepreneurs

This study can help them to know what are the different struggles of small businesses so

that they can prepare themselves in some problems in the future.

Researchers

This study helps researchers to apply their learning concepts in academic aspects like

management, marketing, financial, social, economic, environmental, and accounting. It will also

expand their knowledge about the different struggles of business.

Future Researchers

This study guides the future researchers and serves as reference to them who wants to

expand the study and as a model of pursuing similar researchers as well.

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Scope and Limitation

This study was on the evaluation of the vendors whom selling in Brgy. Lawa Calamba

City, Laguna, these are used to identify their struggles in small business it involved the

perceptions of twenty (20) Respondents and were selected by random sampling.

The main source of the data was the survey questionnaire, which was prepared by the

researcher and statistically treated by the use of descriptive such as frequency, percentage, and

graphical analysis

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Definition of Terms

To avoid ambiguity and for purposes of clarification the following terms are properly
and clearly defined according to how they were used in the study.

Cautious- Careful to avoid potential problems or dangers.

Dusty- Staid and uninteresting.

Flourish- Grow or develop in a healthy or vigorous way, especially as the result of a particularly
favorable environment.

Herald- Be a sign that (something) is about to happen.

Integral- Necessary to make a whole complete; essential or fundamental.

Mitigate- Make less severe, serious, or painful.

Profitable- Yielding profit or financial gain.

Reluctant- Unwilling and hesitant.

Stack- A pile of objects, typically one that is neatly arranged.

Struggle- Make forceful or violent efforts to get free of restraint or constriction.

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Chapter 2

REVIEW OF RELATED LITERATURE AND STUDIES

This chapter contains the relevant literatures and studies both foreign and local sources

that have direct relationship with the present study about the struggles of small business. The

related literatures and studies helped the researchers to provide the needed information for the

enrichment and understanding of the study.

Foreign Related Literature

Jody (2015) Running a small business can be both rewarding and a struggle at times. We are a

small business that works with other small businesses on a day-to-day basis. So, we wanted to list

some of the most common struggles of small business owners and list some ways our clients have

overcome these challenges.

Low Sales

Most of the time when a small business owner contacts us the first question is "How can I

increase sales?". Sometimes that is the main problem but often there are other problems within

the business that can slow sales growth. It is important to look at the business as a whole before

creating a marketing plan and setting up an efficient sales system. Starting with a Strategic Plan

will save you time and money in the long run vs. rushing off a building a website not knowing

what you want to achieve and how you are going to achieve it.

Low Sales Example:

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The Business: The current small business does 1MM in sales annually. The owner has told us

that they would like to increase sales and he/she feels that a new website can help them do that.

Well, it can. But it needs to be done right. Hiring a web designer and hoping for the best is not a

good plan.

DIYSB Findings: After completing a Strategic Plan for the business we discovered that the

business was only capable of producing 10-20% more product with the current staff and facility

before they needed to invest in more employees and upgrade to a larger facility. Getting the 10-

20% more sales turned out to be the easy part. Strategically growing the business and making the

right investments at the right time was more important.

The Outcome: Over two years we increased sales 300% and helped the owner manage the growth

accordingly. Right now we are capped out on sales and production and everyone is happy.

Additional growth is not desired and now we are improving sales and marketing processes to

become more efferent and keep sales at this level.

Bad Marketing

Small businesses are often faced with the challenge of one person trying to juggle both sales

and marketing. What happens? One or the other does not get done. Or it gets done poorly. It is

important to assign time, people and dollars to all of your business functions.

Bad Marketing Example:

The Business: The current small business does 750k in sales annually. The have a sales

manager that has been with the company for 20 years and is a great salesman. He/she just does

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not understand the newer ways to market the business properly. Leads are down and direct mail

responses are lower than they have ever been. The postcard that they have been sending out for

the last 10 years has never been changed.

DIYSB Findings: After completing the Strategic Plan for the business we found that the business

was capable of increasing sales 100% without substantial additional investment. This was good

news for everyone. The businesses goal was to have a minimum of 1MM in annual sales and

1.2MM would be great. The marketing plan for the business was strictly "word of mouth". The

business had no website, no marketing plan, no marketing automation and they did not have a

defined sales system. They were basically "winging it" and hoping that people would call and

order. We don't think that is the best plan.

The Outcome: DIYSB Marketing completed a total overhaul of the business strategy and

marketing plan. The business got a Strategic Plan, Marketing Plan, Website and a Proven Sales

System. Now, they are off and running in the right direction.

Poor Sales Conversions

Working really hard to get the right plan, bring in leads and then have your sales staff convert at

a low percentage is frustrating. Conversion rates vary depending on the business and products

that they sell. Making sure you have a sales and marketing strategy that work together only makes

sense.

The Business: The current small business does 2MM in sales. They have a great core of current

customers and a decent stream of new leads that come in through their newer website that was

updated two years ago. The problem is that their sales staff was converting at a 20% conversion

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rate. While some industries might be happy with this we felt that we could double this with the

right marketing approach.

DIYSB Findings: After completing the Strategic Plan for the business we found that they could

deliver 500k more in sales without having to expand. The sales staff was seasoned but most of the

incentives were out of date. There was also no form of marketing automation to help the sales

staff nurture clients to a buying decision.

The Outcome: We developed a new sales incentive plan and marketing plan to help the staff

convert more leads to sales. We also implemented a referral program to get a few more qualified

leads coming in the door. These were some quick tactics that helped improve conversions right

away. As time goes on, constant tweaking of the website, landing pages and social media

accounts will continue to help grow the business. Conversions are up 10% and we are halfway to

our goal. Things are looking up and moral of the business has improved drastically!

https://www.linkedin.com/pulse/struggles-small-business-owners-nicholas-jody, Nicholas Jody,

August 14, 2015

Foreign Related Studies

Ewer (2016) Times are tough for small businesses in particular, who are facing issues that are

unique to their situation in an economy that still certainly looks and feels as if it’s suffering a

recession. There are a number of key challenges facing small businesses which recur over and

over in business forums as major problem areas.

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As every small business knows, the reality is that there are dozens of issues lurking out there –

however, we’ve had a look at six of those you can take definite action on and set out ways to

conquer them. Let’s get to work!

1. Cash Flow Issues

Money problems in their various forms are top of most lists of company woes, and for small

businesses the major worries are clients stalling payments, unexpected outgoings, and outstanding

bills that won’t wait to be paid.

There are some tried and tested money management tools that can help you to manage cash

flow, multi-talented apps that can create budgets, calculate VAT, automate bill payments, alert

you to unusual outgoings and provide a free credit score.

Using online invoices and reminders is also a powerful way to persuade reluctant clients to part

with money. There is great software out there that can do this for you, including Hiveage, which

provides free invoicing and can accept payments and automatically charge clients.

2. Tiredness

It’s tempting to try to do everything if you’re a small business owner, and long hours add

pressure. Fatigue can leave you disorganized, forgetful and cranky, not paying as much attention

to clients as you should, and making mistakes.

Business owners have to pace themselves, which includes embracing strategic delegation,

something that for any highly motivated individual isn’t an easy ask. Start by identifying business

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elements that don’t require your expertise, such as mailing, and take on an assistant, even part-

time, to help out – after all, it’s an investment that frees you up to do what you do best!

You could also consider delegating tasks that are outside your skillset to specialists, such as

accountants or legal experts – the results will likely be more professional and can save you

endless headaches.

You could also invest in automation of simple functions, for instance by using customer service

apps like Zendesk, or financial management solutions like NetSuite.

It’s important to get on top of these things, because taking time out is critical for your health

and wellbeing, not to mention family relationships. Get into the habit of segmenting your day –

analyze when and how you work best, the time you’d like to put into leisure or family, and create

schedules that identify key activities and how long they’re likely to take.

3. Finding and Retaining Profitable Customers

There is a business adage that you need customers with a problem only you can solve, and it’s

for you to identify that unique selling point and communicate it clearly to your would-be

customers.

You can start by researching your customer base, and identifying the characteristics of your

existing best customers (those with the highest volume of sales, and the most repeat custom).

Make sure you integrate into this analysis any costs associated with particular customers, so you

have a clear view of their net value to you.

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Once you’ve done this you can focus your energies on attracting new clients from your most

profitable segment, carefully differentiating your offer to ensure it appeals directly to this type of

customer.

To understand what customers want, you can ask for feedback from current best clients, which

also counts as part of your follow-up engagement – another ‘must do’ when you’re looking at

keeping valued partners. Find out what forums or other types of social media these customers use,

and make sure you’re in there and taking notes.

4. Motivating Employees

Employee buy-in is very important for small businesses in particular, as there tend to be fewer

of them and apathy has a greater impact. There’s a real need to understand what employees want

(other than a million-pound paycheck), and there are a few possibilities to boost employee

engagement for when this isn’t an option.

Ensuring employees are happy and productive means communicating clearly, and being

approachable. Good companies foster a relaxed atmosphere where staff feel able to talk to

management. Perks like free tea and coffee, free biscuits or fruit, and staff Christmas parties cost

relatively little and can really help create a favorable impression.

You should also ask for employee feedback on their needs – this is not an option, it’s a must.

Too many businesses don’t look at what their employees want, assume everything is fine, then

wonder why they have a high staff turnover.

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5. Having Too Many Overheads

Overheads are a big small business issue, and excessive overheads have driven many otherwise

good companies to the wall.

Resolving them involves paying close attention to what customers actually want and providing

products or services sharply tailored to suit. This means working out what customers need and

trimming back gold plating or unnecessary services, or elements of products that they won’t use

or aren’t interested in. Analyzing your transactions and asking existing customers what they want

is helpful.

Where you add value, make sure that it doesn’t increase overheads (for example through well-

judged deals on less-popular products, or other offers that benefit both you and the customer).

And don’t forget to ask yourself hard questions, such as whether you need that new car or printer,

or whether it’s just for show…

6. Staying Current

Small business owners can be so busy they forget to keep up with what’s current in their

sector. It takes so much time just to keep on top of the work that blue-sky thinking can seem an

unnecessary burden. Nevertheless, you need to keep up.

When you’re scheduling your week, don’t forget to allocate time to track competitors and

undertake awareness-raising activities such as reading (or writing) blog posts. Create Google

Alerts, use Twitter hashtags to keep up with what’s trending, and mine the wealth of free, and

very targeted online information out there on sites like News Now.

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If you can schedule days out to go to sector conferences and exhibitions, the payback in terms

of contacts and potential sales can be massive. Research events thoroughly to make sure that their

target audience is precisely your target client group. If an event is important, you could also

investigate becoming a speaker, positioning yourself as a thought leader among your peers.

https://www.hiveage.com/blog/challenges-facing-small-businesses/, Tom Ewer, January 11, 2016

Local Related Literature

Evangelista (2013) Addressing widespread poverty is the single most important policy

challenge facing the Philippines. Not only is poverty high when benchmarked against countries in

Asia, but also the rate of poverty reduction has been slow. While the Philippine economy has

grown at an average of 6 percent for the last five consecutive quarters (since 2012), poverty

incidence remains above 20 percent of the population. The critical challenge is to spread the

payback of this huge economic turnaround among the people, especially the poorest of the poor.

They should feel the benefits of the growing Philippine economy.

Entrepreneurship can provide the solution by creating wealth, jobs, and social empowerment. If

we are to address the issue of poverty with some degree of success, history tells us we have no

choice but to actively encourage entrepreneurial ventures.

Entrepreneurship in the Philippines

In the Philippines, entrepreneurship is viewed as important to empowering the poor, enhancing

production, and as an impetus to innovation. The 1987 Philippine Constitution recognizes

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entrepreneurship as an engine of economic growth. Article XII Section 1 highlights the role of

private enterprises in supporting equitable distribution of income and wealth, sustaining

production of goods and services and expanding productivity, therefore raising the quality of life.

The Philippine Development Plan (PDP) further reinforces the thrust on entrepreneurship through

trade and investment to achieve the government’s goal of economic development and job

creation. Based on the plan, measures for macro-economic stability, employment, trade and

investment, agribusiness, power-sector reforms, infrastructure, competition, science and

technology, and anti-corruption are being pursued to strengthen Philippines’s competitiveness

and contribute to job creation.

In 2011, there were approximately 830,000 business enterprises in the Philippines. Of these, 99.6

percent are classified as micro, small, and medium sized enterprises (MSME) which are

responsible for 38 percent of total job growth.

Enterprise development and competitiveness

Enterprise development in the context of competitiveness not only entails the ability to produce

products that can be accepted globally but also the level of support given to enterprises to help

them produce, innovate, and gain market access.

While relatively mature and free, enterprise development in the Philippines is beset with critical

challenges. These challenges are found within the context of pillars identified by the United

Nations Development Programme in its report Unleashing Entrepreneurship: rule of law,

physical and social infrastructure, domestic macro environment, and global macro environment; a

level playing field, access to financing, and access to skill development and knowledge.

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If the challenges remain unresolved, gaps in enterprise development have the potential to thwart

the country’s competitiveness and ability to effectively function within global production

networks.

Rule of Law

Rule of law, which encompasses regulatory structures, policy environment, and enforcement of

regulations, is one of the more important dimensions in assessing the competitiveness of

Philippine enterprises. According to the World Bank’s 2013 Doing Business Survey, the

Philippines ranks 138 of 185 economies with regards to the ease of doing business. Except for the

indicator “trading across borders” where the Philippines fared in the top third of the rankings

(#53), the country sits at the bottom third in all other enterprise development indicators such as

starting a business (#161), dealing with construction permits (#100), registering property (#122),

getting credit (#129), protecting investors (#128), paying taxes (#143), enforcing contracts

(#111), and resolving insolvency (#165). Along these lines, it can be clearly noted that the

Philippines’ regulatory environment for enterprise development is still weak and needs further

reform, harmonization and standardization.

Taking the case of business start-ups for instance, when entrepreneurs draw up a business plan

and try to get under way, the first hurdle they face is complying with the procedures required to

incorporate and register the new firm before they can legally operate. The Philippines requires at

least 15 procedures and takes some 30 or more days to start a business. Malaysia requires nine

procedures and 24 days while Taiwan requires eight procedures and 48 days. The rest of the

Southeast Asian region averaged 8.7 procedures and 46.8 days to start a business.

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Access to credit

Another important dimension is access to financing. While specific laws such as the MSME

Magna Carta and Barangay Micro Business Enterprises (BMBE) development specifically

mandate financing for enterprises, obtaining said funds is a different story. Most lending

portfolios require collateral accompanied by tedious documentation and other technical

requirements that are difficult for MSMEs to comply with.

An enterprise survey conducted by the Universal Access to Competitiveness and Trade (U-ACT)

in 2008 revealed that access to capital and financing are two of the most problematic issues for

enterprises, primarily MSMEs. Seventy-two percent of the total respondents, or nearly three out

of four, observed that investment and/or capital are currently difficult to obtain. On the other

hand, five out of 10 surveyed MSMEs regarded access to and cost of credit as problematic, in

relation to their businesses. In fact, 14 percent strongly stressed that credit availability and cost

pose a serious problem to the operation of their businesses.

Internationalization and global production networks

The rapid integration of economies and globalization of markets has influenced the evolution of

entrepreneurship over the years. Thus, from the traditional concept of supporting the various

factors of production, entrepreneurship now entails the capacity to see an opportunity, come up

with an idea, and organize the capital, knowledge, partners and managerial skill needed to

develop and sustain business activities through internationalized value chains.

Taking advantage of liberalized trading environments is an emerging challenge for Philippine

enterprises. This is compounded by the reality of limited opportunities for productivity and

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innovation. The World Economic Forum (WEF) Global Competitiveness Index identified

infrastructure, labor market efficiency, innovation, technological readiness, intellectual property

protection, R&D spending by private

companies, and availability of scientists as key areas in business and enterprise development

where the Philippines is lagging.

Enterprises need to be supported by strong social and physical infrastructure, which include

among others, labor productivity, laboratories, business incubators, business planning, marketing

and branding, and conformance to international standards. All these should be linked to the

supply chain while at the same time economic clusters found in local economies need to be

developed to allow specialization and product complementarity.

Role of enterprise networks

In addressing the above mentioned challenges, there is a need to rally behind national advocacy to

push entrepreneurship to the next level. This means nurturing micro-entrepreneurs from purely

“survival” into “opportunity and innovation driven” enterprise owners. This puts a premium on

the role of enterprise organizations such as chambers of commerce, industry associations and

dedicated enterprise networks.

The OECD Working Party on SMEs and Entrepreneurship in its 2009 study on “Barriers and

Drivers to SMEs Internationalization” undertaken by Kocker and Buhl points out that

institutionalization of networks/social ties and supply chains is a key driver of SME international

competitiveness. The study noted “the importance of network/social ties and supply chain links in

triggering an SME’s first internationalization step and extending internationalization processes.”1

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In the Philippines, apart from institutions like chambers of commerce and industry clubs,

entrepreneurship advocacy is mainstreamed by the creation of enterprise networks like the

Philippine Center for Entrepreneurship (PCE). PCE’s concrete goal is to spawn the creation of so-

called “Go Negosyo Communities” everywhere. These are communities where the academic,

business and government sectors are drawn into a triangle of almost seamless collaboration. In

such an ecosystem, there is constant networking, mentoring and cooperation among professors,

entrepreneurs, industry experts and venture capitalists, with the government providing support

through a viable policy infrastructure. Every “Go Negosyo” community is distinguished by its

ability to produce a continuous stream of start-up ventures.

PCE also seeks to embed strong entrepreneurship lessons into the school curriculum. If the goal is

to develop a culture of enterprise and cultivate tomorrow’s competitive entrepreneurs, they must

start at a young age. Primary and secondary schools can teach the values and develop the

mindsets of an entrepreneur. At the college level, enterprise networks are looking at how to assist

in the area of curriculum enhancement, providing manuals, training the teachers, and involving

real entrepreneurs in the learning process.

Nurturing the entrepreneurship paradigm

Entrepreneurship is more than just an economic term — it is a way of thinking. Creating jobs,

empowering people, and giving individuals access to better lives for themselves and their children

is a wonderful gift. Today, it has become a dynamic, developing part of the economy promoting

inclusive growth. Entrepreneurship is a way of inspiring creative individuals to pursue

opportunities despite its risks.

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In closing, the challenge for countries like the Philippines is to accelerate both the political and

economic leadership that can muster social reforms through entrepreneurship. Entrepreneurs have

the power to achieve great things. Entrepreneurs will emerge as the well-oiled wheels that will

keep the economy going and the society efficiently running.

http://www.cipe.org/publications/detail/entrepreneurship-philippines-opportunities-and-

challenges-inclusive-growth, Ryan Evangelista, November 15, 2013

Local Related Studies

Abrugar (2015) Becoming a successful business person is a long and winding journey. You’ll

be facing various challenges along the way. That’s why it requires great patience, hard work,

persistence and a lot of lessons learned to achieve your ultimate business goal. But did you know

that most of these difficult challenges will try to knock you out right at the start of your business?

If it’s your first time to start a business, never expect that it would be easy, fun and like a dream

come true. To avoid tasting failure at the early stage of your business, you have to anticipate the

worst scenarios that could happen to you so you can be ready to overcome them.

Here are 5 problems you should be prepared of when starting a business in the Philippines, and

some tips on how to deal with them:

1. THE TEDIOUS STEPS OF BUSINESS REGISTRATION, TAXATION AND

COMPLIANCE

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Don’t expect a breeze in getting certificates of business registration or licenses from the

different agencies of the government. If you’re in the province, expect one to three months of

processing time from getting your business trade name (SEC or DTI certificate of registration) to

the completion of the printing of your official receipts or invoices. Just before the year ended last

year, I had finally registered my digital marketing agency business in Tacloban City as a

corporation. It took me a month to prepare the corporate documents and secure the SEC

registration in Cebu City, another 3 weeks to get the BIR certificate of registration, and another 3

weeks for the Mayor’s business permit.

How to deal with it?

If you don’t have any idea or experience in business registration and processing, I advise that

you hire someone to do this for you. Of course it will cost you money but at least it would save

your precious time. You may hire an accountant or bookkeeper to outsource tasks, such as DTI or

SEC registration, BIR registration and getting Mayor’s permit.

If you want your business to go smoothly, it’s wise to financially prepare to cover all the

expenses you will incur in registering your business. Furthermore, have planning and timing.

Start registering your business earlier rather than registering it a week or a month before you plan

to start your operation. Remember that aside from the long processes of business registration, the

printing of your official receipts or invoices will also take time.

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2. THE CHALLENGE OF FINDING THE RIGHT TEAM FOR YOUR BUSINESS

Having the right people in your business is vital to your success. But don’t expect that they

will come to you magically and beg that you accept them as part of your team. Don’t anticipate

that once you announce your hiring, worthy applicants will immediately rush to your office to

win whatever position is available in your company. Even if you will receive a lot of applications,

choosing the most deserving people to be part of your team could be quite challenging. If you’re

hurrying to hire employees to start your business, chances are, you’ll end up hiring the wrong

people for your team.

How to deal with it?

Well, it takes time, patience and a lot of scouting to find the right team for your business.

Your human resource management should be part of your business plan, and your initial team or

employees should already be ready before your business starts operating. To have that

preparedness, start your recruitment and hiring process earlier. You can also utilize social

networks, like LinkedIn.com and even Facebook to scout and recruit people who are deserving

for your business. Moreover, don’t hesitate to ask your most trusted people (your family and

friends) who are professionally eligible to work in your company to help you start your business

well.

3. THE DIFFICULTY OF FINDING YOUR FIRST CUSTOMERS

So you think you have an awesome product or a service. But unfortunately, when you start

your business and put your product on the market for sale, the crowd of customers you were

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expecting did not come to buy anything from you. That scenario is truly disappointing. But don’t

worry because you’re not alone. A lot of entrepreneurs and first-time business owners also

experience that frustrating condition.

How to deal with it?

Have a marketing plan or strategy. Identify your target customers and execute the right

marketing campaigns and tactics before starting your business and offering products to potential

customers. Also, before starting to sell, spy and identify your competitors first. You might have

awesome products, but if you’re not aware that your competitors are selling more awesome

products than yours, your business is in big trouble. Therefore, create a strategic marketing plan,

do a competitive research, segment or target your market, and sell at the right time.

4. THE PROBLEM WITH YOUR CASH FLOW

Many businesses are born like human babies – small, delicate and financially unstable. With

the expensive cost of business licensing in the Philippines, micro business owners and

entrepreneurs who want to religiously comply with all the government’s requirements might find

themselves in cash shortage. Add that to the fact that sales and profit aren’t immediately earned at

the start of a business and there are fixed expenses that must be paid such as wages, office rent

and utilities… the result would be a big trouble for business owners.

How to deal with it?

Financial plan must be included in your overall business plan. You have to anticipate and

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estimate all the expenses your business will incur. And that is without expecting revenues in the

early and crucial period of your business (for example, in your first year where you’re still

struggling to find customers and generate profit). You should also see to it that you have a

financial backup to cover your regular and extra expenses. If your business capital will come

from a loan or debt, make sure that its terms (interest rate and mode of payment) will not give you

future problems.

5. THE PERSON IN YOU WHO MIGHT GIVE UP ANY TIME SOON

The biggest problem you will encounter when starting a business might not be money, tax or

debt. The worst problem you would face is none other than yourself. The “weak you” will tell

you to surrender when hard times come or when the problems above get even worse. The “feeble

and impatient you” will always whisper in your ears to stop continuing your business and give up

on your dream. You will suffer frustrations, hopelessness and loss of self-esteem.

How to deal with it?

Your business development will depend on your personal development. If you’re not

personally (mentally and emotionally) prepared to handle a business, you might find doing

business too much for you to handle. To prepare, have knowledge, wisdom and understanding

about all the challenges waiting for you in your journey as a business person. Acquire new skills

that will give you the edge to succeed in the middle of hardships. Develop patience, self-

discipline, hard work, persistence and other great virtues to overcome your worst “you”.

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I also recommend that you surround yourself with dynamic, inspiring, motivating and helpful

people like your friends, family and mentors so you can have some people who will cheer you up,

support you, and actually help you when you’re down and feeling hopeless.

Remember that starting a business is tough, and it’s only the beginning. If you want to be a

truly successful entrepreneur, you should not just dream to have a business, but you should plan

to have a successful enterprise with happy employees, satisfied customers and of course with high

financial performance and stable financial position. In other words, it’s indeed a long and winding

journey. So you better be prepared… be truly prepared.

http://businesstips.ph/5-problems-you-will-face-when-starting-a-business-and-how-to-deal-with-

them/, Victorino Abrugar, January 14, 2015

Synthesis

Based on the Related Literature that we gathered, there are several problems that the small

businesses are facing however, despite of these problems, we manage to solve it in our own and

make succession out of it. In fact, here in the Philippines, the number of small business here is

continuously growing and many entrepreneurs are seeking opportunities despite of the economic

recession. The related studies tackle about the problems and how to deal with it. It is important to

make an action towards the problems that your business is facing. However, to avoid problems,

we must plan a strategy before putting up a business.

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Chapter 3

RESEARCH METHODOLOGY

This chapter presents the method used in the research and dealt with the research method

utilized in the study, data gathering instruments used the respondents of the study, data gathering

procedures and the statistical treatment of data.

Research Method

The researchers utilized the descriptive method which involves gathering information about

existing condition through normative approaches, supported with descriptive analysis of data

gathered. The descriptive method is a design in which it describes and interprets what it is. It is

concerned with conditions of relationships that exists, practices, prevails, beliefs and processes

that are going on, effects that are being felt or trends that are developing.

The process of descriptive research goes beyond mere gathering and tabulation of data. It

involves an element of interpretation of meaning or significance of what is described. Thus,

descriptive is often combined with comparison and contrast, involving measurements,

clarifications, interpretation and evaluation.

Subjects of the Study

This study includes 20 respondents from “Talipapa ng Lawa”. The total population of business

owners/ vendors according to the president of the association is equal 50.

The table indicated below shows how the respondents distributed according to their profile.

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Table 1 Distributions of Respondents of the Study

Respondents Frequency Percentage


Business owners/ Vendors 20 100%

Table 1 shows the distribution of the respondents that utilizes in the study. As shown in the table

1, there are 20 respondents which only comprised of business owners with equivalent percentage

of 100%. They were assessed the struggles or problems of their business in “Talipapa ng Lawa”

in Brgy Lawa Calamba City, Laguna.

Research Instrument

The research instrument used in the study was the survey questionnaire. The survey consists of a

checklist which they answered.

Data Gathering Procedure

The researchers consulted their thesis adviser if the questions were appropriate to the topic. To

gather the desired data, the researchers distributed the questionnaires randomly to the target

respondents. All data and information gathered was classified, analyzed properly.

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Statistical Treatment of Data

The following is the statistical tool that will be use in this study.

1. The percentage will be used in all the calculations that required a numerical

representation in percentage. Examples were the percentage of the respondents to their

age, gender, family income and the highest educational attainment of parent as well as the

chosen answers in the survey. A percentage is a way of expressing number as fraction of

100 (percent per meaning “per hundred). It is often denoted using the percent sign, %.

The formula of the percentage was given below:

𝑓
P = 𝑛 x 100

Where P = percentage f = frequency of response n = number of respondents

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Chapter 4

ANALYSIS, PRESENTATION AND

INTERPRETATION OF DATA

This chapter discusses the statistical analysis and how data are interpreted from the

primary instrument used in the study, which is the Percentage. This chapter comprises the

analysis, presentation and interpretation of the findings that resulted from the given

questionnaires. The data were presented in a clear and concise form, most that used graphs and

tables.

1. On the Demographic Profile of respondents

a. On the Demographic Profile of the respondents according to age

Table. 2

Age Frequency Percentage


Young Adult (19 -27) 2 10%
Adult (28 – 36) 10 50%
Elder (38 above) 8 40%
Total 20 100%

Table 2 presents the demographic profile of the respondents of Talipapa in Barangay Lawa

Calamba City, Laguna regarding their age. Twelve (12) or 5% are Elder which under the age

bracket of thirty- tree (33) above, come after by ages twenty- six (26) to thirty- two (32) which is

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adult with the frequency of thirty- five percentage (35%). The least number ages are ranging from

nineteen (19) to twenty- five (25) which is young adult with a percentage of one (1%).

Table 3
Struggle of Small Business: Money
Struggle: Money Frequency Percentage
Strongly Agree 7 35%
Agree 2 10%
Neutral 2 10%
Disagree 1 5%
Strongly Disagree 8 40%

Table 3 presents the percentage level of struggles in terms of money. One (1) or 5% of the

population answered that they disagree. Come after by Two (2) or 10% of the population

answered neutral and agree. Seven (7) with the frequency of thirty- five percentage (35%)

answered that they strongly agree. Majority of the population said that they strongly disagree,

which is Eight (8) or 40% of the population.

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Table 4
Struggle of Small Business: Time
Struggle: Time Frequency Percentage
Strongly Agree 4 20%
Agree 1 5%
Neutral 2 10%
Disagree 4 20%
Strongly Disagree 9 45%

Table 4 represents the percentage level in terms of time. One (1) or 5% of population agree.

Two (2) or 10% of the population answered neutral. Four (4) or 20% of the population answered

strongly agree and disagree. The majority of the population answered strongly disagree which has

a number of Nine (9) and has percentage of 45%.

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Table 5
Struggle of Small Business: Lack of Knowledge
Struggle: Lack of Frequency Percentage
Knowledge
Strongly Agree 0 0%
Agree 1 5%
Neutral 11 40%
Disagree 4 20%
Strongly Disagree 4 20%

Table 5 presents the percentage level of struggles in terms lack of knowledge. One (1) or 5%

of population agree in terms of lack of knowledge. Four (4) or 20% of the population answered

strongly disagree and disagree. Eleven (11) or 40% of majority of the population answered

neutral. The least number is strongly agreeing, which no one answered.

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Table 6
Struggle of Small Business: Lack of Direction Planning
Struggle: Lack of Direction Frequency Percentage
Planning
Strongly Agree 0 0%
Agree 1 5%
Neutral 11 40%
Disagree 4 20%
Strongly Disagree 4 20%

Table 6 presents the percentage level of struggles in terms of lack of direction planning. One

(1) or 5% of population agree in terms of lack of knowledge. Four (4) or 20% of the population

answered strongly disagree and disagree. Eleven (11) or 40% of majority of the population

answered neutral. The least number is Strongly agreeing which no one answered.

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Table 7
Struggle of Small Business: Poor Marketing
Struggle: Poor Marketing Frequency Percentage
Strongly Agree 5 25%
Agree 6 30%
Neutral 6 30%
Disagree 2 10%
Strongly Disagree 1 50%

Table 7 represents the level of struggles in terms of poor marketing. One (1) or 5% of

population strongly disagree. Two (2) or 10% of the population answered disagree. Five (5) or

25% of the population answered strongly agree. Six (6) or 30% of the population answered

neutral and agree.

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Table 8
Struggle of Small Business: Getting Clients
Struggle: Getting Clients Frequency Percentage
Strongly Agree 12 25%
Agree 5 30%
Neutral 0 30%
Disagree 1 10%
Strongly Disagree 2 50%

Table 8 represents the percentage level of struggles in terms of getting clients. One (1) or 5%

of population disagree. Two (2) or 10% of the population answered strongly disagree. Five (5) or

25% of the population answered agree. Twelve (12) or 60% of the population answered strongly

agree. However, the least number is neutral which no one answered.

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Chapter 5

SUMMARY, CONCLUSION AND RECOMMENDATION

This chapter presents the summary of finding, the conclusions derived from the data

analysis, and the recommendation and opinions of the researchers regarding the study.

Summary

The purpose of this study was to determine the struggles that affecting small business. In

order to answer this question, the researchers developed a survey to have an understanding of the

topic. The survey instrument was given to the vendors of “Talipapa” of Barangay Lawa in Parian

Calamba City, Laguna. The respondents were asked to rate what struggles that they're

experiencing the most. To sum up all these questions, the statistical tool that they applied was the

percentage. They also used the descriptive method in this study.

As stated in the data that were gathered, one of the struggles that they always experiencing is

getting clients. Twelve (12) of 60% of the population strongly agree that it’s hard to get clients

especially when you have a lot of competitors in the area.

Conclusion

According to the data that we gathered, majority of the vendors has the age of 28-36 because

they have the capacity to handle a business. Meanwhile, in terms of money, majority of the

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respondents strongly disagree that the problem is money due to the fact that they can easily get

money of borrow to creditors. Forty- five percent (45%) of the respondents strongly disagree with

time as a struggle. Because for them, being a businessman/ businesswoman, you have to exert

your time and effort to be able to grow your business. Majority of the respondents answered

neutral in terms of lack of knowledge and lack of direction planning. Six (6) people agree that

they have a poor marketing and six (6) other people answered neutral. For the vendors of

“Talipapa” of Barangay Parian Calamba City, Laguna, the struggle that they are suffering is

getting clients. It’s not just about having competitors but the sad fact here is that other consumers

are not interested with the product that they’re selling or service that they’re offering.

In conclusion, not all small business is succeeding and not all are failing. As an entrepreneur,

you have to be brave enough to start a business and make sure you’re handling it very well.

Business is like a baby that you need to take care of let’s just say that you’re the mother/father of

it. What are you going to do in order to grow your child?

Recommendation

In putting up a small business, we encounter some struggles. We, as the researchers

recommend some ideas on how to improve your small business.

1. Money – We recommend that they buy on less expensive factory that having a good

quality products so that they can earn money and put a stop of failure in terms of money.

2. Products – We recommend the owners to lower their interest on their products so that

their customers can afford their products and it is not difficult to sell.

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REFERENCE

http://www.cipe.org/publications/detail/entrepreneurship-philippines-opportunities-and-
challenges-inclusive-growth, Ryan Evangelista, November 15, 2013

https://www.linkedin.com/pulse/struggles-small-business-owners-nicholas-jody, Nicholas Jody,


August 14, 2015

https://www.hiveage.com/blog/challenges-facing-small-businesses/, Tom Ewer, January 11th,


2016

http://businesstips.ph/5-problems-you-will-face-when-starting-a-business-and-how-to-deal-with-
them/, Victorino Abrugar, January 14, 2015

Philip Kotler et al. Marketing Management. N.p., 1999

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