1

CHAPTER I
THE PROBLEM AND ITS SCOPE

INTRODUCTION

Rationale of the Study

Sales refer to the amount of goods or services sold in a given period of

time. The quantities of sales a business enterprise acquire determine how

profitable it is. Once the customers’ standard and need in purchasing a

product is attained by a specific good, they are likely to purchase it, creating

a sale. There are many ways that an entrepreneur can do in order to increase

its sales. He can build his own strategies. But the sales of a business are not

only affected by how the entrepreneur manages it. There are numerous

factors that affect the high or low sales of a business.

It is the small entrepreneurs who run small-scale businesses.

Although, big businesses may dominate the stock market, but it is the small

business and start-ups that keep a country’s economy moving and for a

flourishing society. The small-scale businesses are important element of the

market economy because it creates jobs and builds neighbourhoods that are

more prosperous. Small entrepreneurs are commonly seen as the source of

new ideas, services, and business procedures. Without the small

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entrepreneurs, the citizens will encounter difficulties in purchasing goods

such as grocery products.

An individual who starts up a business and operate for a couple of

years and after sometime stops its business is observable in the community.

This occurrence discourages many business aspirants. This prompted the

researchers to conduct this study. This notion is also supported by

Tushabomwe (2006) who states that majority of local entrepreneurs

establishing micro business are susceptible to failure that is attributed to both

internal factors and external factors. Another thing is that in developing

countries, small businesses are generally regarded as driving force of

economic development and create employment that lead to poverty

reduction (Brown, 2017).

The intent of this study is to provide understanding on how people

should start their business by looking at all the factors that lead to sales

increase to reduce the risk of failure and increase the chance of success.

Additionally, this research aims to enlighten the current entrepreneurs about

the reasons of their current sales rate.

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Theoretical Background

This study is primarily anchored with Sales Maximization Theory.

This theory is created by an American economist William Jack Baumol.

This theory highlights that the primary objective of a firm is to maximize its

sales rather than its profit. Entrepreneurs should focus on producing more

sales and not gaining more profit with a specific good by increasing its price.

The customers will prefer products with lower price. When the price of the

product is low, the more the customers will buy it. Having a low price will

also outperform the enterprise’ competitors. The sales that a business

acquires were affected by different factors and not the price alone, thus, this

theory is significant to this study (Baumol, 1962).

Another theory that could support this study is the Schumpeter’s

Theory of Economic Development. Joseph Schumpeter an Australian

political economist proposes this theory. Schumpeter emphasizes that the

entrepreneur is the prime cause of economic development (Mehralizadeh

and Sajady, 2005). With this theory, it can be inferred that the presence of

entrepreneur is highly needed in the society. For this reason the factors that

affect its sales, must be identified to prevent failure to maintain the presence

of entrepreneur in the society (Schumpeter, 2017).

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The Attention-Interest-Desire-Action-Satisfaction Theory of Selling is

one of the widest known strategies to achieve customers’ satisfaction

resulting to sales increase. This theory was developed by an American

advertising and sales pioneer, Elias St. Elmo Lewis. This theory states that

there is five stages before a prospects’ satisfaction is attained. The first stage

of this theory is to gain attention in order to attract customers. The people

should know what an enterprise offers. Using advertisements like media

advertisements and printed advertisements is highly suggested. The second

stage is interest. Once the attention was earned, the customers’ interest must

be maintained so that they will likely do a repeat purchase. This stage is

followed by desire. The customers must have the desire to purchase a

product and must question why they didn’t buy the product before. The

fourth stage is action. A consumer might like the product yet doesn’t want

to buy it, in this instance, a customer needs to be induced by the sales person

to buy the product, may it be personally or by any means of interaction. The

final stage is satisfaction. The customer should be assured that he or she

made the right decision in purchasing the product (Mukherjee, 2015).

Notably, Langevang et al. (2012) examined the motivation of young

business owners.
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Indeed, younger entrepreneurs more often pursue an innovation or

marketing strategy, while older entrepreneurs more often tend to practice a

price discounting strategy. Moreover, younger entrepreneurs perform better

than older ones regarding turnover and investments, in the sense that that

these performance measures more often increase in the former group, while

older entrepreneurs do better on making profit (Ruis&Scholman, 2012).

Furthermore, Kautonen et al. (2015) stated that promoting the

development of a positive age-based self-image is a prospective policy

option for fostering entrepreneurship among younger and older age groups.

There's no young and old in business. It depends upon how entrepreneurs

perceived themselves.

On the other hand, young entrepreneurs have a serious trust

deficiency. They may overlook their potential to be future business leaders.

Only one in five intended to start their own firm right after graduating

(Babić&Zarić, 2015).

Also, younger entrepreneurs support the initiative of their employees

more (64%) than older entrepreneurs (Kozubíková et al., 2016).

Speaking about gender, the networked women, who were in the main

better educated and more affiliative by nature, were more expansionist than
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both other female small business owners and men. The networked women

were also more likely to have a business mentor. The findings contradict

with the earlier research suggesting women are less growth–orientated and

wish only to satisfy intrinsic needs from their businesses (McGregor &

Tweed, 2002).

Additionally, Coleman (2007) examined the relationship between

human and financial capital and the firm performance for women and men

owned small firms. It is revealed that human capital variables, for example

education and experience, had a positive impact on the profitability of

women-owned firms, while financial capital had a greater impact of the

profitability of men-own firms.

Frankly speaking, the difference between man and women in

entrepreneurship is their extent of fear of failure. However, it is not

mentioned whether which gender had the higher level of the aforementioned

fear (Wagner, 2007).

In addition, the gender differences affect the personal values of

entrepreneurs, which led to different strategies that influence the

performance (Boohene et al., 2008).

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Moreover, the effect of gender and business performance was related

in a complex way. In terms of employment, female-owned enterprises tend

to grow more rapidly than male- owned ones (Chirwa, 2008).

In relation to this, Gupta et al. (2009) investigated the role of gender

stereotypes in perception of entrepreneurs and intention to enter in business.

They found out that entrepreneurs were perceived to have muscular

characteristics. Additional results revealed that although both men and

women perceive entrepreneurs to have characteristics similar to those of

males (masculine gender-role stereotype), only women also perceived

entrepreneurs and females as having similar characteristics (feminine

gender-role stereotype).

Further, the kind of business and management strategies vary across

genders. Women entrepreneurship presents several distinctive characteristics

that distinguish it from men entrepreneurship (Minniti, 2009).

Not to mention this, Muravyev et al. (2009) found some evidence that

compared to male-managed counterparts; female-managed firms are less

likely to obtain a bank loan.

However, Fairlie and Robb (2009) found out that female-owned

businesses are less successful than male-owned businesses because they

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have less start-up capital, less business human capital acquired through prior

work experience in a similar business, and less prior work experience in a

family business. They also found out some evidence that female business

owners work fewer hours and may have different preferences for the goals

of their businesses, which may have implications for business outcomes.

In fact, female entrepreneurs face tighter credit availability, even

though they do not pay higher interest rates (Bellucci et al., 2010).

Actually, Cohoon et al. (2010) found out that women and men

entrepreneurs were similar in almost every respect. Although, it was also

revealed in their study that motivations for starting a business differed

slightly between men and women. Women also were more likely than men

to get early funding from their business partners.

Furthermore, this study examined the effect of the characteristics of

entrepreneur and characteristics on the business success of small and

medium enterprises. The research concluded that the longer the business

operated the higher the sales. The researchers also added that gender had a

significant role for the business success rate (Islam et al., 2011).

To tell the truth, women entrepreneurs work longer hours in their

firms than male entrepreneurs (Bruni et al., 2012).

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Similarly, female entrepreneurs spend more time watching the

changes in legislation affecting the business environment, and females spend

almost twice as much time on administrative activities related to business in

comparison to their male counterparts (Kljucnikov&Majková, 2016).

In terms of marital status, DeMartino et al. (2003) and Bruni et al.

(2004) concluded that differences between female and male entrepreneurs

become larger if the entrepreneurs are married with dependent children.

In fact, Parker (2008) revealed that significant and substantial positive

interdependence of business ownership propensities between couple. This is

consistent with a process in which both male and female spouses receive

positive knowledge transfers from the other.

Also, Blenkinsopp and Owens (2010) examined couple

entrepreneurship in both fields and, although there are limitations to the

current understanding, it clearly represents an important phenomenon, and

the role of spousal support in entrepreneurship is identified as particularly

significant.

Surely speaking, status concerns are important for financial decisions,

and lead individuals to assume more risk (Roussanov&Savor, 2012).

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On the other hand, Kurniawan and Sanjaya (2016) investigated the

effect of marital relations strategies to business efficacy through mediation

of spousal involvement and emotional social support. They found out that

only conflict management and advice strategy have a positive impact on the

business efficacy of young male entrepreneurs through mediation of their

spousal emotional involvement and social support.

When talking about business location, rural female entrepreneurs face

more obstacles to business success than their male or urban female

counterparts (Merrett&Gruidl, 2000).

Likewise, Shields (2005) stated that rural geo-demography adversely

affects marketability of products and services.

Furthermore, home-based businesses assemble different types of

resources from their away-based based counterparts. The combined

influence of location and aspirations showed that home-based firms with

high aspirations were less likely to achieve first sale (Brush et al., 2008).

Indeed, with increasing geographic isolation, most foods cost more

and the quality of fresh produce was lower (Pollard et al., 2014).

When talking about the number of years a business is operating, the

relationship between the growth, size and age of firms is very sensitive with
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respect to the method of estimation, functional form and definition of growth

and size (Heshmati, 2001).

Surely, young firms may face greater difficulty in securing

commercial bank debt than more established firms. Additionally, young

firms showed greater reliance on debt from non-bank institutions (Robb,

2002).

To point out, Blackburn et al. (2013) mentioned that size and age of

enterprise dominate performance and are more important than strategy and

the entrepreneurial characteristics of the owner.

Truly, Janeska-Iliev and Debarliev (2015) mentioned that additional

forms of years in business have statistically significant impact on the growth

of small business.

Moreover, in order for the small and medium enterprises to be

successful the entrepreneurs should pay more attention to improve marketing

strategy, to advance technology, and to get capital access

(Indarti&Langenberg, 2004).

As well, strategic decision-making participativeness, strategy

formation mode, and strategic learning from failure have a positive impact

on sales growth rate (Covin et al., 2006).

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Another thing is that, the firms engage in product innovation, have

their own transport means, and are connected to internet through their own

website are characterized by higher growth rates (Goedhuys&Sleuwagen,

2010).

In addition, Terho et al. (2012) argued that value-base selling is a

unique concept that differs from the established selling approaches and

proposed a conceptual model-linking value-based selling to performance

outcomes.

Notably, Familmaleki et al. (2015) investigated the effects of sales

promotion on buyer decision-making process. Sales promotion is indeed a

significant tool for marketing and its importance has been increasing

significantly over the years.

In addition, Gandy (2015) cited some strategies for company’s

profitability and sustainability. These factors include seasonality of business,

passion and dedication of the small business owner, and hiring the right

employees.

Not to mention this, Margaretha and Supartika (2016) indicated that

the variable firm size, growth, lagged profitability have a negative effect on

profitability, while the variable productivity and industry affiliation have a

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positive impact on profitability. Therefore, for further improve company’s

performance the manager should define a strategy to increasing profitability

with focusing on productivity and industry affiliation.

Further, Gaumer and Shaffer (2017) mentioned that strengthening the

entrepreneurial enterprise could occur on three levels, through pricing

strategies, social bonds, and structural interdependence. Each level is

successively more complex and enduring. However, pricing strategies and

price incentives prove way more challenging for the average entrepreneur.

Let alone, Temtime and Pansiri (2004) conducted an investigation of

the success factors affecting the development of small and medium

enterprises in Botswana. It is proven that demographic variables such as

ownership status, experience, and operating period affect the success or

failure of small and medium enterprises.

Actually, Walker and Brown (2004) suggested that both financial and

non-financial lifestyle criteria are used to judge business success, with the

latter being more important. Personal satisfaction and achievement, pride in

the job and a flexible lifestyle are generally valued higher than wealth

creation. Personal factors such as age and business characteristics influenced

perceptions on the importance of these factors.

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Indeed, management teams anticipate and react to internal and

external factors in various ways; this affects the way in which opportunity

recognition and exploitation takes place (Crick & Spence, 2005).

Specifically, the issues, weak managing technical skills, financial

issues, planning and organizing of their business, economic issues, informal

issues, weak managing conceptual skills, personnel skills, education and low

training, and weak human relation had important effects on the weak

performance and failure of a business. On the other hand, suitable managing

technical skills, selecting appropriate personnel with relevant skills,

education and paying more attention to personnel training, application of

management conceptual skills, financial issues, better human relation,

recognize the economic situation, planning and organizing of their business

and informal issues were the things that had an important impact on the high

performance of a business (Mehralizadeh&Sajady, 2006).

Somehow, working hard and for long hours, customer service, product

quality, attention to customer needs, communication skills, interpersonal

skills, and business connections are the factors believed by businesspersons

that contributed to their success (Coy et al., 2007).

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In addition, Reddy (2007) in his study revealed that poor law and

security, lack of finance, and appropriate skills are major obstacles to small

business growth and development.

By the way, following the metric based on the framework given by

the Federal Environmental Ministry in Bonn and the Federal Environmental

Agency in Berlin regarding the safe environmental practices, the Small and

Medium Enterprises will not only enhance their environmental performance

but additionally caused superior business performance and increased

competitiveness (Rao et al., 2009).

What is more is that, Kader et al. (2009) found out that despite the

importance of both internal and external factors, this paper found that the

external factors are more dominant than the internal ones in contributing to

the business success. All the external factors extracted by factor analysis

narrow down to the important role of the government in promoting small

business success. Therefore, the government should continuously provide

assistance and favourable environment conducive to small entrepreneurship

in the rural area.

For the same reason, the limiting factors to small firm growth include

internal factors like inadequate education and training, lack of proper

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business plan, and capital constraint; and external factors like corruption,

government policies, and bureaucratic processes (Nkonoki, 2010).

Equally important, Brinckmann et al. (2010) argued that business

planning is essential to the growth of small firms.

Furthermore, Karpak and Topcu (2010) stated that influence of the

entrepreneur have far less impact on success in line with the literature on

small medium sized enterprises.

To be more specific, Chittithaworn et al. (2011) examined the eight

factors that influence SMEs business success. These factors are: SMEs

characteristic, management and know-how, products and services, Customer

and Market, the way of doing business and cooperation, resources and

finance, Strategy, and external environment.The result showed that the most

significant factors affecting business success of SMEs were SMEs

characteristics, customer and market, the way of doing business, resources

and finance, and external environment.

In the same way, lack of financing, market challenges, and regulatory

issues were perceived as barriers to the growth of small businesses (Gill

&Biger, 2012).
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Speaking about financial issues, majority of small and medium

enterprises faced difficulties in accessing finance. Financing obstacle is one

of the serious problems for the growth of a business (Aldaba, 2012).

Particularly, Jebna et al. (2013) categorized the factors that affect the

sales of small entrepreneurs into financial and non-financial determinants.

These factors include customer satisfaction, quality of service, experience,

business expansion, competitor orientation, solving problems, cash flow, and

the amount of sales and revenue.

By the way, Betonio (2014) in his study about why some

entrepreneurs who sell products in a public mall make profit while others do

not, found out that there are areas who have high entrepreneurial

competencies in terms of Time Management skills, Marketing Management

skills, Technical skills and Financial Management skills while others only

have average.

Strictly speaking, with the increase competition, an enterprise should

have loyal customers to maintain and increase its sales. Čábelková et al.,

(2015) argued that customer loyalty is not based on emotional relationship

between the customer and the store, rather, consumers’ loyalty is linked to
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traditional factors like low prices, discount sales, accessibility, and quality of

goods and gifts.

Subsequently, service orientation, market orientation, location, and

selection of products had a significant positive effect on the performance of

small retail business (Echdar, 2015).

Eventually, Eijdenberg et al. (2015) in their study showed that the

predictors for the growth of small businesses can be divided into three

factors: one factor with a mix of motivations related to family background,

necessity and opportunity motivations; one factor with items predominantly

related to opportunity motivation; and one factor with items related to

necessity motivation. The first factor has the strongest positive effect on

small business growth followed by the second factor.

Next, Hemedez et al. (2016) in their study revealed that strong

passion, high profit margin, quality of food, owner operated, full

involvement in the operation, cost management, location, relaxing ambiance,

referrals, and repeat business were the success factors of small town

restaurant.
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Lastly, Hyder and Lussier (2016) mentioned that business planning,

proper employee staffing, adequate capital inflows and partnerships are

important for the viability and success of small businesses.

These theories and related studies support the notion that there is a

need to conduct this study and provide answers to the question why the

problem under study exists. At the same time, these serve as the foundation

of this research. Furthermore, the related studies serve as a guide to the

researchers in formulating the research questionnaire.

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THE PROBLEM

Statement of the Problem

The purpose of this study is to identify the factors affecting sales of

small entrepreneurs in Don Andres Soriano, Toledo City in order to propose
an action plan that will be used by the current entrepreneurs and aspiring
entrepreneurs in improving their business.

Specifically, this study will answer the following sub-problems:

1. What is the profile of the respondents in terms of:

a. age;
b. sex;
c. educational attainment;
d. location of the business; and
e. number of years in business?
2. What are the strategies developed by small entrepreneurs in
order to increase its sales?
3. What are the internal and external factors that affect the
sales of small entrepreneurs?
4. Is there a significant relationship between:
a. profile of the respondents and strategies in business;
b. profile of the respondents and internal factors;
c. profile of the respondents and external factors;
d. strategies in business and internal factors;
e. strategies in business and external factors?
5. Based on the results of the study, what action plan can be
proposed?
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Statement of Null Hypotheses

The following hypotheses will be tested at 0.05 level of significance:

HO1: There is no significant relationship between respondent's profile

and business strategy.

HO2: There is no significant relationship between respondent's profile

and internal factors that affects the sales of small entrepreneurs.

HO3: There is no significant relationship between respondent's profile

and external factors that affects the sales of small business

entrepreneurs.

HO4: There is no significant relationship between business strategy

and the internal factors that affect the sales of small

entrepreneurs.

HO5: There is no significant relationship between business strategy

and the external factors that affect the sales of small

entrepreneurs.
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Significance of the Study

The result of this study will be beneficial to the following:

Current Entrepreneurs. The entrepreneurs can have a guide on how

to manage the business well. In addition, it aims to determine the different

factors that might affect the business growth so that they will avoid the

possible risks that can be a cause of the business' downfall. Furthermore, this

study could give them marketing strategies that can improve their managing

skills and to get the customer's satisfaction.The output of this study is an

action plan that can give an idea or glimpse to the entrepreneurs on how to

manage the business effectively and how to build a marketing relationship to

the customers so that their sales will improve.

Aspiring Entrepreneurs. This study is beneficial to those who are

planning to build a business, since the output of this study can be accessed

by anyone who is planning to build a business. This will give them insights

that will help them to build a good business. They will be aware of the

possible challenges when they have their own business and what are the

solutions or way to avoid them.

Customers. This study is significant to the customers. If there are

more small enterprises and businesses, it is easier for them to purchase the
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goods they want. It also, saves their time, money, and effort to go to the mall

or the factory itself that manufactures the goods they want.

Future Researchers. This study will be useful to the future

researchers whose study will be of the same field. This will give them an

idea if they plan to have the same study and if they want to further discuss

and explain what those factors that affect sales are. This can be one of their

related studies.
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RESEARCH METHODOLOGY

Research Design

This study will utilize descriptive-correlational design.

INPUT PROCESS OUTPUT

Profile of the Descriptive-

Respondents Correlational
Method Proposed
Data on Internal &
External Factors Gathering of Action
Data Plan
Data on Business
Strategies Tabulation of
Data
Indicator of Sales
Analysis of data

Interpretation of
data

Figure 1.

Research Flow of the Study

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Research Environment

The locale of this study will be Barangay Don Andres Soriano (DAS),

Toledo City which is 44 kilometres away from the Queen City of the South.

The researchers will conduct the study in different small businesses in the

said barangay.

DAS belongs to the 3rd Congressional district and is located in the

west part of Cebu City with a land area of 1,787,842 hectares. It has a

population of more or less 45,000. Indeed, it is the most populated barangay

in Toledo City. Moreover, the barangay is situated in the mountainous area

of the Eastern part of Toledo City, where the mining site of the Carmen

Copper Corporation is located.

Research Respondents

The respondents of the study will be the small business owners in

Barangay Don Andres SorianoZone 4. The researchers conducted a survey

throughout Zone 4, which is composed of the places DASUNA,

DASUNCRONA, DASAYU, and DASCC in order to know how many

small businesses were present in these areas.

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Based on the survey, there are 60 small businesses owned by females

and 20 small businesses owned by males. Specifically, the researchers were

able to survey, thirty-six (36) sari-sari stores, ten (10) eateries, two (2)

hardware stores, one (1) street food chain, two (2) “lechon” stall, twelve (12)

fruits and vegetables stores,three (3) furniture and appliances stores, one (1)

school supplies store, ten (10) meat and fish stores, one (1) bakery, one (1)

rice and corn store, and one (1) ice cream parlour.

Research Instrument

The researchers prepared questionnaires to be administered to the

respondents. These questionnaires are composed of four parts.

The first part is designed to gather information on the respondents’

profile in terms of name, age, gender, status, location of the business, and

number of years in business.

The second part of the questionnaire is constructed in such a way that

it will determine the strategies that the respondents applied in their business.

The response in each indicator is categorized into ‘yes’ or ‘no’, yes if the

indicated strategy is applied in the respondent’s business and no if it is not.

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The third part of the questionnaire is made to know the internal and

external factors that are unlikely, less likely, likely, or most likely affect the

sales of small entrepreneurs.

Lastly, the fourth part was created in order to measure the sales that

the participants were able to acquire. This contains different indicators and

the respondents will assess whether the mentioned indicator always, often,

sometimes, or never happens in their business.

Since the research instrument is not a standardized one, the

researchers will conduct a pilot test to the small entrepreneurs in Espinosa

St., Toledo City.

Research Procedure

Preliminary Preparation. The researchers have done preliminary

preparation to validate the data that will be gathered. First, the researchers

had formulated questionnaires that will serve as a tool to gather the needed

data in order to come-up with an objective and logical conclusion. The

questionnaires will be presented for approval. Moreover, in order to identify

the respondents that can represent the entire population of small

entrepreneurs in DAS, the researchers used cluster sampling. The

researchers divided the population into separate groups, called clusters. Out
 28

of the nine zones of DAS, nine clusters were identified. Then, a simple

random sample of clusters was selected from the population, and Zone Four

was selected to be the representative of the whole population of small

entrepreneurs in DAS. The researcher then conducted a survey on the small

entrepreneurs in Zone Four.

Data-Gathering Procedure. When the approval of the research

instrument will be granted, the researchers will distribute the questionnaires

to the respondents. Before letting the respondents answer, the researchers

will explain to them the goals of the study and will assure them that their

answer will be confidential. After collecting and identifying the results,

preparation for the analysis, tabulation, and statistical interpretation will then

follow.

Statistical Treatment

The following statistical tools will be used to interpret the data

quantitatively and to prevent biases.

Proportion. This will be used to summarize and describe the

respondents’ profile.

Weighted Mean. This formula will be used to analyse the impact of

different factors to sales that the business entity was able to acquire.
 29

Table 1. Scale on the business strategies applied by small

entrepreneurs

Categorical Response Verbal Description

3.25-4.00 Always This indicates that the strategy is
(A) always applied in the business.
2.50-3.24 Often This indicates that the strategy is often
(O) applied in the business.
1.75-2.49 Sometimes This indicates that the strategy is
(S) sometimes applied in the business.
1.00-1.74 Never This indicates that the strategy was
(N) never applied in the business.

Table 2. Scale on the factors that affect the sales of small

entrepreneurs.

Categorical Response Verbal Description

3.25-4.00 To a very great extent This indicates that the factor affects
(VGE) the sales of the business to a very great
extent.

2.50-3.24 To a great extent This indicates that the factor affects

(GE) the sales of the business to a great
extent.
1.75-2.49 To some extent This indicates that the factor affects
 30

(SE) the sales of the business to a moderate

extent.
1.00-1.74 To no extent at all This indicates that the factor affects
(NE) the business to a small extent.

Table 3. Scale on sales

Categorical Response Verbal Description

3.25-4.00 Always This indicates that the event always
(W) happens in the business.
2.50-3.24 Often This indicates that the event often
(O) happens in the business.
1.75-2.49 Sometimes This indicates that the event happens
(S) in the business sometimes.
1.00-1.74 Never This indicates that the event never
(N) happened in the business.

Chi-square. This statistical test will be used to test the association

between variables.
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DEFINITION OF TERMS

This section of the study contains the essential terms in the study and

how they are used.

Action Plan. This refers to the output of this study.

External factors. This refers to the outside influences that can either

positively or negatively affect the business, like government policies, trends

in the market, and competitor orientation. In short, these are the things

beyond the control of the entrepreneur.

Internal factors. This refers to the capabilities of the owners or the

business exhibits, on how they face their weaknesses to avoid deliration.

This particularly refers to the inside influences like owner’s attitude and how

he manages the business.

Profile. This refers to the age, gender, status, location, and number of

years in business of the respondents.

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Sales. This refers to the total of goods sold in a given period of time.

Small Entrepreneurs. This refers to a person who is responsible in

operating small scale businesses like sari-sari store and eateries.

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 41

Appendix A
Transmittal Letter
 42

Appendix B
Research Instrument
Dear Respondents,

Good day!

These questionnaires are made to determine effective business

strategies and how the internal and external factors present in a business

affect its sales.

We will make sure that your response will be kept in utmost

confidentiality and will be used for the purpose of the study itself.

Sincerely,

The Researchers
 43

PART I: Profile of the Respondents

Directions: Please provide the necessary information asked below.

Name: ________________________________________ Age __________

Sex: __ Male __ Female Educational Attainment: _____________

Location of the business: __Home-based __Storefront

Number of years in business: ________

PART II: Different strategies applied in business

The following questionnaire is based on the related studies presented in this

paper.

Directions: Below are different business strategies that can be applied in

small businesses. Please put a check mark (✓) on how often the mentioned
strategy is being applied in your business.

Categorical Response Verbal Description

4 Always This indicates that the strategy is always
(A) applied in the business.
3 Often This indicates that the strategy is often
(O) applied in the business.
2 Sometimes This indicates that the strategy is sometimes
(S) applied in the business.
1 Never This indicates that the strategy was never
(N) applied in the business.
 44

Indicators Always Often Sometimes Never

1. I ensure a business location
that is accessible to customers.
2. I give incentives to loyal
customers.
3. I sell products at a lower price
compared to my competitors.
4. I build good relationship with
my customers.
5. I ensure that I am selling
quality products.
6. I sell in-demand products.
7. I ensure customers’
satisfaction.
8. I have posters and other
printed advertisements to
market the products I am
selling.
9. I maintain cleanliness and
proper arrangement inside and
outside my store.
10.I give discounts to customers
who buy more products.
11. I do sales talk to customers to
purchase my product.
12.I show good attitude towards
 45

customers.
13.I sell variety of products.
14.I listen to customers’
suggestions or concerns.
15. I sell products that are
valuable or useful to
customers.
Part III: Internal and External Factors that affect the sales of a business

The questionnaire below is based on the related studies presented in this

paper and on “Pestle Technique – A Tool To Identify External Risks In
Construction Projects” by Rastogi and Trivedi (2016).

Directions: Below are the internal and external factors that affect the sales
of a business. Please put a check mark (✓) on to what extent that those
factors affect the sales that your business is able to acquire.

Categorical Response Verbal Description

4 To a very great extent This indicates that the factor affects the
(VGE) sales of the business to a very great
extent.

3 To a great extent This indicates that the factor affects the

(GE) sales of the business to a great extent.
2 To some extent This indicates that the factor affects the
(SE) sales of the business to a moderate extent.
1 To no extent at all This indicates that the factor affects the
(NE) business to a small extent.
 46

A. Internal Factors
Indicators To a To a To To no
very great some extent
great extent extent at all
extent
1. Enough capital
2. Financial sources like banks or
non-bank institutions.
3. Business plan
4. Business strategy
5. Personality of the entrepreneur
6. Product quality
7. Price of the product sold
8. Passionand dedication in
business
9. Time management skills
10.Communication skills
11.Attendance to seminars and
trainings
12.Educational attainment
13.Length of operating period
14. Experience in business
15. Gender of the entrepreneur
 47

B. External Factors
Indicators To a To a To To no
very great some extent
great extent extent at all
extent
1. Location of the business
2. Weather
3. Competitors
4. Government policies
5. Trends in the market
6. Availability of supplies
needed for the business
7. Seasonality of the business
8. Customer demands
9. Consumer sentiments
10.Reputation in the market
11.Cost of raw materials and
goods for sale
12. Socioeconomic status of
customers
13. Technological advancements
14.Surrounding infrastructures
15. Number of years the business
is operating.
 48

Part IV: Sales

The questionnaire below is based on the book “Financial Ratios and

Analysis” by John Gillingham (2015).

Directions: Please identify whether the mentioned indicator is never,

sometimes, often, or always happening in your business by putting a check
(✓).

Categorical Verbal Description

Response
4 Always This indicates that the event always
(W) happens in the business.
3 Often This indicates that the event often happens
(O) in the business.
2 Sometimes This indicates that the event happens in the
(S) business sometimes.
1 Never This indicates that the event never
(N) happened in the business.

Indicators Always Sometimes Often Never

1. My business is profitable.
2. I am able to sell my products.
3. I don’t have expired or unsold
 49

goods.
4. I have loyal customers.
5. The numbers of my loyal
customers are increasing.
6. I am able to pay my business
related debts from the income
of my business.
7. The income of my business is
stable.
8. The profit of my business is
increasing.
9. The profit of my business is
able to cover its expenses.
10. My products became sold out
even if there is a regular
purchase with the supplier.
11. I am able to sell my products
at a fast rate.
12.I am able to outperform my
competitors.
13.There are many customers
who buy my products
simultaneously and crowding
in the store.
14.I am able to sell my product
not later than my target time.
 50

15. I have lesser unsold

merchandise.
16. My business is steadily
growing or expanding.
17. My business related debts are
decreasing.
18.The goods, items, or foods in
my store are saleable.
19.There is a regular ordering and
replenishment of supplies in
my store.
20.I am satisfied with the
performance of my business.
 51

Appendix C
Location Map
 52

Appendix D
Curriculum Vitae

Name :
Age :
Address :
Contact Number :
Email :

Personal Data
Nationality :
Sex :
Civil Status :
Date of Birth :
Place of Birth :
Language :
Religion :
Father :
Mother :

EDUCATIONAL BACKGROUND
Elementary :
Address :
Year Graduated :
Junior High School :
 53

Address :
Year Graduated :
Senior High School :
Address :
College :
Address :
Year Graduated :

AFFILIATION/ SEMINAR/ AWARDS/ ACHIEVEMENTS