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MAPÚA UNIVERSITY

Intramuros, Metro Manila

A Case Study on the Impact of Globalization on

Micro Enterprises in Intramuros Commented [CJB1]: What if Micro Enterprises na lang?

Commented [JG2R1]: Sige2

Vincent Faustino
Carlo Fornoles
Jomlowe Andres Gaco
Ryan Ganab
Abstract

Mini version of the paper

Simple past – refers to work done

∙ Main objective ∙ Methods used ∙ Major results ∙ Main conclusions

 CHAPTER 1

Introduction

Micro, small, and medium scale businesses are the most common type of firm
found in today’s world. MSMEs are businesses employing less than 200 workers or those
with an asset size of no more than P100 million. In today’s global economy, the current
definition of MSMEs varies across countries wherein most developed countries employ
people on a range of less than 500 employees while 50 employees in many developing
countries.

Globalization as we all know is the growth of the national economy where

consumers, producers, suppliers and the government are involved, under the effects of
globalization, MSMEs have implemented strategies that take form in marketing and
innovation. An example of the strategies being implemented is the company's ability to
provide added value to its products. The added value that will attract consumers who
must be willing to buy your products that have the same benefits as competitors but at
lower prices, or have unique characteristics compared with competitors, but at a higher
price (Porter, 1980). Another strategy formed is when MSMEs are making competitive
products marked with a good quality, in accordance to the wishes of consumers and be
able to compete with similar products and that has its own uniqueness (Song & Parry,
1997).

Here in the Philippines, MSMEs have a very important role in developing the Philippine
economy since they help reduce poverty by creating jobs for the country's growing labor
force which employed about 63.19 percent in 2018, making it the primary source of
livelihoods and jobs in the country. (Department of Trade and Industry, 2018)(Department
of Trade and Industry, 2018)

Objectives of the Study

 Review of Related Literature
Micro Enterprises

The Philippines has two operational definitions of small and medium enterprises.

Based on employmaent, which is the most commonly used definition in the country, the

different size categories are classified as follows:

Micro enterprises : 1-9 employees

Small enterprises : 10-99 employees
Medium : 100-199 employees
Large : 200 or more employees 294

In terms of assets, SMEs are defined as follows:

Micro enterprises : P3 million or less

Small enterprises : P3-15 million
Medium : P15-100 million
Large : P100 million or more

In terms of number of establishments; micro, small, and medium enterprises

(MSMEs) dominate the economy and accounted for almost 99.6% of the total number

of establishments in 2008. With a share of about 92%, micro enterprises are more

predominant than small and medium enterprises, which account for only 8% of the total

number of establishments. Geographically, both micro and SMEs are highly

concentrated in the National Capital Region (NCR) and the Calabarzon area.
Effects of Globalization in Micro Enterprises

Globalization is the word used to define the growing interdependence of the world’s
economies, cultures, and populations, brought about by cross-border trade in goods
and services, technology, and flows of investment, people, and information. Since we
know that “Globalization is revolutionizing the way we work, the way we live, and
perhaps most important, the way we relate to each other across national boundaries. It
is tearing down doors and building up networks between nations and individuals,
between economies and cultures.” (Clinton, 2000)

a. Improved Quality of Life

 Globalization has encouraged the spread of new technology, helping to
make economies greener and more productive.
 Globalization has aided to decrease gender wage discrimination and
giving new opportunities to women.
 Globalization enhanced the quality of management in firms and the
working conditions for people.
b. Unemployment
 Globalization has enabled firms to specialize – and to increase the intensity
of R&D, development and capital in their output.
 Globalization has made it easier for new companies to start opposing with
old incumbents.
 The trade sector has enlarged the number of people that it hires, both
through exports and imports.
 CHAPTER 3

Methodology

Design and Procedure

The researchers used a semi-structured interview to the business owners around

Intramuros, Manila. The selection of respondents is limited since the researchers do not
have the necessary resources and instruments to conduct an extensive interview
making the researchers use purposive sampling. The researchers will use
methodological triangulation to strengthen the results. The research is designed to
gather a thorough knowledge around the impact globalization to the micro businesses in
Intramuros.

Locale and Population

The study focuses on the businesses around Intramuros, Manila. The respondents will
be the business owners around the Intramuros Area which will help the researchers
determine the impact of globalization in micro businesses.

Data Gathering Tools

The researchers used semi structured interview since it gives an understandable order
for the researchers and can produce dependable, parallel qualitative data (Cohen &
Crabtree, 2006).

Analysis/Treatment of Data

The researchers used thematic analysis in analyzing the data since thematic analysis is
a procedure for recognizing, evaluating, describing themes within the gathered
information (Braun & Clarke, 2006)
 CHAPTER 4

Results and Discussion

Results & Discussion

Intramuros Micro Business Establishments

Name of the Micro Enterprises Type of Business Signs of Globalization

Wang Pau Samgyup Samgyupsal Restaurant Yes

Bangketa Plates Restaurant Yes
Rockers Restaurant Yes

Faustina Restaurant Yes

3.1 Wang Pau Samgyup

Upon conducting the research, the researchers have known that Wang Pau Samgyup is
affected by globalization through its product and infrastructure, serving pork belly meat
cooked in a grill at a table. Samgyupsal originally came from the country Korea, through
its popularity it trended worldwide impacting different countries to open this kind of idea.
With this, the researchers have concluded that cultural imperialism have made a vial
impact towards the globalization of business establishments here in Intramuros.

3.2 Bangketa Plates

With a great affordable food, and a “mang-inasal” style ambience, this made Bangketa
Plates a candidate towards the different establishments who are affected by
Globalization. Bangketa Plates serve sizzling meals on a sizzling plate, and also serve
different types of dishes like cornsilog (corned beef with egg and rice), longsilog (footlong
hotdog with rice) and their specialty mixsilog (tapa and tocino with egg and rice). Through
the establishments food combinations, this made them unique and adapt to the pace of
globalization throughout.
3.3 Rockers

An air conditioned carinderia with a 40 inch tv installed inside made this carinderia unique
among other carinderia establishments here in Intramuros. These characteristics already
made Rockers as a candidate of globalization here in Intramuros. Rockers also serve
ready to go foods and sizzling plate meals making it different from the rest of the
carinderias.

3.4 Faustina

With a great ambience and unique food, this restaurant claims it title as one of the best
restaurant here in Intramuros. Faustina delivers out its dishes among its competitors like
Kikiam, Honey Chicken and Tenderloin. With this, the researchers have concluded that
Faustina is greatly impacted by globalization through its unique dishes that can be found
worldwide.
 CHAPTER 5

Summary, Conclusions and Recommendations

The popularity of Intramuros is evident through its tourist spots and location here
in Manila making it a unique place among the rest. With this, it accommodates both
students and tourists every year making it a good place to build micro business
establishments.
Micro business establishments can be seen around the place of Intramuros since
students and tourists are here all around. These establishments offer budget friendly
foods to aid students and tourists who are on a low budget.

As for the owners of the business establishments, the researchers have known
that most of them just live within the vicinity of Intramuros which makes it as their daily
source of income employing people around the area which helps on resolving
unemployment.

With globalization taking effect, the researchers have observed that the 4
establishments all showed the signs of globalization taking place. These signs were on
the food, infrastructure and ambience inside their establishments showing that they
have adapted to compete among other businesses.

Hence, the researchers have concluded that these establishments are adapting
to the fast pace of globalization in order for them to compete and gain customers
helping out the livelihood of the place and the economy of the country.
Bibliography
Department of Trade and Industry. (2018). 2018 MSME STATISTICS. Retrieved October 15, 2019, from
https://www.dti.gov.ph/dti/index.php/2014-04-02-03-40-26/news-room/179-workshop-on-
market-access-for-MSMe-set

Porter, M. E. (1980). Competitive Strategy: Techniques for Analyzing Industries and Competitors. New
York: Free Press.

Song, & Parry. (1997). A Cross-National Comparative Study of New Product. Journal of Marketing, 61, 1-
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https://ecipe.org/publications/the-economic-benefits-of-globalization-for-business-and-consumers/