CHALLENGES OF SARI-SARI STORES

CHALLENGES FACED BY ENTREPRENEURS OF SARI-SARI
STORES
In partial fulfilment of the requirements in the subject
Practical Research 2
Submitted to
Edwin J. Banarjee, MBA
Submitted By
Group 3
Aj Rose R. Olgasan, Nilje T. Coloso, Rynze John G. Rubio, Trexie Joy B. Tamon, Jane De Lau
C. Samoya, Jahziel Joy B. Alicaway, Rhea T. Quiador
Grade 12 ABM
Section
Confucious
Date
October 23, 2019
A. Y. 2019-2020
1|Page
ACKNOWLEDGEMENT
The success of this study required the help of various individuals. Without them, the
researchers might not meet their objectives in the research study. The researchers wanted to express
gratitude to the sari-sari store owners who contributed in the data and information gathered in this
study which helped the researchers complete the research study.
To God for giving us knowledge, wisdom, strength, guidance and protection in helping us in
the process of completing this research study.
To our family who provide us with moral and financial support.
To Sir Edwin J. Banarjee, MBA who taught, molded and guide us during the process of
making this research. Also, he motivated us to finish this study.
To the validators, Ma’am Yvonne Suarez, RGC; Mr. Howard Kim Villalobos, LPT; Mr.
Michael Doronilla, LPT and Mr. Nestor Valiao, Senior High School Coordinator for allowing us to
conduct the study.
2|Page
Table of Contents
ABSTRACT ...............................................................................................................................3
CHAPTER I ...............................................................................................................................4
Introduction................................................................................................................................... 4
Background of the Study ........................................................................................................................4
Statement of the Problem............................................................................................................... 5
Scope and Delimitations ................................................................................................................. 5
Definition of Terms:....................................................................................................................... 6
Significance of the Study ................................................................................................................ 7
Theoretical Framework ................................................................................................................. 8
CHAPTER II ..............................................................................................................................9
REVIEW OF RELATED LITERATURE ..................................................................................... 9
CHAPTER III ........................................................................................................................... 12
METHODOLOGY ...................................................................................................................... 12
Research Design..................................................................................................................................12
Research Environment ......................................................................................................................12
Respondents of the Study ..................................................................................................................12
Sampling Method ...............................................................................................................................12
Data Gathering Instrument ...............................................................................................................12
Research Methodology.......................................................................................................................13
Validity ................................................................................................................................................13
Statistical Treatment ..........................................................................................................................13
CHAPTER IV ........................................................................................................................... 15
PRESENTATION, ANALYSIS AND INTERPRETATION OF DATA ....................................... 15
CHAPTER V ............................................................................................................................ 20
SUMMARY OF FINDINGS, CONCLUSION AND RECOMMENDATION .............................. 20
Summary of the Findings ..................................................................................................................20
Conclusion ...........................................................................................................................................21
Recommendation ................................................................................................................................22
Bibliography .......................................................................................................................... 23
APPENDICES .......................................................................................................................... 25
APPENDIX A .............................................................................................................................. 25
APPENDIX B .............................................................................................................................. 26
APPENDIX C .............................................................................................................................. 27
APPENDIX D .............................................................................................................................. 28
APPENDIX E .............................................................................................................................. 30
APPENDIX F .............................................................................................................................. 31
APPENDIX G .............................................................................................................................. 32
APPENDIX H .............................................................................................................................. 33
3|Page
ABSTRACT
Most people in the City of Kabankalan do different kinds of businesses including small
retailing. Sari-sari store is one of it. It doesn’t go out of style wherever places in the Philippines
we go. It is convenient for people since the store is just a walking distance and people can buy
piece by piece products in affordable prices. However, sari-sari stores never grow and became a
big business. It always remain small even in these modern times.
This study identified the challenges faced by entrepreneurs of sari-sari stores to overcome
the said gap. Sari-sari store owners in Kabankalan City served as the respondents of the study.
The descriptive research design was used in this study. It collects data and answers
regarding the challenges faced by sari-sari store entrepreneurs. The study showed that the
alternative action of the respondents if ever they experience loss in operating sari-sari stores, they
will use their personal savings to start again.
The challenges faced by entrepreneurs of sari-sari stores contains four (4) categories
known as location, financial, inventory and customer related challenges.
Based on the findings of the study and the conclusions made, the researchers
recommended the following: (1) the respondents should use differentiation strategy or defensive
strategy which will make them sell unique or different products from other store to lessen
competition. (2) The respondents should budget and control their expenses; and (3) the
respondents should provide high but reasonable selling cost to their products.
4|Page
CHAPTER I
Introduction
Background of the Study
Entrepreneurship, as the years go by, is having a big role on improving the state and its
nation. It is a field of business that give us chances to create something new (Shane & Venkataraman,
2000) while entrepreneur is the one who owns and manage the business that is willing to risk loss in
order to maximize profit. Entrepreneurs contribute a lot in the country’s economy specially those
who are successful in the business. It also plays an important role in improving people’s lives by
creating job opportunities, enhancing one’s financial status through profit or salaries, making tasks or
works easier through innovation and develops critical thinking.
Mostly, Filipino entrepreneurs are engage in retailing like Sari-sari stores that cover 90% of
the retail outlets (Lugo, 2002). It facilitates the distribution of goods in the country. Sari-sari stores
have been part of Kabankalan City tradition throughout the years because it provides supplies of the
people’s basic needs wherein people can buy piece by piece products in affordable prices since
almost Filipinos prefer buying commodities in mini sizes. It gives a clever way of selling consumer
goods. That makes it convenient for people who don’t need or cannot afford the larger size of
products. Sari-sari stores has also became their source of living and opens up a bridge to success.
Although sari-sari stores are not that big kind of entrepreneurship, it became a livelihood to
Filipinos that sustains their basic needs every day. It is very beneficial for both buyers and sellers
since it is very accessible and can guarantee buyers that sari-sari stores will supply what they need or
what they demand. Sari-sari stores are not only one stop shop providing locals with everything from
their necessities, it is also a long-term business for mothers who cannot leave their family obligations
behind. Every community in the Philippines have sari-sari stores and is also usually run by women.
According to (Philippine Association of Stores and Carinderia Owners, 2018), estimated 1.3 million
sari-sari stores are existing in the country.
However, succeeding is not always a rainbow. Some may undergo bumpy rides. Researchers
have observed that other sari-sari stores are having a hard time managing the business and some have
stopped operating due to distinctive reasons. Entrepreneurs should know how to overcome challenges
that they need to face so that their time, investment and effort will not put into waste. Having enough
knowledge on how to manage the business effectively gives them the capabilities to efficiently deal
with future challenges that they might have to face in running sari-sari stores to avoid losses and
business shutdown. Thus, the study entitled “Challenges Faced by Entrepreneurs of Sari-sari Stores
in Kabankalan City” is conducted.
5|Page
Statement of the Problem
The purpose of this study is to describe the challenges faced by entrepreneurs of sari-sari
store in Kabankalan City.
Specific Objectives:
1. What is the demographic profile of the respondents in terms of:
a. Educational Attainment
b. Sex
c. Age
d. Source of fund
2. What are the challenges faced by entrepreneurs of sari-sari stores?
a. Location Related Challenges
b. Financial Related Challenges
c. Inventory Related Challenges
d. Consumer Related Challenges
3. What is the alternative action of the respondents if ever they experience loss in
operating sari-sari stores?
Scope and Delimitations
This study will focus on the challenges faced by the entrepreneurs of sari-sari stores
operating in Kabankalan City with the time and budget constraints the researchers. The
respondents of the study are 47 sari-sari store owners residing at Barangay 7, Barangay 8 and
Barangay 9 in Kabankalan City.
\
6|Page
Definition of Terms:
1. Sari-sari store
Conceptual: a neighborhood variety store found in the Philippines (ipfs).
Operational: an entrepreneurship that is owned by the respondents of the study.
2. Entrepreneur
Conceptual: a person who starts a business and is willing to risk loss in order to make
money (Merriam Webster, 1762)
Operational: a person who owns a sari-sari store.
3. Rainbow
Conceptual: a curved line of different colors that sometimes appear in the sky when the sun
shines through rain (Merriam Webster)
Operational: very easy that it doesn’t have any obstacles or challenges along the way
4. Bumpy rides
Conceptual: rides that is having sudden up and down movements (Meriam Webster, 1865)
Operational: the failures, challenges or a lot of problems encountered in the business
5. Commodities
Conceptual: something that is bought and sold (Merriam Webster)
Operational: things or inventories sold in sari-sari stores
6. Clever
Conceptual: showing intelligent thinking (Merriam Webster, circa 1595).
Operational: exhibiting smart way of selling goods
7. Bridge
Conceptual: a structure carrying a pathway or roadway over a depression or obstacle
(Merriam Webster).
Operational: a shortcut passage towards success
7|Page
Significance of the Study
This study is significant to the following:
To the Entrepreneurs specifically sari-sari store owners, this will help them know, get
ideas or additional knowledge and overcome challenges that were identified in this study.
To the Future Entrepreneurs, this will help them learn knowledge about the challenges that
they might face if they engage in a business like sari-sari store and also learn some ways to
overcome those.
To the Business and Management students, as students preparing to the enter the world of
business, this study will help them understand the reality of the path that they may take in the
future and make this as a guide if they are planning to run sari-sari stores or apply what they learn
in this study if their family is already engage in a business like sari-sari stores.
To the Customers, this study will help them understand the side of the store owner where
they buy products to satisfy their daily needs and for them to avoid unreasonable demands and
complain without knowing the opposite side.
To the School, this study will help them gain more knowledge and awareness about the
challenges being faced by sari-sari store entrepreneurs and may serve as future reference for the
students, faculties and staffs.
To the Future Researchers, the findings of this study will provide them knowledge and
may serve as their reference for related research studies.
To the Researchers, this study will help them discover and understand the challenges
faced by entrepreneurs of sari-sari stores and have an effective way of perceiving one of the
industry they will be entering in the near future.
8|Page
Theoretical Framework
According to (Sanford, 1962) who developed the Challenge and Support Theory, a
balanced quantity of challenge and support is needed for something to grow. Too much support
and the person will never grow and develop. Too much challenge will make a person frustrated
and quit trying. He believed that for growth and personal development to take place, a person
needs to have a challenge and support balance.
Sanford added a factor of this theory in 1966, the element of readiness. In short, an
individual cannot grow until they are physically and psychologically ready to grow. For example,
introducing a higher accounting lesson to a senior high school students without them learning the
basic is not a great idea because they are not simply ready for it. The situation is same for a
person who is planning to be an entrepreneur. He cannot start a business without knowing the
basic knowledge of how to run it in the first place.
The relation of this theory in our study is that the entrepreneurs of sari-sari store has to
have a balance of facing challenges and support. Understanding that challenges are one of the
foundation of success is essential because one may not succeed without having the honor to face
the challenges given to them. Support coming from the families, friends, peers or partners can
also strengthen the foundation of success.
According to (Davis, 2017) who developed “The Iceberg Theory of Success”, the
excellent metaphor for success is a much larger part hidden beneath the iceberg or what is visible
above the waterline. It means that the visible part of the iceberg is the success and
accomplishments that every one of us can see and the hidden part of it is the efforts to achieve an
outcome.
Success repeatedly dazzle people so that they will not notice the great efforts they need to
make in order to achieve a possibly great outcome. In real life, hard work, failures, sacrifice,
determination, sacrifice, disappointment and dedication makes success possible.
In relation to our study, this theory makes us realize that every successful entrepreneurs
should overcome challenges in able to reach their goals and make their dream, a successful
entrepreneur, come true.
9|Page
CHAPTER II
REVIEW OF RELATED LITERATURE
This chapter presents the foreign literature, foreign studies, local literature, local studies
and synthesis.
Foreign Literature
Entrepreneurship is an inventive operation that entails discoveries and presentation of new

products in the market (Schumpeter, 2010). Innovation is the real function of an entrepreneur and
is primary concerned with risk-taking (Schumpeter, Cantillon, & Say). According to (Kapoor),
the founder and the CEO of YES Bank, it is a pilgrimage that one may take through instinct and
the most challenging path but also the most rewarding one. A very effective tool that people may
use to become a successful entrepreneur is the education (Nadar)
Women empowerment also is an important factor on the development of an economy in
these modern times. They improved certain forms such as the labor force, nurture talented women
to be a leader and role models, increase tolerance and pay dissimilarities. Meanwhile, male
entrepreneurs have a bigger share in societal values regarding how they perceive entrepreneurship
as a good career choice, high status ad media attention (Colaco & Hans, 2018).
The incapability to satisfy the goals of certain ventures points the failure of the business. If
the expenses are bigger than the revenues, the business can go bankrupt and will eventually lead
to business shutdown. (Gitman, 2009). According to (Wu, 2006) and (Sheppard, 1995), the
business will ultimately not be successful if it fails to earn profit through the variation of
resources. The ability to cultivate and ensure resources and opportunities is the key to survival.
Small business should try harder to mix their resources and opportunities to decrease failure rates.
Being a confident entrepreneur is good but even that confidence doesn’t take away one’s
fear of failure which an entrepreneur needs to overcome. Usually, this fear causes internal and
external environmental business factors namely management deficiency, insufficient availability
of finance, outdated technology and marketing related problems (Bhargav & Shivganesh, 2008).
10 | P a g e
Local Literature
According to (Vic, 2014), many Filipinos who run small businesses falter to register their
business in the government agencies including the Bureau of Internal Revenue (BIR), Department
of Trade and Industry (DTI) and Mayor’s office because they are afraid that their business will be
audit by the BIR and examine by the government. They are also bothered by how expensive and
time-consuming the process will be in getting the business license. And they also think that other
business owners are not registering so they do the same.
However, the legitimacy of a business is important to be successful not only in the
operation but also in marketing. This can be an ace to earn trust from the customers. The business
should be publicly accessible. If it is not legal, the goal of attracting more possible customers will
not be achieved. Having a good faith and being noble in following rules and regulation will help
the entrepreneur succeed (Vic, 2014).
Foreign Studies
According to (Hisrich & Peters, 1989) in a study entitled “Challenges faced by
Entrepreneurs”, entrepreneurship is becoming an essential part of the economy these days as it is
the process of making something of great importance by dedicating the required skills and efforts.
One of the main challenges that entrepreneurs have faced is the penetration of customer
credit on a validity period. That is why entrepreneurs should practice record keeping to avoid
financial failure. Another problems faced by entrepreneurs were impecunious location,
competitions from other stores, inadequate rest and sleep and deficit inventories. Finance
inadequacy, mobility, lack of education and motivation are some of the antecedents of the
entrepreneurial failures (Tagoe, 2005)
According to (Vishwananath, 2001), Lack of access to capital has been a central problem
of the entrepreneurs especially during start-ups. Effective solutions for these is through loans,
personal savings and credit cards.
Successful entrepreneurs have four primary areas to improve. It includes the attitude,
skills, thinking and the personality (Hood & Young, 1993). According to (Mambula, 2002), to
strengthen the growth of small business sectors, entrepreneurs should do collaboration with co-
entrepreneurs to solve several problems faced by them. Analysis of data shows that majority of
the entrepreneurs faced financial and basic equipment problems while managing their business.
11 | P a g e
According to (Singh, 2011), an entrepreneur have confidence, innovative and creative

mind which makes them capable of generating employment opportunities for every individual by
managing a business with the help of his family, personal and social life.
Local Studies
According to (Silverio, google, 1982) and (Bonnin, google, 2004)in a study entitled “The
Filipino Sari-sari Store”, there are two kinds in controlling customer demand. One is by boosting
up amount of investments because the store can enlarge inventories through those investments.
This technique is attainable only for wealthier sari-sari store owners. The other is by developing
personal and social relationships with customers to build up trust and loyalty.
Stores contend for customers to ensure support by giving credit purchases. (Silverio,
google, 1982) Added that there is no certain time for credit payments. As a result, high price
goods would increase interest rates. However, owners cannot guarantee that customer credits will
be paid regularly. Core Filipino values called pakikisama keeps up personal and symphonic
relationship and hiya known as the feeling of guilt ad disgrace is likely to be a strong compound
in trusting that customers will pay back loans (Bonnin, google, 2004)
According to (Bonnin, google, 2004), one of the reasons that motivates women to venture
in a business like sari-sari store is their need to fulfill their domestic responsibilities as a wife and
a mother. Given that sari-sari stores are home-based, it is convenient for women especially on
low-income household who cannot afford to hire household helper.
Even if men are known to be stronger, women is anticipated to be responsible in managing
the household budget and controlling unnecessary expenses. Therefore, women are more
compatible in meeting sari-sari store objectives (Eviota & Ofreno, 1992, 2005)
Synthesis:
Entrepreneurship is an inventive operation that entails discoveries and presentation of new
products in the market. Sari-sari store is an entrepreneurship that provide products that are
convenient for people living in the same area. The business should be publicly accessible also
means that sari-sari stores should be easily accessed by target customers. Entrepreneurship is
becoming an essential part of the economy these days as it is the process of making something of
great importance by dedicating the required skills and efforts since sari-sari store contributes in
the economy’s development using one’s skills and efforts in providing and benefitting in one’s
needs. Silverio and Bonnin also discussed two kinds in controlling customer demand that can help
sari-sari store owners boost up their sales.
12 | P a g e
CHAPTER III
METHODOLOGY
This chapter deals with the research design, research environment, respondents of the
study, sampling method, data gathering instrument and research methodology.
Research Design
The research design used in this study is descriptive for this will describe the challenges
faced by entrepreneurs of sari-sari stores. Since descriptive research define certain matters in
terms of specific phase (David, 2001), this method is suitable for our study.
Research Environment
The researchers will conduct the study at Barangay seven (7), Barangay eight (8) and
Barangay nine (9) in Kabankalan City.
Respondents of the Study
The respondents of this study were sari-sari store owners located in Kabankalan City,
specifically those who are at Barangay 7, Barangay 8 and Barangay 9. The overall population of
the respondents was fifty- three (53). They were preferred as respondents since they are living in
the City and they are more knowledgeable and experienced regarding the challenges faced by
sari-sari store entrepreneurs.
Sampling Method
The researchers will use sampling or the representative size of fifty-three sari-sari store
owners. The formula of determining the sample size is:
𝑁 53
𝑛= 𝑛= 𝑛 = 47
1+𝑁𝑒 2 1+(53)(.05)2
The sample size is 47. The researchers will use simple random sampling and fishbowl
method to pick the respondents in a specified sampling frame.
Data Gathering Instrument
A self-made questionnaire is used as an instrument to gather data that contains two parts.
Part one contains section A which is a 4 multiple choice question regarding the respondent’s
demographic profile and section B which has one closed question. Part two is a table that contains
13 | P a g e
4 categories of challenges faced by entrepreneurs of sari-sari store which will be check by

respondents if they have experienced any of those.
Research Methodology
The researchers sought approval from the Senior High School Coordinator of Southland
College to administer the questionnaires. Upon the approval, the researcher administered the said
questionnaire to 47 sari-sari store entrepreneurs. The researchers personally conducted the test
and the accomplished instruments were retrieved and were made ready for the statistical
treatment.
Validity
Validity is conducted to examine the creditability of the research tools used in a research
(Punch, 1998).
To adjudge the appropriateness, relevance, and usefulness of the data to be collected, a
self-made questionnaire was subjected to validity testing by Yvonne Suarez, RGC; Howard Kim
Villalobos, LPT; and Michael Doronilla, LPT.
Statistical Treatment
The researchers classified, tallied and tabulated the data collected. In analyzing and
interpreting the information gathered, percentage was used to determine the fractional distribution
of respondents according to their demographic profile in terms of age, sex, education attainment
and source of fund and also, the alternative action if ever they will experience loss in operating
sari-sari stores. Mean was used in computing the respective mean of the Challenges Faced by
Entrepreneurs of Sari-sari Stores in four categories; Location, Financial, Inventory and Consumer
Related Challenges.
Mean Formula:
Ʃx
͞𝑥͞͞ = N
Where:
͞𝑥͞͞ = mean
Ʃx = the sum of all responses
N = the number of respondents or responses

14 | P a g e
Parameter Limits
Range Interpretation
1.0 – 1.8 Strongly Disagree
1.81 – 2.6 Disagree
2.61 – 3.4 Neither Agree nor Disagree
3.41 – 4.2 Agree
4.21 – 5.0 Strongly Agree

15 | P a g e
CHAPTER IV
PRESENTATION, ANALYSIS AND INTERPRETATION OF DATA
This chapter consists of the presentation, analysis and interpretation of the data gathered
form the study.
Table 1. RESPONDENTS DEMOGRAPHIC PROFILE

Age Frequency Percentage
1. Below 24 years old 6 13%
2. 25 – 35 years old 7 15%
3. 36 – 46 years old 15 32%
4. 47 years old and above 19 40%
Total 47 100%
Sex Frequency Percentage
1. Male 7 15%
2. Female 40 85%
Total 47 100%
Educational Attainment Frequency Percentage
1. Elementary Graduate 9 19%
2. Secondary Graduate 9 19%
3. Undergraduate 8 17%
4. Bachelor’s Degree 18 39%
5. Master’s Degree 1 2%
6. Doctorate Degree 2 4%
Total 47 100%
Source of Fund Frequency Percentage
1. Loans 10 21%
2. Personal Savings 33 70%
3. Help from Relatives or 4 9%
Friends
Total 47 100%
16 | P a g e
The table reveals the demographic profile of the respondents.
In terms of Age, thirteen percent (13%) from the total respondents are below twenty-four (24)
years old with the frequency of six (6), fifteen percent (15%) of the entire respondents are twenty-five
(25) to thirty-five (35) years old with the frequency of seven (7), thirty-two percent (32%) of the
respondents are thirty six (36) to forty-six (46) years old with the frequency of fifteen (15), forty
percent (40%) of the respondents are forty-seven (47) years old and above with the frequency of
nineteen (19) as shown in the table above.
This shows that most of the respondents were forty-seven (47) years old and above having
forty percent (40%) with a frequency of nineteen (19).
In terms of sex, fifteen percent (15%) are male with the frequency of seven (7) and eighty-five
percent (85%) are female with the frequency of forty (40).
This indicates that the highest number of respondents were female which was eighty-five
percent (85%) of the total population with the frequency of forty-seven (47).
In terms of Educational attainment, nineteen percent (19%) are elementary graduate with the
frequency of nine (9), nineteen percent (19%) are secondary graduate with the frequency of nine (9),
seventeen percent (17%) are undergraduate with the frequency of eight (8), thirty-nine (39%) percent
are with bachelor’s degree with the frequency of eighteen (18), two percent (2%) are with master’s
degree with the frequency of one (1), four percent (4%) are with doctorate degree with the frequency
of two (2).
This implies that most of the respondents’ educational attainment were with bachelor’s degree
having thirty-nine percent (39%) with the frequency of eighteen (18).
And in terms of source of fund, twenty-one percent (21%) uses loans with the frequency of
ten (10), seventy percent (70%) uses personal savings with the frequency of thirty-three (33), nine
percent (9%) sought help from relatives or friends with the frequency of four (4).
17 | P a g e
This shows that most of the respondents uses their personal savings in running sari-sari stores
having seventy percent (70%) with the frequency of thirty-three (33) of the respondents.
Table 2. ALTERNATIVE ACTION IF EVER RESPONDENTS EXPERIENCE LOSS IN

OPERATING SARI-SARI STORE
ALTERNATIVE ACTION FREQUENCY PERCENTAGE

1. Will borrow capital from others. 18 39%
2. Will use personal savings to start again. 26 55%
3. Will change my products 1 2%
4. Will shutdown 2 4%
Total 47 100%
The table above reveals the alternative actions of the respondents if ever they experience loss
in operating sari-sari stores.
The result of the data gathered shows that thirty-nine (39%) of the respondents will borrow
capital from others with a frequency of eighteen, fifty-five percent (55%) of the respondents with a
frequency of twenty-six (26) will use personal savings to start, two (2%) of the respondents with a
frequency of one (1) will change their products and four percent (4%) with a frequency of two (2)
will shut down.
This indicates that sari-sari store owners were most likely use their personal savings to start
again if they experience loss or failure in operating sari-sari stores having fifty-five percent (55%)
with a corresponding frequency of twenty-six (26) out of forty-seven (47) respondents.
Table 3. CHALLENGES FACED BY ENTREPRENEURS OF SARI-SARI STORES
Location Related Challenges Mean Interpretation
My store is located in a rural area. 2.26 Disagree

My suppliers make deliveries conveniently at my location. 3.19 Neither Agree nor
Disagree
18 | P a g e
My store is located in a populated area. 4.11 Agree

My store’s location is accessible to consumers. 4.32 Strongly Agree
My products are sold by other stores in the area. 4.32 Strongly Agree
Financial Related Challenges
My expenses are higher than my earnings. 3.51 Agree

I have enough petty cash. 3.45 Agree
My earnings were enough to buy new inventories. 3.79 Agree
I have started my business with borrowed money. 2.77 Neither Agree nor
Disagree
My investments are always returning. 3.72 Agree
My education help me a lot to manage my finance. 4.21 Strongly Agree
Inventory Related Challenges
My store is always full of stock. 3.32 Neither Agree nor

Disagree
My products are attractive. 3.91 Agree
Some of my products remain at my store for more than a month. 2.83 Neither Agree nor
Disagree
I sold all my products before it expires or without damage. 3.57 Agree
I purchase low-cost but good quality products to sell. 4.15 Agree
Customer Related Challenges
I have many returning customers. 4.13 Agree

I am friendly and helpful to customers. 4.43 Strongly Agree
I receive a lot of complaints from consumers. 2.49 Disagree
I receive a lot of good feedbacks from consumers. 3.74 Agree
Most of my consumers are from my barangay. 4.28 Strongly Agree
The table above shows the challenges faced by entrepreneurs of sari-sari stores namely
location, financial, inventory and customer related challenges.
19 | P a g e
In location related challenges, the statement “my store’s location is accessible to consumers”
and “my products are also sold by other stores in the area” is both interpreted as strongly agree with
the corresponding mean of four point thirty-two (4.32) and the statement “my store is located in a
rural area” with the corresponding mean of two point twenty six (2.26) is interpreted as disagree.
This means that most of the respondents’ store locations were accessible to consumers, their
products were also sold by other stores in the area and their store is not located in a rural area.
In financial related challenges, the statement “my education help me a lot to manage my
finance” is rated as strongly agree with the corresponding mean of four point twenty-one (4.21) and
the statement “I have started my business with borrowed money” with the corresponding mean of
two point seventy-seven (2.77) is rated as neither agree nor disagree.
This means that most of the respondents’ education help them a lot in managing their finances
and they don’t agree nor disagree that they started their business with borrowed money.
In Inventory related challenges, the statement “I purchase low cost but good quality products
to sell” is rated as agree with the corresponding mean of four point fifteen (4.15) and the statement
“some of my products remain at my store for more than a month” is rated as neither agree nor
disagree with the corresponding mean of two point eighty-three (2.83).
This means that most of the respondents purchase low cost but good quality products to sell
and they neither agree nor disagree that some of their products remain at their store for more than a
month.
In Customer related challenges, the statement “I am friendly and helpful to customers” is

interpreted as strongly agree with the corresponding mean of four point forty-three (4.43) and the
statement “I receive a lot of complaints from consumers” is interpreted as disagree with the
corresponding mean of two point forty-nine (2.49).
This means that most of the respondents were friendly and helpful to their customers and they
don’t receive complaints from consumers.
20 | P a g e
CHAPTER V
SUMMARY OF FINDINGS, CONCLUSION AND RECOMMENDATION
This chapter presents the summary of the findings, the conclusion which was established
from the results of the research conducted and the interpretation of the data gathered from the
study. And the recommendation were based from the findings and conclusion of the study.
Summary of the Findings
Based on the statistical result of the study, the following findings were observed.
This study had a total of fifty-three (53) respondents and a sample size of forty-seven
(47) respondents were taken.
1. Demographic profile of the respondents was derived from selective variables:

a. Age
The largest group of respondents aged forty-seven (47) years old and above with
the frequency of nineteen (19) and a percentage of forty (40%).
b. Sex
The largest group of respondents were female with the frequency of forty (40) and a
percentage of eight-five (85%).
c. Educational Attainment
The largest group of respondents finished studies with bachelor’s degree in a frequency of
eighteen (18) and a percentage of thirty-nine (39).
d. Source of Fund
The largest group of respondents used their personal savings in running their sari-sari
stores with a frequency of thirty-three (33) and a percentage of seventy (70%).
2. Alternative actions of the respondents if ever they will experience loss in operating sari-
sari stores:
a. I will borrow capital from others

b. I will use my personal savings to start again
c. I will change my products
d. I will shutdown
21 | P a g e
The researchers found out that most of the respondents will use their personal savings to
start again if ever they will experience loss in operating sari-sari stores with the frequency of
twenty-six (26) and a percentage of fifty-five (55%).
3. Challenges faced by entrepreneurs of sari-sari stores:

The challenges faced by entrepreneurs of sari-sari stores were derived from the variables:
a. Location related challenges

In the variable location related challenges, the respondents’ strongly agreed that their
products were also sold by other stores in their area with the corresponding mean of four point
thirty-two (4.32).
b. Financial related challenges

In the variable financial related challenges, the respondents’ agreed that their expenses
were higher than their earnings with the corresponding mean of three point fifty-one (3.51).
c. Inventory related challenges

The respondents didn’t have much problem in the variable inventory related challenges.
d. Customer related challenges

The respondents didn’t faced challenges related to customers.
Conclusion
Based on the findings, the following conclusions were made.

1. The majority of the respondents were forty-seven (47) years old and above obtaining forty percent
(40%).
2. Most of the respondents were female obtaining eighty-five percent (85%).
3. The largest group of the respondents finished their studies with bachelor’s degree obtaining thirty-
nine percent (39%).
4. The utmost number of the respondents used their personal savings in running their sari-sari stores
obtaining seventy percent (70%).
5. The highest number of the respondents will use personal savings to start again if they experience
loss in operating sari-sari stores obtaining fifty-five percent (55%).
22 | P a g e
6. The respondents faced challenges including their products were also sold by other stores in the
area and their expenses were higher than their earnings with the corresponding means of four
point thirty-two (4.32) and three point fifty-one (3.51).
Recommendation
In line with the results and the conclusions of the study, the following recommendations
were made.
1. It is recommended that the respondents should use differentiation strategy or defensive strategy
which makes them sell unique or different products from other stores to lessen competition.
2. It is recommended that the respondents should budget and control their expenses.
3. The respondents should provide higher but reasonable selling cost to their products.
23 | P a g e
Bibliography
Bhargav, M., & Shivganesh. (2008). Retrieved from shodhganga.inflibnet.ac.in
Bonnin. (2004). google. Retrieved from google.com:

https://www.google.com/search?q=filipino+sari+sari+store+by+hazel+jean+malapit&oq=
filipino+sari+sari+store+by+hazel+jean+malapit&aqs=chrome..69i57j33.28286j0j9&client
=ms-android-oppo&sourceid=chrome-mobile&ie=UTF-8
Bonnin. (2004). google. Retrieved from google.com:

Colaco, & Hans. (2018). Retrieved from shodhganga.inflibnet.ac.in
Davis, K. (2017, February 15). katelynshelby. Retrieved from katelynshelby.me:

https://www.katelynshelby.me/blog/2017/2/15/the-iceberg-theory-of-success
Eviota, & Ofreno. (1992, 2005). google. Retrieved from google.com:

Gitman. (2009). Retrieved from shodhganga.inflibnet.ac.in
Hisrich, & Peters. (1989). researchgate.net. Retrieved from Research Gate:

https://www.researchgate.net/pulication/318094156
Hood, & Young. (1993). researchgate. Retrieved from researchgate.net:

ipfs. (n.d.). Retrieved from ipfs.io:

https://ipfs.io/ipfs/QmXoypizjW3WknFiJnKLwHCnL72vedxjQkDDP1mXWo6uco/wiki/Sari-
sari_store.html
Kapoor, R. (n.d.). Retrieved from shodhganga.inflibnet.ac.in
Lugo. (2002).
Mambula. (2002). researchgate. Retrieved from researchgate.net:
Meriam Webster. (1865).
Merriam Webster. (n.d.).
Merriam Webster. (n.d.).
Merriam Webster. (1762).

24 | P a g e
Merriam Webster. (circa 1595).
Nadar, S. (n.d.). Retrieved from shodhganga.inflibnet.ac.in
Philippine Association of Stores and Carinderia Owners. (2018, July 10). Retrieved from
www.entrepreneur.com.ph
Punch. (1998). Determinants of Preferred Boarding Houses. Kabankalan City .
Sanford. (1962). Wordpress. Retrieved from imjoeboe.wordpress.com:

https://imjoeboe.wordpress.com/2011/04/28/challenge-support/
Schumpeter. (2010). Retrieved from shodhganga.inflibnet.ac.in
Schumpeter, Cantillon, & Say, J. (n.d.). Retrieved from shodhganga.inflibnet.ac.in
Shane, & Venkataraman. (2000). www.sciencedirect.com. Retrieved from

www.sciencedirect.com: scholargoogle.com.ph
Sheppard. (1995). Retrieved from shodhganga.inflibnet.ac.in
Silverio. (1982). google. Retrieved from google.com:

Silverio. (1982). google. Retrieved from google.com:

Singh, K. (2011). researchgate. Retrieved from researchgate.net:

Tagoe. (2005). research gate. Retrieved from researchgate.net:

Vic. (2014, November 24). BusinessTips.ph. Retrieved from businesstips.ph:

https://businesstips.ph/should-you-register-your-business-even-if-still-small/
Vishwananath. (2001). researchgate. Retrieved from researchgate.net:

Wu. (2006). Retrieved from shodhganga.inflibnet.ac.in

25 | P a g e
APPENDICES
APPENDIX A
VALIDATION LETTER
September 10, 2019

Howard Kim Villalobos, LPT
Southland College
Dear Sir,
Good Day!
We are the ABM Grade 12 Students, presently conducting a research study entitled
“CHALLENGES FACED BY ENTREPRENEURS OF SARI-SARI STORES’’ as a requirement
for partial fulfilment of the course Practical Research II.
For the researchers to be able to gather the necessary data, a self-made questionnaire will be
administered to the respondents. However, the attached instrument must undertake a juror
validation before its administration.
Trusting your expertise and experience regarding to this field, we request from you to validate our
research instrument. Your support and cooperation in this research is greatly appreciated.
Thank you very much and God bless!
Respectfully,
Aj Rose R. Olgasan ________________
Rynze John G. Rubio _______________
Jahziel Joy B. Alicaway _____________
Jane De Lau C. Samoya _____________
Trexie Joy B. Tamon _______________
Rhea T. Quiador ___________________
Niljie T. Coloso ___________________
Noted by:
EDWIN J. BANARJEE, MBA
Instructor, Practical Research II
26 | P a g e
APPENDIX B
VALIDATION LETTER
September 10, 2019

Michael Doronilla, LPT
Southland College
Dear Sir,
Good Day!
Respectfully,
Rhea T. Quiador ___________________
Niljie T. Coloso ___________________
Noted by:
27 | P a g e
APPENDIX C
VALIDATION LETTER
September 10, 2019

Yvonne Suarez, RGC
Southland College
Dear Sir,
Good Day!
Respectfully,
Rhea T. Quiador ___________________
Niljie T. Coloso ___________________
Noted by:
28 | P a g e
APPENDIX D
SURVEY QUESTIONNAIRE
CHALLENGES FACED BY ENTREPRENEURS OF SARI-SARI STORE
The research study focuses on the challenges faced by fifty-three (53) entrepreneurs of sari-sari store in
Barangay 7, Barangay 8 and Barangay 9, Kabankalan City. The respondents are the sari-sari store owners. The
respondents will be provided with questionnaires that include different variables of the study. This seeks your
personal and honest opinion. However, this is voluntary. Care for the respondents is properly considered.
PART 1:
Instruction: Please answer and put a check (/) on the following information respectably.
A. Respondents Demographic Profile
1. Age:  If you will experience loss in operating
a. Below 24 years old_____ sari-sari store, what will you do?
b. 25-35 years old_____ 3. Educational Attainment:
c. 36-46 years old_____ a. Elementary Graduate_____
d. 47 years old and above_____ b. Secondary Graduate_____
c. Undergraduate_____
2. Sex
d. Bachelor’s Degree_____
a. Male____ b. e. Master’s Degree____
Female_____ f. Doctorate Degree_____
4. Source of Fund:
a. Loans_____
b. Personal savings_____
B. Closed Question c. Help from relatives or friends_____
a. I will borrow capital from others_____

b. I will use my personal savings to start again_____
c. I will change my products_____
d. I will shutdown_____
PART 2: Challenges Faced By Respondents

Instruction: Kindly put a check (/) on the box regarding your ratings to the challenges mentioned below.
5 – Strongly Agree 3 – Neither Agree nor Disagree 1 – Strongly Disagree
4 – Agree 2 – Disagree
5 4 3 2 1
My store is located in a rural area.
LOCATION My suppliers make deliveries conveniently at my location.
RELATED My store is located in a populated area.
My store’s location is accessible to consumers.
29 | P a g e
5 4 3 2 1
CHALLENGES
My products are also sold by other stores in the area.
My expenses are higher than my earnings.

I have enough petty cash.
FINANCIAL My earnings were enough to buy new inventories.
RELATED I have started my business with borrowed money.
CHALLENGES My investments are always returning.
My education help me a lot to manage my finance.
My store is always full of stocks.
My products are attractive.
INVENTORY Some of my products remain at my store for more than a month.
RELATED I sold all my products before it expires or without damage.
CHALLENGES I purchase low-cost but good quality products to sell.
I have many returning customers.
CUSTOMER I am friendly and helpful to consumers.
RELATED I receive a lot of complaints from consumers.
CHALLENGES I receive a lot of good feedbacks from consumers.
Most of my consumers are from my barangay.
30 | P a g e
APPENDIX E
VALIDATION TOOL
Directions: This tool asks for your evaluation of the questionnaire to be used for data gathering
for the study, Challenges Faced by Entrepreneurs of Sari-sari stores in Kabankalan City, to
establish its validity. You are requested to give your honest assessment following the criteria
stated below. Please check (/) only one from the selection.
5 4 3 2 1
(Excellent) (Very (Good) (Fair) (Poor)
Good)
1. Clarity and Directions
The vocabulary level, language, structure and
conceptual level of participants. The test
directions and the items are written in a clear
and understandable manner.
2. Presentation and Organization
The items are presented and organized in a
logical manner.
3. Stability
The item appropriately presented the substance
of the research. The questions are designed to
determine the skills that are supposed to be
measured.
4. Adequateness of the Content
The number of questions per area is a
representative enough of all the questions
needed for the research.
5. Attainment of Purpose
The instrument as a whole fulfills the
objectives needed for the research.
6. Objective
Each item question requires only one specific
answer or measures only one behavior and no
aspect of the questionnaires suggests the past
of the researchers.
7. Scale and Evaluation Rating
The scale adapted is appropriate for the item.
Kim Villalobos, LPT Michael Doronilla, LPT Yvonne Q. Suarez, RGC

Validator Validator Validator
31 | P a g e
APPENDIX F
LETTER OF APPROVAL
October 8, 2019
Nestor A. Valiao Jr. LPT
Senior High School Coordinator
Southland College
Dear Sir,
Good Day!
The general objective of this study is to describe the challenges faced by Entrepreneurs of sari-sari
stores specifically in Kabankalan City.
In line with this, we would like to ask permission from your good office to allow us to conduct a
survey to the sari-sari store owners outside of the school campus. Hoping for your positive response
in regards with this matter.
Thank you and God bless!
Respectfully,
Rhea T. Quiador ___________________
Niljie T. Coloso ___________________
Noted by:
32 | P a g e
APPENDIX G
LETTER TO THE RESPONDENTS
October 8, 2019
Dear Respondents,
We wish you a good day!
The undersigned researchers are presently conducting a study entitled “CHALLENGES

FACED BY ENTREPRENEURS OF SARI-SARI STORES” as a requirement for partial fulfilment
of the course Practical Research II. This research instrument intends to describe the challenges
faced by Entrepreneurs of sari-sari stores and you are in the best position to contribute the data
needed for the purpose.
However participating in this survey will be your act of voluntarism. We do appreciate for
your cooperation and valuable time. Rest assured that the information gathered will be kept with
utmost confidentiality and will be used only for the purpose of the Study.
Thank you very much for your time and cooperation. God Bless.
Respectfully,

Rhea T. Quiador ___________________
Niljie T. Coloso ___________________
Noted by:
33 | P a g e
APPENDIX H
Curriculum Vitae
AJ ROSE R. OLGASAN
Galicia, Ilog,
Negros Occidental
PERSONAL DATA
Date of Birth: February 15, 2002

Place of Birth: Numancia, Aklan
Parents: Jocel Olgasan and Archie Olgasan
EDUCATIONAL BACKGROUND
Elementary: Lawang Bato Elementary School

(2007-2014)
Secondary: Lawang Bato National Highschool
(2014-2015)
Galicia National Highschool
(2015-2018)
Southland College
(2018-2020)
34 | P a g e
Curriculum Vitae
JANE DE LAU C. SAMOYA
Sitio Casipsipan, Brgy. Hilamonan
Kabankalan City, Negros Occidental
PERSONAL DATA
Date of Birth: November 5, 2001

Place of Birth: Sitio Casipsipan, Brgy. Hilamonan
Kabankalan City
Parents: Jenelyn Samoya and Michael Samoya
Elementary: Casipsipan Elementary School

(2007-2014)
Secondary: Kabankalan National Highschool
(2014-2018)
Southland College
(2018-2020)
35 | P a g e
Curriculum Vitae
NILJE T. COLOSO
Brgy. Tan-awan Kabankalan City,
Negros Occidental
PERSONAL DATA
Date of Birth: April 5, 2000

Place of Birth: Limocon, Brgy. Buenavista Himamaylan City
Parents: Milva Coloso and Ernesto Coloso
Elementary: Tan-awan Elementary School

(2008-2014)
Secondary: Tan-awan National Highschool
(2014-2018)
Southland College
(2018-2020)
36 | P a g e
Curriculum Vitae
TREXIE JOY B. TAMON
Brgy. Isio, Cauayan,
Negros Occidental
PERSONAL DATA
Date of Birth: October 13, 2001

Place of Birth: Bacolod City
Parents: Cecilia Tamon and Ebenizer Tamon
Elementary: Isio Elementary School

(2008-2014)
Secondary: Isio Private Academy Inc.
(2014-2018)
Southland College
(2018-2020)
37 | P a g e
Curriculum Vitae
JAHZIEL JOY B. ALICAWAY
Brgy. Camingawan, Kabankalan City,
Negros Occidental
PERSONAL DATA
Date of Birth: December 9, 2001

Place of Birth: Kabankalan City
Parents: Heide Alicaway and Bonifacio Alicaway
Elementary: Noac Elementary School

(2008-2014)
Secondary: Florentino Galang Sr. National Highschool- Camingawan Ext.
(2014-2018)
Southland College
(2018-2020)
38 | P a g e
Curriculum Vitae
RHEA T. QUIADOR
Brgy. Tan-awan Kabankalan City,
Negros Occidental
PERSONAL DATA
Date of Birth: JulY 29, 2000

Place of Birth: Brgy. Tan-awan, Kabankalan City
Parents: Rosario Quiador and Edueto Quiador
Elementary: Tan-awan Elementary School

(2008-2014)
Secondary: Tan-awan National Highschool
(2014-2018)
Southland College
(2018-2020)
39 | P a g e
Curriculum Vitae
RYNZE JOHN G. RUBIO
Brgy. Tampalon, Kabankalan City,
Negros Occidental
PERSONAL DATA
Date of Birth: September 18, 2001

Place of Birth: Brgy. Tamapalon, Kabankalan City
Parents: Lucita Rubio and Romy Rubio
Elementary: Tampalon Elementary School

(2008-2014)
Secondary: Tampalon National Highschool
(2014-2018)
Southland College
(2018-2020)

CHALLENGES OF SARI-SARI STORES

Uploaded by

Document Information

Original Description:

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

CHALLENGES OF SARI-SARI STORES

Uploaded by

Copyright:

Available Formats

CHALLENGES FACED BY ENTREPRENEURS OF SARI-SARI

To our family who provide us with moral and financial support.

Statement of the Problem

Scope and Delimitations

Significance of the Study

This study is significant to the following:

Entrepreneurship is an inventive operation that entails discoveries and presentation of new

According to (Singh, 2011), an entrepreneur have confidence, innovative and creative

4 categories of challenges faced by entrepreneurs of sari-sari store which will be check by

Ʃx = the sum of all responses

N = the number of respondents or responses

1.0 – 1.8 Strongly Disagree

1.81 – 2.6 Disagree

2.61 – 3.4 Neither Agree nor Disagree

3.41 – 4.2 Agree

4.21 – 5.0 Strongly Agree

Table 1. RESPONDENTS DEMOGRAPHIC PROFILE

The table reveals the demographic profile of the respondents.

Table 2. ALTERNATIVE ACTION IF EVER RESPONDENTS EXPERIENCE LOSS IN

ALTERNATIVE ACTION FREQUENCY PERCENTAGE

Table 3. CHALLENGES FACED BY ENTREPRENEURS OF SARI-SARI STORES

Location Related Challenges Mean Interpretation

My store is located in a rural area. 2.26 Disagree

My store is located in a populated area. 4.11 Agree

Financial Related Challenges

My expenses are higher than my earnings. 3.51 Agree

Inventory Related Challenges

My store is always full of stock. 3.32 Neither Agree nor

Customer Related Challenges

I have many returning customers. 4.13 Agree

In Customer related challenges, the statement “I am friendly and helpful to customers” is

Summary of the Findings

1. Demographic profile of the respondents was derived from selective variables:

a. I will borrow capital from others

3. Challenges faced by entrepreneurs of sari-sari stores:

a. Location related challenges

b. Financial related challenges

c. Inventory related challenges

d. Customer related challenges

Based on the findings, the following conclusions were made.

Bonnin. (2004). google. Retrieved from google.com:

Bonnin. (2004). google. Retrieved from google.com:

Colaco, & Hans. (2018). Retrieved from shodhganga.inflibnet.ac.in

Davis, K. (2017, February 15). katelynshelby. Retrieved from katelynshelby.me:

Eviota, & Ofreno. (1992, 2005). google. Retrieved from google.com:

Gitman. (2009). Retrieved from shodhganga.inflibnet.ac.in

Hisrich, & Peters. (1989). researchgate.net. Retrieved from Research Gate:

Hood, & Young. (1993). researchgate. Retrieved from researchgate.net:

ipfs. (n.d.). Retrieved from ipfs.io:

Kapoor, R. (n.d.). Retrieved from shodhganga.inflibnet.ac.in

Meriam Webster. (1865).

Merriam Webster. (n.d.).

Merriam Webster. (n.d.).

Merriam Webster. (1762).

Merriam Webster. (circa 1595).

Nadar, S. (n.d.). Retrieved from shodhganga.inflibnet.ac.in

Punch. (1998). Determinants of Preferred Boarding Houses. Kabankalan City .

Sanford. (1962). Wordpress. Retrieved from imjoeboe.wordpress.com:

Schumpeter. (2010). Retrieved from shodhganga.inflibnet.ac.in

Schumpeter, Cantillon, & Say, J. (n.d.). Retrieved from shodhganga.inflibnet.ac.in

Shane, & Venkataraman. (2000). www.sciencedirect.com. Retrieved from

Sheppard. (1995). Retrieved from shodhganga.inflibnet.ac.in