ENVIRONMENTAL FACTORS THAT AFFECTS SMALL SCALE BUSINESS

A Research Paper

Presented to Mr. Joseph Crame, Concepcion Integrated School

Concepcion Integrated School

Concepcion I, Marikina City

In Partial Fulfillment

Of the Requirements for Practical Research 1

For the Subject Practical Research 1

By:

Diesmo, Sheena Dian T.

Enguas, John Paul

Fremista, Patricia Mae

Ladines, Aliyah Joy

 October 2018

CHAPTER 1

THE PROBLEM AND IT’S BACKGROUND

Introduction and it’s Background

Small businesses are the engine of growth and development of any economy. It is a

driving force for the country’s progress. Small scale businesses are not only important in

economic growth but it is also a way for a family to support their financial needs. Small

scale businesses contributions of the small scale business to economic development,

owners face many challenges that have adverse effects on long-term success and

development of their establishment . Researchers wanted to know the challenges and

how these challenges develop their business and the managers business skills. It is

therefore, important to know what common factors affects their accomplishment and

growth.
In today economic situation, every business is affected by different environmental

factors which pre-empts their development. It is important for every business to interact

with its environment because it has direct relationship with their accomplishment. The

success or failure of a small scale business is primarily established by their

effectiveness of its interaction with it’s environment. Economic factors that influence the

business are the collective of nature of the country’s economic system. So therefore,

strategy is a very important aspect of making business successful. The absence of a

clear strategy, setting meaningful objectives and goals can be very different. Business

must always respond to environmental changes if they want to linger.

Theoretical and Conceptual Framework

Every business needs a strategy . A well-outlined business strategy is essential for the
success and sustainability of any business venture. Without one, business can lack

direction, efficiency and effectiveness. Sometimes taking the leap of faith to move away

from doing things the way they have always been done and implementing change is a

difficult hurdle for business owners to overcome. Gaining an analytical understanding of

where your business is positioned in the market, aids you in determining the direction in

which your business should head in order toachieve desired objectives. An effective

business strategy doesn’t just define the goals of your business, it will also outline the

reasons behind these goals and the means in which you plan to achieve them. Behind

every great business is a great business plan. Setting future goals is important in

measuring the success of your business, and it will also help you develop a sustainable

strategy for the future. But in putting up a business, struggles can’t be avoided. No one

said running your own business would be easy. If you’re a business owner every day

will bring problems – both big and small – that you’ll need to solve.
Every small business has struggles – some early on, some during growth, others just

pop up here and there. As an entrepreneur or owner of a small business you should

know that you’re not alone, there are others out there facing the same things you are

going through. While these problems are not unique to running a small business, they

are more challenging due to limited resources. And as a business owner, you have to

learned that nothing happens unless something moves. Progress is important to

growing your business, and you must take daily action in order to make progress. The

key is pacing yourself. Get a clear vision of where you want to go and then determine

what you can do daily to get you closer to your goals. When you decide to improve and

make daily progress in your business, you must adopt a personal resolve to move

forward regardless of the obstacles that may arise (and they always arise). This may

require strengthening your own mental toughness to achieve higher levels of success.

Your mentality should be to go and do, instead of to sit and think. Many businessmen
wear themselves out by over-thinking every little detail, which always leads to becoming

overwhelmed. Acting fast can eliminate stress, worry and anxiety and boost your

business and your confidence. The best way to figure something out is to take action

and make adjustments. You can always fix it on the fly. At least then you’ll be making

progress! That’s the skill you need to work on understanding and displaying good

management skills will help to position you for a successful career no matter what level

you’re starting at.

Research Paradyme

INPUT PROCESS OUTPUT

Strategy

5 Small Scale Business Informal Interview Struggle

Owners Progress

Management Skills
Statement of the Problem

1. Why did you choose Baranggay Tumana to put up your business?

2. How the environment affects your business accomplishment ?

 In goods and services?

 In health and safe regulations?
 In your costumers?

3. How the uncertain weather affects your business?

4. How did you manage to cope-up with these environmental factors?

5. Do you already formulated a strategy that will help you to deal with the environmental

factors challenges you are experiencing in Tumana?

Significance of the Study

These are quite a good number of environmental factors that inhibit the growth and

development of small scale business. This research work will provide insight into the
environment factors in ensuring the survival and growth of a small scale business.

Which give benefits to the following:

1. Business Owners – they will be aware of how they will cope-up in that particular

environmental factors that affects their business progress.

2. Future Businessman – regarding this awareness, they will be able to prepare in

order for them to correctly manage their business.

3. Future Researchers – through this research, future researchers will be guided in

performing a new research that is related on this research.

4. Baranggay Officials – this research will be essential for them to improve Tumana.

Objectives of the Study

Small scale business is defined as a first step in term of business progress. In this

research, we will examine the environmental factors that affects the small scale
business. This was achieved through the following specific objectives;

1. To identify key issues involved in environmental factors towards business survival

and growth;

2. To find appropriate solution to it in trader enhance the smooth moving and

effectiveness of small scale business;

3. To highlight the influences, impact and implications of these environmental factors on

the growth of small scale business;

4. To determine the extent to which environmental factors affects business survival and

growth;

5. To identify strategies of business owners in how they cope up with these

environmental factors.
Scope and Delimitation

This research work is restricted to environmental factors that affects the small scale

businesses in Baranggay Tumana, Marikina City. Other places that engaged in

business will not be discussed. The emphasis is to identify the effects of these

environmental factors and possible solutions.

Definition of Terms

Small scale business – is defined as a small business which involves distribution of goods

and services in making profit in the business.

Environment – is defined as the external physical condition that can affect and influence

the growth and development of a small scale business.

Growth – this term was used to identify the progress of a small scale business.

Cope-up – this term was used to evaluate of how business owners handle the struggle in
their business.

Factors – this term was used to considerate things contributes or influence the progress

of a small scale business.

 CHAPTER 2

REVIEW OF RELATED LITERATURE AND STUDIES

Local and Foreign Literature

According to Lussier, (1996) it is important to define these factors for any new business,

as the owner should be concerned about the chances for success. So, it was clearly

stated that before putting up a business, the owner should know the reasons of the

possible outcomes.

Ukaegbu (2004) stated that the contemporary environment is becoming dynamic and

competitive and since business organizations do not operate in vacuum, they affect and

affected by environment conditions. Therefore, business organizations irrespective of

their objectives must take into consideration, these environmental opportunities and

constraint.
Local and Foreign Studies

Beckman, et al (1996) stated that business experience was a factor in the success of

small firms. Therefore, a well-experienced businessman will have more possibility to

have a successful business.

Kuye (2004) emphasized that the need to study business organizations do not operate in

vacuum and an effective management in complex and dynamic society requires the

assessment of strengths and weaknesses of the organization and the opportunities and

the threats provided by the challenges of the external environment.

 CHAPTER 3

RESEARCH DESIGN AND METHODOLOGY

Methods of Research

This study adopted the survey research design to evaluate the impact of environmental

factors on the progress of small scale business. Researchers will collect data through the use

of informal interview to produce information about this study. Since the researchers, wanted

to broaden their information and make more possible solutions on how the environmental

factors affects a business development.

Locale of the Study

Tumana is a part of Conception Uno, and By the help of the people of conception Uno,

Tumana was born by Plebisto headed by Mar Andes President of Marikina City

Concerned Citizen Organization (MARCCCOR)

Barangay Tumana is a medium sized real state, bounded at the northwest side of
Marikina and a vast farmland extending to the sierra madre, in the north of Barangay

Nangka, south of Malanday and guarded by the river within the west side. Tumana

under city ordinance no. 70 series of 2005 was created the 16th barangay of Marikina

City coming from the Barangay concepcion Uno on March 4, 2006 plebiscite. The barrio

most rich pasture land predominantly as an agriculturl land best suited for vegetable

farming. Being so close to the river, the area was largely inhabited by different species

and plants. The fertility of the soil attracted a number of peasants and tenants, thus

leading to the construction and establishing permanent settlers and resettlement sites.

Later on, the increasing population drove the settlers and expanded towards Farmers

Avenue 1, Ampalaya, Kabayan 1 Road, Farmers 2, Angels Santos, Roga and Doña

Petra Road 1-5. The name Tumana was derived from being agricultural or being

vegetable farm land that usually well known and verse by the people.

Respondents of the Study

The respondents for the study were the small scale business owners in Baranggay Tumana, Marikina

City. The researcher will only use 5 respondents for them to evaluate particular environmental factors

affecting small scale business.

Research Instrument

Researchers will use informal interview as their method of collecting information from

individuals. In which the wording of the questions and their sequence is the same from one

interview to another; the respondents must choose from a limited number of answers that

have been written in advance. The researchers will ask important questions in the same way

each time but is free to alter the sequence of the questions and to probe for more information;

respondents can answer the questions in any way they choose.