This chapter presents the related literature for local and foreign, and studies that were thorough

and in-
depth search done by researchers.

Local Literature

The Asian Development Bank (2009) in their report “Poverty in the Philippines: causes, constraints, and
opportunities.’ Revealed that Over the past few years, economic growth has not translated into poverty
reduction. While the country's economic growth in recent years has been moderate, poverty reduction
has been slow. Inequality remains high, mitigating the beneficial effects of development on poverty
reduction. The poor, with six or more members, have large families. Management of the population will
be critical to an efficient policy for poverty reduction. Poverty rates are heavily associated with the
achievement of education. Two-thirds of poor families are run by individuals with or below only an
education in elementary school. Access to quality education is recognized as a main way out of poverty.
The ability of local government to implement poverty programs is weak. Effective delivery at the local
level of fundamental social services and programs related to poverty will enhance programs for poverty
reduction. This research tackles about the causes, constraints and opportunities of poverty in the
Philippines which is connected about our current study about the effect of micro financing in fund
capitalization of small scale Filipino entrepreneur because it talks about the country’s economic growth
and so that we should know who are going to be our target market for micro financing. We researchers
learned that there are a lot of reasons why a lot of Filipino’s are poor. It is connected to region,
educational attainment, through rural phenomenon, deficient targeting in poverty programs etc.…

Foreign Literature

Glackin, C. E. W. & Mahony, E. G. (2002) Conducted a study about the individual development accounts
and loans for microenterprise. The research stated that Increased use of loan capital to addressing
barriers to low demand and deployment, including aversion to debt, credit history and equity gaps.
Promoting good capital structures and mitigating lender risk enables a micro entrepreneur to create a
good capital structure that balances debt with equity, decreases the risk exposure of the lender, and
enhances the likelihood of survival of a growing business. The author had some observations about
integration practices. Depending on the target market of an organization, micro entrepreneurs may
prefer to save for their businesses instead of accumulating extra debt. Based on the organization's risk
tolerance, a microloan may be given up front or only after the IDA program has been successfully
completed. Micro borrowers can also benefit from IDA programs that can enhance human and financial
capacity. His study was relevant to our research, he dealt about how people manage risk and problems
about loans and individual development account (IDA). We now know that in order for a micro
entrepreneur to create a good capital structure that balances debt with equity, we have to promote
good capital structure that decrease lender risk.
Subhabrata Bobby Banerjee , Laurel Jackson (2016)