SUSTAINABILITY OF MICROBUSINESSES IN PUERTO GALERA

A Thesis
Presented to the Faculty of
College of Business and Accountancy
University of Batangas – Batangas City
Batangas City

In Partial Fulfilment
of the Requirements for the Degree
Bachelor of Science in Business Administration
Major in Financial Management

By:

Balbin, Deanne Mae B.

Datinguinoo, Maezel V.
Mendoza, Whinnie D.
Mercado, Andrea Rose B.
Verano, Rea Marie S.

March 2021

i
 CHAPTER 1

THE RESEARCH PROBLEM

This chapter contains the presentation of the problem. Specifically, it

presents the introduction, the theoretical framework, the conceptual framework

the statement of the problem, the hypothesis of the study, the scope,

delimitations, and limitations of the study, the significance of the study, and the

definition of terms.

Introduction

The 21st Century is an era of wide experimentation and testing

contrivances where numerous demands arise in many ways. One of these is the

emergence of the so-called microbusiness which is considered as a contributor

for poverty reduction.

Microbusiness is primarily a very small company which employs few

personnel only. Under microbusiness, small entrepreneurs are given such

opportunities to run their own space without being threatened by large and high-

paying companies. Hence, it tries to economically include the marginalized

people in dealing with the demands of society. One of which is microfinance

which specifically help in extending financial aids to millions of struggling

Filipinos.

1
 According to experts, microbusinesses are thought to be distinctive in a

number of respects that serve to limit their potential for growth. But in small

doses, microbusinesses have many advantages and provide numerous benefits

to the society in general. In fact, it represents a substantial proportion of total

economic activity. 

On the other hand, Dmitry G. Sedov (2011) stated that microenterprises

comprise the vast majority of the small business sector in developing countries –

a result of the relative lack of formal sector jobs available for the poor. These

micro entrepreneurs operate microenterprises not by choice, but out of

necessity. Meanwhile, the Department of Trade and Industry recorded that in

2019 MSME Statistics, micro enterprises produced the biggest share in

employment (29.8%) Moreover, it is closely followed by small enterprises at

25.2% while medium enterprises were far behind at 7.4%. Furthermore, such of it

are mostly found in National Capital Region (NCR) with 202,011 (20.2%)

business establishments, Region 4-A (CALABARZON) with 148,017 (14.8%) and

in Region 3 (Central Luzon) with 115,877 (11.6%)

As for the Philippines being one of those developing countries, it is clearly

evident that microbusinesses have become a huge source of hope for a lot of

Filipinos who wish to rise from the marginal line. The research team delved into

intrinsic search and found out that the establishments of microbusinesses in

Region 4-B (MIMAROPA) are far way behind other regions despite its

mesmerizing geographical features. One of which is Puerto Galera, located

primarily in Oriental Mindoro.

2
 The objective of this research is to understand the potential factors which

affect the various areas in microbusinesses specifically in Puerto Galera, Oriental

Mindoro, Philippines. Furthermore, it is the aim of this research to offer an ideal

plan to the locals of Puerto Galera in order to sustain the microbusinesses in the

area. (Your introduction is too short, please add more)

Theoretical Framework

The theoretical basis of this study is the Sustainability among Small

Businesses Framework of United Nations’ Economic and Social Commission for

Asia and the Pacific (UNESCAP).

Figure 1

Dimensions of Sustainability among Small Businesses Framework

Source: United Nations’ Economic and Social Commission for Asia and the
Pacific

The definition of business sustainability was proposed by the UNESCAP,

where a business may be described as sustainable once it meets three criteria:

incorporating sustainability principles in most of its business decisions, supplying

3
products and services that are environmentally friendly, and forming

commitments within its business operations. However, Wilshuen and Macdonald

interpreted the business sustainability as business practice that creates

competitive advantages through higher customer value by balancing

stakeholders’ interest, environmental protection goals, and community well-

being. In accordance, UNESCAP provides the three dimensions of sustainability

among small businesses, which includes: the environmental dimension,

economical dimension, and the social dimension.

According to Nations, Ensuring Environmental Sustainability, the

environmental dimension focuses on maintaining healthy ecosystems where

small businesses have to provide their products and services in a manner that

minimizes any negative impact to the ecosystem through effective environmental

management programs. As reported by United Nations Environment Programme

(UNEP), economic dimension relates to sustainability measures that keep

organizations from diminishing the world’s level of consumption, utility and

wealth. Thus, UNEP also discussed that a sustainable economy is one that

improves the wellbeing of humans and promotes social equity. The social

dimension focuses on sustainability issues that are mainly expressed through

ethical employment measures, although it also deals with international and

national laws on consumerism. One of the major ways small businesses can

achieve social sustainability is through the alleviation of poverty, which also

constitutes a significant factor in environmental degradation.

4
 The current issue that microbusinesses or small businesses’ facing right

now is the COVID-19 pandemic which threatens the growth of economy and

causes severe human suffering globally. The Organization for Economic Co-

operation and Development (OECD) conducted a survey among Small and

Medium Enterprises (SMEs) in 132 countries to measure the global economic

recession triggered by the pandemic. According to June 2020 World Investment

Report, the global foreign investment was declined by up to 40% in 2020. Due to

the global outbreak of COVID-19, the global GDP is likely affected between 2.3%

to 4.8%.

In the Philippines, microbusinesses face higher risk of permanent closure

compared to large companies. Based on Philippine Statistics, the Philippines’s

gross domestic product (GDP) shrinks 16.5% in the second quarter of 2020 due

to the impositions of community quarantines.

Moreover, hospitality and tourism industry have a great contribution to the

growth of microbusinesses and stimulate economic development. An increase in

tourism industry can bring positive economic outcomes to the nations, especially

in gross domestic product (GDP) and employment opportunities. According to the

Philippine Statistics Authority (PSA) tourism industry’s contribution to the

country’s GDP grew from 12.3% in 2018 to 12.7% in 2019.

Conceptual Framework

The conceptual framework illustrates the main objectives of the study. It

includes useful information to be the basis of the researchers to address the

5
problem of this study. For this study, the researchers decided to use the Input-

Process- Output (IPO) Model.

Figure 1 portrays the conceptual framework of the study. The inputs of the

study include the profile of the business, and the three (3) dimensions of

sustainability among small businesses. The process includes data gathering and

data analysis. Lastly, the output includes the proposed sustainability plan.

INPUT PROCESS OUTPUT

Business Profile:
Form of Business
Organization
Years of Operation
Nature of Business
Number of Employees
Capitalization
Proposed
Data Gathering Sustainability
Plan
Sustainability of
Data Analysis
Microbusinesses:
Environmental Sustainability
Social Sustainability
Economic Sustainability

Figure 1
Conceptual Paradigm

6
Statement of the Problem

This study aims to determine the sustainability of Microbusinesses in

Puerto Galera. Specifically, this seeks answers for the following questions:

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

1.1 Form of Business Organization

1.2 Years of Operation

1.3 Nature of Business

1.4 Number of Employees

1.5 Capitalization

2. How do the respondents assess the sustainability of the microbusinesses

in terms of :

2.1 Environmental Sustainability

2.2 Social Sustainability

2.3 Economic Sustainability

3. What are the issues and challenges of the microbusinesses in Puerto

Galera?

4. Is there a significant difference on the respondents’ assessment of the

sustainability of the microbusinesses when grouped according to profile?

5. What sustainability plan may be proposed to help microbusinesses ensure

continuity of operation?

7
Hypothesis

Ho1: There is no significant difference on the respondents’ assessment of the

sustainability of the microbusinesses when grouped according to profile

Scope, Delimitations and Limitation

This study will focus on assessing the sustainability of

microbusiness in San Isidro, Puerto Galera. In this regard, the business

profile of the respondents will be gathered such as Form of Business

Organization, Years of Operation, Nature of Business, Number of Employees,

and Capitalization. Also, the respondent’s assessment of sustainability of

microbusinesses in terms of environment, social and economic will also be

solicited.

Moreover, the results of this study will be limited only to the respondents in

San Isidro, Puerto Galera. Also, this study has its own weaknesses which are

the data that will be gathered here is beyond the control of the researchers in

terms of honesty and reliability. It is also limited to the microbusinesses in

San Isidro, Puerto Galera. The pandemic brought by the Covid-19 also poses

limitations while conducting this study particularly in personal engagement to

gather information’s, researcher’s difficulties to peruse the published study at

the library, use of technology in conducting survey, and the number of

participants that can participate in this study

The target respondents of the study are the microbusiness owners. The

study will be conducted from second semester AY 2020-2021 to first semester of

8
AY 2021-2022. This study is delimited only on the assessment of sustainability of

microbusinesses in San Isidro, Puerto Galera thus any other variables or factors

that may affect the sustainability of micro businesses will be excluded.

Significance of the Study (Improve this; kindly think of those who will

benefit from the study; not teachers; not administrators, not the academe;

it may be small business owners, the consumers of Puerto Galera, the

Local Government of Puerto Galera, researchers, future researchers)

The findings in which this study will reveal may benefit the small business

owners, the college teachers, the school administrators, the researchers, the

academe, and the future researchers.

To the Small Business Owners, this will enhance the understanding of

small business owners on how to sustain their business in the long term.

To the College Teachers, this will benefit them by providing insights and

information about sustainability of microbusinesses. This study will also serve as

their basis to educate their student about business industry.

To the School Administrators, this study will also present inputs to

school administrators in connection to development programs of the

corresponding institutions.

To the Researchers, this study can be a great help to him to be more

knowledgeable and careful in choosing and creating future decisions. Also, it will

help him enhance his knowledge and skills.

9
 To the Academe, this study will be beneficial to the academe by providing

good source of reference in microbusiness sustainability for the students,

teachers, employees, and the community.

To the Future Researchers, this study can assist the future researchers

in conducting their own manifestation that can be related to this paper. This

research can serve as their resource or reference as an addition to their inquiry.

Definition of Terms ( please take note that the definition of terms shall be

alphabetized; one sentence definition only)

For clarity and thorough understanding of this study, the following terms

were herein defined conceptually and operationally.

Micro businesses industry. It is defined as the type of small business

that operates on a very small scale. That scale is typically measured according to

the business number of employees, total worth, and occasionally how much

money was required to start the business (www.justbusiness.com). In this study,

it refers to the small business that employs few people; they usually operate with

fewer than 10 people and is started with a small amount of capital advanced from

a bank or other organizations.

Business sustainability. It is defined as the management and

coordination of environmental, social and financial demands and concerns to

ensure responsible, ethical and ongoing success (www.whatis.techtarget.com).

In this study, it refers to meeting the needs of microbusiness without affecting

future generations ability to satisfy their needs.

10
 Incorporating sustainability. It is defined as the practices designed to

encourage active preservation of our environment and communities, while also

promising attractive financial gains (www.tefen.com). In this study, it refers to the

grown in popularity and has become a catchphrase for micro business practices

that has been incorporated into many corporate strategies.

Environmental dimension. It is defined as the elements of the activities,

products, or services of the organization that interact with the environment

(www.igi-global.com). In this study, it refers to the capability of microbusiness to

make appropriate and effective use of natural resources in order to guarantee its

conservation for sustainable development.

Economic Dimension. It is defined as the dimension that handles all

economic outputs/externalities of the event firm and the individual event

(www.miun.com). In this study, it refers to the financial growth that is related to

the ecological dimension, such as the productive use of resources and energy,

as well as the social dimension, such as the development and maintenance of

workplaces. As a consequence, productivity and stability are two main principles

that explain the essence of long-term economic activity.

Social Dimension. It is defined as the capacity of the society to

implement practices to ensure the respect to human rights, diversity, cultural

traditions, and the rights of communities in order to decrease the gap between

the rich and the poor and social justice (www.igi-global.com). In this study, it

refers to the values, norms, rules, and roles, one of the greatest sources of

influence on human behavior, emanating from the cultural dimension.

11
 Environment Sustainability. It is defined as responsible interaction with

the environment to avoid depletion or degradation of natural resources and allow

for long-term environmental quality. The practice of environmental sustainability

helps to ensure that the needs of today's population are met without jeopardizing

the ability of future generations to meet their needs (www.study.com). In this

study, it refers to an environmentally friendly business that can be a profitable

one.

Social Sustainability. It is defined as the proactive way of managing and

identifying business impacts on employees, workers in the value chain,

customers, and local communities.

Companies that raise the importance of social sustainability recognize the

significance of their relationships with people, communities and society

(www.esg.adec-innovations.com). In this study, it refers to the process for

creating sustainable successful places that promote wellbeing, by understanding

what people need from the places they live and work.

Economic Sustainability. It is defined to practices that support long-term

economic growth without negatively impacting social, environmental, and cultural

aspects of the community (www.sustainability.umw.edu). In this study, it refers to

the recognizing that even a very small business is part of a larger global

economy, and it is important to consider how the business practices impact

others environmentally, culturally and socially.

12
Things to remember:

1. Add more on your introduction; too short

2. I already edited your theoretical framework, sop, conceptual framework, sop,

and scope limitation and delimitations

3. Improve your significance of the study

4. Alphabetize your Definition of terms. (Remember: 1 sentence definition only

per term (for conceptual definition)

13