Bookkeeping: Benefits, Challenges and, Effect on Growth and Performance to SMEs

in Solano, Nueva Vizcaya

Chapter 3

Methodology

This chapter presents how data of the research will be gathered; specifically,
the research design, research environment, subjects of the study, research instruments,
data gathering procedure, and data analyses method to be employed in conducting the
study.

Research Design

To achieve the proposed research objective of highlighting the benefits,

challenges, and effects of bookkeeping on growth and performance of SMEs, a
descriptive quantitative research design will be used.

In this research design, the profile of the respondents will be identified and
business practices, preferences, and opinions will be evaluated to generate the value
of bookkeeping and accounting practices in maximizing the value of the enterprise.

Research Environment

Figure 1. Site selection of the study

This study will be conducted on selected Small and Medium-sized Enterprises

in Solano, Nueva Vizcaya. Solano is the commercial town of Nueva Vizcaya and has
the most SMEs challenged by the pandemic to flourish and maintain day-to-day
operations.

Subjects of the Study

A list of SMEs will be obtained from the Department of Trade and Industry in
the locality and will be screened for availability. Purposive sampling method will
be employed to pick enterprises that has atleast five years experience of operation in
the municipality, since these enterprises could be information-rich in terms of the
value of bookkeeping and accounting practices implementation.
Bookkeeping: Benefits, Challenges and, Effect on Growth and Performance to SMEs
in Solano, Nueva Vizcaya

Consequently, out of the population, 5 SME owners/managers that have been

operating for 5 years and beyond will be selected through convenience sampling,
those of which are available and accessible to the researchers.

Research Instruments

In this study, the researchers will be collecting data through the

administration of questionnaires which have open-ended questions. The
questionnaires will consist of part 1 and 2. Part 1 will be concentrated on the profile
of the respondent enterprises such as:

• Age of the enterprise

• Form of ownership
• Nature of the enterprise
• Number of employees of the enterprise
• Average monthly net income of the enterprise

Meanwhile, part 2 will be consisting of various questions geared towards

answering the objective of the study to establish the relationship between
bookkeeping practices and small and medium-sized enterprises’ growth and
performance.

Data Gathering Procedure

Primary data will be collected through the distribution of questionnaires to

SME managers/owners.

The researchers have obtained secondary data through reviewing online

articles and papers that are relevant and useful for the study and later, chose the best
up-to-date materials on the topic which best help in the development of the study.
Bookkeeping: Benefits, Challenges and, Effect on Growth and Performance to SMEs
in Solano, Nueva Vizcaya

a. Planning

In creating this research, the researchers will be creating questionnaires for the
respondent enterprises of the study, in consideration of the methodology to be
imposed. The researchers has identified the research environment where the study is
to be conducted then would search for the accessible respondents of the study.

The researchers has asked for assistance of the adviser for necessary
adjustments in formatting and other content deficiencies of the paper.

b. Collecting Data

In collecting the data, the researchers will be employing convenience sampling,

wherein the respondents will be chosen by the researchers based on willingness,
availability and accessibility. The targeted response rate will be 85% out of the
population to increase accuracy.

c. Analyzing Data

In analyzing the data, the researchers will be using statistical tools to aid the
analysis so as to achieve the objectives of the study.

Data Analyses

The study will be using descriptive statistics with focus on the mean response
of the respondents as well as their standard deviation to determine the variances per
enterprise. Meanwhile, aided by the tabulation of data to be extracted from close-
ended questions, it will be easier to understand the issues identified by the
respondents. Also, to help answer the questions pertaining to challenges of
bookkeeping and whether or not bookkeeping has a benefit and effect towards the
growth and performance of small and medium-sized enterprises, the study will be
employing Pearson correlation analysis to establish a vital relationship between the
aforementioned.