Professional Documents
Culture Documents
Neighborhood Variety Stores) operating in 2017 for more than 1 year in Barangay
Potrero, Malabon City, Philippines
Angelica Fabillar
Sustainability and Survival Leading to Growth of Sari-Sari Stores (Small Neighborhood Variety
2
Stores) operating in 2017 for more than 1 year in Barangay Potrero, Malabon City, Philippines
Abstract
Sari-Sari Store or the Small Neighborhood Variety Stores have been in existence for
decades before foreign convenience stores came to the Philippines. However, these
small businesses remained existing but not growing. This study aims to evaluate and
investigate the sustainability practices of the business owners that pave their way to
survive and how can these practices result to growth. Consequently, the research also
aims to propose a solution to their current status and to measure to what extent this
proposal will help them to grow. A pilot study of 14 conveniently sampled business
revealed that there were no significant differences on plans before opening a Sari-Sari
Store to survive and sustain its needs, but small differences showed that there were
movements with their actions indicating change of interest. The Independent T-test
revealed that there no significant change with their perception of growth when
proposed actions for survival and sustainability of Sari-Sari store were presented.
growth. The researcher recommends a large scale application of the research. This
research was beneficial for business owners to further examine their plans while
investors will have a glimpse of socially responsible programs where they can put in
their investments.
Sustainability and Survival Leading to Growth of Sari-Sari Stores (Small Neighborhood Variety
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Stores) operating in 2017 for more than 1 year in Barangay Potrero, Malabon City, Philippines
Contents Page
Cover Page 1
Abstract 2
Contents Page 3
Introduction 4
Literature Review 6
Methodology 9
References 29
Sustainability and Survival Leading to Growth of Sari-Sari Stores (Small Neighborhood Variety
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Stores) operating in 2017 for more than 1 year in Barangay Potrero, Malabon City, Philippines
Introduction
Even before foreign convenience stores came to the Philippines, there was a common
convenience store around just a couple of steps or even just besides every Filipinos
doors. It was the Sari-Sari Store or the Small Neighborhood Variety Stores commonly
managed by women and senior citizens. Its convenience was beyond exaggeration that
Perhaps someone forgot an ingredient while cooking or forgot to buy soap or shampoo
while taking a bath. “Sari-sari” was a Filipino word for variety, it has different goods
and even payment of monthly bills. Despite of the opportunity, popularity and its
presence for decades; majority of these stores stayed not to grow but only to exist
and be sustainable.
Figure 1 (Paska, 2012): A Sari-Sari Store or the Small Neighborhood Variety Stores in
Manila, Philippines
Sustainability and Survival Leading to Growth of Sari-Sari Stores (Small Neighborhood Variety
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Stores) operating in 2017 for more than 1 year in Barangay Potrero, Malabon City, Philippines
Thus, this research aims to evaluate and investigate the sustainability practices of the
business owner that pave their way to survival and how can these practice resulted to
growth. Consequently, the research also aims to propose a solution to their current
status and to measure to what extent this proposal will help them to grow.
Research Questions
2. Do the plans before opening a Sari-Sari Store help the Sari-Sari Store to survive
3. What were the struggles faced by the Sari-Sari Store that hinders survival and
sustainability?
4. What were the proposed actions for the Sari-Sari Store to survive and be
5. Based on the proposed actions for survival and sustainability of Sari-Sari store,
Research Hypothesis
H01: Plans before opening a Sari-Sari Store help the Sari-Sari Store to survive and
H01: The proposed actions for survival and sustainability of Sari-Sari store, to what
Literature Review
Planning before opening a Sari-Sari Store helps the Sari-Sari Store to survive and
The study authored by Webber, P (2017) entitled “Small business growth: strategic
goals and owner preparedness” aims to examine the significant relationship between
perceived small business success and the SBOs preparedness to grow their business.
The survey of 340 business owners revealed that there was significant relationship
between perceived success and growth preparedness. Only 11.8% have higher desire
for continued growth and success which in turn make them worthy of assistance
because of their good disposition in the group. This entails that the more prepared
the business owners are, the lesser the problems were for them. They were more
likely to head towards growth and were more attractive to investors or policymakers.
Struggles faced by the Sari-Sari Store that hinders survival and sustainability
The research done by Malapit, HJ (2007) aimed to describe the business model of
Filipino Sari-sari stores as well as the underlying problems of the system. The research
The common struggles faced by Sari-sari stores were collection of debts and
insufficient funds due to lack of accounting. Sari-sari stores offer credit on goods as
well as credit extension as a sales generating strategy. The business owners were also
Sustainability and Survival Leading to Growth of Sari-Sari Stores (Small Neighborhood Variety
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Stores) operating in 2017 for more than 1 year in Barangay Potrero, Malabon City, Philippines
debtors themselves by asking “bumbay” or Indian money lenders to lend them money.
This money lenders offer “5-6” which means repaying the loaned amount of 5 with 6
or 20% interest. The research described the unique model of sari-sari stores where
products may act as capital or payment for credits. The research concludes that the
primary reason that hinders survival and sustainability of the Sari-sari stores were lack
Proposed actions for the Sari-Sari Store to survive and be sustainable based on their
current status
research reasoned that this was because of the slow payback of investment related to
cheaper, offer good conditions for well productive labor, and creates a better place
assistance programs using 364 business owners. The study revealed that profile of the
respondents was not significant with their awareness of the programs. However,
Sustainability and Survival Leading to Growth of Sari-Sari Stores (Small Neighborhood Variety
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Stores) operating in 2017 for more than 1 year in Barangay Potrero, Malabon City, Philippines
awareness of the program was higher among companies that have reported growth
Methodology Section
Research Design
This pilot study used Quantitative Research Method. According to Babbie (2010),
Quantitative method covers statistical and/or numerical analysis of data which was
collected through surveys by generalizing the results and explain a particular event.
This was used in this study because it fits with the research questions and the data
Theoretical Framework
Lewis and Churchill (1983) published an article titled "The Five Stages of Small
Business Growth" that discussed the five stages of business growth among
Figure 2: Illustration of “The Five Stages of Small Business Growth” by Lewis and
Churchill (1983)
Sustainability and Survival Leading to Growth of Sari-Sari Stores (Small Neighborhood Variety
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Stores) operating in 2017 for more than 1 year in Barangay Potrero, Malabon City, Philippines
Study Framework
Using the Theoretical Framework, this research applied the first 3 stages of the Five
Stages of Small Business Growth. Stage I consist of the profiling of the business owners
and their respective businesses; and determining if their plans prior doing the
business were helpful. Stage II evaluates the survival and sustainability practices of
the business owners, as problems arise, this research evaluates the options that will
help the business to survive and remain sustainable that will lead them to step-up in
Stage III. Lastly, the research evaluates if the options for survival and sustainability
were perceived by the business owner was helpful that will make them move to Stage
III.
Sustainability and Survival Leading to Growth of Sari-Sari Stores (Small Neighborhood Variety
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Stores) operating in 2017 for more than 1 year in Barangay Potrero, Malabon City, Philippines
convenience sampling of one business owner per street was conducted. According to
The researcher creates an online survey form of the questionnaire. The researcher
gathers the contact details of the business owner at each street through a Facebook
group. Through the consent of the group administration, an online survey link was
sent to its members. The researcher conveniently chooses respondents at each street
Questionnaire
The first part of the questionnaire dealt with the planned and actual practices of the
sari-sari store owners. These practices were evaluated using 4 factors namely:
Management that deals with their store management practices, Operation that deals
with their operating hours, Accounting that deals with their record system and
financial management, and Location that deals with their status with their store
location. These factors were inspired by the study done by Sanchez (1991) which was
also used in the study of Malapit (2007). The second part of the questionnaire was the
Sustainability and Survival Leading to Growth of Sari-Sari Stores (Small Neighborhood Variety
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Stores) operating in 2017 for more than 1 year in Barangay Potrero, Malabon City, Philippines
narrative explanation of the owner’s sustainability and survival practices. The third
part was the option available to the owners that might help them to be sustainable
and survive. The last part was their assessment of growth on their current practices
and their assessment if they will be given a chance to avail the options presented to
them. This was based on indicative factors of business performance of small scale
industries done by Lingesaya (2012). A factor analysis was done and it produced for
factors namely: Customer satisfaction with managing change, Growth in business &
employees
To describe the profile of the Sari-Sari Store owners, Frequency and Percentages were
used. To investigate if the plans before opening a Sari-Sari Store help the Sari-Sari
Store to survive and sustain its needs, Chi-square test was used. It was a statistical
test used used when the researcher tests significant difference between two
categorical variables.
To determine the struggles faced by the Sari-Sari Store that hinders survival and
sustainability, a short space in the questionnaire was allotted for them to describe
the details. This was presented in narrative form this the results portion.
Frequency and Percentages was used to evaluate the proposed actions for the Sari-
Paired T-test was used to determine if the proposed actions for survival and
Paired T-test was a statistical test used to compare two related samples.
SPSS version 20.0 was used for data analysis. The p-value of 0.05 was used as a
decision rule wherein p-value below 0.05 indicates rejecting null hypothesis while p-
Frequenc Percentag
y e
Age
Below 20 YO 2 14%
20 to 25 YO 4 29%
26 to 30 YO 2 14%
31 to 35 YO 3 21%
More than 35 3 21%
Highest Educational
Attainment
College 11 79%
High School 2 14%
Postgrad 1 7%
History of business
involvement
No 6 43%
Yes 8 57%
Specific economic status
of the family
Low Class 1 7%
Middle Class 13 93%
Total 14 100%
Most of the respondents aged 20 to 25 years old (29%) while a large percentage
aged 31 years old and above (42% combined). Most of them reached tertiary
education (79%) and have been involved in business (57%). Almost all of the
II. Do the plans before opening a Sari-Sari Store help the Sari-Sari Store to survive
Group
P-
During the valu
Prior opening of
Operation of the e
Sari-Sari Store
Sari-sari Store
Managemen
t
Number of None 5 (35.7%) 5 (35.7%) 1.00
Employees Less than 10 7 (50%) 7 (50%)
10 and more 2 (14.2%) 2 (14.2%)
Source of Distributors and
1 (7.1%) 1 (7.1%) 1.00
Supplies Dealers
Groceries 3 (21.4%) 2 (14.2%) 0.99
Loan 1 (7.1%) 1 (7.1%) 1.00
Savings 0 (0%) 1 (7.1%) 0.99
Another Store 2 (14.2%) 1 (7.1%) 0.99
Supermarket 4 (28.5%) 4 (28.5%) 1.00
wholesalers 2 (14.2%) 2 (14.2%) 1.00
Suppliers 2 (14.2%) 2 (14.2%) 1.00
No initial plan 1 (7.1%) 0 (0%) 0.99
Frequency Everyday 1 (7.1%) 1 (7.1%) 0.89
of Inventory Every other day 1 (7.1%) 1 (7.1%)
Replenishm Twice a week 1 (7.1%) 1 (7.1%)
ent
Once a week 4 (28.5%) 5 (35.7%)
3 times a week 1 (7.1%) 0 (0%)
Twice a month 2 (14.2%) 2 (14.2%)
Once a month 3 (21.4%) 3 (21.4%)
Hindi na
masyado by 0 (0%) 1 (7.1%)
replenishment
Walang
pagpaplano 1 (7.1%) 0 (0%)
ukol dito
Operation
Store Hours 8 Hours 0 (0%) 0 (0%) 0.80
(Weekdays) 9 to 12 Hours 5 (35.7%) 3 (21.4%)
13 to 16 Hours 4 (28.5%) 5 (35.7%)
17 to 20 Hours 4 (28.5%) 5 (35.7%)
Sustainability and Survival Leading to Growth of Sari-Sari Stores (Small Neighborhood Variety
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Stores) operating in 2017 for more than 1 year in Barangay Potrero, Malabon City, Philippines
Retail Price
We rely on the
Suggested
Retail Prices
that the
0 (0%) 1 (7.1%)
Distributors
and Dealers
were
implementing.
Extended No (Hindi) 7 (50%) 5 (35.7%) 0.70
Credit Yes (Oo) 7 (50%) 9 (64.2%)
Do you keep No (Hindi) 8 (57.1%) 5 (35.7%) 0.45
accounting
of Ins and
Outs of your Yes (Oo) 6 (42.8%) 9 (64.2%)
Sari-Sari
Store?
Have you No (Hindi) 4 (28.5%) 3 (21.4%) 1.00
considered Yes (Oo)
your
actions/opti
ons when 10 (71.4%) 11 (78.5%)
your
business run
out of cash?
Location
Do you plan No (Hindi) 6 (42.8%) 8 (57.1%) 0.71
where to Yes (Oo)
locate your
8 (57.1%) 6 (42.8%)
Sari-sari
store?
Do you No (Hindi) 3 (21.4%) 1 (7.1%) 0.60
consider the
average
frequency of
customers a
day prior Yes (Oo) 11 (78.5%) 13 (92.8%)
considering
the location
of your Sari-
Sari Store?
Average 10 and below 2 (14.2%) 1 (7.1%) 0.88
frequency of 11 to 20 6 (42.8%) 4 (28.5%)
Sustainability and Survival Leading to Growth of Sari-Sari Stores (Small Neighborhood Variety
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Stores) operating in 2017 for more than 1 year in Barangay Potrero, Malabon City, Philippines
21 to 30 1 (7.1%) 1 (7.1%)
31 to 40 0 (0%) 1 (7.1%)
customers a 41 to 50 1 (7.1%) 1 (7.1%)
day More than 50 5 (35.7%) 6 (42.8%)
Store and the things happened during the operation (P>0.05). However, there
had been slight changes on numbers that were worth noted for. The number of
employee prior opening of Sari-Sari Store and the things happened during the
operation did not change. Respondents who have planned to get their source to
Groceries and another store decreased during the operation while using savings
hours was observed while there was increase in operating hours on public
holidays. Their average respondents of the study earned 600 to 2000 from less
it did went through. Initially, the average respondents have decided to use 5%
to 10% and 20% and above mark-up, it remained the same during the operation.
Respondents perceiving not having credits initially turned out having one during
the operation, the same scenario were also observed on accounting and
have an initial plan where to put their location. Most of them do consider the
number of customer before opening a sari-sari store and it did happened during
the operation. However most of the respondents thought that customers might
range between 11 to 20 and more than 50, frequency remained the same but
sample size but descriptively, the results revealed that some of the owners’
plan prior opening a sari-sari store do change during the operation. According
Malapitan (2007), this was very common among business owners because the
goal was just to make the business profitable but business growth was not the
priority yet. It came along only when they were actually doing the business and
planed for growth (Osborne, 2013). Thus, their current sustainability and
III. What were the struggles faced by the Sari-Sari Store that hinders survival and
sustainability?
The respondents responds that the common problems they face that hinders
them to survive and be sustainable was their monetary issues such as debt,
bankruptcy, supplier related problems, and refusal of doing proper plans before
starting business. Malapitan (2007) also cited these findings among Filipino sari-
sari store. When ask about their store management, the respondents responded
that they do short surveys to their customer asking the things that they expect
practices involves monitoring of store hours. This was relative with their store
management as they need to keep the money flow. They create balance on
working hours because there were few customers during late night and early
themselves for paying wages. Most of them keep on managing their finances
through budgeting and accounting system. Because most of them lend their
customer, they manage to know the profile of whom they were lending but
despite of this, they still keep on having problems with the cash flow. This was
relative to the fact that they were lending and offer extended credits
(Malapitan, 2007). For Location, the owners were paying the rent and
sometimes use their products as payment. This was discuss in the study of
different model that worked only on small communities. This was also relative
within their lack of financial management. This portion revealed that business
management and accounting but least on Location and operations. This was
relative with their lack of plans on doing business, because of their goal of
Sustainability and Survival Leading to Growth of Sari-Sari Stores (Small Neighborhood Variety
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Stores) operating in 2017 for more than 1 year in Barangay Potrero, Malabon City, Philippines
IV. What were the proposed actions for the Sari-Sari Store to survive and be
Frequency Percent
Which among the programs below you think might
help your business to survive and be sustainable
1. Pondo sa Pagbabago at Pag-asenso program
12 86%
(P3)
2. State Pension Funds (SSS, PAG-IBIG, etc..) 10 71%
3. Bank loans (ex. BPI Ka-Negosyo) 8 57%
4. Secured Credit Card 9 64%
5. Happy Sari-sari store 9 64%
6. Puregold Puhunan (investment) Plus (for Aling
11 79%
Puring Members)
7. P&G Angat Kita (Lift you) Program 7 50%
Total 14 100%
These were the actions proposed to the respondents to help them to survive
asenso program (P3) would help them to survive and be sustainable, 79%
believe that Puregold Puhunan Plus (for Aling Puring Members) will help them,
71% see State Pension Funds (SSS, PAG-IBIG, etc..), 64% on Secured Credit Card
and Happy Sari-sari store while 50% perceived P&G Angat Kita Program will
help them.
Sustainability and Survival Leading to Growth of Sari-Sari Stores (Small Neighborhood Variety
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Stores) operating in 2017 for more than 1 year in Barangay Potrero, Malabon City, Philippines
The recent Pondo sa Pagbabago at Pag-asenso program (P3) (Funds for Change
the options of the small scale businesses to rely on Indian money lenders (DTI,
2016). This was common among business owners because most of them rely on
Indian money lenders (Malapitan, 2017). Puregold Puhunan Plus a grocery and
wholesaler designed for sari-sari store owners who were members of Aling
business owners get their products from them. This was also relative to the
everyone has access with state pension funds (DTI, 2016). The least were those
higher among businesses who that have reported growth plans. This shows that
the current statuses of the businesses were thinking of growth that’s why they
accessible.
Sustainability and Survival Leading to Growth of Sari-Sari Stores (Small Neighborhood Variety
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Stores) operating in 2017 for more than 1 year in Barangay Potrero, Malabon City, Philippines
V. Based on the proposed actions for survival and sustainability of Sari-Sari store,
P-
Mean SD
Group* value
Customer satisfaction with
managing change
Level of customer During the
3.29 0.61
satisfaction related to Operation
0.66
business activities After knowing the
3.14 1.03
options for growth
Conducting survey to During the
3.36 0.74
measure satisfaction of the Operation
0.82
customers and carry out the After knowing the
3.29 0.91
necessary changes options for growth
The market coverage of During the
3.29 0.61
business enterprises Operation
0.66
After knowing the
3.14 1.03
options for growth
Increasing the no. of During the
3.07 0.92
customers from the Operation
0.68
beginning of business After knowing the
3.21 0.89
options for growth
Overcoming the actions of During the
3.07 1.14
the competitors over the Operation
0.86
past days/months/years After knowing the
3.14 0.95
options for growth
Achievement at business During the
3.07 1.14
growth by facing the Operation
0.86
environmental challenge & After knowing the
3.14 0.95
strong competition options for growth
Delivering new products and During the
3.21 1.05
services based on market Operation
change 0.56
After knowing the
3.43 0.85
options for growth
Growth in profitability
Growth on net profit During the
2.93 0.83
earnings from the business Operation
0.13
over the past After knowing the
3.43 0.85
days/month/years options for growth
Improvement in Return on During the 2.86 0.86 0.21
Sustainability and Survival Leading to Growth of Sari-Sari Stores (Small Neighborhood Variety
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Stores) operating in 2017 for more than 1 year in Barangay Potrero, Malabon City, Philippines
on their current situation and their perception of growth after knowing the
options for sustainability and survival. However, there was a minimal increase
with the help of the proposed actions for survival and sustainability, there will
income level. They perceived that through the options presented to them,
Increasing in no. of employees with the help of the proposed actions for
from the business over the past years, and growth in turnover compared to the
The results revealed that proposed actions for survival and sustainability of
Sari-Sari store, does not lead to significant growth as perceived by the business
owners (P>0.05) However, the descriptive aspects were worth focusing for.
They have lower perception of growth using their current practices but the
that there was a slight increase in their perception suggesting that they were
positive of the programs that might help them to achieve further business
and growth in no. of employees. Therefore, the proposed programs help them
The average respondents of the study were those female middle income
earners aged 20 to 25 years old who have reached tertiary education and have
survival involved keeping all the work or hiring less employees, keeping the
operating hours in accordance with foot traffic, practicing keeping records but
maintain extended credits and usage of products when needed, and keeping
There were no statistical differences on plans prior opening of the business and
changes in their perception. There were changes on some of the owners’ plan
prior opening a sari-sari store do change during the operation which was
operations. Because they were currently doing the business and have different
interest, they became aware of the corporate and publicly funded programs
Sustainability and Survival Leading to Growth of Sari-Sari Stores (Small Neighborhood Variety
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Stores) operating in 2017 for more than 1 year in Barangay Potrero, Malabon City, Philippines
helping small business owners like them. They were less convinced of growth
The research recommends doing an actual study of the subject matter using a
higher sample size to elaborate the subject matter. Failing to reject the null
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Stores) operating in 2017 for more than 1 year in Barangay Potrero, Malabon City, Philippines
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