Financial Literacy Among Young Entrepreneurs in Lemery

FINANCIAL LITERACY AMONG YOUNG ENTREPRENEURS
IN LEMERY, BATANGAS
A Thesis
Presented to the Faculty of
College of Accountancy, Business, Economics and
International Hospitality Management
Batangas State University
Batangas City
In Partial Fulfillment
of the Requirements for the Degree
Bachelor of Science in Business Administration
Major in Financial Management
By:
Enriquez, Mia Lyn Jezail A.

Mediona, Mark Ervin M.
Vergara, Marvie Cindy C.
December 2021
ⅱ
APPROVAL SHEET
This thesis, titled FINANCIAL LITERACY AMONG YOUNG

ENTREPRENEURS IN LEMERY, BATANGAS prepared and submitted by Mia
Lyn Jezail A. Enriquez, Mark Ervin M. Mediona and Marvie Cindy C. Vergara in
partial fulfillment of the requirements for the degree Bachelor of Science in
Business Administration Major in Financial Management, has been examined
and is recommended for acceptance for oral examination.
ANGELICA R. MANALO, Ph.D.

Adviser
Approved by the Committee on Oral Examination with a grade of ______
PANEL OF EXAMINERS
ELISA S. DIAZ, DBA

Chairperson
GEMAR G.PEREZ, DBA MARY GRACE T. MANDANE, Ph.D.

Member Member
Accepted and approved in partial fulfillment of the requirements for the

degree Bachelor of Science in Business Administration Major in Financial
Management.
_________________ BENDALYN M. LANDICHO, Ph.D., AFBE

Date Dean, CABEIHM
ⅲ
ACKNOWLEDGEMENT
The researchers would like to express their deepest gratitude to Heavenly
Father who strengthens them all throughout the process and most especially
during the toughest time they had. They were spiritually guided and motivated,
inspired by your words which helped them move forward towards the attainment
of their triumph.
To the researchers’ families and most loved family, Enriquez’s,
Mendiona’s, and Vergara’s, for filling up their empty jars of fate with contagious
support, replacing doubts in their hearts with confidence to overcome these
challenges, for helping them to relieved from the hardships that they have
undergone through the process of completing this study, thank you!
To the adviser of this study, Angelica R. Manalo, Ph. D., for
wholeheartedly sharing her time, thoughts, and greatness to motivate the
researchers to push themselves to keep striving and give all their best and heart,
thank you!
To Dr. Elisa Diaz, Dr. Mary Grace Mandane, and Dr. Gemar G. Perez the
Panel of Examiners, for meaningful suggestions and recommendation to
enhance the study;
To Dr. Gemar Perez, the researcher’s statistician, for helping them in
interpreting and processing the data and for extending extra effort to help the
researchers;
ⅳ
To the respondents of this study, who actively participated in answering
the questionnaire prepared by the researchers, thank you!
To their classmates and friends who are not particularly mentioned but
have been instrumental in the study, for their help and moral support needed in
the critical stage of the study.
Mia Lyn
Ervin
Cindy
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TABLE OF CONTENTS
Page
TITLE PAGE................................................................................................. i
APPROVAL SHEET..................................................................................... ii
ACKNOWLEDGEMENT............................................................................... iii
TABLE OF CONTENTS............................................................................... v
LIST OF TABLES......................................................................................... vii
LIST OF FIGURES....................................................................................... ix
ABSTRACT.................................................................................................. x
CHAPTER
I. THE PROBLEM
Introduction....................................................................................... 1
Background of the Study.................................................................. 3
Statement of the Problem................................................................. 4
Theoretical Framework..................................................................... 5
Conceptual Framework.................................................................... 7
Scope and Limitations of the Study................................................. 9
Significance of the Study................................................................. 9
Definition of Terms........................................................................... 10
II. REVIEW OF LITERATURE

Conceptual Literature....................................................................... 13
Research Literature.......................................................................... 31
Synthesis.......................................................................................... 33
III. RESEARCH METHODOLOGY

Research Design.............................................................................. 36
Respondents of the Study................................................................ 37
Data Gathering Instrument............................................................... 37
Data Gathering Procedure............................................................... 39
Statistical Treatment of the Data...................................................... 40
IV. PRESENTATION, ANALYSIS AND INTERPRETATION

OF DATA
Profile of the Respondents............................................................... 41
Assessment on Financial Literacy Among Young Entrepreneurs.... 49
Comparison of Responses on the Assessment of Financial Literacy
Among Young Entrepreneurs in Lemery, Batangas when grouped
according to their Profile…………………………………………………. 62
Proposed Recommendation ……………………………………………. 81
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Page
V. SUMMARY, FINDINGS, CONCLUSIONS AND

RECOMMENDATIONS
Summary.......................................................................................... 86
Findings............................................................................................ 87
Conclusions...................................................................................... 92
Recommendations............................................................................ . 93
BIBLIOGRAPHY .......................................................................................... . 95
APPENDICES
CURRICULUM VITAE
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LIST OF TABLES
Table No. Title Page
1 Scoring and Interpretation ……………................................... 39
2 Distribution of Respondents by Sex …………….................. 41
3 Distribution of Respondents by
Highest Educational Attainment ……………................... 43
Number of Years Operating the Business ......................... 44
Form of Business.....................……………......................... 46
Net Business Income ……………...................................... 47
7 Respondent’s Assessment on Financial Literacy

in terms of Financial Knowledge ……………...................... 49
8 Respondents’ Assessment on Financial Literacy

in terms of Financial Communication ……………............... 51

in terms of Financial Ability ……………............................... 53

in terms of Financial Behaviour ……………......................... 55

in terms of Confidence or Experience …………….............. 58
12 Comparison of Responses on the Assessment of

Financial Knowledge when Grouped
according to Sex ……………..............…………….............. 62

Financial Knowledge when Grouped according to
Highest Educational Attainment …………….................... 65
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Number of Years Operating the Business ……………....... 67

Form of Business ……………..............……………............. 69

Net Business Income……………..............………………… 71

Financial Literacy when Grouped
according to Sex……………..............………………………. 73
18 Comparison of Responses on Assessment of

Financial Literacy when Grouped according to
Number of Highest Educational Attainment………..……… 74

Number of Years Operating the Business………................ 76

Form of Business ………..............………………................. 78

Net Business Income………..............………………………. 80
22 Proposed Recommendation to Enhance the

Financial Literacy of Young Entrepreneurs…..........…...… 83
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LIST OF FIGURES
Figure No. Title Page
1 Integration of financial literacy measurement………..............… 6
2 Research Paradigm of the Study………..............………………. 8

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ABSTRACT
This study was conducted to assess the financial literacy among young
entrepreneurs in Lemery, Batangas. The study aims to assess the level of
financial literacy specifically to the profile of the students in terms of sex, highest
educational attainment, number of year operating the business, form of business,
and net income. Also, it sought to assess the respondents in terms of financial
knowledge, financial communication, financial ability, financial behavior, and
confidences and experience. The present study is concerned in assessing the
level of financial literacy of young entrepreneurs. The main purpose of the study
is to present the facts of information regarding the financial literacy of young
entrepreneurs. The study was also conducted to compare the responses and to
provide recommendations that may be proposed by the young entrepreneurs.
The researchers utilized the descriptive research design to depict the
participants in an accurate way. The respondents of the study are composed of
100 young entrepreneurs ages 18 to 30 years old whose businesses obtained
business permits in Lemery, Batangas. The researcher used the non-probability
sampling, specifically snowball sampling. The main gathering instrument of the
researcher was conducted through an online survey questionnaire given to the
young entrepreneurs. The researchers prepared a questionnaire based on the
statement of the problem. The prepared letter was also provided to the
respondents. The researcher used

ⅺ
frequency and percentage, weighted mean, and comparison of means to come
up with the summary table findings.
Based on the findings of the study, the majority of young entrepreneurs in
Lemery, Batangas were female, most were college graduates, sole proprietors,
operating their businesses for 2 - 3 years and most of them had a net business
income of Php 50,000 and below. In general, on the assessment of financial
literacy among young entrepreneurs in Lemery, Batangas, majority of the
respondents were highly literate on the assessment of financial literacy in terms
of financial communication, financial ability, financial behaviour , and confidence
or experiences; while, in terms of financial knowledge young entrepreneurs were
knowledgeable about balance sheets, sales revenue as well as costs and
general expenses. The researchers proposed recommendations to the young
entrepreneurs in Lemery, Batangas that they can consider for them to apply it
inside and out of their business.

1
Chapter I
THE PROBLEM
This chapter deals with the presentation of the problem. Specifically, this
presents an introduction, the background of the study, statement of the problem,
theoretical framework, conceptual framework, hypothesis of the study, scope and
limitations of the study, significance of the study, and definition of terms.
Introduction
People go to schools, colleges, universities to complete education and
start earning livelihood through taking up jobs, practicing professions or starting
their own businesses to earn money. Educating individuals in finances can help
to be well-informed in the starting point for their financial choices throughout their
adult lives. Financial decisions are continuously appearing throughout the lives of
people, and it is not easy to deal with, but it would be easier if individuals shape
their knowledge about finance and handling money properly can make better
decisions. From simple practices like keeping a track of expenses and
understanding the need to spend money if we like a product to striking a balance
between the value of time saved and money lost, paying our taxes and filing of
tax returns, finalizing the property deals, etc – everything becomes a part of
financial literacy. Thus, people who are financially literate understand basic
concepts that help them manage their money.
Moreover, it is generally acknowledged that entrepreneurs, irrespective of
their age, are regularly involved in decision-making activities concerning the

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acquisition, allocation, and utilization of resources. These activities, inevitably,
have financial implications and to function effectively, entrepreneurs need to be
financially literate. An essential indicator of people’s ability to make financial
decisions is their level of financial literacy. Nonetheless, it's tough for anyone to
start out as an entrepreneur building a new business from the ground up. Being
young at the same time brings a unique set of challenges to the table, ones that
your older counterparts may not have to deal with. Stereotypes of the young and
attitudes about how young people should behave have a way of tripping up the
unwary business owner.
Further, in the process of starting-up a business, one of the important
elements of an entrepreneur is the ability in financial management and their
understanding of financial aspects of a business such as savings, loans,
insurance, and investment. Therefore, young entrepreneurs must have financial
skills, which will thereafter be referred to as good financial literacy. Through good
financial literacy, they will be able to find appropriate funding, manage existing
funds effectively and efficiently, bear expenses appropriately, and even make the
right investments.
Generational values can affect how the community perceives an individual
as a young entrepreneur. Older people might instinctively judge young
entrepreneurs as lazy or irresponsible, refusing to give a chance to earn their
trust to keep going. Based on the usual perception of people toward young
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entrepreneurs, the proponents came up by measuring the level of financial
literacy of young entrepreneurs.
Background of the Study
The successes of businesses have been associated with the ability of the
entrepreneurs to be financially literate in managing the financial matters. The
task of entrepreneurs does not only focus on purchasing, allocating, and
distributing the resources efficiently, but to be able to understand the running of
the business in terms of possessing the knowledge on accounting, costing, and
budgeting.
Financial literacy is critical because it equips us with the knowledge and
skills we need to manage money effectively. It’s one thing that will impact almost
every aspect of life, yet many people do not have the knowledge they should and
even those who do often don’t share it with their children. A financially literate
business owner is more likely to be fully in control of their business. Gaining an
understanding of what balance sheets and profit and loss statements mean
provides a clear view of the financial state of your enterprise and subsequently
facilitates smarter business decisions.
The researchers aimed to assess the level of financial literacy of young
entrepreneurs. It is essential for young entrepreneurs to measure the level of
financial literacy who literally pioneered their own businesses because these
days, more and more youths who are full of great ideas, passion, and drive are
4
launching their own businesses yet unfortunately, age can trigger societal
stereotypes that try to make youth a liability rather than an asset. Entrepreneurial
success can come at any age, yet many business cultures that still associate age
with experience and an enhanced sense of responsibility tend to discriminate
against or even disparage young entrepreneurs. Other entrepreneurs might
doubt the ability to persist with business over time, the reason why conducting
this study is important is to know how financially literate young entrepreneurs are
to run their business.
Statement of the Problem
This study aimed to assess Financial Literacy among Young
Entrepreneurs.
Specifically, this sought answers for the following questions of:
1. What is the profile of the respondents in terms of:
1.1 Sex;
1.2 Highest educational attainment;
1.3 Number of years operating the business;
1.4 Form of Business; and
1.5 Net Business Income?
2. How may financial literacy be assessed by respondents in terms of:
2.1 Financial Knowledge;
2.2 Financial Communication;
2.3 Financial Ability;

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2.4 Financial Behaviour; and
2.5 Confidences or experiences?
3. How may the responses be compared?
4. Based on findings, what recommendations can be proposed to the young
entrepreneurs?
Theoretical Framework
The financial education of a country (in terms of knowledge, abilities and
behaviors) can be crucial for a healthy economic life, at individual, macro or
multi-nation level. It can contribute to a decrease of financial exclusion risks, to
an increase of informed decisions and even to an increased liquidity on the
financial markets. The concept designed to encompass different facets of this
financial education is labeled “financial literacy”. A large number of concepts are
used within the umbrella of financial literacy, and quite different measurement
instruments exist, more or less sound. This conceptual and operational
heterogeneity makes things complicated and does not allow comparisons and
concrete actions.
The research on financial literacy by Zait and Bertea (2014) could be seen
from various aspects, including the five dimensions, namely: (1) Knowledge
about financial concepts and products (financial knowledge variable), (2)
communication about financial concepts (financial communication variable), (3)
the ability to use that knowledge to make necessary financial decisions (financial
ability variable), (4) the application/use of various financial instruments

6
(behavioral finance variable), and (5) self-confidence on the previously taken
decisions and actions (financial confidence variables).Various studies earlier, for
example, the discussion of financial knowledge, financial experience, ability to
communicate about various financial concepts, the ability to use different
financial concepts, the ability to make a good financial decisions, the attitude
towards the use of financial instruments, public trust in the conducted financial
activities, behavioral finance and several models of computation/planning. The
measurement of the level of individual financial literacy is important to obtain the
value that provides information in an integrative way. Some of these
measurements such as research conducted by Zait and Bertea (2014), Chen and
Volpe (1998) and the Financial Services Authority (2013), then, this article will
propose a measurement framework that integrates those things as described as
follows Figure 1.
Figure 1: Integration of financial literacy measurement; proposed
Source: Zaid and Patrecia (2014), Chen and Volpe (1998) and Otoritas
Jasa Keuangan Indonesia (2013)

7
Conceptual Framework
For better understanding of the study, the researchers developed a
conceptual framework. This offers a rationale and fundamental basis of the entire
research. It serves as a structure in conducting the analysis of the study in order
to fully understand the information gathered and then evaluate it. The conceptual
paradigm illustrates the flow of ideas as well as the variables used in the study.
Input variables are the respondent’s profile which includes sex, highest
educational attainment, number of years operating the business, form of
business, and net business income. This part also included the assessment of
the entrepreneur’s financial literacy in terms of financial knowledge, financial
communication, financial ability, financial behaviour and confidences or
experiences
The relationship of the input to process implies only that every input
should undergo a certain process to have a reliable output. The researchers
assessed the profile of the respondents using online survey questionnaires to
gather important data. After gathering the needed data, it undergoes such a
process for analysis through the help of a school statistician.
The process covered the data gathering procedures used in the study
which consists of survey questionnaire and data analysis. The relationship of the
process to output implies only that, through the result of the processed input, the
researchers can easily determine what intervention programs and activities may
be developed to enhance the financial literacy of young entrepreneurs.

8
INPUT PROCESS OUTPUT
Figure 2
Research Paradigm of the Study
With these, the researchers aimed to determine the level of financial
literacy among young entrepreneurs. This study was confined to the content
covered by the statement of the problem.
Scope and Limitations of the Study
The present study dealt with financial literacy among entrepreneurs in
terms of financial knowledge, financial communication, financial ability, financial

9
behavior and confidences or experiences. The main purpose of this study is to
present the facts and information regarding the assessment of financial literacy of
young entrepreneurs. The respondent of the study is only limited to young
entrepreneurs ages 18 to 30 years old whose businesses obtained a business
permit to operate.
Since the present study is concerned in assessing the level of financial
literacy of young entrepreneurs in Lemery, Batangas, descriptive method
research was the appropriate research design to use. The researchers used
questionnaires to be able to assess the financial literacy of young entrepreneurs.
Other sources of information used in the study were obtained from books
and publication. The researchers utilized the internet in obtaining online article
information from credible websites.
Significance of the Study
The researchers believed that the study would be great help and value to
the following:
To the Young Entrepreneurs, this is most beneficial in the study, it would
help them assess their performance and financial literacy. They would be able to
improve themselves for the betterment through assessment.
To the Present researchers, this study would familiarize them with the
over-all information and be able to know the capabilities of newly rising
entrepreneurs. This study provides valuable insights regarding financial; literacy
that motivates to improve literacy financially.

10
To the Financial Institutions, this study will give information how young
entrepreneurs handle their business and how they compensate their liability. This
may also be the basis for accepting young entrepreneurs for their loans.
To Older/Experienced Entrepreneurs, this study will deal with the
performance and level of financial literacy of young entrepreneurs. They may use
this as their qualification for a collaboration or partnership in the future.
To Locals, this study will have information about the existence of the
business of young entrepreneurs together with their performance on handling it.
This may be able to be used as their reference and support young entrepreneurs’
businesses in the future.
To the Government, this study will be dealing with the information about
the young entrepreneurs that may help them to make a policy that protects and
curriculum to improve and enhance the financial literacy of young entrepreneurs.
Finally, to the Future researchers in some instances the upcoming
proponents would pursue to have in depth on the subject study, they may use
this study for reference.
Definition of Terms
The following terms were used in the study. They are conceptually and
operationally defined to have a clearer understanding of the text of the study.
Confidences or experiences. It is a judgment about capabilities for
accomplishment of some goal, and, therefore, must be considered within a
broader conceptualization of motivation that provides the goal context.

11
Experience tends to make people more realistic, whereas not knowing what
entrepreneurs can’t do ensures that everything remains in the realm of the
possible. (Morris, 2014). In this study, confidence will be referring to the
motivation of the respondents to strive objectives; experience will be referring to
the things that respondents learn from problems faced or observation.
Financial Ability. It is described as an individual's ability to adhere to a
well-structured system of financial decision making in order to stay on top of
financial matters and pay off debts on time (NFEC, 2020). In this study, it refers
to how the respondents use their knowledge in decision making regarding
finances.
Financial Behaviour. It refers to the preparation of the use of money as
expenses and developing financial security nets are financial behaviors that
frequently lead to monetary property of financial well-being (Atkinson and Messy,
2012). In this study, it refers to the behavior or how respondents manage their
finances on its day-to-day operation.
Financial Communication. It is a vital component of market transparency
and constitutes a key element for investor confidence and the credibility and
quality of a financial marketplace as a whole. (Bredin Prat, 2018). In this study,
Financial Communication will be referring to how transparent the respondents on
giving information about their finances and how credible respondents are.
Financial Knowledge. This refers to the sufficient knowledge about facts
and personal finance and is the key to the personal financial management
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behaviors (Garman & Fogue, 2006). In this study, it is the capacity of young
entrepreneurs to acknowledge and understand financial basic knowledge and
comprehension of finances.
Financial Literacy. This pertains to an individual’s ability to interpret and
understand basic financial concepts and apply that knowledge to make informed
decisions (Remund, 2010). In this study, this will be assessed based on the level
of the respondents’ financial literacy.
Young Entrepreneurs. This refers to individuals within the age of
eighteen(18) and thirty (30) years old who are engaged in the design, creation,
establishment, and/or management of micro, small or medium enterprise
(Republic Act No. 10679). In this study, young entrepreneurs are ages 18 to 30
years old whose businesses obtained a business permit to operate.

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Chapter II
REVIEW OF LITERATURE
This chapter presents conceptual and related literature reviewed by the
researchers which were relevant to the study. The information on the various
studies that had been conducted along the same line supports the investigation
and enlightened the researchers to the direction of the study.
Conceptual Literature
This chapter discusses the important component of the study. It gives a
clear view about the subject of the study through various research from books,
journals, newspapers, and internal sources.
Financial Literacy
Financial literacy has ever-increasing importance in our day. Especially in
economic and financial domains, whether people are financially knowledgeable
helps greatly in explaining various financial or economic behavior. Decision
makings of economic agents are highly shaped by their financial literacy
regarding understanding fundamental financial topics. In the course of time,
individuals have increasingly been more active agents who are responsible for
their financial planning than even before. In fact, this increased responsibility
fundamentally could have stemmed from a humanistic need- preserving self,
since recent crises predominantly damaged the naive and the inexperienced. In
one hand, global crisis, known as subprime mortgage crisis in2008, can be said
to bring financial comprehension into the forefront (Mandell and Klein, 2009,
p.16; Robb and Woodyard, 2011, p. 60; Shahrabani, 2012, p. 156).

14
Remund (2010) broadly defines financial literacy as a measure of the
degree to which one understands key financial concepts and possesses the
ability and confidence to manage personal finances through appropriate,
short-term decision-making and sound, long-range financial planning, while
mindful of life events and changing economic conditions. Organisation for
Economic Co-operation and Development (2013) broadly defines financial
literacy as knowledge and understanding of financial concepts and risks, and the
skills, motivation and confidence to apply such knowledge and understanding in
order to make effective decisions across a range of financial contexts, to improve
the financial wellbeing of individuals and society, and to enable participation in
economic life.
Huston (2010) defines financial literacy as a measure of how well an
individual can understand and use personal finance-related information. Abdullah
and Chong (2014) narrowly define financial literacy as the ability to make
effective decisions regarding the use and management of money and other
assets. Addin et al. (2013) narrowly define financial literacy as the awareness of
financial principles and terminologies.
Financial literacy, according to Lusardi & Mitchell (2014) and Yushita
(2017), is the financial awareness and skill that individuals possess in handling
finances and saving money in order to boost their quality of living and escape
financial difficulties, while the Financial Services Authority describes financial
literacy as a financial ability and knowledge that can benefit people in their
15
knowledge of financial service institutions, benefits, features, and financial risks
through beliefs and skills to improve decision making quality.
Atkinson and Messy (2012), financial literacy is a combination of
awareness, knowledge, skill, attitude and behavior necessary to make sound
financial decisions and ultimately achieve individual financial wellbeing. Nohong
et al. (2019), financial literacy is sufficient knowledge of personal financial facts
and is a key to personal financial management.
An individual with good financial literacy will influence his or her financial
behavior toward a positive direction, such as the payment of a bill on time, having
savings and investment, and ability to manage credit cards wisely (Lusardi et al.,
2010).
The other side of young entrepreneurs is that they are businesspeople. As
businessmen, they understand how to prepare financial statements for various
purposes, such as funding, investment, or other financial actions (Dahmen &
Rodriguez, 2014). Moreover, they must possess good financial knowledge so
that the business continues to grow and performs well. Aribawa’s research
(2016) found that businesspeople who have financial literacy will positively
influence their business performance. The urgency of this research is that if
young entrepreneurs do not have good financial literacy, then they certainly
cannot manage their business well and even the sustainability of their business
will be doubted.
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Males surpassed females on all of the variables of the study, which is
consistent with Sucuachi’s (2013) findings. Females, on the other hand, have a
lower level of financial literacy than males, as demonstrated by this study.
However, it is still not statistically significant enough to be used to estimate the
financial literacy of micro-entrepreneurs in Batangas since according to
Herdjiono et. al. (2018), there might be differences in men and women in terms
of financial matters but there is no relevant and significant difference that gender
identities have something to do with financial matters.
Financial knowledge
Financial knowledge, defined by Herd et al. (2012) as an individual's
knowledge of his financial situation rather than basic financial concepts, is a
prerequisite for making effective financial decisions. Huang et al. (2013), financial
knowledge is described as an understanding of individual financial concepts.
Huston (2010), financial knowledge described as an individual's ability to
understand and be confident in using their financial knowledge to make a
financial decision. Financial knowledge, according to Ali et al. (2018), is the
capacity to handle financial matters, while Jindrichovska (2013) proposes that
there are entrepreneurs who start a business but have not involved themselves
in managing the financial aspects.
Lusardi et al. (2017a), Financial knowledge itself should be modeled as an
endogenous choice variable akin to human capital investment. The mechanism

17
we posit is that financial knowledge can enable individuals to better allocate
resources over their lifetimes in a world of uncertainty and imperfect insurance.
Financial knowledge is a capital obtained in life through the ability to learn
to manage income, expenses, and savings safely (Delavande et al., 2008).
Based on some of these definitions, financial knowledge is the knowledge
possessed by individuals related to their financial situation, so that they can
make decisions based on existing financial conditions.
Moreover, there have been some studies revealing that financial
knowledge made a difference in investment risk perceptions. More specifically,
(Diacon, 2004, p.187) detected significant differences between financial experts
and lay people who have less financial knowledge compared to financial experts.
Accordingly, lay people tended to be more risk averse than financial experts and
to be exposed to affiliation bias (i.e., finding suppliers and salesmen more
credible than lay people). Also, these people viewed as having less financial
knowledge think more likely that financial products are too complicated. In
another study (Wang et al., 2011, p.11), authors conducting a risk perceptions
survey in Switzerland highly correlate knowledge-related scales with risk-related
scales. And they concluded that the participants viewed some investment
products more understandable and perceived the same products less risky.
Therefore, financial literacy would make a greater difference in financial settings
than it is thought.
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Financial knowledge relevant to financing is how to raise adequate capital
that is one of the main contributory factors to small business success (Hyder &
Lussier, 2016). Entrepreneurs with financial knowledge tend to keep
comprehensive business financial records, thereby gaining a competitive
advantage over rivals who keep no such records, through their ability to access
external funding (Usama & Yusoff, 2018).
Women have higher knowledge in finance than men and about some
financial topics such as managing money (Hira & Mugenda, 2010), financial
analysis (Webster & Ellis, 2016), and investing (Goldsmith & Goldsmith, 2017).
There is evidence that women employ more prudent investing strategies than
men do (Barber & Odean, 2011), male have a lack of knowledge and confidence
likely contribute to their dissatisfaction with their financial situations (Hira &
Mugenda, 2010).
Females have tended to have a harder time successfully managing money
because they face financial challenges that either are not experienced by males
or are not experienced to the same degree (Anthes & Most, 2010; Chen & Volpe,
2013). Female entrepreneurs in Malaysia have a higher level of financial
knowledge than their male counterparts (Falahati and Paim, 2011). Similar
results were also confirmed by Chen and Volpe (2012) where they observed that
male entrepreneurs consider English and humanity are more important courses
than finance, and they generally have less enthusiasm, lower confidence and
less willingness to learn about personal finance topics that female entrepreneurs
19
do. It was also discovered that entrepreneurs with less financial knowledge had
more negative opinions about finances and made more incorrect financial
decisions. They pointed out that having a low level of financial knowledge limits
entrepreneurs’s ability to make informed decisions.
Dahmen & Rodriguez, (2014) in which the other side of young
entrepreneurs is that they are businesspeople. As businessmen, understanding
how to prepare financial statements for various purposes, such as funding,
investment, or other financial actions is needed.
Moreover, financial knowledge has a significant influence on financial
literacy according to Lusardi, A., and O. Mitchell, (2014). Thus, Huston (2010)
stated that financial literacy is a measure of how well an individual can
understand and use personal finance-related information. Addin et al. (2013)
narrowly define financial literacy as the awareness of financial principles and
terminologies.
Furthermore, Brown et al. (2006), financial literacy for small business
owners must contemplate the ability to read and understand fundamental
financial statements, as well as, the ability with numbers, in order to make
informed judgments and to make effective decisions regarding the use and
management of money.
Moreover, Aydemir & Aren (2017) Financial knowledge seems to make the
decision process more complicated. It could also be a significant factor in
predicting risky investment intentions. Financial Literacy’s relative effect could

20
have remained weaker when compared to other significant individual factors. Or,
subjective financial knowledge rather than the objective one could be significant
when it comes to financial risk-taking. A “financial ability” scale involving both
objective financial knowledge and also subjective one (i.e. familiarity with
financial markets, investment experience) could be developed. Thus, this kind of
scale could enable financial behavior to be explained well. Wang et al. (2011)
have manifested that people perceive the instruments that they know more
about, which they find familiar and more understandable as less risky. Similarly,
Vlaev et al. (2009) and Diacon (2004) expressed that financial knowledge has an
influence on risky investment behavior.
In addition, according to Usama & Yusoff, (2018), entrepreneurs with
financial knowledge tend to keep comprehensive in business such as financial
records, thereby gaining a competitive advantage over rivals who keep no such
records, through their ability to access external funding.
Lusardi and Mitchell (2007, 2014) reviewed relevant research and found
that financial literacy increases with more education. In other words, people who
are more educated are more likely to be more financially knowledgeable.
Similarly, Lusardi et al. (2012) found that people who are more educated have
higher levels of financial literacy even when controlling for demographics. Lusardi
& Mitchell (2011) mentioned that people with a higher level of education have
greater financial knowledge than the rest. Further, Carlin & Robinson (2012)
revealed that someone who was briefly trained to manage finances can make
21
better decisions in future financial matters. Thus they will have good knowledge,
whether financial knowledge is obtained through training or with formal
education, then they will understand the basic principles of using money. One
factor that can increase financial knowledge is by improving education. As more
individuals receive education then the individual's financial knowledge will
increase because he will be able to choose various financial tools (credit cards,
debit, pay check, bonds, stocks, etc.) that ease them to make transactions or
investments. Individuals will also be more vigilant about their future. So, they will
try to find out more about ways to save their assets (Mandate et al., 2015)
Financial Communication
Daniel et al. (2017), financial communication can be described as a
firm's all actions to inform shareholders and potential investors of a company
about the securities they hold and about the financial realities of the company.
Financial communication is among the most regulated areas in the
strategic communication field (Laskin, 2014). Corporations and regulators do
not just care about the quantity and limits of the information disclosed, but
they also give importance to the form wherein it is revealed (Hirsleifer et al.,
2003).
According to Daniel et al. (2017) during financial communication,
accuracy of the messages conveyed is particularly significant in transmitting
and receiving messages with little or no alteration of the original intent.
Comprehensibility of the content of the communication is possible with the

22
help of simplicity, clarity, accuracy and reliability of the messages. High
quality financial communication can gain the trust of all stakeholders including
the general public, investors and regulatory and supervisory authorities.
According to extant literature, excellence in financial communication
necessitates an integrated approach wherein trust based relationships are
built with actors of the financial market including investors and financial
analysts (Whitehouse, 2017).
Financial communication is a process that extends from the economic
sphere to the cultural area, which simultaneously contacts the global cycle of
money and the most ordinary everyday practices, and the actors who have
different objective positions in the social field regarding financial matters
(Gökgöz, 2013).
In terms of the quality of financial communication, the study on Romanian
managers has been carried out by Pop and Man (2017). Some specific
constraints were requested in terms of the quality of financial communication.
Indeed, research in financial communication is dominated primarily by accounting
and finance researchers. And they concentrate mainly on the external aspects of
financial information (Palmierri et al., 2018). The most influential order of factors
is; 1. Transparency, 2. Imperfections of the regulatory framework, 3. Limited
demand for market-based financial information, 4. Failure to correlate
fundamental financial principles, 5. The subject of producer of financial
information.
23
Chen and Xihong (2020) determined that financial communication is
extremely important for the improvement of a company’s core financial
management. Having a strong understanding of finance is essential for financial
departments, as is developing an effective communications system. Being
financially literate is also vital for such business units. A valid financial
communication strategy for an entrepreneur is one in which the communication is
directed directly toward developing solid, intelligible, truthful, and exhaustive
responses while eagerly receiving the messages provided in a favorable
environment, according to Salvioni’s findings (2002). Thus, the assessment of
the financial communication of the participants and the obtained data is
significant for the further analysis within the study that is to be conducted to
evaluate the financial literacy of the entrepreneur.
Financial Ability
According to the National Financial Educators Council (2020), financial
ability is described as an individual's ability to adhere to a well-structured system
of financial decision making in order to stay on top of financial matters and pay
off debts on time.
The word financial ability can refer to a variety of things. It refers to a
bank's ability to service a loan, which is also known as financial capability.
Financial literacy, or knowledge of financial matters and the ability to make sound
financial decisions, is another term for financial ability. Financial inclusion, or
access to financial services, is a third meaning. Someone who does not have
24
access to financial services is unable to manage their finances. These three
definitions, taken together, provide a comprehensive financial capacity
classification. Financial ability in this context refers to financial literacy, financial
capacity, and financial inclusion. (National Financial Educators Council, 2020)
Furthermore, financial ability is a broad and comprehensive conceptual
framework that serves as the foundation and determinant of financial success.
The composition of financial ability is a subject of debate among academics. Jing
Xin's classification describes the major schools of finance and accurately reflects
an organization's overall financial ability. He proposed that a modern enterprise's
financial ability can be divided into four abilities, namely profitability, growth
ability, solvency ability, and operation ability, based on his extensive analysis of
related research results both at home and abroad. (Marquez et al., 2019)
Consumer Financial Protection Bureau (2015) defined the Financial Ability
as it captures the general sense of skill component that is widely understood to
be a key element of financial literacy and capability. The finding is not that
domain-specific knowledge is not needed by consumers in specific situations and
for particular tasks. The point is rather that domain-specific knowledge per se is
not a comprehensive indicator of financial skill for all people in all situations and
life stages. Financial ability is conceptualized as the set of skills that supports the
behaviours identified in the prior section on financial behaviours and strategies
and encompasses the Knowing when to seek out and where to find reliable
information to make a financial decision, Knowing how to process financial

25
information to make sound financial decisions and Knowing how to execute
financial decisions, including monitoring and adapting as necessary to stay on
track.
Meanwhile, according to Chen (2011) there is a significant relationship
between financial abilities and the financial distress in the business organization.
However, their study did not mention the relationship between financial abilities
and the earnings management activities in the business organization.
In addition, financial ability has a connection towards the management
performance ability on the earnings management level in the business
organization. This type of financial ability could be defined as the ability of the
managers in the business organization to meet their forecast in the management
performance was closely related to the capacity of the managers in the business
organization to manage their business expenses level. (Procedia Economics and
Finance 35 (2016) 136-145)
Cera et al. (2020), there is a slight difference between the composite
mean of literacy in financial communication and the composite mean of financial
ability. While these two are interconnected and have an impact on one another,
financial ability is not impacted by the aforementioned. It also implies that the
entrepreneurs’ ability to manage and source cash, as well as their ability to
conduct a self-internal audit to identify resource leakages and generate an
appropriate distribution of resources and loan or debt payback, is weak (Mutegi,
2015).
26
Financial Behaviour
According to Nababan & Sadalia (2013) and Sari (2016), financial
behavior is an individual's duty in managing finances with available resources to
meet personal needs and desires. Financial behavior as an action that reflects
good behavior in managing pocket money in accordance with the objectives and
financial realization (Potrich et al. 2016).
Financial behaviour, according to Kholilah and Iramani (2013), is a
person's ability to schedule and handle regular income and expenses.
Furthermore, if anyone can control their financial conduct, they can better
distribute financial resources based on their needs, such as in the areas of
spending, bill payment, life needs, saving allocation, and debt management.
Moreover, a person's attitude toward handling money inflows and outflows,
as well as loans and savings, demonstrates healthy financial behavior (Layli, N.,
2013). Also, Financial behavior is a type of financial management operation that
involves the preparation, management, and control of funds at the individual level
(Kasmir 2010).
Using cash, credit, and savings are all examples of general financial
behavior (Sadalia, 2010; Xiao, 2015; Xiao & Porto, 2017). In contrast to
conventional financial assumptions, financial behavior is focused on observations
from other sciences and industries to understand human behavior. Financial
behavior looks at personal decision-making approaches, including cognitive
and emotional biases. Individuals who are not familiar with the concept of
27
basic financial knowledge find it difficult to judge and ultimately use financial
products and services not based on existing knowledge (Atkinson & Messy,
2012).
Financial behavior can help a firm and a family achieve their (life)
objectives. These goals can include: (1) preventing the company from going
bankrupt (preventive goal), (2) maintaining or achieving financing for the
business and household's continuation (maintenance goal), (3) financing future
business and household purchases through savings and credit, and (4)
becoming wealthy (promotional goal) (Zhou & Pham, 2011).
Financial behaviour, as defined by Nofsinger (2001), is the study of how
humans actually behave in a financial decision. Financial behavior is related to
one's financial responsibility related to financial management, according to Ida
and Dwinta (2010). Individuals who practice responsible financial conduct are
more effective at managing their money, such as creating a budget, saving and
restricting their spending, investing, and meeting their financial commitments on
time. Financial behavior, according to Atkinson and Messy (2012), can aid in cost
planning and financial security. Certain activities, such as excessive credit use,
on the other hand, might have a negative impact on one's financial well-being.
It has been argued in some studies that risk averseness may somewhat
predict individual differences in economic or financial decisions (Rooij, Lusardi
and Alessi; 2007, p.23) since people display divergency between their attitude to
risk taking. This divergency may reflect on their finance-related behaviors.

28
Hence, it is suggested that risk averseness together with financial literacy be
included to the research model arguing the occurrence of any financial decision
making. Through risk averseness, it is possible to evaluate financial literacy’s
relative impact. Or, after controlling for risk averseness effect, it must be tested
whether financial literacy still remains a significant agent in explaining the
relevant behavior.
Appelli and Padula (2013) find similar results for postulates that financial
behaviour provide information about the extent to whichentrepreneur’s takes
responsibility for business finances and budgeting. A good financial behaviour
might lead to business enterprise competitiveness in a globalized economy
while poor financial behaviour leads to business closing down. Based on
previous studies, financial literacy is significantly linked to financial
behaviours such as bookkeeping, savings, cash management, debt management
and investment decisions that maximizes benefits for entrepreneurial
business owners (ACCA, 2014).
Confidences or experiences
Asaad (2015) stressed two components of financial literacy—financial
knowledge and financial confidence (or perceived knowledge)—both of which are
critically important to sound decision-making. People sometimes believe they
have more financial expertise than they really do. Individuals or groups of
individuals that have an impact on a person's frame of reference, also has an
impact on how they perceive their skills. A college student's frame of reference
29
includes relatives and peers. Furthermore, the level of perceived awareness is
influenced by the importance of the knowledge to the individual. Furthermore, the
difference between one's understanding of information and actual knowledge
shifts over time (LaBorde et al., 2013).
Confidence has been linked to financial behavior. Perceived financial
literacy was a better indicator of more positive credit card activities than real
financial literacy, according to (Allgood and Walstad, 2013). Similarly, (Xiao et al.,
2014) discovered that having both subjective (confidence) and objective financial
knowledge reduced risky credit behaviors.
Kim et al. (2005), workplace financial education contributes to greater faith
in retirement readiness. Young adults' financial habits have also been related to
subjective financial experience (confidence) (Henager & Cude, 2016).
However, there is also the potential that confidence could lead to poor
financial choices, particularly when confidence exceeds knowledge.
Overconfidence has been linked with a variety of negative financial behaviors.
Those with high subjective financial literacy (a sign of overconfidence) are less
likely to seek financial advice (Kramer, 2016), trade the most but perform the
worst (Barber & Odean, 2000), and are more likely to start a business that will fail
(Camerer & Lovallo, 1999).
Kramer (2014) investigated the relationship between financial literacy and
overconfidence and advice seeking. It was discovered that having a higher level
of overconfidence is associated with a lower demand for advice. When opposed

30
to a financial advisor, more optimistic investors rate their investment abilities,
experience, and details as higher, and they believe investing on their own is less
risky and gives them more power.
Cannon & Edmondson (2005), entrepreneurs might have a high degree of
self-esteem, feel they are in control and are not afraid to fail. If this happens,
despite adversity, they ‘‘rise again’’ stronger than before because they have
learnt from the situation, because they have experienced and made mistakes,
and because they have been able to change so as to adapt to the new
circumstances of their environment .
Rogge-Solti, et. al (2013) mentioned that during process enactment,
correct documentation is important to ensure quality, to support compliance
analysis, and to allow for correct accounting. Missing documentation of
performed activities can be directly translated into lost income, if accounting is
based on documentation. Still, many processes are manually documented in
enterprises. As a result, activities might be missing from the documentation, even
though they were performed.
Wood and Williams (2018) argued that considerations of personal
consequences likely play a key role in opportunity evaluation and that the
magnitudes (risk versus reward calculations) of the personal consequences
associated with the opportunity are a judgment rule applied as the opportunity is
evaluated. McKelvie et al.( 2011) said that not all opportunities are the same, and
uncertainty and corresponding personal consequences vary by opportunity.

31
Wood and Williams (2018) mentioned the study of Shane & Venkataraman as
they mentioned the consistent view that opportunity evaluation is a necessary
precursor to entrepreneurial action. Wood & Williams also consider the personal
consequences to be the perceived effects of the most probable outcome if the
opportunity under consideration is exploited.
Research Literature
The study of Sugiyanto, Radianto , and et. al (2019) entitled Financial
Literacy, Financial Attitude and Financial Behavior of Young Pioneering Business
Entrepreneurs assessed that the Financial Literacy level of young pioneering
business entrepreneurs falls into the medium category, which means that the
average young entrepreneurs had general knowledge, savings, loans , insurance
and investments. The first hypothesis of the study is not accepted meaning that
financial literacy does not have a significant effect on the young business
entrepreneurial Financial Behavior. The Second hypothesis of the study is
accepted meaning that Financial Attitude has significant effect on young
pioneering business entrepreneurial behavior.
Radianto, Efrata and Dewi (2019) examined the level of Financial literacy
among young entrepreneurs. The study used young entrepreneurs as their
respondents. Namely, students who have experienced the entrepreneurship
education that is designed. As Entrepreneurs, it is fitting to have a good financial
literacy so that they can manage their business and ensure that it will grow. The
result of the study indicates the level of young entrepreneurial literacy included in
32
the moderate category (77%). The four aspects studied, the highest aspect of
financial literacy is the insurance aspect (80%) and the lowest is investment
(68%). The next result of the study is that there is no difference in the level of
financial literacy between young men and women entrepreneurs.
Sucuahi William T., (2013), accomplished the study about Determinants
of Financial Literacy of Micro Entrepreneurs in Davao City. A total of 100
micro-entrepreneurs participated in the study. On the whole, the level of financial
literacy of the micro-entrepreneurs was moderate indicating a not so impressive
financial management of their resources. To obtain the determinants of financial
literacy, multiple regression analysis was employed which revealed a significant
influence of educational attainment on financial literacy. The result however
showed that gender cannot predict the financial literacy level among micro
entrepreneurs.
Fernandes,Tânia Isabel Mendes,(2005), In her study about Financial
Literacy Levels of Small Businesses Owners and it Correlation with Firms’
Operating Performance showed the relevance around the chosen target is
justified by the fact that small businesses, defined by micro enterprises and small
enterprises, are an important driver for the Portuguese economy since they
represent 35% of the total revenues in 2013, through 98% of an universe of
380.000 companies, and employ a meaningful part of national workforce. The
sample in this study is composed by small businesses of the North of Portugal,
specifically from the regions of Porto, Braga, Viana do Castelo and Vila Real, and
33
through questionnaires it was obtained the data needed to gauge the levels of
financial literacy. The goal of this research is twofold: to assess the financial
literacy levels of small business owners (micro enterprises and small enterprises)
in the North of Portugal and to analyze the relation between these results and the
operating performance of those companies, as a measure of business economic
performance. The study tests the hypothesis that, all other factors being
constant, a higher financial literacy level of small business owners should
motivate a better performance of the company.
Chalidana, M. Y., W. ED Radianto, A. W. Hengky, and T. C. Efrata., (2020),
the study entitled “Financial Literacy Level of Young Entrepreneurs in the Private
University” aims to illustrate how high the level of financial literacy is amongst
young entrepreneurs descriptively. Young entrepreneurs are students who have a
business project during their studies at the university. The research methodology
used in the study is the survey method by sending out questionnaires to
respondents. There are in total 183 respondents that were successfully collected.
The data analysis methodology used is descriptive statistics evaluation. The
study’s finding indicates that the financial literacy of young entrepreneurs is
considered in the low category.
Synthesis
The literature presented in this chapter provides additional information for
the researchers. Further, the studies considered in this research were found to
be similar to the present study in some aspects.

34
The study of Sugiyanto, et. al. (2019) is somewhat related to the present
study in terms of tackling the financial attitude and financial behavior of young
pioneering business entrepreneurs. It also assessed the financial literacy of
young entrepreneurs. And, it determines the effect of financial literacy and
financial attitudes on the financial behavior of young entrepreneurs. Furthermore,
the present study is choosing to conduct in Lemery, Batangas while the past
study is in the University of Ciputra. The Study of Radianto, Efrata and Dewi
(2019) is somewhat related in terms of the respondents which young
entrepreneurs are also students. However, it differs from the method used, the
past study used the comparative while the present study is using the descriptive
method. The location of the past study is conducted at the University of Ciputra
while the present study is focused on the Young Entrepreneurs in Lemery,
Batangas.
Fernandez (2005) study is somewhat related to the present study, in terms
of using the three components to define financial literacy such as Financial
Knowledge, Financial Behavior, and Financial Attitude. Also, Fernandez uses the
Business owners, accountant and Financial Department as their respondents
which differs from the present study who use the young entrepreneurs and
students as the respondents. Fernandez's use of North Portugal to conduct the
study also differs from the present study who used Lemery, Batangas. The Study
of Chalidana, et. Al (2020) is somewhat similar in terms of using the financial

35
literacy level and to the method used which is the descriptive research. However,
it only focuses on the young entrepreneurs in the private universities.
The Study of Sucuachi (2013) is somehow like the present study. The past
study tackles and assesses the determinants of the Financial Literacy of Micro
entrepreneurs in Davao. There were 100 micro-entrepreneurs who participated in
the research which is also a college or at least in a college. It revealed that there
is a significant influence of educational attainment of Financial Literacy. The
study of Sucuachi is focused on Davao City while the present study is focused on
the young entrepreneurs in Lemery, Batangas.

36
Chapter III
RESEARCH METHODOLOGY
This chapter deals with the research methods used in the study. It includes
discussion on research design, respondents of the study including sampling, data
gathering instrument, data gathering procedure, and statistical treatment of data.
Research Design
This study used the descriptive research design to depict the participants
in an accurate way. The term descriptive research refers to the type of research
questions, design, and data analysis that will apply to a given topic. It gathers
quantifiable information that can be used for statistical inference on target
audience through data analysis.
The proponents used the descriptive method which offers a unique means
of data collection. According to McNeill and Chapman (2018), descriptive
research seeks to describe the characteristics or behavior of an audience and to
describe or validate some sort of hypothesis or objective when it comes to a
specific group of people. Survey questionnaires were used in the study to
measure the opinions of the respondents. The data collected from the surveys
are beneficial for assessing the level of financial literacy among young
entrepreneurs.
With the use of the aforementioned method, the researchers were able to
consolidate their needed data, through the use of survey questionnaires, more
effectively and efficiently. The proponents likewise are able to know the profile
variables of the respondents as well as their responses to the test variables

37
given. And with such, it helped them explain and interpret the information and
attributes needed in assessing the financial literacy of young entrepreneurs.
Respondents of the Study
The participants in this study are mainly the young entrepreneurs ages 18
to 30 years old whose businesses obtained business permits to operate in
Lemery Batangas. They are chosen as the respondents for they are believed to
be suited to assess the level of financial literacy since young entrepreneurs’
ability to run a business are being discriminated against just because of age. The
total number of respondents of the study were 100 respondents.
The researcher used the non-probability sampling, specifically snowball
sampling. According to Salemi (2015), snowball sampling is a convenience
sampling method. This method is applied when it is difficult to access subjects
with the target characteristics. In this method, the existing study subjects recruit
future subjects among their acquaintances. Sampling continues until data
saturation.
Data Gathering Instrument
The main gathering instrument of the researchers was conducted through
an online survey questionnaire given to the young entrepreneurs in Lemery,
Batangas. Through an online survey questionnaire, the researchers were
provided with the necessary information. The questionnaire information gathered
was used to construct the items of the questionnaire.

38
The questionnaire was composed of three parts. The respondent’s profile
will be determined in the first part, which include sex, highest educational
attainment, number of years operating the business, form of business, and net
business income. The second part dealt on assessing the financial literacy of the
respondents in terms of Financial Knowledge. The last part dealt with assessing
financial literacy in terms of financial communication, financial behaviour,
financial ability, and confidences or experiences.
The researchers prepared the questionnaire based on the statement of
the problem. In gathering the data for study, the researchers used different
manuals, theses and browsed the net for relevant data and information that could
be used in study, with the guidance and help of adviser to clarify and verify
certain areas that are important in the study.
The first draft of the questionnaire was presented to the thesis adviser and
then to the panelist and chairperson. Then suggestions and recommendations
were considered in the second draft of the questionnaire. Then, the researchers
revised the questionnaire and submitted again to the adviser who then approved
and signed the readiness for administration to the respondent.
Upon receiving the validated questionnaire, a dry run of the questionnaire
will be done among the selected young entrepreneurs in San Nicolas, Batangas
who served as the respondent of the said dry run.
The responses of the respondents will be interpreted through a Likert
Scale. The scale gives the following equivalent interpretations such as (4)
39
Strongly Agree, (3) Agree, (2) Disagree, (1) Strongly Disagree. The verbal
tabular interpretation has the corresponding scale to determine the equivalent
interpretation of the weighted mean.
Table 1
Scoring and Interpretation
SCORE RANGES AGREEMENT INTERPRETATION

4.00 3.50-4.00 Strongly Agree Highly Literate
3.00 2.50-3.49 Agree Literate
2.00 1.50-2.49 Disagree Moderately Literate
1.00 1.00-1.49 Strongly Disagree Illiterate
Data Gathering Procedure
The data collection stage is a methodical approach in gathering data from
a variety of sources to obtain a complete and reliable image of the analysis. It is
an important part of the research because it will act as the foundation for the
desired output. It makes use of a tool to gather data for the development of the
study.
The researchers prepared a letter of request to conduct the study. After
the letter was approved by the research adviser, the researchers made a random
schedule to ask the permission of the people that are involved in the study to
allow them in distributing the questionnaire through google form. The
questionnaires were administered individually and personally collected by the

40
researchers online using Google Forms. Ample time was given to respondents in
answering the questionnaires for the goal of obtaining valid and reliable data.
The data collected will be tallied, tabulated, interpreted, and analyzed using
statistical methods after the researchers have finished administering and
retrieving the questionnaires.
Statistical Treatment of Data
The data were gathered through the use of survey questionnaires. The
Statistical Package for Social Sciences (SPSS) was used in the statistical
analysis of data. With the use of the most appropriate statistical approach for the
study, data were tallied, analyzed and interpreted. The following are the specific
statistical tools that were used:
Frequency and Percentage. This was used to determine the profile of
respondents in terms of sex, highest educational attainment, number of years
operating the business, form of business, and net business income.
Weighted Mean. This was used to assess the financial literacy of young
entrepreneurs in Lemery, Batangas.
Comparison of Means. This was used to compare the respondent’s
assessment on the level of financial literacy when grouped according to profile.

41
Chapter IV
PRESENTATION, ANALYSIS AND INTERPRETATION OF DATA
This chapter deals with the presentation, analysis and interpretation of
data. It contains the textual and tabular presentation of data, quantitative and
qualitative analysis of data, and interpretation of data in the light of relevant
literature.
1. Profile of the Respondents
The profile of the respondents of young entrepreneurs in terms of sex,
highest educational attainment, number of years operating the business, form of
business and net business income was considered in the study.
1.1 Sex. The respondents’ profile in terms of sex was also given
consideration in the study.
Table 2 presents the frequency distribution of respondents in relation to
sex.
Table 2
Distribution of Respondents by Sex
Sex Frequency Percent

Male 33 33.00
Female 67 67.00
Total 100 100
As seen in Table 2, the majority of the respondents are female with a
frequency of 67 or 67 percent while a frequency of 33 or 33 percent were male
respondents.
Based on the result presented, the majority of the respondents are female
42
young entrepreneurs. This shows that women are now more interested in the
business than before considering the fact of rapid increase in the number of
females who continuously put up business.
According to Paoloni and Demartini (2016), since the early 1980s, there
has been increased interest in women managers and entrepreneurs, often from
an interdisciplinary approach combining, for example, sociology, psychology,
management and organizational studies and economics. Nowadays, research on
women in management and organisations is continuously and rapidly evolving.
On the other hand, it is women who have a more unique vision and goals
on what to do in their business. It's women who are most likely to have a creative
and innovative approach to business.
This was supported by the study of Justo et al. (2015), which considers
that women in business, entrepreneurs and executives, aim for different goals,
compared to those of men, being more interested in achieving a work-life
balance, workers’ well-being, and community welfare with respect to mere
corporate profit.
1.2 Highest Educational Attainment. The respondents’ profile in relation
to highest educational attainment was considered in the study.
Table 3 presents the frequency distribution of the respondents in relation
to educational attainment.
It can be deduced from Table 3 that the majority of the respondents were
college graduates with a frequency of 50 or 50 percent. In addition to this, the

43
data also denotes that College Undergraduate has a frequency of 33 or 33
percent, then a frequency of 8 or 8 percent had High School Graduate, followed
by a frequency of 5 or 5 percent had Master’s Degree, then a frequency of 2 or 2
percent had a Units in Master’s Degree, and lastly With Units in Doctorate
Degree and Vocational Course Graduate with a frequency of 1 or 1 percent.
Table 3
Distribution of Respondents by Highest Educational Attainment
Highest Educational Frequency Percent

Attainment
High School Graduate 8 8.00
Vocational Course Graduate 1 1.00
College Undergraduate 33 33.00
College Graduate 50 50.00
With Units in Master’s Degree 2 2.00
Master’s Degree Holder 5 5.00
With Units in Doctorate Degree 1 1.00
Total 100 100
This shows that the majority of college graduates prefer putting up a
business than being self-employed because of unlimited opportunity for income
and entrepreneurs are said to be happier and healthier than employed people.
This was supported by Lee & Johnston, (2011), to which the perceptions
regarding a professional career have changed, and individuals no longer base
their future on a permanent relationship with a single employer even when they
continue to follow the same career path.
Moreover, Christnacht et al., Szaban and Skrzek-Lubasińska, (2018),

44
representing the self-employed as having businesses providing both services
and products. Some studies consider an entrepreneur and a self-employed
person as the same.
Furthermore, according to Forbes, people who are managing their own
businesses are happier than those who are employed. There is more work-life
balance and in a way, using your creativity to build something is taking the stress
of working for a living.
1.3 Number of Years Operating the Business. The respondents’ profile
in relation to the number of years operating the business was considered in the
study.
to the number of years operating the business.
Table 4
Distribution of Respondents by
Number of Years Operating the Business
Number of Years Operating Frequency Percent

the Business
Less than one year 26 26.00
2-3 years 48 48.00
4-5 years 22 22.00
6 and above 4 4.00
Total 100 100
As shown on the table, most of the young entrepreneurs’ number of years
operating their business is 2 - 3 years with the frequency of 48 or 48 percent,
followed by the frequency of 26 or 26 percent fell to less than one year operating
45
their business, and frequency of 22 or 22 percent had 4 - 5 years in operating
their business. While, 6 and above only got a frequency of 4 or 4 percent.
This shows the young entrepreneurs’ business that in the year of 2 - 3
years, they see that their business can grow and succeed even in the smallest
achievement of their business. It seems that it needs to be expanded to reach
more customers and sustain for a couple of years to survive. It may mean that
young entrepreneurs are also adaptive or innovative in terms of ideas as they
reach success as they reach another year of their business.
Headd (2003) had results on his study where a Business information
tracking series shows that 66 percent of new employers survive two years or
more, 50 percent survive four years or more, and 40 percent survive six years or
more. And found out that the findings are similar with the results from Phillips and
Kirchhoff showing about three-quarters of all businesses surviving two years or
more, about half surviving four years or more, and about 40 percent surviving six
years or more.
We should bear in mind that profitability and growth measure different
aspects of entrepreneurial success (Lee & Tsang, 2001) and sometimes these
dimensions are contradictory (Delmar, Davidson & Gartner, 2003). High growth
tends to be considered a logical consequence of innovative, proactive and
risk-taking behaviour on the part of the firm, characteristics which are often
associated with the entrepreneur (Brown, Davidson & Wiklund, 2001).

46
1.4 Form of Business. The respondents’ profile in relation to form of
business was considered in the study.
to form of business.
Table 5
Distribution of Respondents by Form of Business
Form of Business Frequency Percent

Sole Proprietorship 72 72.00
Partnership 28 28.00
Total 100 100
As shown on the table, respondents with the frequency of 72 or 72
percent fell into sole proprietorship, and with the frequency of 28 or 28 percent
had the partnership.
Most of the young entrepreneurs want to build their business, take full
responsibility for it, receive the full amount of profits from their business, who will
they hire, what will they sell and what will be the brand name of their business.
And, the risk is always there and it will be one of the disadvantages because the
sole proprietor is the only one to make a decision for the business.
According to Mejorada (2006), several small businesses in the Philippines
are started as sole proprietorships and this is often due to the individual’s desire
to go into business for the first time with minimal governmental requirements and
capital. Miller and Jentz (2008) stated that there are advantages and
disadvantages of sole proprietorship. Its major advantage of the sole
proprietorship is the proprietor owns the entire business and has a right to
47
receive all the profits and it is often easier and less costly to start a sole
proprietorship than to start any other kind of business as few legal formalities are
involved.
According to Miller and Jentz (2008). The major disadvantage of the sole
proprietorship is that the proprietor alone bears the burden of any losses or
liabilities incurred by the business enterprise which in this case the sole
proprietor has unlimited liability or legal responsibility of all obligations incurred in
doing business including lawsuits against the business and its employees and as
a result, creditors can go after the owner’s personal assets to pay any business
debts.
1.5 Net Business Income. The respondents’ profile in relation to net
business income was considered the study.
to net business income.
Table 6
Distribution of Respondents by Net Business Income
Net Business Income Frequency Percent

Php 50,000 and below 80 80.00
Php 50,001 to Php 100,000 13 13.00
Php 100,001 to Php 150,000 4 4.00
Php 150,001 to Php 200,00 3 3.00
Total 100 100
As shown on the table, majority of the responses fell on the net business
income of Php 50,000 and below with a frequency of 80 or 80 percent followed
by Php 50,001 to Php 100,000 having a frequency of 13 or 13 percent then Php

48
100,001 to 150,000 got a frequency of 4 or 4 percent and lastly, Php 150,001 to
Php 200,000 had the frequency of 3 or 3 percent.
The table reveals that most of the net business income ranged from Php
50, 000 and below. Net business income differs depending on what kind of
business you are managing or working. It also varies depending on your market.
High net business income is expected to those businesses that reach a larger
audience and are founded by a lot of people. In addition, the form of business
can also affect the net business income.
The success of the business and the average revenue generated by the
business are both key aspects in determining net business income (Campbell,
2008). Based on the data presented, 80 out of 100 responders are from
companies with annual revenues of Php 50,000 or less. This represents the vast
majority of the sample that was obtained for the investigation. Those with Php
50,001 to Php 100,000 in revenue are followed by businesses with a cadence of
13 and businesses with Php 100,001 to Php 150,000 in revenue.
Enterprises with a maximum net revenue of Php 200,000, on the other
hand, constitute a small minority of the total population. With this information, it
can be noted that businesses with a higher income are fewer in number since
they require a larger amount of cash, more knowledge, and more effort on the
part of the business foundation.

49
2. Assessment on Financial Literacy Among Young Entrepreneurs
The focus on the assessment on Financial literacy among young
entrepreneurs was in relation to five aspects: Financial Knowledge, Financial
Communication, Financial Ability, Financial behaviour, and Confidences and
Experiences.
Table 7
Respondent’s Assessment on Financial Literacy in terms of
Financial Knowledge
YES NO
Financial Knowledge Frequency Percent Frequency Percent
1. A balance sheet is divided into three

sections: assets, liabilities, and equity. 94 94.00 6 6.00
2. Total sales or revenue less total expenses 94 94.00 6 6.00

equals profit.
3. A business liability is a valuable
component that a company owns, such as
vehicles, real estate, computers, office 30 30.00 70 70.00
furniture, and other fixtures, or intangible
assets such as intellectual property.
4. If Jonas takes out a 20,000 peso loan to
buy a used tricycle at a simple interest rate 22 22.00 78 78.00
of 9%, his annual interest payable should be
1,650 pesos.
5. Investment is a term used to describe 40 40.00 60 60.00
savings in general financial practice.
6.The lower the fixed costs, the lower the 93 93.00 7 7.00
break-even point of sale.
7. General expenses include things like
equipment depreciation, employee salaries, 94 94.00 6 6.00
and utility bills.
8. A company is more solvent if its assets
exceed its liabilities, giving it the ability to pay 89 89.00 11 11.00
its debts
9. A net gain occurs when expenses exceed
total revenue or sales over a given time 37 37.00 63 63.00
period.
10. Expenses and costs are generally used
interchangeably in the financial aspects of a 40 40.00 60 60.00
business.
50
Table 7 presents the financial knowledge among young entrepreneurs.
Results revealed that the highest correct responses were obtained from
statements number 1, 2 and 7 having the same percentage of 94, statement
number 6 with 93 percent, and statement 8 with a percentage of 89. Meanwhile,
the lowest correct responses were obtained from statements number 5 and 10
with 60 percent.
These can be implied that young entrepreneurs were knowledgeable
about balance sheets, sales revenue as well as costs and general expenses as
to what a financially knowledgeable person possessed.
This was supported by Dahmen & Rodriguez, (2014), in which the other
side of young entrepreneurs is that they are businesspeople. As businessmen,
understanding how to prepare financial statements for various purposes, such as
funding, investment, or other financial actions is needed.
Moreover, financial knowledge has a significant influence on financial
literacy according to Lusardi, A., and O. Mitchell, (2014). Thus, Huston (2010)
stated that financial literacy is a measure of how well an individual can
understand and use personal finance-related information. Addin et al. (2013)
narrowly define financial literacy as the awareness of financial principles and
terminologies.
Furthermore, Brown et al. (2006), financial literacy for small business
owners must contemplate the ability to read and understand fundamental
financial statements, as well as, the ability with numbers, in order to make
51
informed judgments and to make effective decisions regarding the use and
management of money.
Table 8
Respondents’ Assessment on Financial Literacy in terms of
Financial Communication
Financial Communication Mean Interpretation

1. Monitor the working capital cycle regularly to identify 3.71 Highly Literate
potential cash flow issues.
2. All the credit and collection, write off policies and 3.59 Highly Literate
procedures are in writing.
3. Have an effective system helping to determine how 3.61 Highly Literate
much of each line of stock to keep on hand.
4. Assure the policies and procedures support internal 3.61 Highly Literate
control.
5. Ensure to maintain the detailed accounts receivable 3.59 Highly Literate
records segregated from collections, disbursements,
and general ledger posting functions.
6. All of the billings are controlled and properly 3.71 Highly Literate
accounted for.
7.Evaluate the statement of account balance on a 3.61 Highly Literate
timely basis.
8.Compare quantities received goods against 3.60 Highly Literate
receiving reports.
9.Ensure that the receiving, issuing, accounting and 3.66 Highly Literate
storing responsibilities are properly segregated
10.Maintain the records of unmatched items, matched 3.60 Highly Literate
receiving documents, and follow up on long
unmatched receipts.
Composite Mean 3.63 Highly Literate
Table 8 illustrates the findings of the study where financial literacy was
tested in this study by looking at how well the participants understood and
communicated their financial knowledge and skills. The ten-item evaluation was
able to achieve a composite mean of 3.63, which is considered to be highly

52
literate.
The ability to monitor the working capital cycle on a regular basis in order
to identify potential cash flow difficulties and accurately account billings received
a significant level of agreement due to the fact that these were bound together as
first with the acquired mean of 3.71. Followed by ensuring the segregation of the
receiving, issuing, accounting, and storing responsibilities got the second-highest
mean of 3.66.
On the other hand, the lowest-scoring competency was the ability to
ensure that detailed accounts receivable records are maintained separately from
collections, disbursements, and general ledger posting tasks, as well as the
ability to ensure that all credit and collection, write-off rules, and procedures are
in writing. Both of these statements got a total of 3.59 accumulated mean.
Followed by the second lowest-scoring competency was the comparison of the
quantities of received goods against receiving reports and maintaining the
records of unmatched items, matched receiving documents, and follow up on
long unmatched receipts got an accumulated mean of 3.60.
Following up on their previous findings, Chen and Xihong (2020)
determined that financial communication is extremely important for the
improvement of a company’s core financial management. Having a strong
understanding of finance is essential for financial departments, as is developing
an effective communications system. Being financially literate is also vital for

53
such business units. A valid financial communication strategy for an entrepreneur
is one in which the communication is directed directly toward developing solid,
intelligible, truthful, and exhaustive responses while eagerly receiving the
messages provided in a favorable environment, according to Salvioni’s findings
(2002). Thus, the assessment of the financial communication of the participants
and the obtained data is significant for the further analysis within the study that is
to be conducted to evaluate the financial literacy of the entrepreneur.
Table 9
Financial Ability
Financial Ability Mean Interpretation
1. Have an adequate understanding of what moves Highly Literate
3.59
quickly , what is aged or excess, and what´s seasonal.
2. Have a backup plan for every risk I take 3.62 Highly Literate
3. Reinvest the profits to upgrade the business 3.56 Highly Literate
4.Try other options to generate cash flow as a backup Highly Literate
3.57
source of income
5. Do not take on unnecessary debt. 3.60 Highly Literate
6. Make careful and watchful spending decisions. 3.67 Highly Literate
7. Consider calculating risks to ensure the profit. 3.65 Highly Literate
8. Confident of doing up a budget for my business. 3.65 Highly Literate
9. Stay informed and educated on my finances 3.67 Highly Literate
10.Monitors and approves the write-offs of obsolete Highly Literate
3.60
and inactive inventories.
Table 9 presents the result of the survey where we were able to collect
information about the respondents’ financial ability. The respondents’
assessment on financial literacy in terms of financial ability generated a strong
agreement that accumulated to a composite mean of 3.62 with an interpretation
of highly literate.
54
Among the items given, “Make careful and watchful spending
decisions”and “ Stay informed and educated on my finances,” got the highest
with a mean score of 3.67 with an interpretation of highly literate. The data
revealed a substantial agreement with these related to the participant’s ability to
make prudent spending decisions, as well as to be aware and educated about
one’s financial situation. As observed, it can be seen that entrepreneurs are
constantly keeping a check on their spending and determining what is required to
spend money on and what the company should spend money on in the first
place. Aside from these statements, two other statements generated the
second-highest rating in this table; statements 7 and 8 got 3.65 average mean
with an interpretation of highly literate where it implies that respondents in terms
of their financial literacy on their financial abilities concluded that they consider
calculating risks before they spend to ensure profit over the loss, and they are
also confident, and they consider preparing a budget for the business.
On the other hand, statement 3 received the least amount of agreement,
with a mean of 3.56 with an interpretation of highly literate, and it is concerned
with reinvesting profits to upgrade the business operations. Thus, it appears that
outside funding has a substantial impact on the decisions made by corporations
about reinvestment (Chakravarty & Xiang, 2011). Followed by the second-lowest
mean which accumulates 3.57 on average shows that respondents are weak in
trying different sources of income to sustain the finances of the business. Lastly,
the third-lowest average accumulated was 3.59 that shows that the respondents
55
have a low adequate understanding of what moves quickly, what is aged or
excess, and what's seasonal in terms of financial literacy.
In support of Cera et al. (2020), there is a slight difference between the
composite mean of literacy in financial communication and the composite mean
of financial ability. While these two are interconnected and have an impact on
one another, financial ability is not impacted by the aforementioned. It also
implies that the entrepreneurs’ ability to manage and source cash, as well as
their ability to conduct a self-internal audit to identify resource leakages and
generate an appropriate distribution of resources and loan or debt payback, is
weak (Mutegi, 2015).
Table 10
Financial Behaviour
Financial Behaviour Mean Interpretation

1. Deposit excess money in the bank. 3.55 Highly Literate
2.Open a separate bank account for the business. 3.66 Highly Literate
3.Can decide independently where to spend my 3.49 Literate
money.
4.Budget and track spending. 3.57 Highly Literate
5.Analyzes my financial situation before major 3.62 Highly Literate
purchase
6.Keep on the excess money for life insurances. 3.59 Highly Literate
7.Find legal ways to lower my taxes. 3.60 Highly Literate
8.I compare prices when buying something. 3.65 Highly Literate
9.Set aside excess money for house improvement. 3.51 Highly Literate
10.10. Save excess money for medical needs. 3.64 Highly Literate
In general, respondents agreed on the items of the assessment of
financial literacy in terms of financial behaviour that got the composite mean of
56
3.59 with an interpretation of highly literate, and the respondents are positive in
their financial behaviour when it comes to financial literacy. Andarsari & Ningtyas
(2019) mentioned in their research that financial literacy has an influence on
financial behavior. An individual‘s financial literacy plays an important role in
shaping wealth equity. Having good financial knowledge helps to make wise
decisions, save more for retirement, manage investment carefully, and manage
household finance better.
Most of the respondents were assessed as highly literate that they open a
separate bank account for their business with the highest weighted mean of 3.66.
Respondents also would like to compare prices when buying something with a
weighted mean of 3.65. It shows that they save excess money for medical needs
that have a weighted mean of 3.64. In contrast, the statement with a low
weighted mean of 3.55 is “Deposit excess money in the bank”. Followed by the
statement, “Set aside excess money for house improvement” where it got a
weighted mean of 3.51. Further, the statement “can decide independently where
to spend their money” got the lowest weighted mean of 3.49.
In the statement where the highest weighted is 3.66, “Open separate bank
account for the business”. It may be seen as young entrepreneurs wanting to
separate their own personal account and bank accounts for their business for
them to see and analyze effectively their financial situation. Where, they can also
easily present their financial position in the financial institution if they need to
apply for loans for their capitals or investments.

57
Bhrun & Zia (2011) test the impact of business and financial training for
young entrepreneurs in Bosnia. They find that while the training program does
not influence business survival, it does significantly improve business practices
and investments among surviving businesses. Specifically, treatment businesses
are significantly more likely to implement new production processes and to inject
new investment into the business, consistent with the central theme of the
training which was to encourage more capital growth. Bhrun & Zia (2011) found
out that the treatment businesses are more likely to separate personal and
business accounts, refinance their loans for more favorable terms, and obtain
new loans with lower repayment installments.
Moreover, In the statement where it got the lowest weighted mean of 3.49
which states that young entrepreneurs “Can decide independently where to
spend their money”. Young entrepreneurs might need some guide on where to
spend their money, it scares them to be wrong or make big mistakes in making
decisions, and may affect their business and end up having a loss.
Indrayani, Yuniarta, & Irwansyah, M. R. (2019) mentioned that besides
spending money entrepreneurs also know the difficulty of getting money to
spend. They also describe how entrepreneurs will think first by considering
whether the needs are important or they can still be postponed before making the
final decision to spend money. With these considerations, they can minimize the
wrong decision making.
Appelli and Padula, (2013), find similar results for postulates that financial
58
behaviour provides information about the extent to which entrepreneur’s take
responsibility for business finances and budgeting. A good financial behaviour
might lead to business enterprise competitiveness in a globalized economy
while poor financial behaviour leads to business closing down. Based on
previous studies, financial literacy is significantly linked to financial
behaviours such as bookkeeping, savings, cash management, debt management
and investment decisions that maximizes benefits for entrepreneurial
business owners (ACCA, 2014).
Table 11
Confidences or Experiences
Confidence or Experience Mean Interpretation

1. Uses payable vouchers which are subsequently 3.65
Highly Literate
accounted for.
2. Maintain the records of unmatched items, matched
receiving documents, and follow up on long 3.62 Highly Literate
unmatched receipts.
3. Review the results of follow up on missing 3.69 Highly Literate
documents
4. Consider seeking help from a professional financial 3.65 Highly Literate
advisor.
5. Always review the result of a follow up unmatched 3.65 Highly Literate
receipt.
6. Get Educated. Read articles and websites that can 3.66 Highly Literate
teach me about financial matters.
7. Always prepare purchase orders for receiving 3.62 Highly Literate
records.
8. Evaluate and verified quantities billed with receiving 3.62 Highly Literate
documents and purchase order.
9. Participate on forums, webinars for budgeting to 3.57 Highly Literate
loan management, income taxes, and more.
10. Have enough knowledge of the float 3.56 Highly Literate
consequences of actions.
59
Table 11 provides the overall assessment on financial literacy in terms of
confidence or experience of the respondents with the composite mean of 3.63.
This was verbally interpreted as highly literate. This might be noted that the
respondents are more confident and experienced when it comes to handling the
transactions, financial documents, and their business. Cannon & Edmondson
(2005), entrepreneurs might have a high degree of self-esteem, feel they are in
control and are not afraid to fail. If this happens, despite adversity, they ‘‘rise
again’’ stronger than before because they have learnt from the situation, because
they have experienced and made mistakes, and because they have been able to
change so as to adapt to the new circumstances of their environment .
Moreover, most of the respondents are interpreted as highly literate that
they review the results of follow up on missing documents with the highest
weighted mean of 3.69. It also shows that respondents get educated, read
articles and websites that can teach them about financial matters that have a
weighted mean of 3.66. Respondents also consider seeking help from a
professional financial adviser with a weighted mean of 3.65. With the same
weighted mean of 3.65, respondents always review the results of follow-up
unmatched receipt and also use vouchers which are subsequently accounted for.
However, the statements where it got the same low weighted mean of
3.62 are “Maintain the records of unmatched items, matched receiving
documents, and follow up on long unmatched receipts.”, “Always prepare

60
purchase orders for receiving records.”, and “Evaluate and verify quantities billed
with receiving documents and purchase order,”followed by the statement
“Participate on forums, webinars for budgeting to loan management, income
taxes, and more.” got a weighted mean of 3.57. Further, respondents having
enough knowledge of the float consequences of actions have the lowest
weighted mean of 3.56.
In the statement where it got the highest weighted mean of 3.69, “Review
the results of follow-up on missing documents.”, respondents might have a
problem before on a missing document that may affect collecting and recording
on their accounting books. For Instance, the expenses will not be expenses as it
is validated by the documents.
Rogge-Solti, et. al (2013) mentioned that during process enactment,
correct documentation is important to ensure quality, to support compliance
analysis, and to allow for correct accounting. Missing documentation of
performed activities can be directly translated into lost income, if accounting is
based on documentation. Still, many processes are manually documented in
enterprises. As a result, activities might be missing from the documentation, even
though they were performed.
In the statement, “Have enough knowledge of the float consequences of
actions.”, where it got the lowest weighted mean of 2.56. Respondents may be
moderately aggressive young entrepreneurs when it comes to taking a risk for
their business, and consciously or unconsciously end up in the worst or better

61
scenarios in their businesses. Since, may be they are not yet experience the
after effect of their actions and decision making
Wood and Williams, (2018), argued that considerations of personal
consequences likely play a key role in opportunity evaluation and that the
magnitudes (risk versus reward calculations) of the personal consequences
associated with the opportunity are a judgment rule applied as the opportunity is
evaluated. McKelvie et al., (2011), said that not all opportunities are the same,
and uncertainty and corresponding personal consequences vary by opportunity.
Wood and Williams, (2018), mentioned the study of Shane & Venkataraman as
they mentioned the consistent view that opportunity evaluation is a necessary
precursor to entrepreneurial action. Wood & Williams also consider the personal
consequences to be the perceived effects of the most probable outcome if the
opportunity under consideration is exploited.
Wise (2013) mentioned experience and knowledge are extremely
important, as it provides time to recognize opportunities, develop contacts and
learn how to access and to interact with funders, including bank managers and
venture capitalists. Entrepreneurial identities are likely to be characterized by
general meanings or actions related to the discovery, evaluation, and exploitation
of opportunities (Shane & Venkataraman, 2000), as well as specific
entrepreneurial actions like inventing new products and founding and developing
new companies (Cardon et al., 2009; Cardon & Glauser, 2010)

62
3. Comparison of Responses on the Assessment of Financial Literacy

Among Young Entrepreneurs in Lemery, Batangas when grouped
according to their Profile Variables
Table 12
Comparison of Responses on the Assessment of Financial Knowledge
when Grouped according to Sex
Male Female
Financial Knowledge
Frequency Percent Frequency Percent Total
1. A balance sheet is divided into YES 29 29% 65 65% 94 94%

three sections: assets, liabilities, and NO 4 4% 2 2% 6 6%
equity
2. Total sales or revenue less total YES 29 29% 65 65% 94 94%
expenses equals profit. NO 4 4% 2 2% 6 6%
component that a company owns, YES 14 14% 16 16% 30 30%
such as vehicles, real estate,
computers, office furniture, and other
fixtures, or intangible assets such as NO 19 19% 51 51% 70 70%
intellectual property.
4. If Jonas takes out a 20,000 peso YES 8 8% 14 14% 22 22%
loan to buy a used tricycle at a
simple interest rate of 9%, his annual
interest payable should be 1,650 NO 25 25% 53 53% 78 78%
pesos.
5. Investment is a term used to YES 16 16% 24 24% 40 40%
describe savings in general financial NO 17 17% 43 43% 60 60%
practice
6. The lower the fixed costs, the YES 32 32% 61 61% 93 93%
lower the break-even point of sale. NO 1 1% 6 6% 7 7%
7. General expenses include things YES 31 31% 63 63% 94 94%
like equipment depreciation, NO 2 2% 4 4% 6 6%
employee salaries, and utility bills.
8. A company is more solvent if its YES 31 31% 58 58% 89 89%
assets exceed its liabilities, giving it NO 2 2% 9 9% 11 11%
the ability to pay its debts
9. A net gain occurs when expenses YES 13 13% 24 24% 37 37%
exceed total revenue or sales over a NO 20 20% 43 43% 63 63%
given time period.
10. Expenses and costs are YES 14 14% 26 26% 40 40%
generally used interchangeably in the NO 19 19% 41 41% 60 60%
financial aspects of a business.
63
Table 12 presents the financial knowledge of respondents when grouped
according to sex.
Results show that male respondents have the highest correct scores in
statement number 6 with the percentage of 32, followed by 31 percent in
statements 7 and 8 while male respondents have the lowest correct score in
statement 5 with the percentage of 17. On the other hand, female respondents
gained the highest scores which is 65 percent in statements 1 and 2; followed by
statement 7 with 63 percent, and statement 6 with 61 percent while statement 10
got the lowest correct score of 41 percent and statements 5 and 9 with 43
percent.
Based on this, it can be inferred that female respondents have higher
financial knowledge than male counterparts. Women have higher knowledge in
finance than men and about some financial topics such as managing money
(Hira & Mugenda, 2010), financial analysis (Webster & Ellis, 2016), and investing
(Goldsmith & Goldsmith, 2017). There is evidence that women employ more
prudent investing strategies than men do (Barber & Odean, 2011), male have a
lack of knowledge and confidence likely contribute to their dissatisfaction with
their financial situations (Hira & Mugenda, 2010).
Females have tended to have a harder time successfully managing money
because they face financial challenges that either are not experienced by males
or are not experienced to the same degree (Anthes & Most, 2010; Chen & Volpe,
2013). Female entrepreneurs in Malaysia have a higher level of financial

64
knowledge than their male counterparts (Falahati and Paim, 2011). Similar
results were also confirmed by Chen and Volpe (2012) where they observed that
male entrepreneurs consider English and humanity are more important courses
than finance, and they generally have less enthusiasm, lower confidence and
less willingness to learn about personal finance topics that female entrepreneurs
do. It was also discovered that entrepreneurs with less financial knowledge had
more negative opinions about finances and made more incorrect financial
decisions. They pointed out that having a low level of financial knowledge limits
entrepreneurs’s ability to make informed decisions.
according to educational attainment.
Results indicate that high school graduate respondents have the highest
correct scores in statements 1 and 2 with 8 percent; while they have scored the
lowest in statement 8 with 7 percent. Moreover, those who graduated vocational
courses got the highest scores in all items with 1 percent except for the
statement 6 with 0 percent where they scored the lowest. As regards the
knowledge responses of college undergraduates, it was revealed that the highest
scoring correct responses were statement 2 with 33 percent, statements 6, 7 and
8 with the same percentage of 31 percent, and the lowest correct score was
statement 4 with 10 percent. For the responses of college graduates, they have
gained the highest correct responses in statement 1 and 7 with 47 percent, and
65
statement 6 with 46 percent while the same group with the lowest correct
responses is statement 4 with 11 percent.
Table 13
when Grouped according to Highest Educational Attainment
HSG VCG CUG CG WUMD MDH WUDD
Financial Knowledge TF TP
F P F P F P F P F P F P F P
1. A balance sheet is divided YES 8 8% 1 1% 30 30% 47 47% 2 2% 5 5% 1 1% 94 94%
into three sections: assets,
liabilities, and equity NO 0 0% 0 0% 3 3% 3 3% 0 0% 0 0% 0 0% 6 6%
2. Total sales or revenue less YES 8 8% 1 1% 33 33% 45 45% 2 2% 4 4% 1 1% 94 94%
total expenses equals profit.
NO 0 0% 0 0% 0 0% 5 5% 0 0% 1 1% 0 0% 6 6%
3. A business liability is a
valuable component that a YES 1 1% 1 1% 13 13% 12 12% 2 2% 0 0% 1 1% 30 30%
company owns, such as
vehicles, real estate,
computers, office furniture,
and other fixtures, or NO 7 7% 0 0% 20 20% 38 38% 0 0% 5 5% 0 0% 70 70%
intangible assets such as
intellectual property.
4. If Jonas takes out a 20,000
YES 1 1% 0 0% 10 10% 11 11% 0 0% 0 0% 0 0% 22 22%
peso loan to buy a used
tricycle at a simple interest
rate of 9%, his annual
interest payable should be NO 7 7% 1 1% 23 23% 39 39% 2 2% 5 5% 1 1% 78 78%
1,650 pesos.
5. Investment is a term used YES 2 2% 1 1% 15 15% 18 18% 2 2% 2 2% 0 0% 40 40%
to describe savings in
general financial practice NO 6 6% 0 0% 18 18% 32 32% 0 0% 3 3% 1 1% 60 60%
6. The lower the fixed costs, YES 8 8% 0 0% 31 31% 46 46% 2 2% 5 5% 1 1% 93 93%
the lower the break-even
point of sale. NO 0 0% 1 1% 2 2% 4 4% 0 0% 0 0% 0 0% 7 7%
7. General expenses include YES 7 7% 1 1% 31 31% 47 47% 2 2% 5 5% 1 1% 94 94%
things like equipment
depreciation, employee NO 1 1% 0 0% 2 2% 3 3% 0 0% 0 0% 0 0% 6 6%
salaries, and utility bills.
8. A company is more solvent YES 8 8% 1 1% 31 31% 43 43% 1 1% 4 4% 1 1% 89 89%
if its assets exceed its
liabilities, giving it the ability NO 0 0% 0 0% 2 2% 7 7% 1 1% 1 1% 0 0% 11 11%
to pay its debts
9. A net gain occurs when YES 1 1% 1 1% 17 17% 16 16% 2 2% 0 0% 0 0% 37 37%
expenses exceed total
revenue or sales over a given NO 7 7% 0 0% 16 16% 34 34% 0 0% 5 5% 1 1% 63 63%
time period.
10. Expenses and costs are YES 0 0% 1 1% 18 18% 18 18% 2 2% 0 0% 1 1% 40 40%
generally used
interchangeably in the
financial aspects of a NO 8 8% 0 0% 15 15% 32 32% 0 0% 5 5% 0 0% 60 60%
business.
Legend: F- Frequency, P- Percentage, HSG- High School Graduate, VCG- Vocational Course Graduate,
CUG- College Undergraduate, CG- College Graduate, WUMD- With Units in Master’s Degree,
MDH- Master’s Degree Holder, WUDD- With Units in Doctorate Degree
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On the other hand, for those respondents with units in Masteral degree
they got the highest correct answers in almost all financial knowledge questions
with 2 percent. For those respondents with units in doctorate degree, they got the
correct answers in almost all items except for statements 10 and 3.
Comparing the responses of the seven education profile groups it can be
insinuated that those who graduated college have the highest correct scores
followed by those masters’ degree holders. It implies that college graduates and
masters’ degree holders have knowledge being enhanced and trained in doing
such decision making, reading and analyzing financial statements, and
strategizing how to deal with risks running their business.
Lusardi and Mitchell (2007, 2014) reviewed relevant research and found
that financial literacy increases with more education. In other words, people who
are more educated are more likely to be more financially knowledgeable.
Similarly, Lusardi et al. (2012) found that people who are more educated have
higher levels of financial literacy even when controlling for demographics. Lusardi
& Mitchell (2011) mentioned that people with a higher level of education have
greater financial knowledge than the rest. Further, Carlin & Robinson (2012)
revealed that someone who was briefly trained to manage finances can make
better decisions in future financial matters. Thus they will have good knowledge,
whether financial knowledge is obtained through training or with formal
education, then they will understand the basic principles of using money. One
factor that can increase financial knowledge is by improving education. As more

67
individuals receive education then the individual's financial knowledge will
increase because he will be able to choose various financial tools (credit cards,
debit, pay check, bonds, stocks, etc.) that ease them to make transactions or
investments. Individuals will also be more vigilant about their future.
Table 14
when Grouped according to Number of Years Operating the Business
Less than 2-3 years 4-5 years 6 years

One year and above
F P F P F P F P
1. A balance sheet is divided into YES 25 25% 45 45% 20 20% 4 4% 94 94%
three sections: assets, liabilities,
and equity NO 1 1% 3 3% 2 2% 0 0% 6 6%
2. Total sales or revenue less total YES 26 26% 46 46% 19 19% 3 3% 94 94%
expenses equals profit.
NO 0 0% 2 2% 3 3% 1 1% 6 6%
component that a company owns,
YES 7 7% 13 13% 8 8% 2 2% 30 30%
computers, office furniture, and
other fixtures, or intangible assets
such as intellectual property.
NO 19 19% 35 35% 14 4% 2 2% 70 70%
4. If Jonas takes out a 20,000 peso
YES 6 6% 7 7% 8 8% 1 1% 22 22%
simple interest rate of 9%, his
annual interest payable should be NO 20 20% 41 41% 14 14% 3 3% 78 78%
1,650 pesos.
5. Investment is a term used to YES 10 10% 17 17% 11 11% 2 2% 40 40%
describe savings in general financial
practice NO 16 16% 31 31% 11 11% 2 2% 60 60%
6. The lower the fixed costs, the YES 23 23% 45 45% 22 22% 3 3% 93 93%
lower the break-even point of sale.
NO 3 3% 3 3% 0 0% 1 1% 7 7%
7. General expenses include things YES 24 24% 44 44% 22 22% 4 4% 94 94%
like equipment depreciation,
employee salaries, and utility bills. NO 2 2% 4 4% 0 0% 0 0% 6 6%
8. A company is more solvent if its YES 24 24% 42 42% 19 19% 4 4% 89 89%
assets exceed its liabilities, giving it
the ability to pay its debts NO 2 2% 6 6% 3 3% 0 0% 11 11%
9. A net gain occurs when expenses YES 9 9% 16 16% 10 10% 2 2% 37 37%
exceed total revenue or sales over
a given time period. NO 17 17% 32 32% 12 12% 2 2% 63 63%
10. Expenses and costs are YES 8 8% 21 21% 8 8% 3 3% 40 40%
generally used interchangeably in
the financial aspects of a business. NO 18 18% 27 27% 14 14% 1 1% 60 60%
Legend: F- Frequency, P- Percent, TF- Total Frequency, TP- Total Percentage
68
according to years of operating a business.
Results indicate that those who are engaged in business for less than a
year have the highest correct scores in statement 1 with 26 percent and
statement 2 with the percentage of 25. Further, those who are in 2-3 years in
operation are highest in statement 1 with 45 percent, statement 2 with 46
percent, statement 6 with the percentage of 45 and statement 8 with 42 percent.
Meanwhile those in 4-5 years in business have the highest correct responses in
statement 1 obtaining 20 percent, statement 6 and 7 with the same percentage of
22 while having the lowest correct response in statement 8 having the
percentage of 19. Moreover, those in 6 year and above in business have the
highest scores in statement 1 and 7 with the same percentage of 4.
Furthermore, respondents who operated their business in 2-3 years got
the highest percentage of correct scores. It may imply that operating a business
needed a knowledge in financial instruments and on decision making for the
sustainability operation of the business.
Aydemir & Aren, (2017, financial knowledge seems to make the decision
process more complicated. It could also be a significant factor in predicting risky
investment intentions. Financial Literacy’s relative effect could have remained
weaker when compared to other significant individual factors. Or, subjective
financial knowledge rather than the objective one could be significant when it
69
comes to financial risk-taking. A “financial ability” scale involving both objective
financial knowledge and also subjective one (i.e. familiarity with financial
markets, investment experience) could be developed. Thus, this kind of scale
could enable financial behavior to be explained well. Wang et al. (2011) have
manifested that people perceive the instruments that they know more about,
which they find familiar and more understandable as less risky.
Table 15
when Grouped according to Form of Business
Sole
Partnership Total Total
Financial Knowledge Proprietorship Frequency Percentage
Frequency Percent Frequency Percent
1. A balance sheet is divided into YES 69 69% 25 25% 94 94%
three sections: assets, liabilities,
and equity NO 3 3% 3 3% 6 6%
2. Total sales or revenue less total YES 67 67% 27 27% 94 94%
expenses equals profit.
NO 5 5% 1 1% 6 6%
component that a company owns,
YES 21 21% 9 9% 30 30%
computers, office furniture, and
other fixtures, or intangible assets
such as intellectual property. NO 51 51% 19 19% 70 70%
4. If Jonas takes out a 20,000 peso YES 15 15% 7 7% 22 22%
simple interest rate of 9%, his
annual interest payable should be NO 57 57% 21 21% 78 78%
1,650 pesos.
5. Investment is a term used to YES 29 29% 11 11% 40 40%
describe savings in general
financial practice NO 43 43% 17 17% 60 60%
6. The lower the fixed costs, the YES 67 67% 26 26% 93 93%
lower the break-even point of sale.
NO 5 5% 2 2% 7 7%
7. General expenses include things YES 70 70% 24 24% 94 94%
like equipment depreciation,
employee salaries, and utility bills. NO 2 2% 4 4% 6 6%
8. A company is more solvent if its YES 64 64% 25 25% 89 89%
assets exceed its liabilities, giving it
the ability to pay its debts NO 8 8% 3 3% 11 11%
9. A net gain occurs when YES 29 29% 8 8% 37 37%
expenses exceed total revenue or
sales over a given time period. NO 43 43% 20 20% 63 63%
10. Expenses and costs are YES 31 31% 9 9% 40 40%
generally used interchangeably in
the financial aspects of a business. NO 41 41% 19 19% 60 60%
70
Table 15 shows the financial knowledge of respondents when grouped
according to form of business.
Results show that those who engaged in sole proprietorship form have the
highest correct scores in statement 1 with 69 percent, statement 7 with 70
percent, and statement 2 and 6 with the same percentage of 67 while the lowest
correct response is on statement 3 with 51 percent, statement 9 with 43 percent
and statement 10 with 41 percent. On the other hand, those who are operating
the business under partnership form gained the highest responses on statement
1 and 8 with the same percentage of 25, statement 2 acquiring 27 percent,
statement 6 with 26 percent, and while the lowest correct response is in
statement 10 and 3 with the same percentage of 19, statement 9 with 20 percent,
and statement 4 with 21 percent .
This implies that young entrepreneurs who engage in sole proprietorship
form have the highest assessment in terms of financial knowledge. These can be
implied that sole proprietors were knowledgeable about basic financial concepts,
sales revenue as well as costs and general expenses.
According to Usama & Yusoff, (2018), entrepreneurs with financial
knowledge tend to keep comprehensive in business such as financial records,
thereby gaining a competitive advantage over rivals who keep no such records,
through their ability to access external funding.

71
Table 16
when Grouped according to Net Business Income
Php50, 000 Php50, 001 to Php100, 001 Php150, 001
and Below Php100, 000 to Php150, 000 to Php200, 000
F P F P F P F P
1. A balance sheet is divided YES 74 74% 13 13% 4 4% 3 3% 94 94%
into three sections: assets,
liabilities, and equity NO 6 6% 0 0% 0 0% 0 0% 6 6%
2. Total sales or revenue less YES 77 77% 11 11% 3 3% 3 3% 94 94%
total expenses equals profit.
NO 3 3% 2 2% 1 1% 0 0% 6 6%
3. A business liability is a YES
valuable component that a 22 22% 5 5% 1 1% 2 2% 30 30%
company owns, such as
vehicles, real estate,
computers, office furniture, NO
and other fixtures, or intangible 58 58% 8 8% 3 3% 1 1% 70 70%
assets such as intellectual
property.
4. If Jonas takes out a 20,000 YES 14 14% 5 5% 1 1% 2 2% 22 22%
peso loan to buy a used
tricycle at a simple interest
rate of 9%, his annual interest NO 66 66% 8 8% 3 3% 1 1% 78 78%
payable should be 1,650
pesos.
5. Investment is a term used to YES 29 29% 7 7% 2 2% 2 2% 40 40%
describe savings in general
financial practice NO 51 51% 6 6% 2 2% 1 1% 60 60%
6. The lower the fixed costs, YES 76 76% 13 13% 2 2% 2 2% 93 93%
the lower the break-even point
of sale. NO 4 4% 0 0% 2 2% 1 1% 7 7%
7. General expenses include YES 75 75% 13 13% 4 4% 2 2% 94 94%
things like equipment
depreciation, employee
salaries, and utility bills. NO 5 5% 0 0% 0 0% 1 1% 6 6%
8. A company is more solvent YES 73 73% 11 11% 3 3% 2 2% 89 89%
if its assets exceed its
liabilities, giving it the ability to
pay its debts NO 7 7% 2 2% 1 1% 1 1% 11 11%
9. A net gain occurs when YES 28 28% 5 5% 2 2% 2 2% 37 37%
expenses exceed total
revenue or sales over a given NO 52 52% 8 8% 2 2% 1 1% 63 63%
time period.
10. Expenses and costs are YES 28 28% 7 7% 3 3% 2 2% 40 40%
generally used
interchangeably in the financial NO 52 52% 6 6% 1 1% 1 1% 60 60%
aspects of a business.
Legend: F- Frequency, P- Percent, TF- Total Frequency, TP- Total Percentage
according to net business income.

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Results show that those having an estimated earnings of 50,000 pesos
and below have the highest correct responses in statement 2 with 77 percent,
statement 6 with 76 percent, and statement 7 having a percentage of 75 while
having lowest correct answers in statement 5 with 51 percent, statement 9 and
10 with 52 percent, and statement 3 with 58 percent. Moreover, those with
estimated earnings of 50,0001-100,000 have the highest correct answers in
statements 1, 6 and 7 obtaining 13 percent, while garnering the lowest correct
response in statements 5 and 10 with 6 percent. Also, those with estimated
earnings of 100,001-150,000 pesos have the highest correct answers in
statements 1 and 7 with 4 percent while statement 10 got the lowest with 1
percent. Lastly, those who have estimated earnings of 150,001-200,000 pesos
have the highest correct answers in statements 1 and 2 with the same
percentage of 3.
Based on this result, it can be noted that those with an estimated net
income of 50,000 pesos and below as well as those with estimated income of
50,001-100,000 have more advantage in terms of financial knowledge. It can be
noted that being financially knowledgeable is correlated to the net income of a
business.
According to Monticone (2010), he found that people with higher incomes
were more likely to acquire financial knowledge on their own while those with
lower incomes found it too costly or did not have the same incentives to do so.
Also, he indicated that wealth has a positive but small effect on the
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degree of financial knowledge. Moreover, Bhushan and Medury (2013) also
found out that financial literacy level is not only affected by gender and
education but also associated with income, nature of employment and place
of work.
Table 17
Comparison of Responses on the Assessment of Financial Literacy when
Grouped according to Sex
Sex
Variable Male Female
Mean Interpretation Mean Interpretation
Financial 3.63 Highly Literate 3.63 Highly Literate
Communication
Financial Ability 3.63 Highly Literate 3.61 Highly Literate
Behaviour
Confidences or 3.64 Highly Literate 3.63 Highly Literate
Experiences
Table 17 presents a comparison of responses from different groups of
respondents based on sex.
Based on the result, male and female responses have the same mean
score of 3.63 in financial communication. Males, on the other hand, outperformed
females in terms of financial ability, with a mean of 3.63 compared to the female’s
mean score of 3.61 which is 0.2 less than males’ financial ability. This advantage
extends farther in the direction of financial behavior, with a 0.02 advantage, and
confidence or experiences, with a 0.01 point advantage.
Males surpassed females on all of the variables of the study, which is
consistent with Sucuachi’s (2013) findings. Females, on the other hand, have a
74
lower level of financial literacy than males, as demonstrated by this study.
However, it is still not statistically significant enough to be used to estimate the
financial literacy of micro-entrepreneurs in Batangas since according to
Herdjiono et. al. (2018), there might be differences in men and women in terms
of financial matters but there is no relevant and significant difference that gender
identities have something to do with financial matters.
Table 18
Comparison of Responses on Assessment of Financial Literacy when
Grouped according to Number of Highest Educational Attainment
Highest Educational Attainment
Variable HSG VCG CUG CG WUMD MDH WUDD
M I M I M I M I M I M I M I
Financial
Communication 3.59 HL 4.00 HL 3.62 HL 3.63 HL 3.85 HL 3.64 HL 3.50 HL
Financial
Ability 3.56 HL 3.90 HL 3.61 HL 3.64 HL 3.85 HL 3.48 L 3.20 L
Financial
Behaviour 3.56 HL 3.50 HL 3.57 HL 3.60 HL 3.80 HL 3.68 HL 3.10 L
Confidences
or 3.51 HL 4.00 HL 3.67 HL 3.63 HL 3.80 HL 3.48 L 3.00 L
Experiences
Legend: M- Mean, I- Interpretation, HSG- High School Graduate, VCG- Vocational Course Graduate, CUG-
College Undergraduate, CG- College Graduate, WUMD- With Units in Master’s Degree, MDH- Master’s
Degree Holder, WUDD- With Units in Doctorate Degree, HL- Highly Literate, L- Literate, ML-Moderately
Literate, I-Illiterate
Table 18 shows the comparison of responses of the respondents’
assessment of financial literacy among young entrepreneurs to different groups
based on their highest educational attainment.
Based on the results presented, respondents who are graduates of
vocational courses got the highest weighted mean of 4.00 in terms of financial
communication and in confidences or experiences, and got the highest weighted
mean 3.90 in terms of financial ability. Meanwhile, respondents with units in
Masters’ Degree got the highest weighted mean of 3.80 in terms of financial
75
behaviour. In contrast, respondents with units in doctorate degree got the lowest
weighted mean of 3.50, 3.20, 3.10, and 3.00 in terms of financial communication,
financial ability, financial behaviour and confidence or experiences, respectively.
It implies that respondents who are graduates of vocational courses took a
program that expands their knowledge and skills in handling a business. The
respondents vocational courses or programmes might also include
entrepreneurial subjects or courses that enhance the learnings of the
respondents on making their own business and how to sustain it. Vocational
courses graduates might also have competent knowledge, hand on hand
experience , and practices that helped their business to survive for a long run.
Kowalik (2013) In the vocational education process, a learner continuously
acquires new knowledge, skills and social competences. The result of such a
process includes the educational outcomes, knowledge, skills and social
competences. These elements create the vocational qualifications, which can be
acquired through the formal, the non-formal and the informal education.
According to Jatmoko (2013) mentioned that vocational high schools are
educational institutions with a potential to prepare work-ready workforces to be
immediately absorbed by business and industry since applicative theory and
practices are given to students from the very start of their school years, in hope
of producing vocational high school graduates with competencies that meet the
needs of the industries.
Moreover, respondents with units in Master’s Degree got the highest

76
weighted mean in terms of financial behaviour. It implies that they have
developed analytical skills in the field of finance that helped to strategize and
allocate their own resources effectively. And, also have business knowledge to
expand, adapt to the changes of the business environment, and innovative ideas
to expand their businesses.
Zandvliet and Broekhuizen (2017) mentioned that studies of learning
environments have had a relevant role in training, professional development, and
innovative actions in the educational environment. Silva, et. al. (2018) gave the
eight mediating factors of the learning environment were identified in the training
in the Business Administration Master’s Degree program with a professional
focus and how these factors can influence the behaviours, attitudes, sensations
and development of learning based on links established between each
dimension. The majority of students who enroll in Master’s degrees in business
administration have professional experience in their field, but they need to reflect
on the attitudes, emotions and behaviours experienced during their training,
which can directly affect their learning.
Table 19 presents the comparison of responses of the respondents on the
assessment of financial literacy among young entrepreneurs relative to number
of years operating the business in terms of profile variables.

77
Table 19
Grouped according to Number of Years Operating the Business
Number of Years Operating the Business

Variable Less than 6 years and
2-3 years 4-5 years
One year above
Mean Interpretation Mean Interpretation Mean Interpretation Mean Interpretation
Financial
3.50 Highly 3.66 Highly 3.72 Highly 3.68 Highly
Communication
Literate Literate Literate Literate
Financial
Ability
Financial
3.45 Literate 3.62 Highly 3.61 Highly 3.90 Highly
Behaviour
Literate Literate Literate
Confidences
or
Experiences
Based on the result presented, respondents who are engaged in 4 – 5
years operating the business got the highest mean of 3.72 in terms of financial
communication. In addition, 2 – 3 years got the highest mean of 3.66 in terms of
financial ability and; 6 years and above got the highest mean of 3.90 and 3.93 in
terms of financial behaviour and confidence or experiences. Meanwhile,
respondents who are less than one year operating the business got the lowest
mean of 3.50, 3.52, 3.45, 3.53 in terms of all variables.
Based on the data gathered, it implies that businesses who engage in the
operation for 6 years and above have a dominant result than the others in terms
of financial behaviour and confidence or experiences and 4 – 5 years have the
highest mean in terms of financial communication and financial ability. This is due
to the experience gained which indicates that those who have operated the
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business longer are more financially literate since the strategies on financing,
past experiences and learnings have been practiced and considering the certain
years, entrepreneurs can develop the ability to navigate tricky situations and the
ability to handle their finances.
According to Moore (2013), he elucidated that literacy or knowledge is
gained via practical experience and active integration of knowledge. In other
words, people will become more sophisticated in terms of finance when they are
more literate. In addition, Barte (2012), in a study on financial literacy in SMEs,
found that financial literacy was directly linked to performance.
Furthermore, Romanelli and Schoonhoven, (2010); Shane, (2013),
states that previous experience from managing a small business provides
training in many of the skills needed for recognizing and acting on
entrepreneurial opportunities, including negotiating, leading, planning,
decision-making, problem solving, financing, organizing and
communicating. Individuals with previous management experience are
moreover generally found to own more successful firms than others.
On the other hand, less than one year got the lowest assessment due to
the less experience of owners and inability to obtain financing or further financing
needed to sustain a business.

79
This was supported by Davidsson et al. (2010), wherein fledging
enterprises are weaker during their first years and size proved to be dependent
on age. However, the initial team´s size is highly important.
assessment of financial literacy among young entrepreneurs relative to form of
business.
Table 20
Grouped according to Form of Business
Form of Business
Variable Sole Proprietorship Partnership
Mean Interpretation Mean Interpretation
Communication
Financial Ability 3.66 Highly Literate 3.51 Highly Literate
Behaviour
Confidences or 3.67 Highly Literate 3.53 Highly Literate
Experiences
Based on the result presented, sole proprietorship got the highest mean of
3.66, 3.66, 3.61, and 3.67 in terms of all variables. Meanwhile, partnership got
the lowest mean of 3.57, 3.51, 3.53, and 3.53 in terms of all variables.
This shows that sole proprietorship in the form of business got the highest
assessment in financial literacy. This implies that sole proprietors are more
flexible, productive, and financially literate to set actions and decisions for the
sustainability and betterment of the business.

80
According to Miller and Jentz, (2010: 586), sole proprietorship entails
more flexibility as the sole proprietor is free to make any decisions she or he
wishes concerning the business which include the finances, whom to hire, when
to take a vacation, what kind of business to pursue and can sell or transfer all or
part of the business to another party at any time without needing approval from
anyone else.
Table 21
Grouped according to Net Business Income
Net Business Income

Variable Php50, 000 and Php50, 001 to Php100, 001 to Php150, 001 to
Below Php100, 000 Php150, 000 Php200, 00
Mean Interpretation Mean Interpretation Mean Interpretation Mean Interpretation
Financial Highly Highly Literate
3.66 3.58 3.45 Literate 3.27
Communication Literate Literate
Financial Ability Highly Literate Highly Literate
3.65 3.47 3.63 3.37
Literate Literate
Financial Highly Highly Highly Literate
3.59 3.59 3.68 3.33
Behaviour Literate Literate Literate
Confidences or Highly Highly Highly Literate
3.64 3.58 3.70 3.33
Experiences Literate Literate Literate
assessment of financial literacy among young entrepreneurs relative to net
business income.
Based on the result presented, respondents whose net business income is
Php 50, 0000 and below got the highest mean of 3.66 and 3.65 in terms of
financial communication and financial ability. Moreover, Php 100,001 to Php

81
150,000 got the highest mean of 3.68 and 3.70 in terms of financial behaviour
and confidence or experiences. Meanwhile, Php 150,001 to Php 200,000 got the
lowest mean of 3.27, 3.37, 3.33 and 3.33 in terms of all variables.
It can be seen that respondents’ net income of Php 50,000 and below got
the highest assessment in financial communication and financial ability.
Meanwhile, when it comes to financial behaviour and confidences or
experiences, net income of Php 100,001 to Php 150,000 got the highest
assessment. This implies the growth of the business reflects on the ability of the
young entrepreneurs to understand the proper acquisition, allocation, and
utilization of finances to be able to persist the sustainability, profitability, and
survival of business regardless of the amount of the profit.
According to Coad et al., (2013), growth is the result of a good
administration of resources and capacities which the companies use to promote
growth. They comprise capacities, acquired information, financial counseling and
resources.
In the other way, poor financial literacy weakens entrepreneurial activities
and new venture initiatives. The confidence in one’s personal finances and
knowledge in corporate finance will provide a supportive atmosphere for
entrepreneurs, based on Kotze, L., and A. Smit. (2008).
Achtenhagen et al. (2010) researched entrepreneurs´ ideas on growth and
listed the following: increase in sales, increase in the number of employees,

82
increase in profit, increase in assets, increase in the firm's value and internal
development. Internal development comprises development of competences,
organizational practices in efficiency and the establishment of a professional
sales process. This was the most important index for entrepreneurs that
participated in the research. However, an increase in the number of employees
was not necessarily considered a sign of growth.
4. Proposed Recommendation
The researchers came up with a proposed recommendation providing
inputs as a basis for enhancing the financial literacy of young entrepreneurs.
The proposed recommendations are formulated in order to improve the
level of financial literacy of the respondents. They can apply it in their own
practices in managing their finances to alter their current misconduct and in the
long run, help them achieve their financial goals. The following recommendations
were made in relation to where the respondents lack the most.

83
Table 22
Proposed Recommendation to Enhance the Financial Literacy of Young Entrepreneurs
Area of Findings Proposed Objectives Persons Expected Outcome

Concern Recommendation Involved
“Investment is a ● Young ● To enhance the Young Young entrepreneurs

term used to entrepreneurs understanding Entrepreneurs will be able to
Financial describe savings may engage in of other in Lemery, understand and
Knowledge in general financial literacy financial Batangas analyze financial
financial programs and concepts. terms and concepts
practice. “ different financial ● To understand very well.
activities. the different
“Expenses and ● Young financial terms
costs are entrepreneurs in avoidance of
generally used may do formal confusion.
interchangeably research about
in the financial financial terms.
aspects of a
business.”
“All credit and ● Young ● To determine Young Young entrepreneurs

collection, write entrepreneurs whether the Entrepreneurs might deduct the
Financial off policies and must have a accounts are in Lemery, credit as loss on their
Communication procedures are policy and uncollectible. Batangas financial statements.
in writing.” procedures of ● To enhance the
write off on credit. transparency of
● Young finances and to
entrepreneurs ensure
should properly consistent
84
prepare source credit decisions

documents for all are being
transactions and made.
operations.
● Young ● To widen the Young The young

“Reinvest the entrepreneurs range of views Entrepreneurs entrepreneurs will be
profits to may engage in of young in Lemery, highly financially
upgrade the financial literacy entrepreneurs Batangas literate and will know
Financial Ability business.” programs and not only in how to reinvest at
different financial being the time being and
activities like financially over time.
investing and the literate but also
like. in investing.
● Young
entrepreneurs ● To be able to
may seek help gain more
and advice with reliable and
financial advisors experience-
and business based
experts. information.
Financial “Can decide ● Young ● To ensure that Young Young entrepreneurs

Behaviour independently entrepreneurs the proper Entrepreneurs will be able to
where to spend should be aware budgeting is in Lemery, manage their money
my money.” of the appropriate being applied. Batangas wisely and will be
division of their ● To enhance the able to develop their
money in terms of proper good disposition in
their designated monetary money.
expenses. practices.
● Young
85
entrepreneurs
may also try
applying a mindful
spending habit.
● Young ● To ensure that Young Young Entrepreneurs

entrepreneurs everything goes Entrepreneurs will be able to have
Confidence or “Have enough may consider well after the in Lemery, knowledge and
Experiences knowledge of the buying time in execution of Batangas calculate the risk or
consequences of decision making. actions. consequences of
actions.” ● Young ● To be able to actions.
entrepreneurs have back up
must learn to plans for
calculate the reconsideration
outcome in every of actions.
action.
86
Chapter V
SUMMARY, FINDINGS, CONCLUSIONS AND RECOMMENDATIONS
This chapter presents the summary of objectives and methodology, the
salient findings, the conclusions drawn from the findings, and the
recommendations.
Summary
This study was conducted to assess the financial literacy among young
entrepreneurs in Lemery, Batangas. The study aims to determine the financial
literacy specifically to the profile of the students in terms of sex, highest
educational attainment, number of year operating the business, form of business,
and net income. Also, it sought to assess the respondents in financial knowledge,
financial communication, financial ability, financial behavior, and confidences and
experience. The present study is concerned in determining the financial literacy of
young entrepreneurs. The main purpose of the study is to present the facts of
information regarding the financial literacy of young entrepreneurs. The study was
also conducted to compare the responses and to find out the recommendations
that can be proposed by the young entrepreneur.
The researchers utilized the descriptive research design to depict the
participants in an accurate way. The input process output framework is used to
determine the level of financial literacy among young entrepreneurs. This study is
confined to the content covered by the objectives. The respondents of the study
are composed of 100 young entrepreneurs ages 18 to 30 years old whose

87
businesses obtained business permits in Lemery, Batangas. The researcher used
the non-probability sampling, specifically snowball sampling for not having the
official list of young entrepreneurs in the Department of Trade and Industry. The
main gathering instrument of the researcher was conducted through an online
survey questionnaire given to the young entrepreneurs. The researchers prepared
a questionnaire based on the statement of the problem. The prepared letter was
also provided to the respondents. The researcher used frequency and percentage,
weighted mean, and comparison of means to come up with the summary table
findings.
Findings
From the analysis and interpretation, the researchers come up with the
following findings:
1. Majority of the respondents are female with the frequency of 67 or 67
percent while a frequency of 33 or 33 percent were male respondents. Most
of the respondents were college graduates with a frequency of 50 or 50
percent as for highest educational attainment. Most of the respondents’
number of years operating their business is 2-3 years with the frequency of
48 or 48 percent. As for the form of business, the majority of the
respondents are sole proprietors with a frequency of 72 or 72 percent.
Meanwhile, when it comes to their net business income, most of the
respondents had a Php 50,000 and below with the frequency of 80 or 80

88
percent.
2. The Assessment on Financial Literacy among Young Entrepreneurs showed
that they are highly literate. Especially, when it comes to financial
knowledge among young entrepreneurs. Results revealed that the highest
correct responses were obtained from statements number 1, 2 and 7 having
the same percentage of 94, statement number 6 with 93 percent, while the
lowest correct responses were obtained from statement 8 with a percentage
of 89.Further, in financial communication, the responses got the composite
mean of 3.63 interpreted as strongly agreed by the respondents. The
statement where “All of the billings are controlled and properly accounted
for” got the highest weighted mean of 3.71. Meanwhile, in terms of financial
ability, it has a composite mean of 3.62, interpreted as strongly agreed. The
two statements tied with the highest weighted mean of 3.67 are “Make
careful and watchful spending decisions” and “Stay informed and educated
on my finances”. In contrast, the statement where “Reinvest the profits to
upgrade the business” got the lowest weighted mean of 3.56. Moreover,
with the composite mean of 3.59, resulted in terms of financial behaviour
interpreted as strongly agreed, the statement that got weighted mean of
3.66 is “Open a separate bank account for the business”, while the
statement “can decide independently where to spend their money” got the
lowest weighted mean of 3.49. While, with the composite mean of 3.66
interpreted as strongly agreed resulted from confidence and experiences.

89
The statement where it got the highest weighted mean of 3.69 is “Review
the results of follow up on missing documents” while the statement that got
the lowest weighted mean of 3.56 is “Have enough knowledge of the float
consequences of actions”.
3. The comparison of responses on the assessment of financial literacy among
young entrepreneurs, when grouped according to their profiles. In terms
financial knowledge, based on the sex of the respondents, Results show
that male respondents have the highest correct scores in statement number
6 with the percentage of 32, followed by 31 percent in statements 7 and 8
while male respondents have the lowest score in statement 4 with the
percent of 8. On the other hand, female respondents gained the highest
scores which is 65 percent in statement 1; followed by the same
percentage of 63 in statements number 2 and 7, and statement 6 with 93
percent. Based on the highest educational attainment of the respondents,
college graduates, they have gained the highest correct responses in
statement 1 and 7 with 47 percent, and statement 6 with 46 percent while
the same group with the lowest correct responses is statement 4 with 11
percent. Based on the number of years operating the business, respondents
who are 2-3 years in operation are highest in statement 1 with 45 percent,
statement 2 with 46 percent, statement 6 with the percentage of 45 and
statement 8 with 42 percent. Based on the form of business, results present
that those engaged in sole proprietorship have the highest correct scores in
90
statement 1 with 69 percent, statement 7 with 70 percent, and statement 2
and 6 with the same percentage of 67 while their lowest correct response is
on statement 8 with the percentage of 64. Based on the net business
income of the respondents, those with estimated earnings of
50,0001-100,000 have the highest correct answers in statements 1, 6 and 7
obtaining 13 percent, while garnering the lowest correct response in
statement 8 with 11 percent. It also shows that male and female
respondents have the same weighted mean of 3.63 in the financial
communication. However, male outperformed females in terms of financial
ability, financial behaviour and confidence or experiences with the highest
mean of 3.63, 3.60, and 3.63, respectively. Meanwhile, when it comes to the
highest educational attainment, respondents who are graduates of
vocational courses got the highest weighted mean of 4.00 in terms of
financial communication and confidence or experiences, and got the highest
weighted mean of 3.90 in terms of financial ability. On the other hand,
respondents who are with units in Master’s Degree got the highest weighted
mean of 3.80 in terms of financial behaviour. When it comes to the number
of years operating their business, 4-5 years got the highest mean of 3.72 in
terms of financial communication, 2-3 years got the highest mean of 3.66 in
terms of financial ability and 6 years and above got the highest mean of
3.90 and 3.93 in terms of financial behaviour and confidence or
experiences, respectively. Moreover, based on the form of business, sole

91
proprietorship got the highest mean of 3.66, 3.61, 3.61, and 3.67 in terms of
financial communication, financial ability, financial behaviour and confidence
and experiences, respectively. While, based on the net business income,
Php 50, 0000 and below got the highest mean of 3.66 and 3.65 in terms of
financial communication and financial ability. Lastly, Php 100,001 to Php
150,000 got the highest mean of 3.68 and 3.70 in terms of financial
behaviour and confidence or experiences.
4. Based on the results of the study, in terms of financial knowledge, in the
statements “Investment is a term used to describe savings in general
financial practice. “ and “Expenses and costs are generally used
interchangeably in the financial.” with the same percentage of 40% of young
entrepreneurs in Lemery, Batangas. In terms of financial communication,
only a few young entrepreneurs strongly agreed on the statement “all the
credit and collection, write off policies and procedures are in writing” which
got the lowest weighted mean of 3.59. In terms of financial ability, only few
strongly agreed on the statement “Reinvest the profits to upgrade the
business” which had the lowest weighted mean of 3.56. In terms of financial
behaviour, only few strongly agreed on the statement “Can decide
independently where to spend my money”, which got the lowest weighted
mean of 3.49. And lastly, in terms of confidences or experiences, only few
strongly agreed on the statement “Have enough knowledge of the float
consequences of actions” which got the lowest weighted mean of 3.56.

92
The researchers believed that the statements mentioned above can be a
help to come up with the recommendations for the young entrepreneurs in
Lemery, Batangas. The said proposed recommendations might be
considered by the young entrepreneurs and put into operation or practical
use that will help them to improve their financial literacy and practices inside
and out of their business.
Conclusions
Based on the findings of this study, the following are the conclusions drawn:
1. Based on the findings of the study, the majority of young entrepreneurs in
Lemery, Batangas are female, most are college graduates, sole proprietors,
operating their businesses for 2-3 years and most of them had a net
business income of Php 50,000 and below.
2. In general, the majority of the respondents were assessed as highly literate
on the assessment of financial literacy in terms of financial communication,
financial ability, financial behaviour,and confidence or experiences.
Meanwhile, in terms of financial knowledge young entrepreneurs were
knowledgeable about balance sheets, sales revenue as well as costs and
general expenses.
3. The comparison of the respondents’ assessment when grouped according
to their sex, highest educational attainment, number of years operating the
business, form of business, and net business income does not really affect
93
the outcome of their responses since majority of them still assessed their
financial literacy as highly literate.
4. Based on the findings, the researchers proposed recommendations to
the young entrepreneurs in Lemery, Batangas that they can absorb for them
to apply it inside and out of their business.
Recommendations
In light of the above findings, the researchers proposed the following
recommendations:
1. Young entrepreneurs in Lemery, Batangas can take part in financial literacy
programs and use financial-related applications to keep track of important
financial data.
2. Young entrepreneurs may engage in seminars to enhance their financial
knowledge which provides opportunities to develop their interests and
should be aware of the appropriate division of their money in terms of their
designated expenses.
3. Young entrepreneurs may seek help and advice with financial advisors and
business experts and also may consider calculating the outcome in every
action.
4. LGU Lemery may provide coaching sessions on developing financial literacy
of young entrepreneurs to enhance their basic knowledge on finances, as
well as their financial ability, financial behaviour, financial communication

94
and confidences or experiences.
5. Future researchers may be able to use this study to further develop and
investigate this area.

95
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105
APPENDICES
106
CERTIFICATION
Form and Content Validation
This is to certify that the questionnaire for the study entitled “Financial
Literacy among Young Entrepreneurs in Lemery, Batangas” by Mia Lyn Jezail
A. Enriquez, Mark Ervin M. Mediona, and Marvie Cindy C. Vergara has been
checked and validated by the authorities concerned and is ready for distribution.
___________________________
ANGELICA R. MANALO, Ph.D.
Adviser
__ ____________________
_________________________
Gemar G. Perez, DBA Mary Grace T. Mandane, Ph.D
Panel Member Panel Member
_________________________ ________________________
Gemar G. Perez, DBA Angelo C. Panilagan
Statistician Grammarian
__________________
Elisa S. Diaz, DBA
Chairman
107
Republic of the Philippines
BATANGAS STATE UNIVERSITY

COLLEGE OF ACCOUNTANCY, BUSINESS,
ECONOMICS AND
INTERNATIONAL HOSPITALITY MANAGEMENT
CITE Building, Pablo Borbon Main I, Rizal Avenue, Batangas City
CERTIFICATE OF EDITING OF THESIS/DISSERTATION
This is to certify that this Thesis/ Dissertation/ Project Plan entitled

“Financial LIteracy Among Young Entrepreneurs in Lemery, Batangas” of Mia
Lyn Jezail A. Enriquez, Mark Ervin M. Mediona, and Marvie Cindy C. Vergara in
partial fulfilment of the requirements for the degree of Bachelor of Science in
Business Administration major in Financial Management has been received and
edited by the undersigned based on the minutes of the Final Defense.
It now follows the standard format of the University and conventions of

research writing.
ANGELO C. PANILAGAN
Grammarian
Date
108

ECONOMICS AND
Certificate of Statistical Analysis
This is to certify that the Research Study entitled “Financial LIteracy

Among Young Entrepreneurs in Lemery, Batangas” written by Mia Lyn Jezail A.
Enriquez, Mark Ervin M. Mediona, and Marvie Cindy C. Vergara of Bachelor of
Science in Business Administration major in Financial Management has undergone
statistical analysis for reliability and data analysis.
This certification is issued to ensure that the University received quality

research work.
GEMAR G.PEREZ, DBA

Statistician
Date
109
110

ECONOMICS AND
FINANCIAL LITERACY AMONG YOUNG ENTREPRENEURS
QUESTIONNAIRE
Dear Respondents,
May we request your good self to answer this questionnaire. Your

cooperation will be a big help in completing our study. Rest assured that all
information will be treated with utmost confidentiality and will be used for research
purposes only. Thank you very much.
The researchers
Part I. Profile of the respondent. Kindly put a check mark (/) on the corresponding
to your answer. Please do not leave any item unanswered.
1. Sex:
Male Female
2. Highest Educational Attainment
High School Graduate With Units in Master’s Degree
Vocational Course Graduate Master’s Degree Holder
College Undergraduate With Units in Doctorate Degree
College Graduate Doctorate Degree Holder
3. Number of years operating the business
Less than one year 4 - 5 years
2 - 3 years 6 years and above

111
4. Form of Business
Sole proprietorship Partnership
Corporation Cooperative
5. Net Business Income
Php50, 000 and Below Php150, 001 to Php200, 000
Php50, 001 to Php100, 000 Php200, 001 to Php250, 000
Php100, 001 to Php150, 000 Php250, 001 and above
Part II. Financial Literacy of Young Entrepreneurs. Please check YES if the
statement is correct and NO if the statement is wrong, which presents your answer
on measuring financial literacy in terms of Financial knowledge.
A. Financial Knowledge - the capacity of young YES NO

entrepreneurs to acknowledge and understand financial basic
knowledge and comprehension of finances.
1.A balance sheet is divided into three sections: assets,
liabilities, and equity.
2. Total sales or revenue less total expenses equals profit.
3.A business liability is a valuable component that a company

owns, such as vehicles, real estate, computers, office furniture,
and other fixtures, or intangible assets such as intellectual
property.
4.If Jonas takes out a 20,000 peso loan to buy a used tricycle at
a simple interest rate of 9%, his annual interest payable should
be 1,650 pesos.
5. Investment is a term used to describe savings in general
financial practice.
6.The lower the fixed costs, the lower the break-even point of
sale.
7. General expenses include things like equipment depreciation,
employee salaries, and utility bills.
8.A company is more solvent if its assets exceed its liabilities,
giving it the ability to pay its debts.
9. A net gain occurs when expenses exceed total revenue or
sales over a given time period.
112
10. Expenses and costs are generally used interchangeably in

the financial aspects of a business.
Part III. Financial Literacy of Young Entrepreneurs in Lemery Batangas. Please

check (/) the space which presents your answer on measuring financial literacy in
terms of Financial Communication, Financial Ability, Financial Behaviour, and
Confidences or experiences.
4 – Strongly Agree (SA) 2 – Disagree (DS)
3 – Agree (A) 1 – Strongly Disagree (SD)
B. Financial Communication – the transparency 4 3 2 1

on giving information about finances. SA A DS SD
1. Monitor the working capital cycle regularly to
identify potential cash flow issues.
2. All the credit and collection, write off policies and
procedures are in writing.
3. Have an effective system helping to determine
how much of each line of stock to keep on hand.
4. Assure the policies and procedures support
internal control.
5. Ensure to maintain the detailed accounts
receivable records segregated from collections,
disbursements, and general ledger posting
functions.
6. All of the billings are controlled and properly
accounted for.
7. Evaluate the statement of account balance on a
timely basis.
8. Compare quantities received goods against
receiving reports.
9. Ensure that the receiving, issuing, accounting
and storing responsibilities are properly segregated.
10. Maintain the records of unmatched items,
matched receiving documents, and follow up on
long unmatched receipts.
113
C. Financial Ability - how the knowledge affects 4 3 2 1

decision making regarding to finances and SA A DS SD
payables
1. Have an adequate understanding of what moves

quickly, what is aged or excess, and what´s
seasonal.
2. Have a backup plan for every risk I take
3. Reinvest the profits to upgrade the business.
4. Try other options to generate cash flow as a

backup source of income.
5. Do not take on unnecessary debt.
6. Make careful and watchful spending decisions.
7. Consider calculating risks to ensure the profit.
8. Confident of doing up a budget for my business.
9. Stay informed and educated on my finances.
10. Monitors and approves the write-offs of obsolete
and inactive inventories.
D. Confidences or Experiences - information 4 3 2 1

learned from problems faced by observation and SA A DS SD
experiences.
1. Uses payable vouchers which are subsequently

accounted for.
2. Maintain the records of unmatched items,
matched receiving documents, and follow up on
long unmatched receipts.
3. Review the results of follow up on missing
documents.
4. Consider seeking help from a professional
financial advisor.
5. Always review the result of a follow up
unmatched receipt.
6. Get Educated. Read articles and websites that
can teach me about financial matters.
114
7. Always prepare purchase orders for receiving

records.
8. Evaluate and verified quantities billed with
receiving documents and purchase order.
9. Participate on forums, webinars for budgeting to
loan management, income taxes, and more.
10. Have enough knowledge of the consequences
of actions.
THANK YOU VERY MUCH AND GOD BLESS!
SIGNATURE
115
Notes
Output Created 05-NOV-2021 21:43:13
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FK7 94 94.00% 6 6.00% 100 100.00%
FK8 89 89.00% 11 11.00% 100 100.00%
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Male Female TTL

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Education
1.0 2.0 3.0 4.0 5.0 6.0 7.0 TTL

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118
2.0 0 0% 0 0% 0 0% 5 5% 0 0% 1 1% 0 0% 6 6%
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2.0 7 7% 1 1% 23 23% 39 39% 2 2% 5 5% 1 1% 78 78%
FK5 1.0 2 2% 1 1% 15 15% 18 18% 2 2% 2 2% 0 0% 40 40%
2.0 6 6% 0 0% 18 18% 32 32% 0 0% 3 3% 1 1% 60 60%
FK6 1.0 8 8% 0 0% 31 31% 46 46% 2 2% 5 5% 1 1% 93 93%
2.0 0 0% 1 1% 2 2% 4 4% 0 0% 0 0% 0 0% 7 7%
FK7 1.0 7 7% 1 1% 31 31% 47 47% 2 2% 5 5% 1 1% 94 94%
2.0 1 1% 0 0% 2 2% 3 3% 0 0% 0 0% 0 0% 6 6%
FK8 1.0 8 8% 1 1% 31 31% 43 43% 1 1% 4 4% 1 1% 89 89%
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FK1
0 1.0 0 0% 1 1% 18 18% 18 18% 2 2% 0 0% 1 1% 40 40%
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1.0 2.0 3.0 4.0 TTL

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FK4 1.0 6 6% 7 7% 8 8% 1 1% 22 22%
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2.0 16 16% 31 31% 11 11% 2 2% 60 60%
FK6 1.0 23 23% 45 45% 22 22% 3 3% 93 93%
2.0 3 3% 3 3% 0 0% 1 1% 7 7%
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119
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2.0 3 3% 3 3% 6 6%
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2.0 5 5% 1 1% 6 6%
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FK4 1.0 15 15% 7 7% 22 22%
2.0 57 57% 21 21% 78 78%
FK5 1.0 29 29% 11 11% 40 40%
2.0 43 43% 17 17% 60 60%
FK6 1.0 67 67% 26 26% 93 93%
2.0 5 5% 2 2% 7 7%
FK7 1.0 70 70% 24 24% 94 94%
2.0 2 2% 4 4% 6 6%
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2.0 8 8% 3 3% 11 11%
FK9 1.0 29 29% 8 8% 37 37%
2.0 43 43% 20 20% 63 63%
FK10 1.0 31 31% 9 9% 40 40%
2.0 41 41% 19 19% 60 60%
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1.0 2.0 3.0 4.0 TTL

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2.0 6 6% 0 0% 0 0% 0 0% 6 6%
FK2 1.0 77 77% 11 11% 3 3% 3 3% 94 94%
2.0 3 3% 2 2% 1 1% 0 0% 6 6%
FK3 1.0 22 22% 5 5% 1 1% 2 2% 30 30%
2.0 58 58% 8 8% 3 3% 1 1% 70 70%
FK4 1.0 14 14% 5 5% 1 1% 2 2% 22 22%
2.0 66 66% 8 8% 3 3% 1 1% 78 78%
120
FK5 1.0 29 29% 7 7% 2 2% 2 2% 40 40%

2.0 51 51% 6 6% 2 2% 1 1% 60 60%
FK6 1.0 76 76% 13 13% 2 2% 2 2% 93 93%
2.0 4 4% 0 0% 2 2% 1 1% 7 7%
FK7 1.0 75 75% 13 13% 4 4% 2 2% 94 94%
2.0 5 5% 0 0% 0 0% 1 1% 6 6%
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2.0 7 7% 2 2% 1 1% 1 1% 11 11%
FK9 1.0 28 28% 5 5% 2 2% 2 2% 37 37%
2.0 52 52% 8 8% 2 2% 1 1% 63 63%
FK10 1.0 28 28% 7 7% 3 3% 2 2% 40 40%
2.0 52 52% 6 6% 1 1% 1 1% 60 60%
121
CURRICULUM VITAE
122
MIA LYN JEZAIL A. ENRIQUEZ

Coral na Munti, Agoncillo, Batangas
0975 422 5742
mialynjezail.enriquez@g.batstate-u.edu.ph
_____________________________________________________________
PERSONAL INFORMATION
Age : 21
Date of Birth : January 6, 2000
Gender : Female
Civil Status : Single
Height : 5’4
Weight : 46 kg.
Nationality : Filipino
Religion : Roman Catholic
EDUCATIONAL BACKGROUND
Tertiary : Batangas State University
Rizal Ave, Extension, Batangas
BS in Business Administration Major in
Financial Management
2018 – Present
Secondary : Lemery Colleges
Lemery, Batangas
2016-2018
Coral na Munti National High School
2012-2016
Primary : Coral na Munti Elementary School
2006- 2012
123
MARK ERVIN MONTE MENDIONA

Purok 6, Bolbok, Batangas
0915 028 6968
markervin.mendiona@g.batstate-u.edu.ph
________________________________________________________________
Age : 21
Date of Birth : April 16, 2000
Gender : Male
Height : 5’3
Weight : 50 kg.
2018 – Present
Secondary : San Pascual Senior High School I
San Antonio, San Pascual, Batangas
2016-2018
San Pascual National High School
Poblacion,San Pascual, Batangas
2012-2016
Primary : Bolbok Elementary School
Bolbok, Batangas City
2006-2012
124
MARVIE CINDY CARTECIANO VERGARA

Talang, San Nicolas, Batangas
0909 299 0492
marviecindy.vergara@g.batstate-u.edu.ph
________________________________________________________________
Age : 22
Date of Birth : December 6, 1999
Gender : Female
Height : 5’4
Weight : 50 kg.

2018 – Present
Secondary : Rizal College of Taal
G. Marella St., Taal, Batangas
2016-2018
San Nicolas National High School
Calangay, San Nicolas, Batangas
2012-2016
Primary : Calangay Elementary School
Calangay, San Nicolas, Batangas
2006- 2012

Financial Literacy Among Young Entrepreneurs in Lemery

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FINANCIAL LITERACY AMONG YOUNG ENTREPRENEURS

Enriquez, Mia Lyn Jezail A.

This thesis, titled FINANCIAL LITERACY AMONG YOUNG

ANGELICA R. MANALO, Ph.D.

Approved by the Committee on Oral Examination with a grade of ______

ELISA S. DIAZ, DBA

GEMAR G.PEREZ, DBA MARY GRACE T. MANDANE, Ph.D.

Accepted and approved in partial fulfillment of the requirements for the

_________________ BENDALYN M. LANDICHO, Ph.D., AFBE

The researchers would like to express their deepest gratitude to Heavenly

To the researchers’ families and most loved family, Enriquez’s,

support, replacing doubts in their hearts with confidence to overcome these

undergone through the process of completing this study, thank you!

To the adviser of this study, Angelica R. Manalo, Ph. D., for

wholeheartedly sharing her time, thoughts, and greatness to motivate the

Panel of Examiners, for meaningful suggestions and recommendation to

enhance the study;

To Dr. Gemar Perez, the researcher’s statistician, for helping them in

To the respondents of this study, who actively participated in answering

the questionnaire prepared by the researchers, thank you!

the critical stage of the study.

II. REVIEW OF LITERATURE

III. RESEARCH METHODOLOGY

IV. PRESENTATION, ANALYSIS AND INTERPRETATION

V. SUMMARY, FINDINGS, CONCLUSIONS AND

Table No. Title Page

1 Scoring and Interpretation ……………................................... 39

2 Distribution of Respondents by Sex …………….................. 41

7 Respondent’s Assessment on Financial Literacy

8 Respondents’ Assessment on Financial Literacy

9 Respondents’ Assessment on Financial Literacy

10 Respondents’ Assessment on Financial Literacy

11 Respondents’ Assessment on Financial Literacy

12 Comparison of Responses on the Assessment of

13 Comparison of Responses on the Assessment of

14 Comparison of Responses on the Assessment of

15 Comparison of Responses on the Assessment of

16 Comparison of Responses on the Assessment of

17 Comparison of Responses on the Assessment of

18 Comparison of Responses on Assessment of

19 Comparison of Responses on Assessment of

20 Comparison of Responses on Assessment of

21 Comparison of Responses on Assessment of

22 Proposed Recommendation to Enhance the

Figure No. Title Page

1 Integration of financial literacy measurement………..............… 6

2 Research Paradigm of the Study………..............………………. 8

entrepreneurs in Lemery, Batangas. The study aims to assess the level of

educational attainment, number of year operating the business, form of business,

knowledge, financial communication, financial ability, financial behavior, and

confidences and experience. The present study is concerned in assessing the

is to present the facts of information regarding the financial literacy of young

provide recommendations that may be proposed by the young entrepreneurs.

The researchers utilized the descriptive research design to depict the

participants in an accurate way. The respondents of the study are composed of

100 young entrepreneurs ages 18 to 30 years old whose businesses obtained

business permits in Lemery, Batangas. The researcher used the non-probability

sampling, specifically snowball sampling. The main gathering instrument of the

researcher was conducted through an online survey questionnaire given to the

young entrepreneurs. The researchers prepared a questionnaire based on the

respondents. The researcher used

frequency and percentage, weighted mean, and comparison of means to come