Republic of the Philippines

Department of Education
Region III – Central Luzon
Schools Division of Tarlac Province
STA. ROSA NATIONAL HIGH SCHOOL
Sta. Rosa, Concepcion, Tarlac
Email Add: srishs.2019@gmail.com / Tel. No. (045)-606-3139

The Feasibility Study on the Establishment of

Golden’s Pawnshop in Sta. Rosa, Concepcion

Tarlac

Submitted by:

Tiamzon, Axl Troy C.

Canlas, Aiko S.
Lopez, Mary Karen M.
De Guzman, Anna Rose M.
Cabilangan, Gemmhar T.
Layug, Jerome P.

12-ABM

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 CHAPTER I

EXECUTIVE SUMMARY

Name of the Project: Golden’s Pawnshop Business

The name “Golden’s Pawnshop” shows that it is a treasure or wealth, which

refers to the importance of money. The name “golden” describes the equipment that can
be mortgaged in the pawnshop business, such as jewelry, gadgets, and watches. It is
called golden because the pawnshop business is based on original resources.

Project Location

It will be established in Sitio Batolato Sta. Rosa, Concepcion, Tarlac. The size of
our project is around 10 square meters. This will be our location because many people
pass through this area and live here. People's mortgages will be closer, they don't have
to go too far away to places like Capas and Concepcion.

Brief description of the Project

The Golden Pawnshop is a pawnshop where people usually go to borrow money,

but in this business there is a trade-off like gadgets, jewelry, and watches; it will leave
with value and will grow depending on what is written in the agreement discussed.

Objectives of a study

This study aims to determine the feasibility of Golden's pawnshop. We would like
to offer this business in Sta. Rosa to mortgage different types of equipment like
gadgets, jewelry and watches. The objectives of the study are the following:

• To determine if it is profitable in Brgy. Sta. Rosa

• To know if this pawnshop will be able to fit, or to be sold or marketed?

• How much capital will the owner spend in a pawnshop?

• What are the possible threats near Sta. Rosa Concepcion, Tarlac?

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Logo

Figure 0: Logo of the Proposed Project

The logo shows a crown, the letter G, and a heart, which all mean wealth.
Specifically, the crown means power; having what people need and giving it to them
with a return on investment. The letter G means "Golden" because all the items they
mortgage have value. The heart means taking care of the items and hiding them in a
safe place until we put them in our inventory to sell. This is to show people where they
can get help and buy valuable items at a low price.

Scope and Limitation of the Study

          The study focuses on the pawning and selling of equipment like gadgets,
watches, and jewelry. The process of the pawnshop business is to determine its
feasibility and to know if it is profitable. The target market consists of residents aged 18-
50 years old who are willing to mortgage. At 18 years old, it is the legal age, and at 50
years old, you can only mortgage up to this point because at 51 and above, they may

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no longer be able to work and pay the loan. Other pawnshops here in Sta Rosa are
competitors to our business. Assumptions, projections, and information found in
marketing, technical, financial, management legal, and socio-economic aspects of the
study are based on the data gathered from the total population. The study of this project
is for people who are willing to mortgage in Sitio Batolato, Sta Rosa Concepcion, Tarlac.

Project Summary

Market Study

According to our research, the population in Sta. Rosa, Concepcion, Tarlac is

17,393 of the total population in Sta. Rosa. According to the population right now, more
customers were willing to consign more equipment like gadgets, watches, and jewelry to
the pawnshop, and most people wanted to mortgage because they needed cash to
meet their daily needs. These are people who need a mortgage to get money for such
reasons as losing a job (25%), applying for a job (25%), starting a small business
(25%), and people who get into accidents and emergencies (25%).

Technical Study

The size of our project is 10 square meters. It is located in Sitio Batolato sta.
Concepcion, Tarlac. It has been decided that we will build it in Sta. Rosa to bring the
pawnshop closer so that people don't have to go far or go to far places like Capas and
Concepcion. In this situation, people are available to mortgage, borrow, and buy
equipment like gadgets, watches, and jewelry that is not redeemed. To start our
business, we need to have money so that we can give something to the mortgaging.
The list of the materials and equipment includes tables, chairs, cabinets, shelves,
computers, cash registers, CCTV, Wi-Fi, smart phones, fire extinguishers, glass doors,
roll up doors, aircon, etc.

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Management and Legal Study

The management of a business must have knowledge and sufficient ability to be

a member in managing a business. The workers to be hired must be graduating student
in grade 12 and above, trustworthy, with sufficient working experience at least 1 year,
have a good attitude, and be hard-working. Managing a business is not only for one or
two, but can also be for a group. The required workers in this business are 6 people, 3
in the morning and 3 in the afternoon. The roles of each person are: 1 person is a
cashier, other 1 is to assist the customers, and one is to fix gadgets, jewelry, and
watches and clean inside the shop. The manager will only look at the CCTV to see if the
workers are moving and communicating properly with the customers, and the manager
will visit it once a week to find out if they have done it correctly. The market manager
assists with the problem, gives tasks to the workers; they do the research to understand
the customers. The workers will communicate with those who want to mortgage so that
they can be helped. The managers have an obligation to comply with the law in order to
start their business, such as registering. These are the following:

1st - Department Of Trade And Industry (DTI)

2nd - Mayors Permit

3rd - Bureau Of Internal Revenue (BIR)

4th - Central Bank

The division of the capital of the prohibited management must be equal, no more
and no less, than the share of their profits or losses from the business.

Financial Study

Researching the pricing of equipment like gadgets, watches, and jewelry at

Golden's Pawnshop needs to be carefully checked by the manager to see how much

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they will give it or pawn it. Its price depends on the brand and size that can be pawned.
For example: Gadgets range in price from Php500 to Php50,000, while jewelry are
priced by the gram or market value, which ranges between Php1500 to Php2500 per
gram. The cost of the construction of this pawnshop and the workers' salary is PHP 1
million. The utility expenses like wifi (Php 1500 a month), aircon, computer, cash
register, and CCTV will run for 9 hrs. ( Php 12,411 per month). The employee's salary
for each 3 months is Php 72,000, and per day is Php 800.

Socio Economic Study

The purpose of our project is to help people who need money because
nowadays, many people are having a hard time getting enough money to cover their
daily life expenses. It is important for entrepreneurs to know how to start a business in
order to further help the socio-economic development of the country. The establishment
of our pawnshop business helps increase revenue in Sta. Rosa and it helps increase
the number of projects here in the economy to help raise our country. By paying the tax
to the government as a project for all people.

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 CHAPTER II

MARKET STUDY

Market research is the gathering and analyzing of information about customer

preferences for products or services in order to determine the profitability and
marketability of the pawnshop. The researchers’ analysis indicates that the people in
Sta. Rosa, Concepcion, Tarlac have a population of 17,393 of Concepcion’s total
population.

This is significant because the main goal of a project feasibility study has always been
to determine profitability and marketability.

Objectives of the Market Study

The general goal of the proposed study is to determine the profitability and
marketability of establishing a pawnshop in Sta. Rosa, Concepcion, Tarlac.

Market Study Specifically Aims to:

 Identify the possible respondents who will represent the population

 Determine the appropriate sample size
 Describe what the project is all about
 Describe the profile of the respondents
 Identify the uses of the project
 Determine who will be the users of the project
 Determine if the project is marketable
 Determine the profitability of the proposed project

Project Description

The project is all about the feasibility study on the establishment of Golden’s
Pawnshop in Sta. Rosa, Concepcion, Tarlac. The project is located at Sitio Batolato,

7
where people need money to cover their daily expenses, want to start a small business,
mortgage an item in exchange for cash, apply for a job, and who get into accidents and
emergencies. The services that we offer are quick loans, buy or sell, and mortgage.

Uses of the Project

This project will be able to:

 Offer quick loans

 Easy Money
 Produce profit to interested entrepreneurs

Users of the Project

The users of the project are:

 Final customer of the services that we offer

 Interested entrepreneurs, mortgagors, or customers
 Applying for a job
 People who avail quick loans
 People who get into accidents and emergencies

These are the users of the project who avail quick loans to cover their debt and
daily expenses, want to start a small business to create generational wealth and various
reasons, mortgage an item in exchange for cash, same reason as the quick loans, apply
for a job to pay for their requirements, and people who get into accidents and
emergencies. In short, these are the users of the project who need money to pay for
what they need.

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Respondents

The study is conducted at Sta Rosa Concepcion, Tarlac. The respondents were
the residents of the barangay ages 18-50 years old. The researchers consulted the Sta.
Rosa Barangay Hall to determine the current population of the barangay that will be use
in computing the sample size needed in the study.

Sample Size

Where:
n = sample size, number of respondents

N = total population

e = margin of error

Respondents:

N
n =
1 + Ne2

10,651
=
1 + (10,651x .152)

10,651
=
241

= 44

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 The researchers used Slovin’s Formula to get the appropriate sample size of

10,651 residents in the barangay. The said sample size will represent the population of

the respondents and customers.

Market Research

Survey Design and Analysis

The researchers used graphical representations presenting the data gathered

from the survey. Cluster random sampling was used by the researchers in gathering the

data. In order to determine the population of the sample, the researchers consulted the

in Brgy. Sta. Rosa. This served as the basis in computing the sample size above.

Customers

The project’s target market is the customers and mortgagors who are 18-50 years

old in Sta. Rosa. They’re the ones who give us their items, then we lend them money, or

they buy items in our inventory at lower prices.

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 Table 1: Sex

Sex No. of Respondents

Male 23

Female 21

Table 1 summarizes of the respondents based on their sex. The table shows that

23 out of 44 (52%) of the respondents are males. Then 21 out of 44 (48%) of the total

respondents are female.

Target Market

20%

39%

18%

23%

18-20 21-30 31-40 41-50

Figure 1: Target Market

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 Figure 1 shows that the majority of the respondents are 18-20 yrs. old, which

makes up 17 out of 44 (39%) of the total respondents, followed by the respondents at

the age of 21-30 yrs. old, which comprises 10 out of 44 (23%), then the age of 41-50

yrs. old makes up 9 out of 44 (20%), and lastly, the respondents are 31-40, which

makes up 8 out of 44 (18%) of the total respondents.

Civil Status of the Respondents

30

59%
25

20

36%
15

10

5
5%

0
Single Married Widowed

Figure 2: Civil Status of the Respondents

Figure 2 shows that the majority of the respondents’ civil status are single, which

makes up 26 out of 44 (59%) of the total respondents, followed by the respondents who

are married, which comprises 16 out of 44 (36%), Lastly, respondents who are

widowed, which makes up 2 out of 44 (5%) of the total respondents.

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 The Sitio/Street Where the Respondents Live
15.2

15

14.8

14.6

14.4

14.2

14

13.8

13.6

13.4
Sitio Gugu Batolato Centro

Figure 3: The Sitio/Street Where Respondents Live In

Figure 3 shows the total number of respondents regarding on their Sitio/Street.

The majority of the respondents are from Sitio Gugu and Batolato, which makes up 15

out of 44 (34%) each, then 14 out of 44 (32%) of the total respondents are from Centro.

Monthly Income of the Respondents

16

14 34%
32%
12
27%
10

0 5% 2%
Less than 10K 10K-20K 21K-43K 44K-77K 78K-131K 132K-219K 220K and UP Others

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 Figure 4: Monthly Income of the Respondents

Figure 4 shows that the majority of the respondents have a monthly income of

less than 10,000, which makes up 15 out of 44 (34%) of the total number of

respondents. Followed by these "others" comprises of 14 out of 44 (32%) of the total

respondents who did not answer on that part or those who are not yet earning because

they are still students, then the respondents who have a monthly income of 10,000-

20,000, which makes up 12 out of 44 (27%), then the respondents who have a monthly

income of 21,000-43,000, which makes up 2 out of 44 (5%). Lastly, one respondent has

a monthly income of 44,000-77,000, which comprises 1 out of 44 (2%) of the total

respondents. None of the respondents answered 78,000-131,000, 132,000-219,000,

and 220,000 & up.

Table 2: Respondents Who Visited a Pawnshop Before

Have you visited a pawnshop before? No. of Respondents

Yes 30

No 14

Table 2 summarizes the total of the respondents' responses to the question of

whether they have visited a pawnshop before. The table shows that 30 out of 44 (68%)

of the respondents answered yes, then 14 out of 44 (32%) of the total number of

respondents had never visited a pawnshop before.

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 Respondents Who Often Visit a Pawnshop
7%
2%

27%

30%

34%

Once a week Twice a week Once a month Others None

Figure 5: Respondents Who Often Visit a Pawnshop

Figure 5 shows that the majority of the respondents have put their answers in the

"Others" as they go to a pawnshop once a year, quarterly, and so on and so forth, which

makes up 15 out of 44 (34%) of the total number of respondents, followed by the

respondents who have visit a pawnshop once a month, which comprises 13 out of 44

(30%), then the respondents who answered no or have N/A presented in Table 2, which

makes up 12 out of 44 (27%), then the respondents who visit a pawnshop once a week,

which makes up 3 out of 44 (7%). Lastly, one respondent who visits a pawnshop twice a

week, which comprises 1 out of 44 (2%) of the total number of respondents.

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 Name of the Pawnshops that the Respondents
Visited Before

30%
39%

20%
7% 2%
2%

Cebuana Palawan One Puhunan Sinag Pawnshop None

Figure 6: Name of the Pawnshops that the Respondents Visited Before

Figure 6 shows that the majority of the respondents who answered no or have

N/A presented in Table 2, which makes up 17 out of 44 (39%). Followed by the

respondents who go to Cebuana, which makes up 13 out of 44 (30%) of the total

respondents, then respondents who go to Palawan, which comprises 9 out of 44 (20%),

then 3 respondents who go to pawnshop, which makes up 3 out of 44 (7%). And lastly,

2 respondents go to a different pawnshop: one goes to One Puhunan and one goes to

Sinag, each of them comprises 1 out of 44 (2%) of the total number of respondents.

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 Geographical Location

36%

48%

2%

14%

Capas Concepcion Manila None

Figure 7: Geographical Location

Figure 7 shows that the majority of the respondents go to Capas, which makes up

21 out of 44 (48%) of the total respondents, followed by the respondents who answered

no or have N/A presented in Table 2, which comprises 16 out of 44 (36%). Then there

were the respondents who go to Concepcion, which makes up 6 out of 44 (14%) of the

total respondents, and lastly, one respondent goes/went to Manila, which makes up 1

out of 44 (2%) of the total number of respondents.

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 Respondents' Services they Usually Avail

20%

32%

11%

36%

Quick Loans Buy or Sell Mortgage None

Figure 8: Respondents’ Services they Usually Avail

Figure 8 shows that the majority of the respondents chose mortgage, which

makes up 16 out of 44 (36%) of the total respondents, followed by the respondents who

answered no or have N/A presented in Table 2, which makes up 14 out of 44 (32%).

Then 9 out of 44 (20%) of the total respondents chose quick loans. Lastly, 5 out of 44

(11%) of the total respondents chose to buy or sell.

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 Respondents' Willingness to Pay What Rate
18

16
36%
14

12
27%
10

8 20%

4 11%

2
5%
0
5% 10% 15% Others None

Figure 9: Respondents’ Willingness to Pay What Rate

Figure shows that the majority of the respondents are willing to pay a 5% interest

rate, which makes up 16 out of 44 (36%) of the total respondents, followed by the

respondents who are willing to pay a 10% interest rate, which comprises 9 out of 44

(20%), then the respondents who are willing to pay a 15% interest rate, which makes up

2 out of 44 (5%), followed by the respondents who put their answers at "Others," as

they want to pay a lower interest rate like 3% or 2%, which makes up 5 out of 44 (11%),

and lastly, the respondents who answered no or have N/A presented in Table 2, which

comprises 12 out of 44 (27%) of the total number of respondents.

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Table 3: Respondents’ Thoughts on Whether a Pawnshop is Needed in

Sta. Rosa

Do you think a pawnshop is needed in Brgy. Sta. No. of

Rosa? Respondents

Yes 41

No 3

Table 3 summarizes the total of the respondents' responses to the question on

whether a pawnshop is needed in Brgy. Sta. Rosa. The table shows that 41 out of 44

(93%) of the respondents answered yes. Secondly, 3 out of 44 (7%) of the total

respondents don’t think that Brgy. Sta. Rosa is needed.

Respondents' Services that they Need in Brgy.

Sta. Rosa

32%

48%

20%

Quick Loans Buy or Sell Mortgage

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 Figure 10: Respondents’ Services that they Need in Brgy. Sta. Rosa

Figure 10 shows that the majority of the respondents need a mortgage service,

which makes up 21 out of 44 (48%) of the total respondents, followed by the

respondents who need to avail quick loans, which comprises 14 out of 44 (32%), Lastly,

respondents who need to buy and sell, which makes up 9 out of 44 (20%) of the total

respondents.

Table 4: Respondents’ Willingness to Mortgage an Equipment

Are you willing to mortgage a different type of No. of

equipment in exchange for money? Respondents

Yes 42

No 2

Table 4 summarizes the total of the respondents' willingness to mortgage a

different type of equipment in exchange for money. The table shows that 42 out of 44

(95%) of the respondents answered yes. Secondly, 2 out of 44 (5%) of the total

respondents are not willing to mortgage their equipment.

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 Property to Mortgage
5%

40%
56%

Jewelries Gadgets Watches

Figure 11: Property to Mortgage

Figure 11 shows that the majority of the respondents are willing to mortgage

jewelries, which makes up 24 out of 44 (56%) of the total respondents, followed by the

respondents who are willing to mortgage gadgets, which comprises 17 out of 44 (39%),

Lastly, respondents who are willing to mortgage watches, which makes up 2 out of 44

(5%) of the total respondents.

Marketing Program

In practice, the operators of the items or services we offer at Golden's Pawnshop

are: first, provide quick loans to people who need money. Second, accept items such as

jewelry, gadgets, and watches in exchange for money with interest. And the last is to

buy the items they offer and sell that were not redeemed by people who pawned their

equipment, such as jewelry, gadgets, and watches.

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Place

This project will be located in Sitio Batolato, Concepcion, Tarlac, is Golden's

Pawnshop. The fact that it is in front of the road means that many people will pass by it,

especially the majority of our respondents who frequently pass by and there are a lot of

houses.

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