Division of City School of Parañaque

Parañaque National High School - Main

Senior High School
ACCOUNTANCY, BUSINESS AND MANAGEMENT STRAND
Kaytalise St. Dr. Arcadio Santos. Ave. Brgy. San Dionisio, Parañaque City

Business Investment:

Reasons and Causes of Apprehensiveness on Investing of Millennials

Submitted by:

Leader:

Balon, Ricardo P. III

Members:

Abanilla, Shielamae

Balon, Ricardo P. III

Bartolome, Rochelle

Baumgardner, Clarisse

Buenaventura, Athena

Cayago, Katrina

Eliodar, Shanmae

Grade & Section:

XII - COOK

Academic Track:

Accounting Business Management

Date:

January 25, 2023

 Division of City School of Parañaque
Parañaque National High School - Main
Senior High School
ACCOUNTANCY, BUSINESS AND MANAGEMENT STRAND
Kaytalise St. Dr. Arcadio Santos. Ave. Brgy. San Dionisio, Parañaque City

Chapter 1

Statement of the Problem:

In this research, researchers will state the reasons and causes of why some

millennials are apprehensive toward investing in a certain business investment. To

state constructive evidence and verification, we will gather data, proofs and answers to

prove crucial questions;

1. What is the list of reasons and causes to consider millennials' financial literacy in

making investment decisions in a business?

1.1 Savings

1.2 Long-Term

1.3 Managing Money

1.4 Expenses

1.5 Allowance

2. What are the misconceptions of some millennials about starting a business

investment

2.1 Short-Term

2.2 Lots of Money

2.3 Know Everything

3. Why are some millennials apprehensive about investing in a particular business

investment?

3.1 Business is Hard

3.2 Not Investing

3.3 Hindrances
 Division of City School of Parañaque
Parañaque National High School - Main
Senior High School
ACCOUNTANCY, BUSINESS AND MANAGEMENT STRAND
Kaytalise St. Dr. Arcadio Santos. Ave. Brgy. San Dionisio, Parañaque City

Chapter 1

Introduction

Stash Team (2019) Stated that Investment is the sacrifice of current consumption

in order to obtain greater consumption at a later date. It can be defined as providing

money for the running of a business, in the hope of making a profit. One reason is that it

allows the business to raise capital to finance operations and expand. Additionally,

investing can help a business to build equity and create a pool of potential future

investors. Furthermore, investing can also provide a source of revenue for the business,

which can be used to reinvest in the business or to pay expenses. Investing can also

help to build relationships with potential customers, suppliers, and other partners. Over

time, investing has proven to be one of the most reliable ways to build wealth.

“According to (CNBC) Consumer News and Business Channel’s Research

(2017), ‘Some millennials are afraid of losing their money or return of investment (ROI)

in investing because they do not understand how it works. Some of them are afraid of

losing their money in investing because they may not have the knowledge or experience

to make investment decisions.’ Millennials who have a lack of earnings can affect

investing because it can make it difficult to find businesses that are growing and

profitable. It can also make it difficult to assess the value of a business. This can affect

the investment’s overall performance and may lead to losses.

Based on Agrawal, V. (2022). Deccan Herald: Why do millennials lose money

while investing in stocks? 1.Impatience: Taking investment actions without giving a

second thought can land millennials in losses. Not only do novice millennial investors

lack this attribute, but even legendary millennial investors find it challenging to master
this quality. Such is the dominance of emotions over the human mind. Even if millennial

investors purchase shares of companies they see around themselves and keep them

for long enough, they are bound to achieve financial freedom. Millennial investors' best

bet is to stay put and wait for investments to recover if they don't want to lose money

during market volatility.

According to Bolander, Jarie. “ Misconceptions about starting your own business”,

The daily MBA. May 8, 2019, p.11. 1. There’s no need to plan: Forecasting your sales,

market demand and how your product or service will be received can be tricky business

but understanding things in depth before you make big steps can save you a lot of

trouble in the long run. 2. You’ll have no free time: All smart, new business owners must

go into their new endeavor knowing that they are entering into a job that functions

around the clock. Your neat eight-hour workdays will soon last 24, and it can be taxing if

you aren’t used to it. But it’s important to remember that taking time for yourself is

good–not just for you, but for business. 3. You’ll have no one to lean on: Millennial

investors often adopt a lone wolf mentality when starting up their own business. In part,

it’s a defense mechanism, since relying too much on others could be detrimental to your

business if things go wrong. In reality, though, the best and most successful

entrepreneurial endeavors are the ones that are a team effort. You should make sure to

build a support system around you, with reliable employees and people to consult, so

that you always feel like you can take a step back if need be.

Based on Yahoo! Finance (2019) Keough says “They don’t think they have

enough money.” Millennials are afraid to invest in a certain business because they think

they have a lack of money that can cause investment failure.

Financial Express (2021), we should learn the importance of financial security

and the importance of having a passive income along with an emergency fund.

Based on Maji, P. (2021). Financial Express: Why are some millennials

apprehensive to invest in a certain business: Millennials live in a fast-paced world, with

a mentality of ‘living in the moment’, hence, there is a lack of patience and motivation to

save for the long term. Trading stocks, mutual funds and financial assets for short-term

gains lead to eventual wealth destruction.

 Division of City School of Parañaque
Parañaque National High School - Main
Senior High School
ACCOUNTANCY, BUSINESS AND MANAGEMENT STRAND
Kaytalise St. Dr. Arcadio Santos. Ave. Brgy. San Dionisio, Parañaque City

Significance of the Study

The findings of this study will guarantee improving financial goals in some many

millennials, and seeks to achieve three key goals: safety, income and growth. The

benefits of investing in a business that millennials will guarantee obtained is profitability

Increase, reputation improvement, gain competitive and it can sustain business

consolidation support.

This study is conducted to benefit the following:

Millennials’ investors. The findings of this study will be responsible for

profitability increase and less expenses as it works within the frame of sustainability,

being careful about what to invest, becomes an alternative for growth and development,

for millennial investors. Considering external investment is important for every

millennials’ business as it is highly recognized as it can provide a means to innovate,

develop and grow. There are many advantages to having investment coming into a

company, and it’s not just about providing a strong channel of funding, it is about

providing a savings too, which is a sensible point in investing because it provides the

funds you need to purchase a range of different assets. The findings of the study in

investing goes one step further, helping Millennials’ investors achieve personal goals

with three significant benefits. The potential for healthy long term returns, beat inflations

and earn additional income.

 Division of City School of Parañaque
Parañaque National High School - Main
Senior High School
ACCOUNTANCY, BUSINESS AND MANAGEMENT STRAND
Kaytalise St. Dr. Arcadio Santos. Ave. Brgy. San Dionisio, Parañaque City

Scope and Delimitation

This study was conducted in Metro Manila in Parañaque City on Sampaloc II BF

Homes Purok 4. Parañaque City on Sampaloc Site II BF Homes Purok 4 where most

millennials are afraid to invest in a particular business investment. They consider

themselves conservative when it comes to risk tolerance and most of them are reluctant

to invest their savings, thus they are tagged as risk-averse and cash hoarder instead of

making investments.

This study was concerned with (1) the list of reasons and causes to consider

millennials losing their money in making investment decisions in a business; (2) the

misconceptions of some millennials about starting a business investment; and (3)

millennials apprehensive about investing in a particular business investment. The

condition of the respondents was to describe using surveys and questionnaires on why

they are terrified of investing in a certain business.

This study will state the reasons and causes of why some millennials are afraid

toward investing in a certain business. To state constructive evidence and verification,

we will gather data, proofs and answers to prove crucial questions.

 Division of City School of Parañaque
Parañaque National High School - Main
Senior High School
ACCOUNTANCY, BUSINESS AND MANAGEMENT STRAND
Kaytalise St. Dr. Arcadio Santos. Ave. Brgy. San Dionisio, Parañaque City

Hypothesis

The following null hypothesis was tested in this study. There is no significant

correlation to both of the two compared variables which are the millennials respondents’

(1.) Business Investment (2.) Reasons and causes of apprehensiveness on investing of

millennials.

There is no significant correlation to both of the two compared variables which

are the millennials respondents’ (1.) Financial Literacy (2.) Making investment

decisions in a business.

There is no significant correlation to both of the two compared variables which

are the millennials respondents’ (1.) Misconceptions (2.) Starting a business

investment.

There is no significant correlation to both of the two compared variables which

are the millennials respondents’ (1.) Millennials Apprehensive (2.) Particular business

investment.
 Division of City School of Parañaque
Parañaque National High School - Main
Senior High School
ACCOUNTANCY, BUSINESS AND MANAGEMENT STRAND
Kaytalise St. Dr. Arcadio Santos. Ave. Brgy. San Dionisio, Parañaque City

Conceptual Framework

Figure 1. Conceptual Framework

Figure 1 presents the conceptual framework of the study. It consists of two

variables, some millennials are afraid toward investing as an independent variable and

business investment as the dependent variable. In figure 1, some millennials are afraid

toward investing as an independent variable. Some millennials are afraid of losing their

money or return of investment (ROI) in investing because they do not understand how it

works. Some of them are afraid of losing their money in investing because they may not

have the knowledge or experience to make investment decisions. Millennials who have

a lack of earnings can affect investing because it can make it difficult to find businesses

that are growing and profitable. It can also make it difficult to assess the value of a

business. This can affect the investment’s overall performance and may lead to losses.

Another variable, business investment as the dependent variable. It can be

defined as providing money for the running of a business, in the hope of making a profit.

Investing can also provide a source of revenue for the business, which can be used to

reinvest in the business or to pay expenses.