LOOC INTEGRATED SCHOOL S.Y.

2022 - 2023
Aiming for Next Level
Narra St., Brgy. Looc Calamba City
ACCOUNTANCY, BUSINESS AND MANAGEMENT

THE EFFECT OF INFORMAL SAVINGS

TO THE DEVELOPMENT OF SELECTED STREET
FOOD OWNERS AT BARANGGAY LOOC,
CALAMBA CITY, LAGUNA

A Qualitative Research Presented to

the Senior High School Faculty of

Looc Integrated School

Calamba City

In Partial Fulfillment

of the Requirements for Practical Research 1

ALCANTARA, KRISTINE CASANDRA

CASTILLO, REESE S.

GARCIA, THEODORICO GABRIEL B.

PREZ, PRINCE ACE D.

SADAT, ALLYSSAH P.

Abstract

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 LOOC INTEGRATED SCHOOL S.Y. 2022 - 2023
Aiming for Next Level
Narra St., Brgy. Looc Calamba City
ACCOUNTANCY, BUSINESS AND MANAGEMENT

1. Introduction

Informal savings refer to savings activities that are not regulated or

supervised by formal financial institutions, such as banks or credit unions.

This can include savings groups, rotating savings and credit associations, and

cash-based savings accounts. For selected street food owners, informal

savings can play a crucial role in their business development. With limited

access to formal banking systems, these street food vendors may rely on

informal savings to establish their business, purchase equipment and

supplies, and manage cash flow. Informal savings can also provide more

flexibility and convenience for these small businesses, allowing them to save

and access their funds quickly and easily.

At a macro level, the development of informal savings can contribute to

more inclusive economic growth and financial stability. By providing access to

financial services for those who may have been excluded from formal banking

systems, informal savings can help reduce poverty, promote

entrepreneurship, and stimulate economic activity while in a micro level,

informal savings can provide security and stability for individual savers and

small businesses, allowing them to plan for the future and weather financial

shocks. Overall, informal savings can have a significant impact on the

development of selected street food owners and can contribute to the broader

macroeconomic development of a community or region. By recognizing the

importance of informal savings and supporting its growth, policymakers, and

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 LOOC INTEGRATED SCHOOL S.Y. 2022 - 2023
Aiming for Next Level
Narra St., Brgy. Looc Calamba City
ACCOUNTANCY, BUSINESS AND MANAGEMENT

financial institutions can help enable greater financial inclusion and economic

opportunity for all.

The independent variable would be informal savings while the dependent

variable is the development of selected food owners.The development of this

concept as a research study would involve examining the impact of informal

savings on the development of selected food owners. This would likely entail

conducting surveys and interviews to gather information on the business

practices and financial habits of street food owners, as well as analyzing data

related to their income, expenses, and overall business growth.

Legal justifications or legal basis for this research study would likely focus

on the importance of understanding the financial practices of informal

business owners in order to develop policies and programs that support their

growth and success. Additionally, there may be legal considerations related to

promoting financial literacy and accountability among informal business

owners in order to help them comply with tax and other regulatory

requirements.

The researchers is interested in conducting this research study because

they believe that understanding the financial practices of informal business

owners is important for supporting economic development and reducing

poverty. As an accountant and business management professional, the

researchers believe that improving financial literacy and promoting sound

financial practices among informal business owners can have a significant

impact on the overall health and growth of local economies.

1.1 Background of the study

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Narra St., Brgy. Looc Calamba City
ACCOUNTANCY, BUSINESS AND MANAGEMENT

Audretsch and Belitski (2017) opined that entrepreneurship is an

essential organ that propels a country’s economic growth in the Philippines,

street food vending is a common source of livelihood for many individuals,

particularly those in low-income communities. These vendors often lack

access to formal banking and financial services, thus making informal savings

a crucial tool for managing their finances and sustaining their businesses.

However, the effectiveness of informal savings in contributing to the

development of street food vendors has not been thoroughly studied. The

present study aims to explore the effect of informal savings on the

development of selected street food vendors in Barangay Looc, Calamba City,

Laguna. Through this study, we seek to understand the role and significance

of informal savings in facilitating financial stability, entrepreneurial activity, and

overall development among street food vendors. The findings of this study

can provide insights into the importance of informal savings as a financial tool

for individuals who are not reached by formal financial institutions and provide

policy recommendations to support the informal savings practices and street

food vending in the Philippines.

1.2 Statement of the Problem

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 LOOC INTEGRATED SCHOOL S.Y. 2022 - 2023
Aiming for Next Level
Narra St., Brgy. Looc Calamba City
ACCOUNTANCY, BUSINESS AND MANAGEMENT

This study aims to develops a viewpoint for examining the issue. In this part, it

will explain how this study relates to the bigger challenges and presents a

convincing case for why your study is necessary and makes the goal

worthwhile to pursue.

 What is the various informal savings practices used by street food

owners in Barangay Looc Calamba City Laguna?

 What is the development of the selected street food owners at

baranggay looc, calamba city, laguna?

 What is/are the effect/s of the informal savings to the development of

selected street food owners at baranggay looc, calamba city, laguna?

2. Methodology

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 LOOC INTEGRATED SCHOOL S.Y. 2022 - 2023
Aiming for Next Level
Narra St., Brgy. Looc Calamba City
ACCOUNTANCY, BUSINESS AND MANAGEMENT

This study used the sequential mixed method design in examining the effect

of informal savings to the development of selected street food owners at

barangay Looc Calamba City, Laguna. In terms of data gathering, both

quantitative and qualitative methods were implemented in a sequential

manner, through survey and interview, respectively. The participants of this

study were determined through a stratified proportional random sampling

technique, where the number of students in each section was proportioned as

to the computed given population in each sample distribution. In the first

phase of the sequential mixed method design, in the quantitative method, the

research instrument (survey form) was validated by the research adviser. The

questionnaire was developed related to the effect of informal savings to the

development of selected street food owners and its implications on the

research writing process for data collection. The respondents of the study

gave their opinions on a 4-point Likert Likert type scale from strongly agree to

strongly disagree. The validity and reliability of the instrument were measured

by pilot testing.

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 LOOC INTEGRATED SCHOOL S.Y. 2022 - 2023
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Narra St., Brgy. Looc Calamba City
ACCOUNTANCY, BUSINESS AND MANAGEMENT

Questionare

1. What are the various informal savings practices utilized by the

selected Street food establishment at Barangay Looc, Calamba

City,Laguna?

(ano-anong uri ng kasanayan sa pag-iipon ng pera ang nagagamit mo bilang

Isang street food vendor?)

2. What is the business development of the selectedstreet food

vendor/esteblishment?

(ano ang iyong napa-ulad sa iyong Negosyo?)

3. What is/are the positive effect/s of the informal savings to the

development of your business establishment or Vendor?

(Ano ano/ano ang magandang naidulot ng pag-iipon ng pera sa iyong

negosyo?)

4. What is/are the negative effect/s of the informal savings to the

development of your business establishment or Vendor?

(Ano-ano/ano ang hindi magandang naidulot ng pag-iipon ng pera sa iyong

negosyo?)

5. What plan will you do to avoid negative effect of informal saving?

(Anong plano ang iyong gagawin upang maiwasan ang negatibong epekto ng

pag-iipon ng pera?)

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 LOOC INTEGRATED SCHOOL S.Y. 2022 - 2023
Aiming for Next Level
Narra St., Brgy. Looc Calamba City
ACCOUNTANCY, BUSINESS AND MANAGEMENT

Results and discussion

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