OR FORM 001T

(Student Research Capsule Proposal)

Revised 5/5/22

CAPSULE PROPOSAL FORM

A. BASIC INFORMATION
PROPOSED RESEARCH TITLE / TOPIC:
The Effects of Debt Management on the Business Performance of Street Vendors in Hepa Lane, Legazpi City, Albay
PROGRAM:_________________________________

RESEARCHER/S (Last Name, First Name, Middle Initial) Contact Number: E-mail Address (optional):
1. Chica, Navi Zarina I. 09917169677 rockynavichica@gmail.com
2. Dadea, Mhojica Q. 09307063351 dmhojica@gmail.com
3. Montecastro, Johnica Mae N. 09673512843 johnicamontecastro@gmail.com
4. Morato, Julia Louise P. 09054607045 juliamorato61@gmail.com

B. TECHNICAL DESCRIPTION (Provide an abstract of not more than 250 words, including five (5) keywords for the proposal
project/research work, i.e., objectives of the study, significance of the study, methodology and at least five (5) references, three (3)
of which are journals. Use APA format for the references.)

Abstract: Street vendors play a crucial role in urban economies worldwide by providing convenient access to a broad range of products
and services in public areas. Despite being classified as informal workers, they are essential contributors to the urban economy, and they
significantly contribute to job creation, production, and income generation. This study aims to investigate the effects of debt management
on the business performance of street vendors in Hepa Lane, Legazpi City, Albay. The study will identify the debt management skills that
street vendors possess, analyze their business performance using financial ratios, determine the factors that affect their financial
performance, and recommend applicable debt management techniques to improve their business performance. The study is significant for
street vendors, small and medium-sized enterprises, business owners, finance managers, researchers, and educators. The researchers will
collect data through survey questionnaires using the descriptive correlational method, and convenience sampling will be used to select the
respondents. The study will determine the number of participants using Slovin's formula, and confidentiality and anonymity will be
ensured through a consent form. The researchers will use Canonical Correlation Analysis to analyze the data and identify the relationship
between debt management and business performance. The findings of this study can be used by street vendors and small and medium-
sized enterprises to improve their financial management skills and debt management strategies. The study's results may also be used by
business owners and finance managers to examine and develop debt management techniques that could serve beneficial to their
businesses and consequently improve their debt management.

Keywords: Effects, Debt Management, Business Performance, Street Vendors, Canonical Correlation Analysis.

Objectives of the Study

This study mainly seeks to realize the effects of debt management on the business performance of street vendors in Hepa Lane,
Legazpi City, Albay. Specifically, it seeks to:
1. Identify the registered street vendors in Hepa Lane, Legazpi City, Albay.
2. Identify the debt management practices possessed by the street vendors in Hepa Lane, Legazpi City, Albay, such:
1. Related Financing Activities:
a) Following certain debt paying policies.
b) Consolidating debts.
c) Seeking financial assistance.
d) Budgeting.
e) Selling assets to pay off debts.
f) Negotiating payment terms with creditors.
g) Prioritizing high interest debts for repayments.
2. Related Operating Activities:
 a) Purchasing of supplies through debt financing.
b) Selling of inventory to pay off debts.
c) Payment of utilities expense through debt financing.
d) Payment of wages to workers through debt financing
e) Payment of pitch fee/rent through debt financing
f) Payment of other expenses/unforeseen expenses through debt financing.
3. Analyze the business performance of the street vendors by using data gathering methods and analytical tools and interpret the
results thereof.
4. Determine whether there is a significant relationship between the debt management and business performance of street vendors
in Hepa Lane, Legazpi City, Albay.
5. Recommend an applicable course of action to improve the business performance of the street vendors by incorporating proper
debt management techniques.
Significance of the Study
This study provides Street Vendors as well as members of Small and Medium Size Enterprises with relevant information about the
credit management of Street Vendors, who are a part of SMEs, that can be used as bases to further improve financial management skills
and techniques to improve the debt management of a debtor.
Business owners and finance managers may also benefit from the study by gaining insights from the general perspective of the debt
management of street vendors which may be used to examine and develop debt management techniques that could serve beneficial to
their businesses and consequently improve their debt management. Researchers and educators may apply the learning and results of this
study in materials for academic purposes and as references for future studies on a similar or related topic.
Methodology
Research Design
The researchers will use the Descriptive Correlational Method to collect the necessary data. The Descriptive Correlational Method
creates data that describe the relationship between two or more variables without seeking to create a causal relationship between the
variables, wherein results can be either positive or negative. The researchers will identify the debt management practices that the street
vendors in Hepa Lane, Legazpi City, Albay possess, analyze and determine the factors that affect their business performance, and the
researchers will also recommend an applicable course of action to help improve the business performance of the street vendors through
incorporating proper debt management techniques. Survey questionnaires will be distributed to the street vendors in Hepa Lane, Legazpi
City, Albay.
Data Gathering Tools and Techniques
The respondents of this study will be the owners of the street vending stalls or carts located in Hepa Lane, Legazpi City, Albay. A
street vendor is an independent seller of foods and beverages at cheaper prices and smaller quantities, often seen with one or more but
usually not more than five (5) sets of workers per stall. The researchers will make use of the list of registered street vendors in Hepa Lane,
Legazpi City, Albay from the Business Permits & Licensing Office (BPLO) which is located at City Hall Compound, Legazpi City to
identify the respondents in this study. The number of street vendor owners to be included is determined using Slovin’s Formula using a
margin of error of 0.05 (5%).
The researchers also makes use of convenience sampling technique in the inclusion of respondents that are most convenient for the
researchers to access based on the determined appropriate sample size. The convenience sampling method is a non-probability sampling
where the researchers study respondents who are ready and available, this can be due to geographical proximity, availability at a given
time, and the lack of complete certainty that all respondents identified by the sample size will be willing to participate in this research.
The respondents will be approached and will be given a consent form to participate in the survey. By using a consent form, the
respondents are given the choice to deny or accept answering the survey, this ensures the respondents volunteered to participate in the
survey. Respondents will also be informed of the confidentiality of the survey. The researchers identified a total of — registered street
vendors that will be surveyed. The study will use a secondary source of data. The research instrument for data gathering will be a survey
questionnaire based on the related literature and the objectives of the study.
Tools of Analysis
The researchers will make use of a five-point Likert scale, each point representing the following: one (1) as Very Likely, two (2) as
Likely, three (3) as Neutral, four (4) as Unlikely, and five (5) as Very Unlikely. The survey questionnaire will include indicators under the
likert scale that will represent the variables in this study, which is the debt management practices used by street vendors and its effects on
their business performance. The mean of each indicator and the correlation of each variable will be calculated using International
Business Machine’s (IBM) statistical software Statistical Package for the Social Sciences (SPSS).
The researchers will use Pearson Correlation on the mean or total scores resulted from the likert scale to validate the correlation
between debt management and the business performance of street vendors, this will enable the researchers to find out the effects of debt
management on the business performance of street vendors in Hepa Lane. Pearson Correlation, also known as Pearson’s r, is the method
to identify and measure the correlation or strength between two sets of variables. The resulting data from the Pearson Correlation
coefficient values can range from -1 to +1, which shall be interpreted based on the results such as: a Pearson correlation of -1 indicates
that there is a negative correlation between the variables, a Pearson correlation of +1 indicates that there is a positive correlation between
the variables, and a Pearson correlation of 0 indicates that there is no correlation between the variables.
Ethical Consideration
Ethical Considerations are considered in order to conduct this research. The researchers will provide a consent form to potential
respondents in order to protect their privacy and ensure anonymity and confidentiality. A consent form also provides the respondents with
a choice of whether they want to volunteer to participate in the researchers’ study. The researchers provided proper credit to the authors
and the information that was gathered in the related literature.
References
Jepkorir, I., MwangiGichure, J. (2019). Effects of Debt Financing on the Growth of Small and Medium Enterprises in Kapsabet Town, Nandi County.
https://www.iosrjournals.org/iosr-jbm/papers/Vol21-issue10/Series-4/A2110040113.pdf
Shamutete, D. (2020). Debt Management By Small Scale and Medium Enterprises - A Case Study of Unity Finance Zambia.
http://155.0.3.194:8080/jspui/bitstream/123456789/531/1/DARREN%20SHAMUTETE%20.pdf
Amankwah, O., Min, S., Aliou, D. M., Farhana, A. (2021). The impact of Debt Financing on Performance of Small and Medium Enterprises in Ghana.
https://www.researchgate.net/publication/353338291_The_impact_of_Debt_Financing_on_Performance_of_Small_and_Medium_Enterprises_in_Ghana
Bunga, M. & Foenay, C. (2021). The Analysis of Factors That Affecting The Behaviour Of Financial Management On Street Vendors.
https://www.journalppw.com/index.php/jppw/article/view/490?fbclid=IwAR3e0MlUT4PlRB77zZcymIjZyGw3Gmz90VhYauXqgceqEckf6flRNrRIX_M
Ansong, G. (2021). Debt Management Challenges Facing Small Business Holders of Kaneshie Market, Accra-Ghana.
https://www.scirp.org/journal/paperinformation.aspx?paperid=110759

C. MODIFIED GANTT CHART

Specific Task/Activity Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul
Making of Introduction 10-
21
Making of Methodology 4
Checking of the Introduction, Methods, and 18
Questionnaire
Final Checking of the Introduction, Methods, 19
Questionnaire, and Plagiarism check
Schedule for Proposal Defense

D. NOMINATED ADVISERS (The nominated advisers must be ranked according to the order of preference.)
Name: ____________________________________ Institution: _________________________________

Field of Expertise: ___________________________ Department:________________________________

Educational Qualification:
Bachelor’s Degree: ________________________________________________________________
Master’s Degree: __________________________________________________________________
Doctorate Degree: _________________________________________________________________

Name: ____________________________________ Institution: _________________________________

Field of Expertise: ___________________________ Department:________________________________

Educational Qualification:
Bachelor’s Degree: ________________________________________________________________
Master’s Degree: __________________________________________________________________
Doctorate Degree: _________________________________________________________________

Name: ____________________________________ Institution: _________________________________

Field of Expertise: ___________________________ Department:________________________________

Educational Qualification:
Bachelor’s Degree: ________________________________________________________________
Master’s Degree: __________________________________________________________________
 Doctorate Degree: _________________________________________________________________

Approved by the College Research Council:

___________________________________ ___________________________________________
Signature over Printed Name of Signature over Printed Name of Program Chair / Date
Research Instructor / Date

____________________________________
Signature over Printed Name of Dean / Date