TRENT INFORMATION FIRST TECHNICAL CAREER INSTITUTE INC.

,
ACCOUNTANCY, BUSINESS, AND MANAGEMENT

“THE IMPACT OF LARGE ENTERPRISES ON SMALL BUSINESSES:

BASIS ON FINANCIAL REVENUE DECLINES AS PERCEIVED BY

SELECTED RESPONDENTS IN TAYTAY, RIZAL YEAR 2021-2022”

An Undergraduate Thesis

Presented To The Faculty of ABM

Trent Information First Technical Career Institute

In partial Fulfillment of the Requirements for the

Strand of Accountancy, Business, and Management

By:

Barquilla, Ara Mae T.

Namuco, Anna Rose S.

Canilang, Justine I.

March 2022
 TRENT INFORMATION FIRST TECHNICAL CAREER INSTITUTE INC.,

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APPROVAL SHEET

In partial fulfillment of the requirements for the Stand of Accountancy and

Business Management, this Undergraduate Thesis entitled, “THE IMPACT OF

LARGE ENTERPRISES ON SMALL BUSINESSES: BASIS ON FINANCIAL

REVENUE DECLINES AS PERCEIVED BY SELECTED RESPONDENTS IN

TAYTAY, RIZAL YEAR 2021-2022” was prepared and submitted by ANNA

NAMUCO, ARA MAE BARQUILLA, and JUSTINE CANILANG who are hereby

recommended for the corresponding Oral Defense.

MARCH 2022 EMMANUEL B. TAN,LPT

DATE Thesis Adviser

Approved as partial fulfillment of the requirements for the Stand of

Accountancy and Business Management, with a grade of ____93______.

 PANEL OF EXAMINEES

EMMANUEL B. TAN,LPT

CHAIRMAN

ELMA CENINA LYZAVEL AQUINO

MEMBER MEMBER

Accepted as partial fulfillment of the requirements for the for the Stand of

Accountancy and Business Management

______________ AKIRA L. CAISIP, DBA, FRIM

Date TIF ADMIN

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ACKNOWLEDGEMENT

The researchers wishes to express their heartfelt thanks and gratitude

foremost and above all, to God Almighty, the greatest Adviser, for giving his

Divine Guidance, health, love and wisdom in making this endeavor a reality, and

to the following persons involved in the completion of this research work:

Mr. Emmanuel Tan, our thesis writing Professor, who patiently revised,

validated our questionnaires and; gave valuable suggestions and

recommendations.

Mr. Joseph Marcos, who also patiently revised, validated our

questionnaires and; gave valuable suggestions and recommendations

INITIALS

A.M.B

A.R.M.N

J.I.C.
TRENT INFORMATION FIRST TECHNICAL CAREER INSTITUTE INC.,

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ABSTRACT
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ACCOUNTANCY, BUSINESS, AND MANAGEMENT

TABLE OF CONTENTS

Page

TITLE PAGE................................................................................................. i

APPROVAL SHEET..................................................................................... ii

ABSTRACT.................................................................................................. iii

ACKNOWLEDGEMENT............................................................................... iv

TABLE OF CONTENTS................................................................................ v

LIST OF TABLES......................................................................................... vi

CHAPTER I. PROBLEMS AND ITS BACKGROUND

Introduction........................................................................................

Background of the Study ………………………………………………..

 Theoretical Framework......................................................................

Conceptual Framework of the Study …………………………………..

Research Paradigm...........................................................................

Statement of the Problem..................................................................

Hypothesis ........................................................................................

Scope and Delimitation.....................................................................

Significance of the Study...................................................................

Definition of Terms............................................................................

CHAPTER II. RELATED LITERATURE

Related Studies..................................................................................
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CHAPTER III. RESEARCH METHODOLOGY

Reseach Method Used.........................................................................

Instrumentation ……………………………………………………………..

Data Gathering Procedures ……………………………………………….

Population Frame and Sampling Scheme............................................

Description of Respondents.................................................................

Statistical Treatment of Data................................................................

CHAPTER IV. PRESENTATION, ANALYSIS AND INTERPRETATION OF

DATA

Frequency and Percentage of the Variables........................................

CHAPTER V. SUMMARY OF FINDINGS, CONCLUSION AND

RECOMMENDATIONS

Summary of Findings...........................................................................

Conclusions.........................................................................................

Recommendations..............................................................................

BIBLIOGRAPHY............................................................................................
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LIST OF FIGURES

Table Page

1 The Research Paradigm .……………………………………………

 TRENT INFORMATION FIRST TECHNICAL CAREER INSTITUTE INC.,

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LIST OF TABLES

Table Page

1 Respondents of the study …………………………………………..

2 Percentage distribution according to Gender…………………….

 CHAPTER I

THE PROBLEM AND ITS BACKGROUND

Introduction

Every firm has its own operation on how to properly organize

everything needed to map the development of their respective businesses,

whether to reduce or expand their businesses. Every business still has to

go through every problem. We know that large enterprises have

advantages compared to small businesses. Large enterprises have

resources due to sufficient investment or business capital that small

businesses do not have.

So, when it comes to bringing products to the attention of the

public, huge corporations have an edge since they have things that can

answer the problems they face now and in the future. Small enterprises

must understand what they must do or modify in order to avoid losses and

insolvency.
 We know that Taytay, Rizal is home to a vast

range of businesses, whether large or small and Taytay Tiangge is

a clothing market in Taytay, where small companies are disadvantaged by

large companies nearby. One of the reasons they went bankrupt and

closed was because of their counterpart company, which is a major

organization with a larger consumer base. The store in Taytay tiangge

where people usually buy clothes was closed because of the big store

opposite them. The store closed because it wasn't handled properly and it

was also surrounded by big stores. Their earnings were falling aswell,

resulting in the failure of their company. The expansion of large

corporations can have a negative impact on the profitability of small firms.

To build a foot hold in new areas, large corporations can hire more

marketing professionals and product designers. Because they lack similar

resources, small enterprises are usually at a competitive disadvantage.

The question isn't whether big company is better or not when it comes to

its benefits and drawbacks.

The reason why the researchers want to know the factors that affect the

losses of small businesses is because to know the things that need to be

prepared by people who want to start a business and avoid as much as

possible the things or events that will be a barrier to becoming success of

their business.
 The thesis entitled "The Impact of Large Enterprises on Small

Businesses ; Financial Revenue Declines in Taytay,Rizal" aims to find out

the impact of large corporations on small businesses, which resulted in a

decrease in financial revenue for small businesses in Taytay Rizal. As a

researcher's we also curious about how small businesses can avoid going

bankrupt and compete with large corporations.

Background of the Study

According in Houston Chronicle Article by Chirantan Basu, large

businesses dominate their respective markets and industries. The

characteristics of large enterprises include a global presence, thousands

of employees, product diversity and a complex organizational structure.

Examples include Wal-Mart in the retail industry, Apple in computer

technology and Toyota in vehicle manufacturing. Successful small

businesses grow to be modest and then become large businesses.

This Article states the growth of big businesses can hurt small-

business profitability. Big businesses can deploy more marketing

professionals and product designers to gain share in new markets. Small

businesses are usually at a competitive disadvantage because they do not

have comparable resources.

When it comes to the pros and cons of big business, the question is

not whether it is better for small businesses to build a large business

immediately, the question is how can small businesses use the

capabilities of its own company for the maximum. Success. If you own a

small company, it is useless to discuss the pros and cons of big business

without understanding that the factors, which enable or frustrate large

business, are the real lessons to be learned because it comes from

experiences. The advantage that large companies have is usually, they

are more stable and have more access to funding. Whether they excel in

more repeat business, generating higher sales and bigger profits than

smaller companies.

When evaluating the pros and cons of big business, one of the

major advantages of large firms is that they are able to establish multiple

revenue streams to help offset economic downturns. The size of big

companies means that they are often engaged in selling many different

types of products and services, which helps insulate them against

unforeseen changes in the economy. Moreover, large companies also

have the financial resources to invest in foreign markets. This means that

they can establish subsidiaries overseas and expand their market share

without having to rely on the domestic market to drive their growth

prospects. As a result, diversification is one of the most important

advantages of large-scale business.

In the digital age, “branding” has become the buzzword of every

business, from startups to multinational organizations. Branding is all

about awareness, and one of the major advantages of large-scale

business is stronger brand recognition, which is defined as the percentage

of people aware of a company’s name and products. Large businesses

often start out as smaller organizations and build brand recognition

through social media channels, advertising, and providing a consistently

good product or service. Stronger brand recognition can boost a big

company’s customer base because consumers will think of these

companies first when making purchase decisions. A small company won’t

have the brand recognition it requires to easily gain more customers.

Larger businesses enjoy this recognition, and can even increase it by

promoting their products more widely and opening branches in more

locations.

Large business owners can also offer strong compensation

packages when they make job offers, which means higher salaries, more

attractive bonuses, greater allowances benefits, and other perks. This

helps ensure that these businesses will draw from a more-talented pool of

candidates and that they will get their pick of the most qualified candidates

for open positions. On the other hand, smaller businesses tend to have

more limited resources, which means that they can’t offer the same kind of

strong compensation package.

 Theoretical Framework

Politicians are fond of saying that small businesses are the backbone of

the economy. And while standing up for the little guy is a popular way to win over

voters, there is actually some truth to that assertion. The Small Business

Administration (SBA) reports that smaller companies—those with fewer than 500

employees—account for more than two-thirds of all the new jobs created since

the 1970s. They’re also responsible for a lot of innovation, as many ultra-

successful tech startups have proven in recent years.

But in a number of respects, small businesses are at a distinct

disadvantage compared with their larger competitors. And that’s why some argue

that government policies that favor these big firms are important. Most people

know that one of the problems of small businesses that outperform large

enterprises is when it comes to their employees. It is stated below that each of

the benefits received by employees has an impact on their ability to perform at

work and to attract customers. According to the Society for Human Resource

Management, healthcare has consistently ranked as the number one

benefit employees in the U.S. care about most, and many employers agree. 86%

of employers believe health benefits are important to their workforce. However,

for small employers, offering competitive employee benefits can seem like a
balancing act between keeping employees happy and managing the costs

associated with offering insurance—not to mention other expected perks like

retirement savings accounts, paid time off, bonuses, and more.

Despite the cost of offering employee benefits, it’s important to remember

that an investment in employees is an investment in organization, with big

returns on employee retention, productivity, and morale. In today’s workforce,

employees value—and expect—an employer to offer benefits. Results from

Glassdoor’s Employment Confidence Survey show that 4 out of 5 employees

would rather have new or additional benefits than a pay raise. This can give

small employers a way to compete with larger employers who have the budget

for higher salaries. Even if you can’t afford to shell out a big paycheck, offering

an attractive benefits package will get top candidates in the door and help you

retain them long-term. As a small employer, it’s common to have close working

relationships with your employees. When it comes to culture and morale,

employees feel this reciprocity. Knowing that their employer cares for their health

and wellbeing creates employee loyalty and retention.

In a survey conducted by the Science of Care, 60% of workers who

reported feeling cared for by their employer also said they planned to stay with

their organizations for three or more years, as opposed to only 7% of those who

reported they didn’t feel cared for by their employers. Employee benefits provide

your workforce with resources to remain healthy and productive, serving as a

win-win for both your organization and employees. By providing employees

access to quality healthcare, and contributing to the cost, removes a big financial

burden for employees and their families. On the employer side, offering health

benefits can lead to fewer sick days and unplanned absenteeism. That’s a

measurable return on your investment in your employee.

Small businesses can compete with larger businesses on the quality of

their employees. Employees are the face of the business when the owner is not

around, so the owner wants the best result because the owner also pays the

employees well. Employees who are knowledgeable about the business owner

and match the brand will help the business owner to provide excellent service to

its customers which will also result in business development. Due to providing

proper Business owners benefit to its employees, employees can better perform

their duties properly to the company and to their customers.

 8

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Conceptual Framework of the Study

Figure 1 below presents the schematic diagram of the study. The figure

depicts the flow of the study with the identified variables. The researchers used

the IPO (Input, Process, and Output) in conducting the research study.

INPUT PROCESS OUTPUT

The researchers will:

Factors that small
- Identify the
businesses encounter
problem that
while competing against
small
large enterprises with • To be able to know the
businesses
similar products and Impact of Large
have.
services: a. Branding, b. Enterprises in Small
Product Description, c. Businesses
- Formulate
Customer Relations. The
hypothesis.
observable signs of large •To discover why small
enterprises’ impact on the firms experienced
- Review Related
financial revenue of small immediate financial
Literature
businesses: a. Sales, b. losses.
Working capital, c.
- Prepare
Profitability • Figuring out how to
Research
Recommended Solutions prevent small enterprise
Design
that may be suggested to bankruptcy.
small businesses
- Collect and
encounter while competing
analyze
against large enterprises.
numerical data

Figure 1. The Research Paradigm

The variables identified in the study, which will serve as input of the

investigation that the researchers will conduct, include the Factors that

small businesses encounter while competing against large enterprises

with similar products and services: (a) Branding, (b) Product Description,

(c) Customer Relations. The observable signs of large enterprises’ impact

on the financial revenue of small businesses: (d) Sales, (e) Working

capital, (f) Profitability and (g) Recommended Solutions that may be

suggested to small businesses encounter while competing against large

enterprises.

The process in which the study will be conducted is described in the

second rectangular box as in the study process that the researchers will

adhere to follow: (1) Identify the problem that small businesses have. (2)

Formulate hypothesis. (3) Review Related Literature (4) Prepare

Research Design (5)Collect and analyze numerical data

The third box contains the output of the study with premise that small

business owners should know what they should do. And a strategy in

place to address the issues so that their firm does not go bankrupt.
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Statement of the Problem

This study aims to determine the impact of large enterprises on small

businesses, based on the perceptions of the selected respondents who

were affected by financial revenue declines in Taytay, Rizal.

1. Do small businesses encounter factors affecting their revenue while

competing against large enterprises with similar products and services in

terms of;

1.1 Branding

1.2 Product Description

1.3 Customer Relations

2. Are the observable aspects of large enterprises have impact on the

financial revenue of small businesses in terms of;

2.1 Sales

2.2 Working Capital; and

2.3 Profitability
 3. Is there a significant relationship between the impact of large

enterprises and the financial revenue declines of small businesses?

4. What are the recommended solutions that may be suggested to small

business encounter while competing against large enterprises?

Research Hypotheses

Null hypothesis 1 (H01): There is no factor that affects the small

businesses' revenue while competing against large enterprises.

Null hypothesis 2 (H02): There is no significant relationship between the

impact of large enterprises and the financial revenue declines of small

businesses.

Scope and Delimitation of the Study

This study aims to determine the impact of large enterprises on

small businesses in Taytay, Rizal Year 2021-2022. The data collection of

this study will only take place in Taytay, Rizal within 2-3 months, and the

subject of the research will be limited to small business owners, customers

and Large business employees and customers. The population in the

study consists of business associates, whether they work in a business, or

they buy from a business. The researchers will be using convenience

sampling with a sample size of 120 participants, and the instruments that
 will be used are the survey questionnaire and interview, with a descriptive

method.

This research excludes the owners of large enterprises in and

outside the area of Taytay, Rizal.

Significance of the Study

This study will assist firms that play a significant part in today’s

society. The identification of both possibilities and threats is aided by

business research. It assists in the identification of problems, allowing for

educated judgments on how to best solve the issue. It helps to gain a

better understanding of customers and, as a result, can help to improve

customer or stakeholder communication. By completing business research

ahead of time, risks and uncertainties can be reduced. Business research

can help you plan for the financial outcomes and investments you’ll

require. Such research can aid in the tracking of corporate competition.

Business research can help a firm make informed decisions about where

and how much to spend. Business research may help a firm remain on top

of industry trends and make necessary developments to stay ahead of the

competition. Business research aids in the evaluation of a company’s

reputation.

The researchers firmly believe that the result of this study will be

essential in many ways for the following:

Students- This study will raise student knowledge of how these

firms affect students in various ways, including part-time students.

Customers- This will help them to give awareness that small

businesses should give them favours, likewise large businesses.

Business owners- This study will help them to be mindful in times of

difficulty that all can experience losses.

Future Researchers- This study will provide them with useful

information regarding the effects of big businesses on small businesses,

which they may use to conduct a follow-up study that is modified and

consistent with this one.

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Definition of Terms

To understand the study better, the following terms are technically and

conceptually defined:

Brand Image – customers may or may not include making a purchase

from a company’s products and services, and only involves their

perception on a particular brand.

Customer Preference – it is the type of product that would determine a

customer’s likes and dislikes in purchasing.

Demographics – the profiles of respondents – Refers to age, gender,

highest level of education and contact information.

Diversification – the process of a business enlarging or varying its range

of products or field of operation.

Financial Resources – resources from which the enterprises obtain the

funds they need to finance their investments, capital and current

activities.
Financial Revenue – it is the money a firm earns from the sales of their

products or services.

Insolvency – unable to pay debts – Refers on how we can find out the

cause of the bankruptcy of small businesses.

Product Description – it provides important informations necessary to

explain a product’s worth to customers.

Sufficient Investment – Refers to the adequate investment that large

enterprises have that small businesses lack.

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CHAPTER II

REVIEW OF RELATED LITERATURE

The literature and research that are relevant to the study's

hypothesis and formulation are presented and summarized in this chapter.

When the researchers analyzed the literature and studies they gained a

broad understanding of how the problem came to be and how it relates to

what they are doing now. Related Literature The reseach entitled "The

Impact of Large Enterprises On Small Businesses : Basis On Financial

Revenue Declines As Perceived By Selected Respondents In Taytay

Rizal Year 2021-2022" provides a reference to past research that have

been shown to be relevant, if not identical to the current one. This chapter

presents a review of related foreign literature as well as foreign studies.

The following discussions of related literature and studies focus on

improving strategies and it’s about making ideas happen.

Local Literature and Studies

1. Impact of Large Businesses on Small Businesses

1.1 Societal Pressure Among Small Businesses

According to a study conducted in the Philippines, large enterprises

influence small businesses when it comes to following trends and

sustainability of a business. A study of 197 small businesses showed that

the thing that enabled them to develop a more proactive stance towards

environmental sustainability practices, is an entrepreneurial strategic

orientation. This lead the small businesses to a superior firm performance,

that can is comparable to large companies or firms (Roxas, B., Ashill, N.,

and Chadee, D. 2017). However, there are still things that made small

businesses switch to a different set-up. According to Butler (2009) a

common professional goal for environmental managers has identified

environmental sustainability as a goal, and that goal was identified as

"ecological balance". Current economic activity must not

disproportionately burden future generations in order to be sustainable.

Environmental assets will be allocated as part of the value of natural and

manmade capital by economists, and their preservation will become a

function of an entire financial analysis. (Morelli, J. 2011).

 Large businesses are going for the sustainability of their products,

due to their campaigns in making an environmental friendly business,

starting from their packaging to their products. The switching from plastic

bags to paper bags or eco bags, and from plastic straws to paper straws,

have become a great help to minimize the pollution in the world. On the

other hand, studies showed that small businesses contribute to the vast

majority of businesses, and form the economic backbone of developing

economies in terms of employment, investment, and their overall

contributions to the gross domestic product (OECD 2009). Thus, having

sheer numbers of small businesses and their dominant economic

activities, they have become the major contributors to pollution and

climate change, which is not good (Martin-Tapia, Aragon-Correa, and

Rueda-Manzanares 2010). Therefore, small businesses receive societal

pressure from these large enterprises to become more environmentally

sustainable. Furthermore, according to Stone (2006), small businesses in

developing countries have often poor number of resources, compared to

large businesses, and they tend to operate in underdeveloped institutional

environments, which makes it unlikely for them to adapt environmental

sustainability initiatives, as they can incur additional costs.

 According to the Philippine Institute for Development Studies

(Abrigo et al 2020), the Philippines may suffer economic losses between

P276.3 billion and P2.5 trillion due to

the COVID-19 pandemic. The most affected business sectors will

be manufacturing, with losses between P82.1 billion and P855.2 billion,

wholesale and retail trade, with losses between P93.2 billion and P724.8

billion, and transport/storage/communication, with losses between P11.7

billion and P124.3 billion. Abrigo et al (2020) also estimated that, if the

ECQ continued to May 2020, it would potentially cost the Philippine

economy at least P150 billion given the decline in household consumption.

Foreign Literature and Studies

1. Competition

The information and data acquired provided the researcher with a

solid foundation for the construction of the study's instructional design. "A

web page or website is a dynamic instrument in the market for you to both

acquire and service your clients in today's world of internet popularity and

globalization. It allows people to readily share information about

themselves as well as the products and services they want to provide. The

competition has never been more strong, and every firm and business has

had to fight tooth and nail for a piece of that customer's pie. Smaller

players have been able to get instant 'global reach at practically no

expense' thanks to their online presence, which is defined as "a website

that allows visitors to pay with their credit card to buy your items or

services." According to authors A. Osterwalder and Y. Pigneur

(Osterwalder, et al., 2002, 2004, 2005, 2010, 2011, Wu et al., 2015), a

business model can be described by nine building blocks that further wrap

the four main segments of business: customers, offer, infrastructure, and

financial viability, according to their book "Business Model Generation: A

Handbook for Visionaries, Game Changers, and Challengers, Hoboken,

New Jersey: John Wiley & Sons, Inc." (Timmers et al., 1998, Clark et al.,

2012, Xu et al., 2018, Wirtz et al., 2010). We need to look at how

platforms vary from the traditional "pipeline" businesses that have

dominated industry for decades in order to grasp how the rise of platforms

is changing competitiveness. The conventional value-chain approach is

used by pipeline organizations to produce value by controlling a linear set

of activities (Luby et al., 2006). At one end of the chain, inputs (such as

materials from suppliers) travel through a number of phases to become a

more valuable output: the finished product. Apple's smartphone business

is essentially a pipeline, but when it's combined with the App Store, which

connects iPhone owners and app developers, it becomes a digital

platform.

2. Branding

One of the key differences between small and big businesses

pertains to the approach to brand and brand building. This probably

explains why only a few brands have recall value despite the economy

being overwhelmingly inhabited by small businesses. The MSME sector is

home to over 6.33 crore businesses, of which 99.4% are micro-

enterprises, according to the MSME Ministry’s FY19 annual report.

Though the coronavirus pandemic has had a debilitating effect on the

economy and most businesses, it has been a boon for many small and

micro-enterprises that were born out of its disruptive effects. Overall, this

sector is important from a macroeconomic perspective because of its

contribution to GDP and employment. But it is marred by a paradox: a

larger number of enterprises but a smaller number of strong brands.

Brands of big companies dominate our mental space. The most defining

aspect is the deep connection the creators or entrepreneurs have with the

company or the brand. This is also true for the brands that are now

ubiquitous; they bear the name of their creators. Consider this: Adidas

comes from the name of the founder, Adolf “Adi” Dassler; Hilton Hotels

from Conrad Hilton; HP from Bill Hewlett and David Packard; Levi’s from

Levi Strauss and Walt Disney from brothers Walt and Roy Disney. This

does not suggest that the product or service should carry the name of the

person behind its creation. The suggestion is that these brands have had

a very close and intimate connection with the human force behind them.

These brands and businesses are tangible forms of the founders’ visions,

the actualised reality of something unique and unseen. The fatal flaw of

MSMEs is that they often suffer from a lack of sight and vision. Sight
drives small entrepreneurs to start businesses that are profitable and

adopt a prevalent business model by copying an existing product. We can

see this in the large number of small entrepreneurs who host their

products on Amazon or stuff retailers with their products using a push

approach. These products, made to look like prevalent brands, seek to win

consumers on the power of push or price or information gap. The absence

of vision is one reason for small businesses to remain small and the

presence of vision is the reason why many small brands have become big.

Vision is an uncanny ability to see things that ought to be there, but is not

there. Small businesses often fall victims to a misplaced understanding of

brands and brand naming. Although brand building requires brand

naming, brand naming is not branding. We cannot create a brand on the

strength of a brand name. The name only acts as a signifier. What it

signifies is more important. The business needs to find its mojo, its

proposition that is both relevant for customers and different from

competitors. Avoid a name that bears either physical or phonetic similarity

to an established brand. Brands such as Fair and Lovely or Coldante

evoke comparison with giants and this has a dwarfing effect. This so-

called clever strategy renders you as duplicate or fake. Ghari, Relaxo,

Action, Priya Gold, Fena, Duckback, Babool, Color Bar, Nykaa, Chik,

Bagh Bakri — all these Indian brands stand on their own without drawing

any similarity. If possible, the brand name should connect with the product

category or benefits. It is likely to enhance discoverability on the internet

and improve brand recall. Customers don’t think in terms of products or

brands; they look at what is important to them — the benefit. We are not

interested in ointment but “fast relief” (Fast Relief is a brand); we want to

remove cracks on the heel (Krack cream), we want to have odour-free

bathrooms (Odonil), and we want to save ourselves from the coronavirus

(Coronil). Formulating a strategy is the first essential step to brand

building, but the real challenge lies in execution. It is an “outside-in

process”. In the absence of substantive efforts and investment in

production, quality, consistency, distribution, communication and after-

sales care, all branding can fall flat on its face. Branding is done to win

trust. It opens up a gateway to relationships and revenue streams.

Branding is successful if your customers become unyielding to the

temptations thrown up by competitors. The secret is to lower anchors far

deeper, beyond the surface of reason into the recesses of emotions, so

that he or she says, “I don’t give a damn”.

2.2 Product Description

The characteristics of small niche businesses create some unique

challenges when it comes to developing products. Compared to larger

companies, small businesses have limited product development budgets.

Small companies simply do not have the scale or cash flow to support

large product development budgets. They do not have to develop products

as often as large companies (longer product cycles), but that also means
they cannot afford the fixed cost of a full time product development team.

This lack of team means they will likely be less efficient than larger

companies — making the problem even worse. It’s not uncommon for

small companies to defer product development indefinitely because they

can never see their way to a positive ROI given the development cost; or

worse, they hire people/companies at less than market rates — who are

even less efficient — and end up spending more, or never getting the

project finished. Good processes and procedures Large companies are

almost always more efficient at product development than small

companies. Let’s face it, large companies do a lot more projects than a

small company and each time they do one, they learn something. This

learning gets integrated into their processes and procedures so that they

rarely make the same mistake twice. With small companies, not so much.

Maybe they do one project every five years. Often, the people that did the

last project are not even around anymore. Whatever lesson they learned

walked out with them and is lost on the new team. Inevitably this new

team repeats the same mistakes.

2.3 Customer Relations

According to the article by The Small Business Advisor, most small

businesses fail because of lack of daily contact with customers, lack of

special promotions, price changes, and lack of new product features. That

is why the customers may be the first to hear about significant changes in
the competitors’ distribution network. One of the most important groups of

stakeholders that a business must satisfy is its customers. However,

building and maintaining a base of loyal customers is no easy task. It

requires more than just selling buyers a product or a service; the key is to

build relationships with customers. According to Scarborough and

Zimmerer (2003: 374-6), the following factors influence customer relations:

right to safety, right to know, right to be heard, right to education, and right

to choice. In terms of right to safety, there will be no trust in small business

owners if they do not provide customers with safe, quality products and

services. With regard to the right to know, i.e. information, small

businesses that rely on corrupt pricing tactics and provide a poor quality

product and/or service may profit in the short term, but will not last long if

they do not inform customers properly and do not involving them in

decision-making. Another factor that plays a role is the ability and

willingness to solve customer complaints. If there is no mechanism in

place to resolve the complaints of the customers there will be a

breakdown in communication between the small business owner and the

customer. In addition, if there are no education programmes in place

regarding the proper use of products, customers will become dissatisfied.

Lastly, few customers will be retained if they do not have the right to

choose among competing products and services.

2.4 Working Capital and Profitability

 Many small businesses have fallen after enterprises and other

businesses have shut down, due to the community lockdown and

quarantine protocols, in response to the COVID-19 pandemic that started

in year 2020. Small businesses have relatively limited financial resources

compared to large enterprises, due to insufficient working capital. Working

Capital According to a study in Accounting & Management by Orobia,

L.A., Byabashaija, W., Munene, J.C., Sejjaka, S.K., and Musinguzi, D.

(2013), the reason why small businesses' financial resources are lacking,

is due to the difference between how small business owners manage

working capital and how established company owners manage. When it

comes to establishing a brand image, large enterprises tend to be more

dominant than small businesses. The management in large businesses

has more quality compared to those micro and small businesses. Larger

enterprises have organized systems, as well as more employees in order

for them to run their business, and have a place in a wider market. On the

other hand, small business have less employees, and they are less likely

to afford to hire professionals, such as accountants and product

designers. In small businesses, there is an absence of systems, in which it

indicates that the owners planning is done intuitively, making it informal in

nature. In addition, owners just assume inventory limits, keep their records

unconventionally, management is based on the informations regarding the

cash flow, and give credit to close associates. Lastly, the monitoring and

controlling of their working capital is only done by relying on their memory

and having agreements orally. Small businesses tend to fail because of

the competition against dominant large businesses. In terms of

profitability, small businesses are at a disadvantage. Large businesses

usually have more resources compared to small businesses.

TRENT INFORMATION FIRST TECHNICAL CAREER INSTITUTE INC.,

ACCOUNTANCY, BUSINESS AND MANAGEMENT

CHAPTER III

METHODOLOGY

Research Methodology

This chapter will state and discuss the research method that

will be used in collecting the data needed in the systematic investigation of

a study in The Impact of Large Enterprises on Small Businesses; Financial

Revenue Declines in Taytay, Rizal.

The intent of this chapter is to represent the research methodology to be

conducted in the study, to find out the population and sampling size, to

give an explanation of the sampling technique that needs to be used in

this study, to illustrate the respondents, and the process to be used in

instrument design and data collection.

Research Method Used

 The researchers will use descriptive type of research

design, as it will allow them to proceed to the study without influencing or

changing the variables in it during the process; the impact of large

enterprises on small businesses and financial revenue. The researchers

will use a convenience sample of 120 large and small business associates

in Taytay, Rizal.

The impact of large enterprises on small businesses will be

measured using the Likert Scale in the form of Agreement. The

researchers will utilize survey questionnaires to each of the respondents

via online platform, Google Forms.

This will enable the researchers to gather accurate data, provide

result, and determine the impact of large businesses on the revenue

declines among small businesses in Taytay, Rizal.

Instrumentation

The researchers will collect data using a research-made tool to

determine the influence of Large Enterprises on Small Businesses. The

reseachers will be use survey questionnaire. There are two parts to the

research instrument. The Part 1, research instrument consists of the

answer sheet that have numbers 1-10 with its corresponding boxes where

they can freely check it. The survey will take 10-15 minutes to complete.
Part 2 of the research instrument is the interview questions, the

researcher-created questionnaire will attempt to obtain information about

the respondent’s profile, such as gender, age, and ideas.

Data Gathering Procedures

As researchers we will seek the consent of the small business

owner and its selected customers for such a study as wells as to inform

them of the purpose of our study.

If we present wrong educational materials, they will be able to assist us.

Prior to presenting the variables, this will be the last stage.

The researchers will collect questionnaires when they have completed the

treatment of both factors. All of the information that will be obtained from

the questionnaires will be compiled, examined, and debated. We will

identify the problems that small businesses have. We will formulate our

hypothesis. Reviewing Related Literature. Preparing of Research Design

and Collecting and analyzing numerical data.

Population Frame and Sampling Technique

The participants in this study will be residents of Taytay, Rizal. This

research will examine two types of business entities: big business and

small business. There will be a total of 120 target respondents, with 60 per

business status. This study will help to know the perceptions of the
respondents, for the researchers to be able to determine the impact of

large enterprises on small businesses, and to determine whether there is

a significant relationship between the impact of large enterprises and the

financial revenue of small businesses. This study important characteristics

exemplifies how several fields of study can be merged to produce useful

results. As people become more reliant on others, it provides a better

knowledge of mutual dependency through the business system.

Purposive sampling, often known as “deliberate sampling,” will be utilized

by the researchers as a sophisticated approach for picking the

subjects/respondents who would best satisfy the study’s requirements.

Description of the Respondents

Respondents are defined according to their demographic profile, such as

name, age, and gender, and are from Taytay, Rizal for the year 2021-

2022. For this study, the researchers chose respondents who have a

business in Taytay, Rizal. Gender and age were used to categorize the

respondents. The researchers choose small business owners and

employees/customers in big businesses as the respondents of the study.

Gender Small Small Large Large

business business business business

owners customers customers employees

Male 15 15 15 15 60
 Female 15 15 15 15 60

TOTAL 30 30 30 30 120

Statistical Treatment of Data

For an objective and orderly analysis of data information obtained for the
respondents, statistical treatments were being applied such as
percentage, weighted mean. (Trochim, 2006)

Percentage- used to determine the percentage of respondents in terms of

age, gender and family income.

Formula: P= f/( N) X 100

Where:

P= percentage

F= number of respondents

N= sum of cases

100= constant

Weighted Mean- a mean that is computed with extra weight given to one
or more elements of the sample.

Formula Xw = ∑▒fx/N

Where: Xw = weighted mean

F= frequency of each criteria
X= grand total
N= summation of frequency
Sample Questionnaires:

Check one that applies.

Questions Strongly Agree Undecided Disagree Strongly

Agree Disagree

1)I treat
employees/co
-workers with
kindness and
consideration.

2) Everyone
should have
an equal
opportunity to
succeed.

3) I take
advantage by
asking
questions that
show my
understanding
of other
people’s
positions.

4) I prefer the
prices offered
in small
businesses
(e.g. paper
and beyond)
rather than
large
businesses
(e.g. national
bookstore)
with similar
products (e.g.
school and
office
supplies).

5) Small
businesses
are at a
disadvantage
when it comes
to profitability
before and
during the
COVID-19
pandemic.

6) I prefer to
shop from
malls instead
of local
markets.

7) Each
member
including the
staff/employe
e has a
positive
impact on
promoting the
business to
keep up with
the nearby big
businesses in
your area.

8) Planning
strategies are
important
before starting
a business to
prepare for
changes in
the trend.

9) Providing
proper
response to
customer
preferences
and
complaints
are important
in a business.

10) Large
businesses
tend to have
better
branding than
small
businesses.
APPENDIX A
LETTER TO THE RESPONDENTS

___________________________
DATE

___________________________________
___________________________________
___________________________________

Dear respondent:

We, the students of the TRENT INFORMATION FIRST TECHNICAL

CAREER INSTITUTE INC., currently SENIOR HIGH SCHOOL
STUDENTS. We are pursuing our thesis study entitled “The Impact of
Large Enterprises On Small Businesses: Basis on Financial Revenue
Declines as Perceived by Selected Respondents in Taytay, Rizal Year
2021-2022.” This study aims to determine the impact of large enterprises
on small businesses and may suggest to people what to do and avoid
when starting a business The study needs to require a primary or
secondary data. Your anonymity will be secured, and all data sets will be
treated with the utmost confidentiality.

Thank you and good day!

Sincerely,
Anna Namuco
Ara Mae Barquilla
Justine Canilang
Researchers

-------------------------------------------------------------------------------------------------

INFORMED CONSENT SLIP

I confirm that I read and understood the information about the research
study.
I manifest that my signature appearing below explicitly states my approval
to participate in this study.

____________________________________
Signature Over Printed Name