CHALLENGES FACED BY SMALL AND MEDIUM SIZE

HANDICRAFT MAKERS IN PAMBUJAN, NORTHERN SAMAR

In Partial Fulfillment
Of the Requirement of the SHS
Accountancy Business and Management

By:
JELIAN L. LUCBAN
RODINA L. LIPATA
RASSEL B. DELIM
LEE ANN ROSE P. VALENZUELA
GABRIEL JULIAN B. LUBOS
ADRIAN LUIS M. CASTILLO
AILYN P. LAGRIMAS

KRISTINE A. DULAY
Research Adviser
 CHAPTER 1
INTRODUCTION

CONTEXT AND RATIONALE

Handicraft, also known as craftwork or simply craft, is a type of work where

useful decorative, devices are made completely by hand or using only simple tools.

Usually, the term is applied to traditional means of making goods. The individual

artisanship of the items as a paramount criterion such items often have cultural and

religious significance. Items made by mass production or machines are not handicrafts

(Shakya, 2008). According to Dash (2011, p.241) handicrafts are the unique symbol

of a particular community or culture through indigenous craftmanship and material.

People who make handicraft products are called handicraft makers or artisans that

works with their hands to create unique, functional and/or decorative items using

traditional techniques.

Handicraft maker suffer from a lot due to being unorganized, lack of education

low capital, poor exposure, absence of market intelligence and a poor institution

framework. According to Rose Ignas Makyao (2013) in terms of challenges faced by

handcraft businesses in promoting their product, the study found out that Government

negligence, exploitation, lack of training, lack of financial support, lack of promotion

assistance from stakeholders, tax related complaints, expensive working tools,

inability to engage with ICT and lack of ownership to the working places the most

critical challenges. .A study by Gopal and Chattopadhyay (2016) found that the use of

unsustainable materials in handicrafts production is a significant challenge in India. In

Southeast Asia handicrafts are at risk of disappearing due to the availability of

cheaper, mass-produced alternatives (Jirousek, 2006).

 Several studies have been carried out to discover the most relevant data relating

the different challenges faced by small and medium handicraft makers. In local, the

focused of the study is to explore the struggle of the Bicol (Philippines) Abaca

Handicraft Industry for a successful integration to the global market and the foreign

study focused on the prospects and problems of Nepalese handicraft exporter.

Handicraft makers in Pambujan, Northern Samar are experiencing different kinds of

challenges. According to the interview that we conducted the challenges that they are

facing are the following: Availability of raw materials, Location of the business,

Lack of financial support, Increasing Competition, and Schedule Inflexibility.

The general objectives of this study is to determine the challenges faced by small

and medium handicrafts maker. The target respondents of this study are those

handicraft makers in Pambujan, Northern Samar. This study will be conducted using

Quantitative research design. This design will use survey questionnaires that will

investigate and evaluate the respondents’ insights, to get data about the challenges

faced by handicraft makers.

Handicraft makers around the world are facing different kinds of challenges.

However, there are many suggestions that could help every handicraft maker. Hence,

this study aims to determine not only to the impact of the challenges faced by the

handicraft makers to their production in terms of the availability of raw materials, lack

of financial support, increasing competition, schedule inflexibility but also to

determine in how the respondents manage the challenges.

OBJECTIVES OF THE STUDY

The general objectives of this study aimed to determine the challenges faced

by the smalland medium handicraft makers in Pambujan, Northern Samar. The

specific objectives of this study are:

1.) To know the profile of the respondents in terms of:

1.1 Sex

1.2 Age

1.3 Monthly income

1.4 Educational attainment

1.5 Business Status

1.6 Years in handicrafts business

1.7 Kinds/Types of handicrafts

1.8 Number of products they made in a month

1.9 Number of times they sell their products

2.) To determine the challenges faced by the handicraft makers to their production. In

terms of:

2.1 Availability of raw materials

2.2 Location of the business

2.3 Lack of financial support

2.4 Increasing Competition

2.5 Schedule Inflexibility

3.) To determine on how the respondents manage the challenges. In terms of:

3.1 Availability of raw materials

 3.2 Location of the business

3.3 Lack of financial support

3.4 Increasing Competition

3.5 Schedule Inflexibility

NULL HYPOTHESIS

Ho1: There is no significant relationship between the profile of the

respondents to the challenges faced by the handicraft makers.

Ho2: There is no significant relationship between the production and the

challenges faced by the handicraft makers.

Ho3: There is no significant relationship between the challenges and how the

handicraft makers manage the challenges.

SCOPE AND LIMITATIONS

The study focused on identifying the challenges faced by handicraft makers in

four specific areas: Pambujan Poblacion, Camparanga, Canjumadal, and Cababtoan,

all situated in Northern Samar. The study aimed to explore how these handicraft

makers managed the challenges unique to their respective locales. Data collection

methods included surveys, interviews, and observations of handicraft makers within

these areas.

There are several limitations to this study that should be acknowledged. Firstly,

the study will rely on self – reported data from handicraft makers, which may be

subject to bias or inaccuracies. Secondly, the study will not be able to capture the

experiences of all handicraft makers in Pambujan Northern Samar, due to limitations

in time, resources, and accessibility. Thirdly, the study will not be able to address all
possible challenges faced by handicraft makers as new challenges may emerge over

time. Finally, the study will not be able to provide a comprehends solution to

challenges faced by handicraft makers, as this require a multi – sectoral and long –

term approach involving multiple stakeholders.

IMPORTANCE OF THE STUDY

The study of challenges faced by handicrafts makers can benefit stakeholders,

including:

Handicrafts makers. Understanding the challenges faced by handicrafts makers can

help them identify ways to improve their craft and overcome obstacles. This can lead

to increased efficiency, productivity, and profitability.

Consumers. Consumers can benefit from a better understanding of the challenges

faced by handicrafts makers. They can appreciate the amount of effort and

skillrequired to produce handmade goods and be more willing to pay a fair price for

them.

Governments. Governments can use the information gathered from studying the

challenges faced by handicrafts makers to develop policies and programs that support

the growth of the handicrafts industry. This can include funding for training programs,

subsidies for materials, and tax incentives for small businesses.

Non-governmental organizations (NGOs). NGOs that support handicrafts makers

can use the information to develop targeted interventions to address the specific

challenges faced by these artisans. For example, they may provide training and

resources to help them improve their business skills or access to markets.

Future Researchers. The result of this study shall provide data for future researchers

in further studies regarding the challenges faced by small and medium handicraft

makers in a wider range study.

THEORETICAL STUDY

Resource Dependency Theory

Resource Dependency Theory is devised by Pfeffer and Salancik (1978), this

explains how organizational behavior is affected by external Firms change their

external environment to secure access to the resources they need to survive. This

means that a firm’s competitiveness is determined by the way they deal with their

external resources. While the resource-based view of the firm is concerned with the

management of a firm’s internal resources and capabilities, resources dependence

theory, there is a focus on external parties, such as suppliers.

According to this theory, organizations may face challenges when they lack

access on the resources they need to be successful. In the case of handicraft makers,

one of the main resources they depend on is access to markets. Many handicraft

makers are located in rural areas or in countries with limited Infrastructures, which

can make it difficult for them to access markets and sell their products. This lack of

access to markets can lead to a dependency on middlemen and traders who may pay

low prices of their products, leaving handicraft makers with limited bargaining power.

In addition handicraft makers may depend on access to finance in order to purchase

raw materials or invest in equipment that could improve their productivity. However,

many handicraft makers lack of access to finance, which can limit their ability to

grow their businesses and improve their products. Handicrafts makers also depend on

access to training and skills development in order to improve the quality of their
products and keep up with changing consumer preferences. However, many

handicraft makers lack access to these resources, which can limit their ability to

compete with machine-made products and adapt to changing market demands.

Finally, handicrafts makers also depend on access to natural resources, such as wood,

fibers, and dyes, in order to produce their products. However, environmental

degradation and climate change can threaten the availability of these resources,

making it even more difficult for handicraft makers to produce their goods.
CONCEPTUAL FRAMEWORK

Handicrafts are significantly important to the handicraft makers wherein it

showcases the cultures and traditions around the world. But handicrafts can also be

the source of income of some people wherein they are facing different kinds of

challenges.

This study hypothesized that the profile of the respondents don’t affect to the

challenges faced by the handicraft makers.

As illustrated in the paradigm it is assume that variables such as socio-demographic

profile of the respondents has something to do with the challenges faced by the small

and medium handicraft makers in Pambujan, Northern Samar.

SCHEMATIC DIAGRAM

Independent Variable Dependent Variable

1. What is the socio-Demographic profile of the respondents in 1. Challenges faced by
terms of: the small and
a. Sex
medium handicraft
b. Age
makers in Pambujan
c. Monthly income in being
handicraft makers Northern Samar.
d. Educational attainment 2. How handicraft
e. Business status makers manage the
f. Years in handicraft challenges they
business faced
g. How many products
they made a week
h. Kinds/types of handicrafts
i. Number of time(s) they sell their products
2. What are the challenges faced by handicraft makers
to thier production ?
a. Availability of raw materials
b. Location of the business
c. Lack of financial support
d. Increasing competition
e. Schedule inflexibility
3. How do the respondents manage the challenges?
4. Is their a significant relationship between the profile of the
respondents to the challenges faced by the handicraftmakers?
5. Is their a significant relationship between the production and
the challenges faced by the
handicraft makers?
6. Is their a significant relationship between the challenges faced
by the handicraft makers and how the respondents manage the
challenges?
DEFINITION OF TERMS

The terms are defined conceptually and operationally for clearer understanding

of the study:

Challenges

Conceptually, challenges is a call to take a part in a contest or competition..

Operationally, it is a problem that the handicraft makers are facing.

Customer

Conceptually, customer is a person or organization that buys goods or services

from a store or business. Operationally, it is a group of people who occasionally

purchased on someone’s product.

Handicraft

Conceptually, handicraft is a particular skill of making decorative objects by

hand. Operationally, it is the handmade product made by the handicraft maker.

Laborer

Conceptually, a person doing unskilled manual work for wages. Operationally,

laborer is the handicraft maker who work for others to earn money.

Partnership

Conceptually, the relationship between two or more people to do trade or

business. Operationally, it is the two person investing money in a business.

Product
 Conceptually, product is an article or substances that is manufactured or refined

lfor sale. Operationally, it is an item that we can offer to a market.

Production

Conceptually, production is the action of making or manufacturing from

components or raw materials. Operationally, it is on how handicraft makers make

their product.

Schedule Inflexibility

Conceptually, measures additional staffing scheduled above the requirements

due to certain constraints. Operationally, it is the inaccuracy of a person scheduled

towards his work.

Sole Proprietorship

Conceptually, it is a type of enterprise owned and run by one person.

Operationally, it is a type of business owned by only one person.