The Impact of Manufacturing Companies

Towards Poverty Alleviation

in El Salvador City

CHAPTER 1
INTRODUCTION
1.1 Background of the Study

Manufacturing industries play a crucial role in the economic development of a country. They not only provide goods for domestic
consumption and export but also create employment opportunities, stimulate technological advancement, and contribute to the
growth of other sectors through backward and forward linkages. The sector's ability to absorb large numbers of unskilled and semi-
skilled workers makes it a potent instrument for poverty alleviation, particularly in developing countries where such labor is
abundant.Despite the potential benefits, the relationship between manufacturing growth and poverty reduction is not automatic.
The extent to which manufacturing can contribute to poverty alleviation depends on various factors, including the nature of the
industrialization process, the types of industries promoted, the policies and regulations in place, and the global economic
environment. Therefore, this study seeks to investigate these dynamics, offering insights into how manufacturing companies can be
leveraged more effectively to combat poverty.Through a comprehensive review of existing literature, case studies, and empirical
analysis, this study will examine different pathways through which manufacturing impacts poverty levels. It will look at direct effects,
such as employment generation and income creation, and indirect effects, including technological spillovers and improved
infrastructure, that contribute to poverty reduction. By understanding these mechanisms, the study aims to provide policy
recommendations that can help maximize the poverty alleviation potential of the manufacturing sector.
Prior to the nineteenth century, systematic investment in human capital was not important in any country. Expenditures on
schooling, on-the-job training, and other forms of investment were quite small. This began to change radically during that century
with the application of science to the development of new goods and more efficient methods of production, first in Great Britain, and
then gradually spreading to other countries. During this century, education, skills, and other knowledge have become crucial
determinants of a person's and a nation's productivity. One can even call the twentieth century the Age of Human Capital in the
sense that the primary determinant of a country's standard of living is how well it succeeds in developing and utilizing the skills,
knowledge, health, and habits of its population.
Supporting the expansion of manufacturing is key to achieving sustained and inclusive economic development and to eradicating abject
poverty in the Philippines, according to an eminent economist and academic. Raul V. Fabella, national scientist and professor emeritus at the
University of the Philippines School of Economics, said the contribution of manufacturing and industry to local output or the GDP, have
declined in recent years, coinciding with developmental slowdown and unabated poverty in the country.Referencing data from the World Bank
for the period 1986-2009, Fabella noted that manufacturing share fell from 25 percent in 1986 to 19 percent in 2009, while industry share fell
from 35 percent to 29 percent. In contrast, services share rose from 40 percent in 1986 to 57 percent in 2009.
The Philippines’s manufacturing sector has been bucking the trend observed among the least developed countries (LDCs) that are fast catching
up with more developed peers, and is following the pattern observed in mature economies, Fabella said.He said “catch-up LDCs” tend to post
gains in the shares of manufacturing and industrial sectors, while recording either losses or gains in the share of the service sectors.On the
other hand, mature economies like South Korea manifest loss in the shares of industry and manufacturing, even as they mark gains or flat
growth in services
.The Philippines “mimics mature economy trends,” Fabella observed during a recent presentation on the topic inclusive capitalism in low-
income economies.Comparing Philippine performance with those of fast-rising developing economies in Asia and those of developed nations
from 1986 to 1996, Fabella showed that emerging economies during that period demonstrated big spikes in the shares of manufacturing and
industry in relation to GDP. Indonesia, Malaysia, Thailand, and China all showed robust positive growth for manufacturing and industry during
the 10-year period; in contrast, the shares of these two sectors in the Philippines contracted, while services posted healthy expansion during
the period. In the same span of time, South Korea, Germany and the United States registered growth surges in services share, while showing
deep cuts in the shares of industry and manufacturing, Fabella added.
In terms of poverty reduction, meanwhile, Fabella cited figures showing how poverty rates in the Philippines were much lower than either
China or Vietnam circa 1990, but that by around 2010, China and Vietnam had drastically lowered their poverty rates, while poverty in the
Philippines remained high, having gone down only slightly.The economist stressed that institutional and policy changes are needed to stimulate
Philippine economic growth and significantly slash high poverty rates. He suggests “embracing rather than fearing a weak peso to sustain
investment-led growth.” He also calls for the scaling up of the quantity and quality of Philippine infrastructure under the government’s “Build,
Build, Build” program, and seeks the lowering of the cost of power, including by connecting the Visayas and Mindanao grids to give substantial
new capacity to the Visayas region.
This study has been updated to better understand the value of manufacturing companies towards poverty alleviation , manufacturing companies
create jobs, contribute to economic growth, and invest in skill development, enabling individuals from diverse educational backgrounds to find
employment. They also invest in infrastructure development, improving access to markets, education, and health services. Manufacturing
companies also bring new technologies and practices to local regions, fostering economic development and poverty reduction. Small and
medium-sized enterprises (SMEs) often become part of larger manufacturing companies' supply chains, providing stable demand and creating
more jobs. Additionally, many manufacturing companies engage in CSR initiatives, such as education and healthcare projects, which directly
benefit local communities, contributing to poverty alleviation.
“The Impact of Manufacturing Companies Towards Poverty Alleviation in El Salvador City” examines the multifaceted role that manufacturing
firms play in the socio-economic landscape of El Salvador City. This study delves into how these companies, through job creation, skill
development, and community investments, contribute to mitigating poverty levels and enhancing the quality of life for local residents. By
analyzing various economic indicators, case studies, and firsthand accounts, the research provides a comprehensive overview of the direct and
indirect effects of manufacturing activities on poverty alleviation. It also explores the challenges and opportunities that lie ahead in leveraging
the manufacturing sector as a pivotal engine for sustainable development and social progress in El Salvador City.
Certainly! The research further explores several key areas to understand the depth of the impact manufacturing companies have on
poverty alleviation in El Salvador City. It outlines the economic contributions of the manufacturing sector, including its role in GDP
growth, export earnings, and the creation of a diversified economic base that reduces dependency on traditional agriculture and
services sectors. Special attention is given to employment generation, not only in terms of the sheer number of jobs created but
also in the quality of employment opportunities, offering stable income sources and benefits to workers and their families.
The study also examines how manufacturing firms contribute to human capital development through on-the-job training, skill
enhancement programs, and partnerships with educational institutions. This aspect is crucial for long-term poverty reduction, as it
elevates the workforce’s overall skill level, making them more competitive in the global market and less vulnerable to economic
downturns.
Furthermore, the research delves into the spillover effects of manufacturing companies on local small and medium-sized
enterprises (SMEs) and how these interactions foster a more robust, interconnected local economy. By analyzing supply chain
linkages, the study highlights how larger manufacturing entities can drive demand for local goods and services, thereby spreading
economic benefits more widely within the community.
Corporate social responsibility (CSR) initiatives undertaken by manufacturing companies are also scrutinized to assess their direct
impact on community well-being and poverty alleviation. These initiatives often include infrastructure development, healthcare
programs, and educational scholarships, which contribute to improving living standards and opening new opportunities for the city’s
inhabitants.
Lastly, the study identifies challenges that need to be addressed to maximize the poverty-alleviating potential of the manufacturing
sector, such as environmental concerns, the need for better labor standards, and the importance of inclusive growth that benefits all
segments of society. It concludes with policy recommendations for local government, industry stakeholders, and community
organizations to enhance the positive impacts of manufacturing on poverty alleviation in El Salvador City.
Building on the comprehensive analysis of the manufacturing sector’s role in poverty alleviation in El Salvador City, the study also
emphasizes the critical need for sustainable manufacturing practices. It highlights the importance of adopting environmentally
friendly production methods and technologies that not only ensure the sector’s long-term viability but also protect the community’s
health and natural resources, which are essential for the well-being and livelihoods of the local population.
The research further explores the role of innovation and technology adoption within the manufacturing sector as key drivers for
increasing productivity, opening new markets, and creating higher-value jobs, which in turn contribute to poverty reduction. It
argues that fostering a culture of innovation can lead to the development of new products and services, thereby stimulating
economic growth and providing new opportunities for the local workforce.
Another significant aspect covered in the study is the importance of gender equality and social inclusion in the manufacturing
sector’s employment practices. It examines how equitable access to jobs and career advancement opportunities for women and
marginalized groups can amplify the positive impacts on poverty alleviation by ensuring that the benefits of economic growth are
more broadly shared across all segments of society.
Moreover, the research addresses the critical role of government policies and international partnerships in supporting the
manufacturing sector’s contribution to poverty alleviation. It calls for targeted interventions such as tax incentives, infrastructure
development, and trade agreements to enhance the competitiveness of manufacturing companies in El Salvador City. Additionally,
it emphasizes the need for social safety nets and labor protections to ensure that economic advancements do not come at the
expense of workers’ rights and well-being.
In conclusion, “The Impact of Manufacturing Companies Towards Poverty Alleviation in El Salvador City” presents a holistic view of
how the manufacturing sector can serve as a cornerstone for sustainable economic development and poverty reduction. By
drawing on empirical data, case studies, and theoretical insights, the study offers a roadmap for policymakers, industry leaders, and
community organizations to harness the full potential of manufacturing for the betterment of society. It underscores the necessity of
collaborative efforts, sustainable practices, and inclusive policies to create a prosperous future for all residents of El Salvador City.
In its final sections, the study underscores the imperative for continuous monitoring, evaluation, and adaptation of strategies to
ensure the manufacturing sector’s enduring impact on poverty alleviation in El Salvador City. It advocates for the establishment of
robust mechanisms to track progress, assess the effectiveness of policies and practices, and identify emerging challenges and
opportunities. This approach enables stakeholders to make informed decisions and adjust their strategies to maximize positive
outcomes.
The research concludes with a call to action for all stakeholders involved, including government bodies, manufacturing companies,
civil society organizations, and the international community, to commit to a shared vision of sustainable development and poverty
reduction in El Salvador City. It emphasizes the need for a collective effort that leverages the strengths of each stakeholder, fosters
innovation, and promotes inclusivity to ensure that the benefits of economic growth are equitably distributed.
Highlighting successful case studies both within and outside El Salvador, the study offers inspiration and practical examples of how
concerted efforts can lead to significant improvements in living standards and economic opportunities for impoverished
communities. These case studies serve as a blueprint for replicating and scaling successful initiatives in El Salvador City and
beyond.
In essence, “The Impact of Manufacturing Companies Towards Poverty Alleviation in El Salvador City” not only sheds light on the
pivotal role of the manufacturing sector in driving socio-economic progress but also charts a path forward for sustainable
development. It serves as a comprehensive resource for policymakers, industry leaders, and community advocates, providing them
with the insights and guidance needed to transform the manufacturing sector into a powerful engine for poverty alleviation and
social upliftment.
1.2 Theoretical Framework:

This study is anchored on theory of Human Capital developed by Gary Becker in 1964.

This theory focuses on Human Capital that posits individual’s skills, knowledge and abilities are forms of capital that can be
invested in through education and training, leading to increased productivity and economic growth. The context of the impact of
manufacturing companies on poverty alleviation, human capital theory suggests that their firms can contribute to poverty reducing
by providing employment opportunities that enhance work’s skills and earning potential.

The researchers used these theories of Human Capital as a powerful tool for poverty alleviation, emphasizing the
importance of investing in people through education, skills development, and training. It suggests manufacturing companies can
create sustainable livelihoods and empower individuals to build a better future. This theory also promotes dignity and self-
determination, restoring agency, and empowerment to those living in poverty.

1.3 Conceptual Framework:

The conceptual framework of the study displays the independent and dependent variables, where the profiles of the
respondents are described in terms of age and educational attainment. The dependent variable is a factor that influences poverty
alleviation, and in the dependent variable under this research framework are the variables measured.

Dependent Variable
Independent Variable Affected by the change:
 Age  Employment
 Educational Opportunity
Attainment  Wages
Figure 1: Schema of the Study  Skills Decelopment

1.4 STATEMENT OF THE PROBLEM

This study aims to determine the impact of manufacturing companies towards poverty alleviation. Specifically, this study will
try to answer the following questions.

1.) What is the demographic profile of the respondent in terms of:

1.1 Age
1.2 Educational Attainment

2.) What challenges of workers in terms of:

2.1 Employment Opportunity

2.2 Skills Development
2.3 Wages

3.) Is there a significant relationship between the demographic profile of the respondents and the challenges of the worker in terms
of employment opportunity, skills development and wages.
1.5 SIGNIFICANT OF THE STUDY

The findings of this study aim to give contribution to the following:

To the Worker’s in Elsalvador City - This study is to know the impact of manufacturing companies towards poverty alleviation in Elsalvador
city for study purposes.
To the Manufacture company -This study help the manufacturer to understanding how these companies contribute to economic development,
job creation, and income generation. Analyzing this relationship can inform policies to maximize positive effects, potentially reducing poverty
and improving overall well-being for the population.
To the future Researcher - this study will benefit them by using the study as a reference point in there discussion about the impact of
manufacturing companies towards poverty alleviation in Elsalvador city.
To the skilled workers in Elsalvador city -This study well help them to choose works fit for them in order to perform properly.

1.6 Scope and Limitation of the Study:

The purpose of this study is to determine the impact of poverty alleviation. Only the worker's of El Salvador City A.Y. 2024 is the
participants in this study. The researchers determined the number of respondents based on their availability and accessibility.

1.7 Defination of terms

Economic growth - efers to the increase in the inflation-adjusted market value of the goods and services produced by an economy
over t
Educational attainment - refers to the highest level of education that an individual has successfully completed.
Employment opportunities - refer to the availability of jobs within an economy, sector, or specific geographical area where
individuals can apply their skills and labor in exchange for compensation.
Manufacturing companies - are businesses that produce finished goods from raw materials by using various processes,
machinery, and operations.
Poverty alleviation - refers to strategies and measures aimed at reducing or eliminating poverty in a population.
Skill development - refers to the process of identifying, cultivating, and enhancing a person's abilities and competencies for a
specific purpose, such as personal growth, professional advancement, or job performance improvement.

CHAPTER 2

REVIEW OF RELATED LITERATURE

The manufacturing sector is a vital tool for poverty reduction and poverty alleviation, particularly in developing countries. It generates
employment opportunities, stimulates technological advancement, and contributes to the growth of other sectors. However, the relationship
between manufacturing growth and poverty reduction is not automatic, and factors like industrialization, industry promotion, policies, and global
economic environment influence this. This study aims to examine the pathways through which manufacturing impacts poverty levels, including
direct effects like employment generation and income creation, and indirect effects like technological spillovers and improved infrastructure.
Policy recommendations can maximize the poverty alleviation potential of the manufacturing sector.

Raul V. Fabella, a national scientist and professor emeritus at the University of the Philippines School of Economics, has
emphasized the importance of supporting the expansion of manufacturing in the Philippines for sustained and inclusive economic
development and poverty eradication. He noted that the contribution of manufacturing and industry to local output, or GDP, has
declined in recent years, coinciding with developmental slowdowns and unabated poverty. Fabella compared the Philippines’
manufacturing sector to those of fast-rising developing economies in Asia and developed nations from 1986 to 1996, showing that
the Philippines’ manufacturing sector is mimicking mature economy trends. He also emphasized the need for institutional and policy
changes to stimulate economic growth and significantly reduce poverty rates. He called for the scaling up of Philippine
infrastructure under the government’s “Build, Build, Build” program and lowering the cost of power.

This study explores the role of manufacturing companies in poverty alleviation. Manufacturing companies create jobs, contribute to
economic growth, and invest in skill development, enabling individuals from diverse backgrounds to find employment. They also
invest in infrastructure development, improving access to markets, education, and health services. Manufacturing companies also
bring new technologies and practices to local regions, fostering economic development and poverty reduction. Small and medium-
sized enterprises (SMEs) often become part of larger companies’ supply chains, creating jobs and benefiting local communities.
The study uses the theory of Human Capital to emphasize the importance of investing in people and promoting dignity and self-
determination.

This study investigates the impact of manufacturing companies on poverty alleviation in Elsalvador City. It focuses on the
demographic profile of respondents, their challenges in terms of employment opportunity, skills development, and wages, and the
relationship between these factors. The findings are significant for workers in Elsalvador City, manufacturers, future researchers,
and skilled workers. The study aims to understand how manufacturing companies contribute to economic development, job
creation, and income generation, potentially reducing poverty and improving overall well-being. The scope of the study is limited to
workers in El Salvador City A.Y. 2024, and the study defines economic growth, educational attainment, employment opportunities,
manufacturing companies, poverty alleviation, and skill development.

By using descriptive statistical method R. E. Goldsmith and J. R. Kerr in 1991 tested Kirton's Adaption-Innovation (KAI) Theory into
34 business students in a class at the beginning and end of the semester which have described deep-seated differences in styles
of creativity, decision making. and problem solving that appear to be relevant to entrepreneurship. They found that students in a
class in entrepreneurship and small business would have KAI scores higher than those of the general population and the control
group.

Kanitkar in 1994 conducted case studies from 86 village-based entrepreneur and micro enterprise owners in different regions of
rural India. He examined the process of emergence of successful entrepreneurs and owners of micro-enterprises in rural areas. He
used case survey. method for collected data with a semi-structured questionnaire followed by an open-ended interview from the
entrepreneur. He found that based on socio economic profile of entrepreneur's they were motivated for shifting from an agriculture-
based occupation to non-farm activity, raising resources for their enterprises and entry of the village-based entrepreneurs into a
business activity.

McMullan and Gillin in 1998 surveys the activities and performance of graduates students who were passed from the Swinburne
University of Technology in Melbourne, Australia. They found that about 87% students were started ventures, either independently
or under the supports of a corporation [29]: M. A. Abdullah in 1999 conducted a survey about 185 small and medium-sized
enterprises in Penang, Malaysia for evaluated the accessibility of government sponsored support programmed to SMEs. He
conducted this survey by using structured questionnaire. He found that clumsy legislative process, inadequate knowledge about the
support programmers, individual thinking, lacking of information etc. are the main reasons for the limited access of the
programmed.

Kodithuwakku, S. S. and P. Rosa in 2002 based on a qualitative case study of Sri Lankan villagers they tried to examine the nature
and role of entrepreneurial processes in the success of the Mahaveli rural entrepreneurs. They found that after 10 years most of the
commercially successful farmers had succeeded in adding new ventures to their portfolio of income-generating activities. engaging
in an average of 3.7 ventures each. They also found that the successful farmers were not only successful as farmers, but had also
diversified into other business ventures.

C. K. Wang and P.-K. Wong in 2004 examined the level and determinants of interest in entrepreneurship among university
undergraduate students in Singapore. They applied historical regression for measuring the student's self-perceived knowledge in
starting a business and knowledge in managing business. They found that three background factors significantly affect the interest
to starting new business such as gender, family business experience and education level.. While they found little effect about
ethnicity, citizenship and family income status for became an entrepreneur. Moreover, they found female university students were
less entrepreneurship knowledge and influenced by traditional social role. P. Agupusi in 2007 examined the role of the small
business sector in poverty alleviation by the support from government and private sector initiative in Alexandra, South Africa. He
applied critical analysis of secondary material complemented with primary data obtained through semi- structured interviews with
key informants and actors, entrepreneurs and potential entrepreneurs. He found that with positive interaction between development
agencies, and small businesses in Alexandra, predominantly informal and semi-formal SMMEs in Alexandra could not only
alleviate. poverty but could also contribute to the general transformation process.

V. Sriram, et al. in 2007 develops a model and set a research framework for their further research regarding entrepreneurship
development based on African-American regions. They found that motivation and skills is the important driver of the entrepreneurial
behavior. The entrepreneur needs certain skill to sustain. The impact of culture is considerable matter for entrepreneurship
development.

T. Tambunan in 2008 examined the effects of the development of small and medium enterprises (SMEs) in less developed
countries (LDCs) on two issues: the survival of SMEs in the course of economic development and the importance of government
promotion programs for SME development with Indonesian data. He found that both real gross domestic product per capita and
government development expenditure have positive impacts on SME growth. He also found that SMEs in LDCs can survive, and
even grow in the long-run, for three main reasons: (a) they create a niche market for themselves, (b) they act as a "last resort" for
the poor, and (c) they will grow. along with large enterprises (LEs) because of their increasingly important production linkages with
LEs in the form of subcontracting.

G. Singh and R. Belwal in 2008 tried to identify the problem areas and developmental issues involved with women's
entrepreneurship particularly in Addis Ababa, the capital city of Ethiopia. They attempted to identify the problem areas in terms of
nature, needs, desire, motivations and problems of women entrepreneurs in Ethiopia by an extensive review of the existing
literature. And, then they incorporated a ground survey and focused interviews with groups of female. entrepreneurs for assessing
the factors related to entrepreneurship. The focused interview identified problems in the areas of securing finances for establishing
and running small and medium. enterprises, lack of entrepreneurial and management competence and exposure, problems in
finding the markets and distribution networks; limited opportunities for promotion and participation; limited amount of government
and institutional support; absence of technological know-how and integration mechanism; and rampant corruption in an undisguised
or disguised form, as major bottlenecks .

Robson, P. J., H. M. Haugh, et al. in 2009 has been adopts a multi-level theoretical framework. to examine data from 496
entrepreneurs in Ghana. They accumulate seven types of innovation. activity against three categories of variables these are the
characteristics of the entrepreneur, the internal competencies of the firm, and firm location. They found that the level of innovation
was related to the educational level of the entrepreneur, moreover, the firm size and involvement were positively related to
innovation. They also found that entrepreneurs have introduced innovations in a range of products, services, production processes,
work practices, and marketing which have brought benefits to their firm.

M. Y. Cheng, W. S. Chan, et al. in 2009 evaluated effectiveness and limitations of the development of entrepreneurship education in
Malaysia. They collected primary data to revealstudents' perceptions of the effectiveness of the entrepreneurship teaching and their
knowledge. about entrepreneurship. They found that entrepreneurship education in Malaysia is not matching students' skill
expectations with skill acquisition. They also found that the level of understanding on "what is entrepreneurship" is still low among
the selected respondents.

S. Nichter and L. Goldmark in 2009 conducted a comprehensive survey from the secondary research for found factors affecting the
growth of micro & small enterprises in perspective of developing countries. From the survey they found four types of factors were
associated with small firm growth that is: individual entrepreneur characteristics, firm characteristics, relational factors such as
social networks or value chains and contextual factors such as the business environment.

Mensah, S.-A. and E. Benedict in 2010 conducted desk research and quantitative analysis from the poorest regions of South Africa
for found out the impact of government initiative for alleviating poverty through entrepreneurship development. They found out that
the training in entrepreneurship and provision of other facilities could give poor owners of micro and small enterprises opportunities
to grow their businesses and get themselves and other out of poverty.

A. Bagheri and Z. A. L. Pihie in 2010 tried to identify the processes of entrepreneurial learning that contribute to university students
entrepreneurial leadership learning and development. They used qualitative research method for analyzing the data collected from
selected fourteent undergraduates' students by using semi-structured interviews. They found that social interactions played a
significant role in students' entrepreneurial leadership learning, students had the opportunity to learn from direct observation, and
the students has been learned entrepreneurial leadership competencies through individual and collective reflection.

Kobia and Sikalieh in 2010 tried to search the meaning of entrepreneurship through literature review by focusing on the trait,
behavioral and opportunity identification approaches. They found a direct correlation between the small & medium entrepreneur
with the economic growth and poverty. They recommended that researchers and educators need to study the entrepreneur before.
during and after the entrepreneurial process.

M. N. Mohd Shariff, C, Peou, et al. in 2010 examined government policy is a moderating effect on the relationship with
entrepreneurial values, firm financing, management, market practices and growth performance of SMEs in Cambodia. They used
survey questionnaires from 220 SME owner-managers in the City of Phnom Penh in Cambodia and used hierarchical multiple
regression method for analyzing the data. They found that there was a positive relationship between entrepreneurial values, firm
financing, management, market practices and SME growth performance as hypothesized. They also found that government policy
have an important role as full moderator in such relationships.

J. Mitra, Y. Abubakar, et al. in 2011 by using an illustrative case study they examined the participation of graduate entrepreneurship
in perspective of human capital development education, training and research to meet the Millennium Development Goals (MDGs)
in Nigeria. They found that knowledge creation lies at the heart of entrepreneurship development in developing economies is based
on human capital development.

From the review we found that entrepreneurial processes were important in the successful entrepreneurs development from an
extremely unpromising and constrained environment. Motivation and skills is the important driver of the entrepreneurial behavior
and the entrepreneur needs certain skill to sustain. The impact of culture is considerable matter for entrepreneurship development.
On the other hand, the level of innovation was related to the educational level of the entrepreneur; moreover, the firm size and
involvement were positively related to innovation. The entrepreneurs have introduced innovations in a range of products, services,
production processes, work practices, and marketing which have brought benefits to their firm. Entrepreneurship and human
resource management were shown to be the most significant drivers of innovation and customer value. Interaction of
entrepreneurship and integrated market orientation as well as human resource practices has significant impact on customer value
and innovation respectively.

We also found that the direct correlation between the small and medium entrepreneur with the economic growth and poverty.
Government policies have no significant effect on the development of entrepreneurial activities in the country and mostly the
beneficiaries do not derived maximum. Satisfaction from government programs and policies. The training in entrepreneurship and
provision of other facilities could give poor owners of micro and small enterprises opportunities to grow their businesses and get
themselves and other out of poverty.

Again, students in entrepreneurship and small business would have KAI scores higher than those of the general population and the
control group. About 87% students were started ventures, either independently or under the supports of a corporation. However,
student’s business knowledge was insufficient and they were not enough prepared for taken the risk to realized their dreams. On
the other hand, social interactions played a significant role in students entrepreneurial leadership learning, students had the
opportunity to learn from direct observation, and the students. Has been learned entrepreneurial leadership competencies through
individual and collective reflections.

Most importantly, entrepreneurship development is a key tool for poverty reduction; stimulating employment as well as fast-tracking
realization of universal primary education and women entrepreneurs played a major role in poverty reduction in the Globe. Finally,
we found that innovation, family background, government support program, social entrepreneurship, women participation,
entrepreneurship training & education, individual entrepreneurial characteristics, participation of micro, small & medium enterprises,
youth empowerment, collaboration of government-university-industry is the key tool for entrepreneurship development which
isstimulating employment are eventually alleviating poverty.
 CHAPTER 3
RESEARCH METHODOLOGY

This chapter presents the research design, research setting/locale, data gathering, respondents and sampling procedures, research
instrument, and treatment of data that was use in this study.

3.1 Research Design

Type of Study: This research will utilize a quantitative approach to examine the impact of manufacturing companies on
poverty alleviation in El Salvador City. A cross-sectional design will be employed to collect data at a specific point in time. The
researchers conducted a survey questionnaire to the manufacturing company employees at El Salvador City using a 4-point Likert scale (SA
– Strongly agree, A-Agree, D-Disagree, SD- Strongly Disagree).

3.2 Research Setting / Research Locale

Location: El Salvador City, El Salvador
Description: The study will focus on manufacturing companies located within the city limits.

3.3 Data Gathering

In gathering of data, a permission letter to conduct this study with the approval of the local individuals of the institution the researchers sent the
survey questionnaires will be distributed to manufacturing company employees, local residents, and relevant stakeholders.The
questionnaire was conducted and distributed through a face-to-face survey. The researchers explained the reasons why this study is conducted
and how they can help the researchers with their study. Face to face survey was used by the researchers in gathering and interacting with the
respondents. After they answered the questionnaire, the respondents were acknowledged for their time and cooperation. After which, the data
will be tabulated, summarized, and subjected to statistical tests. To ensure anonymity we will number all questionnaires; no names will be used.
Ensure we have informed consent and participants are aware they have the right to withdraw at any time by use of their individual number.
Destroy questionnaires and surveys at the end of the study.

3.4 Respondents & Sampling

Population: The population of interest includes employees of manufacturing companies, local residents, and stakeholders involved
in poverty alleviation programs.
Sampling Technique: Stratified random sampling will be used to ensure representation from different groups within the population.

3.5 Research Instrument

This research used face to face survey questionnaire as the primary instrument for gathering data. The first part of the questionnaire was the
demographic profile of the respondents such as their age and educational attainment. The second part would determine the challenges of the
manufacturing company worker's.
Survey Questionnaire: A structured questionnaire will be developed to collect data on the perceived impact of manufacturing
companies on poverty alleviation.

3.6 Scoring Procedure

The researchers used a four-option Likert scale (strongly agree, agree, disagree, and strongly disagree) to make it easier to count the scores of
each respondent. After which, the data was tabulated, summarized, and subjected to statistical tests.

Description Interval
Score Interpretation
Scale
 4 Strongly Agree 3.26 – 4.00

3 Positive Effect Agree 2.51 – 3.25

2 Negative Effect Disagree 1.76 – 2.50

1 Strongly Disagree 1.00 – 1.75

Data Collection: Responses from the survey will be scored based on predetermined criteria related to poverty alleviation
indicators.
Scoring Criteria: The scoring criteria will be developed based on established poverty alleviation indicators such as income levels,
access to education, healthcare, and basic amenities.

3.7 Data Treatment

To interpret the data which would be gathered by the researchers, the following statistical tools will be employed.

Frequency and Percentage. This basic descriptive statistical tools were used to record the respondent’s demographic profile, particulary their
age and educational attainment.
Data Cleaning: The collected data will be cleaned to remove any errors or inconsistencies.
Statistical Analysis: Descriptive statistics (e.g., mean, median, mode) will be used to analyze the data. Additionally, inferential
statistics (e.g., regression analysis) may be employed to determine the relationship between manufacturing company activities and
poverty alleviation.

REferences
Source: Business Mirror (https://businessmirror.com.ph/economist-links-manufacturing-to-more-inclusive-growth-poverty-
alleviation/)
https://documents1.worldbank.org › ... Human Capital and Poverty Alleviation