Chapter 5

TAXATION AND LEGAL ASPECT

Under American Jurisprudence, the power to tax is considered inherent in

a sovereign State because it is a necessary attribute of sovereignty. Without this

power no sovereign State can exist or endure. The power to tax proceeds upon

the theory that the existence of a government is a necessity, and this power is an

essential and inherent attribute of sovereignty, belonging as a matter of right to

every independent State or government. No sovereign State can continue to

exist without the means to pay its expenses; and that for those means, it has the

right to compel all citizens and property within its limits to contribute, hence, the

emergence of the power to tax.

Taxation

The business will under partnership type of business. When a business

adopts a partnership structure, it signifies the collaboration of two or more

individuals or entities to manage and share the profits and losses of the

enterprise. Unlike corporations or limited liability companies (LLCs), partnerships

lack an independent legal identity apart from their owners. In practical terms, this

means that the partnership itself cannot own assets, enter into contracts, or

pursue legal actions in its own name. Instead, all assets, liabilities, and

obligations of the partnership are collectively owned and managed by the

partners involved.
 52

This characteristic of partnerships as "pass-through" entities extends to

taxation as well. Partnerships do not face corporate income tax at the entity level;

instead, profits and losses flow through to the individual partners, who then report

their respective shares of income or losses on their personal tax returns.

Additionally, partners in most partnerships bear unlimited personal liability for the

debts and obligations of the business. However, in limited liability partnerships

(LLPs), partners enjoy limited liability protection against the partnership's debts

and liabilities arising from the actions or negligence of other partners. Thus,

partnerships offer a flexible and collaborative business model but come with

implications for both taxation and liability that partners should carefully consider.

Legal Aspect Affecting the Business

Ensuring legal compliance is crucial when starting a small business in the

Philippines as a partnership. The legal aspects involve choosing an appropriate

business structure, such as a sole proprietorship, partnership, or corporation,

each with distinct implications for liability and taxation. Proper business

registration and licensing must be secured, including business name registration

with the Department of Trade and Industry (DTI), obtaining a barangay

clearance, and acquiring a Mayor's Permit from the municipal or city hall.

Contracts and agreements with customers, suppliers, employees, and partners

should be meticulously drafted to prevent disputes. Intellectual property

protection, such as trademarks and patents, must be considered to safeguard

unique business assets. Adherence to employment laws, tax compliance with the

Bureau of Internal Revenue (BIR), and protection of consumer rights are critical
 53

legal considerations. Additionally, businesses need to navigate data protection

and privacy laws, environmental regulations, and health and safety standards.

Establishing dispute resolution mechanisms in contracts can also mitigate legal

risks. Seeking legal advice and staying informed about relevant laws are

essential steps for legal compliance and the long-term success of the business.
 54

Chapter 6

FINANCING, FINANCIAL ESTIMATES AND ANALYSIS

The business feasibility study, the focus is on how the venture will be

financed, financial needs estimated, and potential outcomes analyzed. The study

details the sources of initial funds and makes educated projections about

revenue and expenses. Key financial metrics, such as return on investment and

profit margins, are analyzed to assess the viability of the business, and identify

potential risks. Additionally, a cost-benefit analysis is conducted to weigh startup

costs against expected benefits. Seeking professional financial advice ensures

accuracy and reliability in these critical aspects of the feasibility study.

Financing (Source of Financing)

Using the power of savings, a group of innovative individuals—Mrs. Anton

Nikolai Anore, Mr. Ablay Zairus, Mr. Edryl Burce, and Mr. Paul Jasreil Cabanela—

have chosen a basic and dependable way to financing in the dynamic financial

landscape of the Philippines. They have combined their funds and have

accumulated a significant amount of capital—90,000 Philippine pesos. This

group's choice demonstrates not only their dedication to sound money

management but also their understanding of the advantages of using personal

savings as a source of funding.

By opting for savings over alternative financing sources, the business

follows a prudent and self-sufficient financial approach. Using their savings

instead of traditional loans gives them access to a safe and easily accessible
 55

source of money, which enables them to make decisions quickly and freely. This

financial strategy emphasizes the value of keeping liquidity in their financial

portfolios and also demonstrates a realistic and risk-averse mindset.

Financial Estimates

To guarantee continued growth and viability, a small business must

perform a five-year financial review. The study dives into specific financial

assumptions over this time frame, including cash flow dynamics, spending

management, and revenue expectations. Through the analysis of past data and

the application of reasonable assumptions, small businesses can generate

precise projections that facilitate strategic decision-making. The proponents will

prepare different financial statements for 5 years along with different schedule for

the computations.

Financial Analysis

Financial analysis involves the assessment of the financial health and

performance of a business or entity by examining its financial statements, ratios,

and other key financial indicators. It aims to provide insights into the company's

profitability, liquidity, solvency, efficiency, and overall stability. Financial analysis is

essential for investors, creditors, management, and other stakeholders to make

informed decisions regarding investments, lending, operations, and strategic

planning.
 56

Major Assumptions

Major assumptions need to be formulated to facilitate the preparation and clear

interpretation of computations that outline the anticipated future scenario for the

proposed product.

1. The annual growth rate for sales demand is 10%.

2. Raw material and production supplies costs experience a yearly increase

of 4%.

3. Personal funds will be the source of the ₱ 90,000 startup capital required

for business initiation and expansion.

4. Annual Income will increase by 5%

5. Packaging, Rent Expense, Office Supplies increases 2% per year.

6. Depreciation expense is computed on a straight-line basis with an

estimated useful life of 5 years.

7. Utilities and transportation expense increase by 2%

 57

ASDASDA

Projected Statement of Comprehensive Income

for the year 2024-202

YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5

SALES 1,596,000 1,755,600 1,931,160 2,124,290 2,336,740
LESS: COST OF SALES (SCHED 2) 391,680.00 382,560.37 387,041.54 391,654.39 395,281.65
GROSS PROFIT 1,204,320 1,373,040 1,544,118 1,732,636 1,941,458
LESS: OPERATING EXPENSE
DEPRECIATION EXPENSE (SCHED 6) 2,008.40 4,016.80 6,025.20 8,033.60 10,042.00
RENT EXPENSE (SCHED 14) 36,000.00 36,720.00 37,455.84 38,204.96 38,968.06
PRE-OPERATING EXPENSE (SCHED 8) 23248
FREIGHT OUT(TRANSPORTATION) (SCHEDULE 12) 1,800.00 1,836 1,872.72 1,910.17 1,948.38
TAXES AND LICENSES (SCHEDULE 13) 5819 5819 5819 5819 5819
TOTAL EXPENSES 68875.4 48391.8 51,172.76 53,967.73 56,777.44
NET INCOME BEFORE TAX 1,135,444.60 1,324,647.83 1,492,946 1,678,667.88 1,884,681
LESS: PERCENTAGE TAX 230,633 287,394 337,883.71 393,600 455,404.27
NET INCOME AFTER TAX 904,811.22 1,037,253.48 1,155,062 1,285,067.52 1,429,277
 58

ASDAS
Projected Statement of Cash Flow
for the year 2024-2028

YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5

OPERATING ACTIVITIES
NET INCOME 904,811.22 1,037,253.48 1,155,061.99 1,285,067.52 1,429,276.64
ADJUSTMENTS:
DEPRECIATION 2,008.40 2,008.40 2,008.40 2,008.40 2,008.40
NET CASH FROM OPERATION 906,819.62 1,039,261.88 1,157,070.39 1.287,075.92 1,431,285.04

INVESTING ACTIVITIES
OFFICE EQUIPMENT -1504 0 0 0 0
FURNITURE AND FIXTURES -2,038 0 0 0 0
TOOLS AND EQUIPMENT -6,500.00 0 0 0 0
NET CASH FROM INVESTING -10,042.00 0 0 0 0

FINANCING ACTIVITES
INVESTMENT 90,000.00 0 0 0 0
WITHDRAWALS -
NET CASH FROM FINANCING 90,000.00 0 0 0 0
NET INCREAS IN CASH -
ADD: CASH BEGINNING - 986,777.62 2,026,039.50 3183109.89 4470185.81
ENDING CASH 986,777.62 2,026,039.50 3,183,109.89 4,470,185.81 5,901,470.85
 59

Manufacturing

Projected Statement of Financial Position

for the year 2024-2028

YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5

CURRENT ASSETS
CASH 986,777.62 2,026,039.50 3,183,109.89 4,470,185.81 5,901,470.85
TOTAL CURRENT ASSETS 986,777.62 2,026,039.50 3,183,109.89 4,470,185.81 5,901,470.85
NON CURRENT ASSETS
OFFICE EQUIPMENT 1,504.00 1,504.00 1,504.00 1,504.00 1,504.00
LESS: ACCUM. DEPRECIATION -300.80 -601.6 -902.40 -1,203.20 -1,504.00
FURNITURES AND FIXTURES 2,038.00 2,038.00 2,038.00 2,038.00 2,038.00
LESS: ACCUM. DEPRECIATION -407.60 -815.2 -1,222.80 -1,630.40 -2,038.00
MACHINERIES 6,500.00 6,500.00 6,500.00 6,500.00 6,500.00
LESS: ACCUM. DEPRECIATION -1,300.00 -2,600.00 -3,900.00 -5,200.00 -6,500.00
TOTAL NON-CURRENT ASSET 8,033.60 6,025.20 4,016.80 2,008.40 0.00
TOTAL ASSETS 994,811.22 2,032,064.70 3,187,126.69 4,472,194.21 5,901,470.85

OWNER'S EQUITY
CAPITAL, BEGINNING 90,000.00 994,811.22 2,032,064.70 3,187,126.69 4,472,194.21
NET INCOME 904,811.22 1,037,253.48 1,155,061.99 1,285,067.52 1,429,276.64
CAPITAL, END

TOTAL EQUITY 994,811.22 2,032,064.70 3,187,126.69 4,472,194.21 5,901,470.85

 60

Coco Briquettes Manufacturing

Projected Statement of Changes in Owner’s Equity

for the year 2024-2028

YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5

CAPITAL BEGINNING 90,000.00 1,076,777.62 2,114,031.10 3,269,093.09 4,554,160.61
ADD ADDITIONAL INVESTMENT
NET INCOME 986,777.62 1,037,253.48 1,155,061.99 1,285,067.52 1,429,276.64
TOTAL 1,076,777.62 2,114,031.10 3,269,093.09 4,554,160.61 5,983,437.25
LESS: DRAWING
CAPITAL END 1,076,777.62 2,114,031.10 3,269,093.09 4,554,160.61 5,983,437.25

SCHEDULE 1 : SALES
10% increase
SALES YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5
DEMAND 22,800 25,080 27,588 30,347 33,382
UNIT PRICE 70 70 70 70 70
PROJECTED SALES 1,596,000 1,755,600 1,931,160 2,124,290 2,336,740
 61

SCHEDULE 3 : SALARIES EXPENSE

INCREASE BY 5%
YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5
PRODUCTION PERSONNEL 241,920 253,016 265,666 278,950 292,897
PRODUCTION PERSONNEL 241,920 253,016 265,666 278,950 278,950
483,840 506,032 531,332 557,900 571,847

DAILY DAYS IN A MONTH MONTHLY

420.00 24 10,080.00
420.00 24 10,080.00
20160
MONTHLY NO. OF MONTHS ANNUALY
10,080.00 12 120960
10,080.00 12 120960
241920

SCHEDULE 4 : 13TH MONTH

YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5

ANNUAL SALARY OF PERSONNEL'S
483,840 506,032 531,332 557,900 571,847
DIVIDE BY NO. OF MONTHS SCHEDULE
12 5: OFFICE
12 SUPPLIES 12 12 12
13TH MONTH PAY 40320 INCREASE
42,169.33 BY 2% 46,491.67
44,277.67 47,653.92
BALL PEN YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5
NOTEBOOK 60 61.2 62.42 63.67 65.04
SCISSOR 150 153 155.06 157.66 160.81
CALCULATOR 270 275.4 280.9 286.52 292.25
STAPLER 350 357 364.14 371.42 378.85
BONDPAPER 60 61.2 62.42 63.67 65.04
FOLDER 300.00 306 312.12 317.36 323.71
TOTAL 70.00 71.4 72.85 74.37 75.79
1,260.00 1285.2 1309.91 1334.67 1361.49
 62

SCHEDULE 6: DEPRECIATION EXPENSE

ITEM COST USEFUL LIFE YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5
OFFICE FURNITURE 2,038 5 407.6 815.2 1,222.80 1,630.40 2,038
MACHINERIES 6,500.00 5 1,300.00 2,600.00 3,900.00 5,200.00 6,500.00
OFFICE EQUIPMENT 1504 5 300.8 601.6 902.4 1,203.20 1,504.00
TOTAL 10,042 2,008.40 4,016.80 6,025.20 8,033.60 10,042.00
 63

SCHEDULE 7: UTILITIES
INCREASE BY 2%
ITEM MONTHLY YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5
WATER 2,000 24000 24,480 24,969.60 25,469.99 26,179.39
ELECTRICITY 1,000 12000 12,240 12,485.20 12,735.90 13,000.62
WI-FI 2,500.00 30000 30,600 31,212.00 31,838.24 32,374.00
TOTAL 5,500 66000 67,320 68,666.80 70,044.13 71,554.01

SCHEDULE 8: PRE-OPERATING EXPENSES

ITEM
PAINT 2265
PAINT ROLLER 65
PAINT BRUSH 30
COCO LUMBER 2550
9000
COMMON NAIL 88
TOTAL 13998

LABOR DAYS DAILY LABOR

ELECTRICIAN 3 400 1200
CARPENTER 7 550 3850
CONTRACTOR 7 600 4200
TOTAL 9250
TOTAL PRE-OPERATING EXPENSES 9250
 64

SCHEDULE 9: RAW MATERIALS

ITEM INCREASE BY 4%
YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5
BANANA STEM 16,800.00 17,472 18,170.88 18,897.71 19,653.62
SCREEN 160 166.4 173.056 179.98 187.17
1X1 LUMBER 800.00 832 865.28 899.89 935.88
17,760.00 18,470 19,243.22 20,010.06 20,810.42

SCHEDULE 10: PRODUCTION SUPPLIES

INCREASE BY 4%
ITEM YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5
CHARCOAL 15,360.00 3,929.28 4,008.87 4,088.05 4,168.81
SEWING THREAD 2,160.00 441.84 450.68 459.69 469.89
SODIUM HYDROXIDE 4,800 1,224.00 1,248.48 1,273.45 1,298.92
22,320 5,595.12 5,708.03 5,821.19 5,937.62

SCHEDULE 11: PACKAGING EXPENSE

INCREASE BY 2%
ITEM YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5
1,440 1,468.80 1,498.17 1,528.13 1,558.70
720 734.40 749.08 764.06 779.35
1,200 1,224 1,248.48 1,273.44 1,298.91
3,360 3,427.20 3,493.74 3,559.61 3,626.80
 65

SCHEDULE 12: TRANSPORTATION EXPENSE

INCREASE BY 2%
YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5
TRANSPORTATION 1,800.00 1,836 1,872.72 1,910.17 1,948.38

SCHEDULE 13: LICENSES

YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5
BIR annual registration fee 500 500 500 500 500
DTI 500 500 500 500 500
Brgy. clearance fee 500 500 500 500 500
Mayor’s business permit fee for new business
2000 2000 2000 2000 2000
Fire safety and inspection fee 649 649 649 649 649
FPA 600 600 600 600 600
Health inspection 250 250 250 250 250
garbage tipping fee 200 200 200 200 200
documentary stamp 30 30 30 30 30
Sanitary Permit 90 90 90 90 90
Business plate 500 500 500 500 500
Total 5,819.00 5,819.00 5,819.00 5,819.00 5,819.00

SCHEDULE 14: RENT EXPENSE

INCREASE BY 2%
YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5
RENT 36,000.00 36,720.00 37,455.84 38,204.96 38,968.06
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Coco Briquettes Manufacturing

Financial Ratio Analysis
for the year 2024-2028

GROSS PROFIT RATIO

YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5
GROSS INCOME 1,204,320 1,373,040 1,544,118.46 1,732,636 1,941,458.35
SALES 1,596,000 1,755,600 1,931,160 2,124,290 2,336,740
0.75 0.78 0.8 0.82 0.83

This ratio measures the proportion of gross profit (revenue minus the cost of goods sold) to sales. It shows how efficiently

a company is producing and selling its products. The business gross profit ratio increases steadily over the five years,
RETURN ON EQUITY
YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5
NET INCOME 904,811.22 1,037,253.48 1,155,061.99 1,285,067.52 1,429,276.64
TOTAL EQUITY 994,811.22 2,032,064.70 3,187,126.69 4,472,194.21 5,901,470.85
91% 51% 49% 29% 24%
indicating improving efficiency in production and sales.
 67

ROE measures how effectively a company is using its shareholders' equity to generate profits. A higher ROE indicates

better utilization of equity. In the provided data, ROE starts high in year 1 but decreases in subsequent years. This could

suggest that while the business is profitable, its efficiency in generating returns from shareholder equity diminishes over

time.

RETURN ON TOTAL ASSETS

YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5
NET INCOME 904,811.22 1,037,253.48 1,155,061.99 1,285,067.52 1,429,276.64
AVERAGE ASSET 994,811.22 2,032,064.70 3,187,126.69 4472194.21 5,901,470.85
75% 49% 36% 29% 25%

ROA shows how efficiently a company is using its assets to generate profits. It calculates the ratio of net income to

average total assets. The business ROA starts relatively high in year 1 but declines over the years. This might indicate a

decrease in the efficiency of asset utilization.

ASSET TURNOVER
YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5
NET SALES 1,596,000 1,755,600 1,931,160 2,124,290 2,336,740
AVERAGE TOTAL ASSETS 994,811.22 2,032,064.70 3,187,126.69 4472194.21 5,901,470.85
1.60% 0.86 0.61 0.47 0.41
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This ratio measures how efficiently a company uses its assets to generate revenue. It is calculated by dividing net sales

by average total assets. A declining trend in asset turnover suggests that the business assets are less productive in

generating sales over time.

GROSS PROFIR MARGIN

YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5
GROSS INCOME 1,204,320 1,373,040 1,544,118.46 1,732,636 1,941,458.35
SALES 1,596,000 1,755,600 1,931,160 2,124,290 2,336,740
75% 78% 80% 82% 83%

This ratio indicates the percentage of revenue that exceeds the cost of goods sold. It measures how efficiently a company

is managing its production costs. Based on data, the gross profit margin remains relatively stable over the five years,

indicating consistent efficiency in managing production costs.

NET PROFIT MARGIN

YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5
NET INCOME 904,811.22 1,037,253.48 1,155,061.99 1,285,067.52 1,429,276.64
NET SALES 1,596,000 1,755,600 1,931,160 2,124,290 2,336,740
57% 59% 60% 61% 62%
 69

This ratio measures the percentage of net income relative to revenue. It indicates how much profit a company is able to

generate from its sales. In this case, the net profit margin shows a slight increase over the years, indicating improving

profitability.
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Chapter 7

SOCAL DESIRABILITY

The social desirability of eco-friendly fiber eco bags lies in their positive

contribution to environmental sustainability. In a world increasingly concerned

about the ecological impact of single-use plastics, the adoption of eco fiber eco

bags aligns with the global movement towards responsible consumerism. These

bags, made from sustainable and biodegradable materials, symbolize a

commitment to reducing plastic pollution and promoting a healthier planet.

Beyond their environmental benefits, the use of eco fiber bags also fosters a

sense of social responsibility among consumers. It reflects a conscious choice to

support products that have a lower ecological footprint and encourages a cultural

shift towards more sustainable and ethical consumption practices. Embracing

eco fiber eco bags is not just a practical solution to reducing waste but also a

socially desirable choice that aligns with the values of environmentally conscious

communities.

Contribution to Government Revenue

In Binangonan, Philippines, the use of eco-friendly bags made of banana

fiber contributes favorably to the government's income sources. Businesses that

produce, sell, and distribute eco-bags made of banana fibers contribute to

municipal tax income as the demand for ecologically friendly alternatives grows.

Because taxes are imposed on production and sales, the government and local

businesses benefit financially from the expansion of this industry. Additionally,

 71

implementing sustainable practices is in line with government programs that

encourage environmental responsibility and may result in lower costs for waste

management and environmental conservation. The expansion of jobs is another

benefit to the economy that tangentially raises income tax receipts. The growing

demand for eco-friendly bags made of banana fiber means that the local

government will continue to reap financial reward, reinforcing Binangonan’s

commitment to both environmental sustainability and economic growth.

Contribution to Foreign Exchange

Banana fiber eco bags have the potential to significantly contribute to a

country's foreign exchange reserves through their export sales. These eco-

friendly bags, crafted from sustainable banana fibers, offer a compelling

alternative to traditional synthetic bags, appealing to environmentally conscious

consumers worldwide. By capitalizing on their unique selling proposition of being

biodegradable and eco-friendly, banana fiber eco bags can carve out a niche in

the global market for sustainable products. The extent of their contribution to

foreign exchange hinges on various factors, including the size and

competitiveness of the export market, fluctuations in exchange rates, supportive

government policies, and the prevailing demand for eco-friendly alternatives

Contribution to Growth of Related Industries

In Binangonan, the eco-bags made of banana fiber are widely used, which

has a positive impact on the development of associated businesses and creates

a more integrated and sustainable economic environment. The need for these

environmentally friendly bags drives expansion in the agriculture industry,

 72

especially for nearby banana growers who play a crucial role in the supply chain.

In order to meet the demand for banana fiber, these farmers are expanding their

crop, which boosts agricultural economic activity.

The appearance and growth of enterprises manufacturing eco-bags made

of banana fiber contributes to an increase in the manufacturing industry.

Consequently, this generates job opportunities and encourages creativity in the

fields of materials design and production procedures. The growing demand for

eco-friendly items benefits the local retail and marketing sectors as well, leading

companies to specialize in sustainable branding and retail methods.

Moreover, the adoption of banana fiber eco bags aligns with global

sustainability goals, positioning Binangonan as a proponent of eco-conscious

initiatives. This positive image attracts investments and collaborations from

businesses seeking environmentally responsible partners. The growth of these

related industries not only supports the local economy but also establishes

Binangonan as a hub for sustainable practices, contributing to the long-term

economic development and resilience of the region.

Contribution to Philippines household

The introduction of eco-friendly bags made of banana fiber into Philippine

homes has made several noteworthy achievements. Above all, the usage of

these environmentally friendly bags supports a larger cultural movement in

households towards sustainable living and promotes consumer responsibility and

environmental awareness. Families may help mitigate environmental issues like

 73

plastic pollution by reducing the number of single-use plastics they consume.

This can be achieved by incorporating banana fiber eco bags into everyday life.

From an economic standpoint, households may experience cost

reductions while using banana fiber eco bags. Because these reusable bags are

strong and long-lasting, buying single-use plastic bags less frequently is

necessary. This can therefore have a positive effect on household finances by

lowering costs related to single-use packaging.

In addition, the growing market for banana fiber as a raw material helps

local farmers who grow bananas by giving them access to new markets. This

supports sustainable farming methods within communities as well as agricultural

livelihoods.

Contribution to Philippines workforce

The Philippines' workforce benefits in a number of ways from the

manufacturing and use of eco-friendly bags made of banana fiber. There are

more job prospects as the eco-friendly bag sector grows, spanning from banana

agriculture to manufacture and distribution. Furthermore, jobs in retail, marketing,

logistics, and research are created as supplementary jobs. Local farmers are

supported in their agricultural jobs by this industry growth. The focus on

sustainability informs training and skill development initiatives, guaranteeing a

labor force capable of adjusting to changing industrial norms. In conclusion, the

use of eco-bags made of banana fibers supports the Philippines' commitment to

 74

sustainable practices by creating a workforce that is robust and diversified and

encourages employment in a range of industries.

 75

Chapter 8

RECOMMENDATIONS AND CONCLUSIONS

Projected Problems

While banana fiber eco bags offer numerous environmental benefits and

economic opportunities, there are several potential challenges and issues that

may arise in their production, distribution, and adoption:

1. Moisture Sensitivity: Banana fiber, being a natural material, may be

sensitive to moisture. In a humid environment, the bags might be prone to

degradation or mold growth.

2. Durability Issues: The durability of banana fiber bags may be a concern,

especially if they are subjected to heavy loads or rough handling.

Assessing their strength and longevity is crucial for their effectiveness as

reusable bags.

3. Cost of Production: The production of banana fiber bags might have

associated costs that could make them more expensive compared to other

types of eco bags. This could impact their adoption and affordability for

consumers.

4. Consumer Awareness and Acceptance: Educating consumers about

the benefits of banana fiber bags and fostering a positive perception might

be a challenge. If consumers are not aware of or are resistant to the new

material, the adoption rate could be low.

 76

5. Alternative Material Competition: Banana fiber bags may face

competition from other eco-friendly materials. Understanding the market

dynamics and preferences of consumers for different materials is crucial.

Recommendations to Problems in Relation to Business

Moisture Protection Solutions:

 Explore treatments or coatings that can enhance the moisture resistance

of banana fiber without compromising its eco-friendly characteristics.

 Provide guidance to consumers on proper care and storage of the bags to

minimize exposure to moisture.

Improving Durability:

 Work with manufacturers to enhance the strength and durability of banana

fiber bags through innovative design or reinforcing techniques.

 Conduct rigorous testing to ensure that the bags meet local standards for

durability and load-bearing capacity.

Cost-Effectiveness:
 Investigate opportunities for cost reduction in the production process

without compromising quality.

 Collaborate with local businesses or government initiatives to subsidize or

incentivize the use of banana fiber bags.

Consumer Education:
 77

 Launch awareness campaigns to educate consumers about the benefits of

banana fiber bags, emphasizing their eco-friendliness and positive impact

on the local community.

 Collaborate with schools, community organizations, and local media to

disseminate information about the bags.

Alternative Material Awareness:

 Highlight the unique features and benefits of banana fiber bags compared

to other alternatives.

 Engage in community discussions to understand preferences and address

any misconceptions about different eco-friendly materials.

Conclusion

In conclusion, eco-friendly bags made of banana fiber offer a viable way

to reduce environmental worries about conventional plastic bags while also

creating jobs in sustainable industries. These bags make use of banana fibers,

which are a plentiful and renewable resource, offering consumers everywhere a

biodegradable and environmentally beneficial substitute.

We the proponents safely say that the business has the chance to penetrate the

market. As consumer preferences continue to evolve towards environmentally

friendly alternatives, banana fiber eco bags are well-positioned to become a

symbol of conscious consumerism and responsible stewardship of the planet.

With innovation, dedication, and collective action, the banana fiber