INTRODUCTION

SARI-SARI STORES
Jonjie Milado

Dustin Caberto

Victor Dungca

Timothy Palad

Alexis Nicole Joy Manatad

Jhoanna Rezy Sandoval

 Chapter I

INTRODUCTION

A. Background

Craving about the unceasing extension of Sari -sari Store of

sole proprietorship in many business areas in the Philippines.

The more it seen in many places, the more we convince to know

about the business. It is as if appetite for more good business,

for better starting of business especially when it operated by

one owner only going to be satisfied.

This activity is gathering information about the continuous

expansion of convenience as business of many Filipino in our

country. Sari-sari store become Philippine phenomenon common

business for its very impressive or popularity ability that

provides household goods at afford ably-portioned quantities and

sometimes even on credit but still you need to know to whom, how

many times and up to how much amount. Another thing is what place

you must have and how much capital do you need and what product

you should sell.

In some high-end condominium unit there is also sari-sari

stores that are run privately without knowing and consent of the

building owner.
 Sari-sari stores are often made of wooden huts but most of

them nowadays are made of cement but inside of it they often sold

commodities like condiments, preserved foods, drinks, sweets,

detergent, bathroom materials and sometimes wet fresh products.

About 13% of all sari-sari stores nationwide are located in

residential areas base on Bonnin, 2004;80; Mcintyre,1995 and they

are typically operated from a portion of the owner’s house

(Bonnin, 2004;80; Mcintyre,1995; Silverio,1982). Sari-sari stores

are really increasing in number right from the start.

There is no clear history of how the sari-sari store arises

but there are some people suggest on when it might appear.

According to Silverio (1982) this type of business dates back to

the sung dynasty period (1127 AD) when Philippines-Chinese trade

began and other confirm it during the Spanish period on the

establishment of Chinese agent (Wickberg 1962,280).

From the above fact, we are looking for more expansion of

this type of business, but in convenient forms. Quite logical it

seems, because if you are Filipino especially as a new business

man that want to start like this, you surely need to know more

about sari-sari stores.

 Being a sole proprietorship is sometimes facing with

enormous constraints and problem when starting to organize and

plan.

In such way, the researchers formulate a information and

solution to help lessen the problem through developing and

conducting a research about this. The researchers planned to

develop and investigate some residential areas to form a

conclusion and get some methodology to reach the goal of setting

standards of rescue and retrieval operation procedures with the

business, the owner and for starter businessman , so that they

have a bases to have a cost-effective sari-sari store.

B. Statement of the Problem

There are several issues that always discuss from the

netizen of the Philippines to Sari-sari stores. The problems that

issues are:

1. Is it profitable for a small business like sari-sari stores

to open a credit from their costumers?

2. Does sari-sari stores are profitable?

C. Significance of the study

This study will significantly affect and help the following:

1 Future Developer – This study will serve as bases in the

application to another system or to further enhance their

study.
2 Researcher – This study can be used as reference for the

further studies related to this application.

3 Community – This kind of business will be going to help the

community to have better preparation when starting a

business like convenience store. This study will help them

to earn money and to provides a means of livelihood for many

families also and also giving an information on consumers.

4 Government – this business’ payment for it to be legal will

serve as taxes for funds of country’s projects.

D.Delimination

The succeeding study will focus on the phenomenon

continuous of “Sari-sari Stores” in the Philippines, whose main

concern is to set standardized information and determine to

efficiency process in terms of helping the business owner and

develop an another strategies for it to implement as productive

and beneficial.

Knowing about the owner’s information about the history

behind their business, estimated capital they invest when

starting and even their objectives for doing this kind of

business and investigates about the daily money transaction.

 This study focuses on Sari-sari stores as a simple

steps to make a business and if it really profitable. This study

limits its scope in the other obligations and activities of some

successful owners that are being interview by the researchers.

E. Organization of the study

This research is about having a "Sari-sari Store" and on how

to have a successful business. To do this, it will study the

better starting of having a business. The "Sari-sari Store" also

known as "Variety Store" is a business that has one owner or

simply called Sole Proprietorship. It will also consult the cost

of the capital do you need and what products you should sell.

Chapter 1 Starts with an introduction of the research

that has the background of the study and also the Statement of

the Problem, Significance, Delimitation, and Organization of the

study.

Chapter 2 Emphasis the importance of the study to know more

about the business.

Chapter 3 Discusses and provides more information about the

business that will benefits them.

Lastly, this chapter presents a summary and an overall conclusion

of the study.
F. Review of Related Studies

Sari-sari stores nationwide are located in residential areas

(Bonnin, 2004: 80; McIntyre, 1955), and are typically operated

from a portion of the owner’s house (Chen 1997; Bonnin, 2004;

McIntyre, 1955; Silverio, 1982).

As early as the 1950s, residential areas in Metro Manila

exhibited “a widespread

scattering of tiny neighborhood stores,” the most common of which

is the sari-sari store

(McIntyre, 1955: 66). He describes these stores in greater

detail:

“…the store is merely an open, stall-like recess on the lower

floor of a dwelling. Nearly

every block has one to four such stores, located on the corners

of the crossroads, with an

occasional store in the middle of the block. The range of

customers must be limited to the

immediate vicinity. Poor neighborhoods, even the most destitute

group of squatters’

shacks, have a surprisingly large number of these stores.”

Nearly three decades later, Silverio wrote, “No single

socioeconomic institution in the country today boasts greater

numerical presence in a Philippine community than the sari-sari

store. Sari-sari stores dot the neighborhood landscape so

profusely that sometimes only a single house separates one from

another” (Silverio, 1982: 59). His observation is just as true

today as it was twenty-five years ago.

In a more recent study, Bonnin (2004: 105) observed that it

was not unusual to find four or five stores within the same short

block, and in one instance, three stores were located side-by-

side in adjacent homes.

An early study by Stoodley (1957: 237) observed that each

Tagalog barrio or village has at least one sari-sari store,

usually run by a woman. One can expect the same today in the more

remote villages.

These stores carry the same types of goods, charge similar

prices for these goods (Bonnin, 2004), and therefore compete

based on their location. However, the numerous competitors

operating in the same neighborhood limits the market share of

each store in a given community.

Also, these stores are appear to be more common in poorer

neighborhoods (Chen, 1997; Silverio, 1982;Bonnin, 2004), where

purchasing power of potential customers are low, and therefore,

the potential market for retail goods as a whole is likely to be

small. Indeed, store owners recognize that excess competition is

a problem (Bonnin, 2006: 105), and many claimed that their stores
were “just breaking even” and not making any profits (Bonnin,

2004: 103).

Market research studies by AC Nielsen report that the number

of sari-sari stores nationwide grew by an estimated 88 percent

between 1997 and 2000 (Bethge, 2003), 14 percent in 2002 (Bonnin,

2004: 80), 13 percent in 2003 (Capistrano, 2005), and 7 percent

in 2004 (Amojelar, 2006). These studies confirm the observation

that the sari-sari store has remained popular as a micro-

enterprise, resulting in a growing flow of new entrants despite

the oversaturation that already seems to exist.

Despite excess competition, price markups remain high (Chen

1997), and sari-sari stores continue to grow, accounting for 90

percent of the country’s total retail outlets (Olarte and Chua,

2005). Given that the profitability of such an enterprise is

limited, why is there no downward pressure on prices? What

explains the continuous flow of new entrants? Perhaps more

obvious is why women are more likely to pursue this type of

activity.

This paper draws on the qualitative work of three

researchers on sari-sari stores in Metro Manila, representing

three snapshots of the development of sari-sari stores over the

last 25 years.The earliest and most comprehensive study was

conducted by Silverio (1982), who reported five detailed case

histories of sari-sari stores located in two low-income

communities, one middle income community, and a mixed low- to

middle-income community.

The second study was conducted by Chen (1997), which

surveyed communities that had bustling informal sector

activities. Stores were randomly selected in proportion to the

population of each selected area, but he does not mention which

areas are included, nor the number of observations, and instead

cites averages for the entire sample. The most recent study is by

Bonnin (2004), who conducted a qualitative survey of 30 women

sari-sari store owners in 3 Metro Manila communities experiencing

insecure housing.

Chapter II

METHODOLOGY
A. Research Design

The purpose of this phenomenological study was to explore

how Filipino entrepreneur and consumers experience and understand

the sari-sari store. The involved entrepreneur was at the core

of this investigation as their lived experiences shed light on

this phenomenon. A qualitative strategy was chosen to help

navigate our investigatory effort. To understand the filipino’s

perception about the continuous expansion of convenient stores in

Philippines and examining the views of people who have

experienced that remarkable type of business in our country.

B. Data Sampling

In our study, individual interview is the type of approach

that we use in order for us to have a one on one interview with

our respondents especially to all the women in their homes who is

mostly the owner of a sari-sari store in our community. This

interview refers to only one respondent interviewed so that we

can gather more data about our research. Our respondents give

their concrete information about their business, as an

interviewer we should not depends on the information that we get

in internet or books instead we should also emphasis the opinions

of the people who has an experience in terms of being a sole

proprietorship particularly in holding a sari-sari store in our

community.

C. Instrument

Our group decided to use indigenous techniques. We

personally meet the sari-sari store owners to ask for their

permission for conducting an interview with them for asking

necessary questions regarding the subject of enquiry. After

formulating the questions that was asked according to that, we

made an cross examining or one-on-one interview to ask some

selected questions that keep their privacy and having continuous

and very reliable discussion with them.

D. Data Analysis Strategy

Chosen questions are being asked to come up with the direct

to the point answer that we want to analyze and recognize the

convenience store expansion. We conclude to ask the starting

capital investment, how long they are in that particular trade,

why did they choose this and if they can be successful in this

area. However we want also to give important for our audience to

know what we will do with the collected data and that it fits

well with our research study.

E. Summary
 An phenomenological research of sari-sari store in

Philippines to understand the evolution of this kind of business

and also for the experience of those related person that we

interview. To get some of their profiles, we conduct indigenous

techniques to have an explicit discussion with our selected

questions that was made to protect the informant’s

confidentiality life.

CHAPTER III
 ANALYSIS AND FINDINGS

A. Data Analysis

Being a sole proprietorship with many competitors besides

you is a hard trade. Sari-sari store’s owners are experiencing

this because of unceasing spreading of this business anywhere.

All of our informants have their own opinion when it comes

to this type of business, but their thought is no difference with

each other. Our respondents believing that their business will

become successful because of their experience. We found out that

some of the owners are choose this business not just it was

already place in their house, having a good income and losing

their works but they have no other choice of job to be taken. "I

don't know any business but then I found out this." said by one

of our respondents. Moreover, based on what they experience, the

capital they invested is not an issue for them because it doubled

their investment or it is really profitable

B. Findings

We conclude that many sari-sari stores are mostly seen in

urban areas and most of them are nearby with each other. Same

with the study result of Bonnin. The capital they invest when

staring this business is not big for them because sooner it

exchange with high interest according to them. Three out of four

sari-sari stores we interview was women that found out for the

study base on Stoodley that many convenient store owners are

operated by women. Every proprietor’s informants believing that

this business will eventually become successful.

Chapter IV
 SUMMARY AND CONCLUSION

A. DISCUSSIONS

In terms of this, there is no significant difference between

our sources and respondents information, it is likely that the

manner in which people wants this trade is because of its more

easier to do compared to other businesses. According to

Silverio, these stores are appear to be more common in poorer

neighborhoods. The number of sari-sari stores nationwide grew by

an estimated 88 percent between 1997 and 2000 in conformity with

AC Nielson. Thus, these studies confirm the observation that the

sari-sari store has remained popular in our country.

The research intended to make a new discovery from the

gathered idea about helping and improving the qualities of this

business in our country to apply a new knowledge. Hoping to be

well-informed from different experiences of some owners when

starting or continuing a convenient store. Last of all is to keep

the significance of this study to our fellow Filipino, since it

is serves as one of our country’s icon.

B. CONCLUSIONS

However, a variety (sari-sari) store with a single owner has a

large impact in every society particularly to every family which

gives them most of their basic needs in life. This trade is a

profitable business you can come up with a good income everyday

especially to a woman’s life. In starting a business you have to

consider your budget to meet your target income, your customers,

and the place of your business.

Sari-sari stores are place nearby with each other in

Philippines. Tight competitions are expected of owners but still

believing for their success. Many proprietors who have a lot of

experience said that this trade is very profitable but you have

to be patient and hard working. The question being asked is

validated by the owners to avoid unnecessary problems and to

protect their privacy.

This research proven that variety store’s continuous

expansion is not just helping their daily needs but also for

their neighborhoods. A study that provides also an enough

knowledge in conducting a variety store in community.

C. LIMITATIONS

This study is emphasis the occurrence of growing sari-

sari store in Philippines where our main goal is to get the idea

of owners and consumer when it comes to this type of business.

Applying some tactics to make this more effective and valuable in

our fellow countrymen.

Knowing some facts of how they start their business with

their invested capital and if this kind of business is profitable

that leads to their success.

D. RECOMMENDATIONS

Most convenient store in the Philippines seems no

different with each other but we gathered an idea to suggest some

tips. Each sari-sari stores must be register as a legal business

to have benefits even you’re paying taxes. Government agencies

can provide support in funding, marketing and promoting their

services and suppliers can extend your credit. Proprietors should

limit the credit they accept because it affects the profitability

because there are instances that customers with credits terms

hardly pay on time, so you have to draws from own pockets to pay

for stocks.

Another thing is to increase added value but make sure

that it is appropriate. Owners should maintain records too to

know if your business is making money and to help organize and

manage the business properly. When it comes to buying stocks,

proprietors should choose wholesaler to not make their profit

limited and offer variety products especially the basic needs.

Nevertheless is to develop new ideas for appearance of your

business that will make different and stand out among the rest

and lastly is to never run out of stock because it may remind

customers that you don't have that items.

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 APPENDICES
Appendices A
A. INTERVIEW FORM
CHILDREN OF FATIMA SCHOOL INC.
McArthur H-way, Dau Mabalacat City, Pampanga

1 What is the name of your business?

2 How much is the capital did you invest when you start
in this business?
3 How long are you in this business?
4 Why did you choose this business?
5 Do you think this business will become successful?

APPENDICES B

APPENDICES
Appendices A
B. INTERVIEW FORM
 CHILDREN OF FATIMA SCHOOL INC.
McArthur H-way, Dau Mabalacat City, Pampanga

6 What is the name of your business?

7 How much is the capital did you invest when you start
in this business?
8 How long are you in this business?
9 Why did you choose this business?
10 Do you think this business will become successful?

APPENDICES B

APPENDICES
Appendices A
C. INTERVIEW FORM
CHILDREN OF FATIMA SCHOOL INC.
McArthur H-way, Dau Mabalacat City, Pampanga

11 What is the name of your business?

 12 How much is the capital did you invest when you start
in this business?
13 How long are you in this business?
14 Why did you choose this business?
15 Do you think this business will become successful?

APPENDICES B