MANAGERIAL AND FINANCIAL LITERACY OF SELECTED SARI-SARI

STORE IN THE CITY OF BALANGA

A Concept Paper
Presented to the Research Department
Bataan National High School –
Senior High School
City of Balanga, Bataan

In Partial Fulfillment of the Requirements for the

Accountancy, Business and Management

by:
Bangco, Lucille Erin
Bartolome, Cristy
Bellen, Geminah
Cascasan, Mitzi Yvonne
Lagazon, Althea Lei
Profeta, Lee Ann
January 24, 2019
 CHAPTER 1

THE PROBLEM AND ITS BACKGROUND

Introduction

A sari-sari store allows members of the community easy access to basic

commodities at low cost. The costumers can buy units of the product rather than the whole

package. This is convenient for those who cannot buy the whole package or do not need

much for it. The store also serves as secondary or even primary source of income for the

owners.

In almost every barangay or barrio, there are a family who runs a humble sari-sari

store. The neighbourhood sari-sari (variety or general) store is part of daily life for the

average Filipino. Any essential household good that might be missing from ones pantry

from basic food items like coffee and margarine, to other necessities like mosquito coils,

soap, and matches is most conveniently purchased from the sari-sari store nearby at

affordably-portioned quantities, sometimes even on credit. Apart from the most affluent

communities, the sari-sari store is a constant feature of residential neighbourhood in the

Philippines.

This micro enterprises or a small business contributed significantly in the

economic development because these types of enterprises create a bridge between a margin

of purchase ability of the greater number of population and the affordability of the products

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made available to the consuming public. Given that the micro entrepreneurs have

significantly shaped the economic activity in countryside, a low financial skill might lead

into an adverse impact in the future of the business. Unfortunately, many newly-opened

sari-sari stores close down after only a few months of operation because of lack of

financial and management savvy on the part of its owner.

According to Ake Sahlin (2003), since many entrepreneurs of small enterprise lack

managerial experience when they start their business career, there is often a tendency of

basing decisions and actions on hope and dreams rather than solid data. There are for

example numerous cases of small enterprises going into bankruptcy beacause of the simple

fact that they did not know how to price their goods or services. In such cases, even the

introduction of the most basic management principles could improve the performances of

the enterprises.

Statement of the Problem

This study assesses the managerial and financial literacy of selected sari-sari store owners

in Balanga City.

Specifically, this study aimed to answer the following questions:

1. How may the ssari-sari store owners be described in terms of:

1.1 financial expertise;

1.2 entrepreneurial skills and

1.3 managerial skills

2. What are the ways to make the business increase its profitability?

3. What intervention can be conducted to avoid bankruptcy?

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Significance of the study

The study is deemed significant to the following entities:

Sari-sari store owners. This study can help every sari-sari stores owner to have more

knowledge about managing their small scale business wisely.

Parents. This study will serve as a guide for the parents to persuade their children to

choose accountancy, business and management as the career path of their lives and must

have clear understanding that they should guide their child when it comes to the decision

making.

Students. This research will be a guide for every students who are going to choose

Accountancy, Business and Management as their course. And for them to understand the

importance of business in life.

Community. This kind of business will help the community to have better preparation

when starting a business like convenience or sari-sari store. This study will help them to

earn money and to provide a means of livelihood for many families and it also giving

information on consumers.

Future Researcher. The result of this study may be used as a guide and reference in

conducting new research connected to this study.

Scope and Delimitations

The study aims to know how sari-sari store in Balanga City Bataan operate, how

the business help the owner, and develop a strategies to implement in the business to be

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productive and beneficial. Estimated capital they invest when starting and the objectives

for putting a business like this, to know the daily profit of the business and to manage it

wisely to increase its profitability. The respondents of the study are the selected sari-sari

store in the City of Balanga. Using simple random sampling.

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Notes for Chapter 1

Sahlin, A. (2003). “Improving Management and the Managerial Skills of Small-scale

Entrepreneurs.” Retrieved from http://www.fao.org/docrep/s8380e/s8380e0c.htm