FACTORS THAT INFLUENCE BUSINESS SUCCESS

Chapter 1

INTRODUCTION

Background of the Study

The factors that influence the success of a business as assessed by the business
owners in Bacolod City when factors are classified as legal requirements, familiarity with the
business, viable target market, accessible location for customers, easy access to suppliers,
debt management, putting everything in fine print, other sources of income and support
network when grouped according to age, sex and monthly income. Naturally, every business
owner has one simple thing in common: they all set out to achieve growth and success and
these factors are important to the success of a business.

Statement of the Problem

This study aims to determine the factors that influence the success of a business as
assessed by business owners in Bacolod City.

Specifically, this study seeks answers to the following problem:

1. What are the factors that contribute to the success of a business as assessed by
business owners when grouped as to: age, sex, and monthly income.

2. Is there a significant difference in the factors that influence the success of a

business when respondents are grouped according to age, sex and monthly
income?

Hypothesis

There is no significant difference in the factors that influence the success of a

business as assessed by business owners in Bacolod City when respondents are grouped
according to age, sex, and monthly income.

Theoretical Framework

This study is anchored on John Stuart Mill by Development Theory. This theory states
that no social science theories are better understood as models which work, either
 to predict or explain, in limited settings, rather than laws of science which hold and
apply universally (Mill, 1873).

Conceptual Framework

The conceptual framework of this study is reflected in the schematic diagram in

Figure 1. The first rectangular box refers to the independent variables of the study which are
business owners, age, sex, and monthly income whereas the dependent variables refers to
the factors that influence the success of a business.

Independent Variables Dependent Variables

Legal Requirements

Business owners Familiarity with the business

Viable target market

Accessible location for

Age customers

Easy access to suppliers

Debt management
Sex
Putting everything in fine print

Other sources of income

Monthly Income Support Network

Scope of the Study

The study is mainly concerned with the determination of the factors that influence
the success of a business as assessed by business owners in Bacolod City, 2019 particularly
in Plaza Mart when factors are classified as legal requirements, familiarity with the business,
viable target market, accessible location for customers, easy access to suppliers, debt
management, putting everything in print, other sources of income and support network
when respondents are grouped according to age, sex, and monthly income.
A descriptive research design is used in this study specifically utilizing the survey method.

The dependent variables include the factors that influence the success of a business
when classified as legal requirements, familiarity with the business, viable target market,
accessible location for customers, easy access to suppliers, debt management, putting
everything in print, other sources of income and support network. Moreover, the
demographic variables of the respondents comprise their age, gender and monthly income.

Significance of the study

This study is beneficial to the following:

Consumers. The consumer may draw insights from the result of the study that may give
them knowledge to know whose business is reliable and how the business industry works

Entrepreneurs. Will have good insights in conducting market research and understand
consumer perception to better position themselves in the competition and drive increased
customers and sales.

Future Researchers. Will have a broad knowledge about conducting research particularly
business related studies

Definition of Terms

Accessible location. Operationally, the term refers to facility or location that can be easily
reached

Age. Operationally, the term refers to the length of time in owning the business

Business Familiarity. Operationally, the term refers to the knowledge acquired in the type
of business engaged into.

Debt management. Operationally, the term refers to manage the money and an agreement
between the debtor and creditor. It is to help the debtor manage their debt.

Easy access. Operationally, the term refers to the accessibility of the suppliers to
accommodate deliveries.

Fine print. Operationally, the term refers to contract or written agreement between
business partners, suppliers and service providers.

Factor. Conceptually, the term refers to one of the things that affect an event, decision or
situation (Collins, 2019). Operationally, it refers to the elements that influenced the success
of a business.
Legal Requirements. Operationally, the term refers to the required requirements pertinent
to the line of business chosen.

Monthly Income. Operationally, the term refers to the income of the business owner earns
in a month before taxes and other deductions.

Viable target market. Operationally, the term refers to knowing the type of business that
your target market has a great deal of people that can connect with and network with

Sources of income. Operationally, the term refers to the income that could be from
different sources such as employment, investment and etc.

Sex. The term refers to gender such as male or female

Support Network. Operationally, the term refers to the emotional and practical help from
professionals or people in your life.

Chapter 2

Review of Related Literature

Have a great idea. (Nicole La Marco, 2019) According to her, all businesses start as an idea,
whether they end up as successful businesses or not. Some businesses are successful as
soon as they launch based solely on the strength of the ideas behind them. An innovative
idea sets your business apart and can bring you success, especially if you’re operating in a
competitive industry. It is one of the most powerful causes of success in business.

(CHRIS SEABURRY, 2018) In this article, to succeed in business today, you need to be flexible
and have good planning and organizational skills. Many people start a business thinking that
they'll turn on their computers or open their doors and start making money, only to find
that making money in a business is much more difficult than they thought. You can avoid
this in your business ventures by taking your time and planning out all the necessary steps
you need to achieve success.

(George N. Root III) According to business expert, Steve Ma Reyna, when an entrepreneur
starts a business, he should consider three key success factors which are Retaining
Customers, Product Development, Cash Management these factors are key indicators and
milestones that you set to measure the success of your company.

(Nicole Long) This article tackles about the critical success factors in business. That
documenting and updating an organization's critical success factors allows a corporation to
respond to outside forces, redirect internal focus and plan for that success, now and in the
future. Communicating your organization's goals and strategies to the entire company
provides a relevant starting point and focus for all individual, team and corporate decisions
and directives.

(Charlotte Marketing Agency And Business Consultant) In this article, it will explain what
those 5 key success factors that focus in 10 elements of Strategic Focus and how you can
use them in your business right away.

(Harvey Mackay) In this article, it discusses about the factors that influence the company’s
future success and your organization’s growth over the long haul.

(Evelina – InvoiceBerry.com) This article tackles about the reason why some small
businesses succeed and others fail. Discusses about the most common mistakes and reasons
small business owners make why business fails.

Research Design

This study will use the descriptive research design specifically utilizing a survey
method. According to Polit & Beck (2015), a descriptive method design is one which
describes a phenomenon that is happening in the present time.

Since the present study describes about the factors that influence the success of a
business which is a present condition or phenomenon, the researchers believe that a
descriptive research design is appropriate to use.

Locale of the Study

The setting of the study is the Plaza Mart; Araneta Street, Bacolod City, one of the
shopping areas in Bacolod City where the respondents (business owners) of the study will be
drawn.

Respondents and Sampling

The respondents of the study are the 50 business owners, who manage shops from
1st, 2nd
and 3rd floor at Plaza Mart. A stratified random sampling will be used to determine
the sample size.
Research Instrument

In this research, a research – made questionnaire will be used by the researchers

based on the literature of the study. The questionnaire comprises two parts. Part 1 includes
the demographic data of the customers. Part 2 contains questions made up of 30 item test
reflecting the factors that influence the success of a business.

Data Gather Procedure

Data Analysis Procedure

The data for the descriptive statistics will use the Arithmetic mean will be used while
the data for the inferential statistics will utilize the t- test of independent sample and the
one way analysis of variance.

Ethical Consideration

Before the administration of the test, the consent of the respondents will be sought.
Those who will refuse to join the group of respondents will not be forced to join.

References
Harvey Mackay – Contributing Writer, Austin Business Journal
Mar 9, 2014, 9:01am EDT
DMCI Homes Leasing on July 12, 2017
iResearch Services
May 21, 2018 References (3)
 Rapid BI: Critical Success Factors
 Power Home Biz: Key Success Factors of Your Small Business
 Entrepreneur: Seven Keys to Growing Your Business

Charlotte Marketing Agency And Business Consultant

Evelina (InvoiceBerry.com) March 30, 2016

Reasons for small business success

Rules of business success

Key business success factors