PERCEPTION OF THE SARI-SARI STORE OWNER 1

The Perception of the Sari-Sari Store Owners with regards to the Establishing of the

Bigger Businesses here in Magallanes, Cavite

Small businesses are privately owned corporations, partnerships, or sole proprietorship

that have fewer employees and/or less annual revenue than a regular-sized business or

corporations. Small business like Sari-sari stores or neighborhood sundry store, is a convenience

store found in the Philippines. Sari-sari stores tend to be family –run and privately owned

operating within the shopkeepers' residence. The sari-sari store operates with a small revolving

fund, and generally does not offer perishable goods requiring refrigeration.

Nowadays, there is a lot of business that been venture in business world. Some of them

are consider as small business and big business. In Magallanes, Cavite, sari-sari store, printing

shop carwash and etc. are considered as small business while the Alfamart and 7/11 are

considered a big business. In establishing big business like Puremart, Mercury Drug store and

any larger business might affect the income and the status of the small business when it comes to

the economic growth. That is why the researcher chose this topic so that they will be able to

know the perception of the sari-sari stores in establishing big business here in Magallanes,

Cavite. Also, they want to gain information and help the entrepreneur of the small business on

how they can improve their business.

PERCEPTION OF THE SARI-SARI STORE OWNER 2

Conceptual Paradigm

Input Process Output

• Sari-sari store • Survey • There is

owners of significant
Magallanes, • Data Analysis difference in
Cavite establishing
bigger
• Interpretation businesses to
• Survey Forms of Data the sari-sari
store.

Based on the Conceptual paradigm, the researchers’ input are the participants which is

the sari-sari store owners of Magallanes, Cavite and survey forms. Then, they conducted the

survey and interpreted the data based on the data gathered. Through this process, they come up

with the results which is, there is significant difference in establishing big businesses to the small

businesses.

Statement of the Problem

This research entitled “The Perception of the Sari-sari store owners with regards to the

establishing of Bigger Businesses here in Magallanes, Cavite” aims to answer the following

questions:

 What are the perception of the sari-sari store owners regarding to the establishing of the

bigger businesses here in Magallanes?

 Does the big businesses are big problem to the sari-sari store with regards to their

income?

 What would be the effect of establishing bigger businesses to the Sari-sari owners?
PERCEPTION OF THE SARI-SARI STORE OWNER 3

Hypothesis

There is no significant difference in establishing bigger businesses to the sari-sari store

here in Magallanes, Cavite.

Significance of the Study

This study aims to know the perception of the sari-sari store owners with regards to the

establishing of bigger businesses here in Magallanes, Cavite. This research can help the

following to know more about the stated topic:

 Learners: for them to know and understand the perception of the small businesses

regarding to the establishment of bigger business here in Magallanes, Cavite.

 Entrepreneur: for them to know the things that they will do to improve their business.

 Future researcher: for them to acquire knowledge about the said topic that they can be

used for their future research.

Scope and Limitation

This study will only focus to the Perception of the Sari-sari store owners with regards to

the establishing of bigger business here in Magallanes, Cavite. It will not include the effect of

bigger business here in Magallanes, Cavite.

Definition of Terms

Small Business- independently owned and operated company that is limited in size and in

revenue depending on the industry.

Big Business-involves large-scale corporate- controlled financial or business activities.

PERCEPTION OF THE SARI-SARI STORE OWNER 4

Perception of the Sari-sari store Owners towards the Establishment

of Bigger Businesses in Magallanes Cavite

Local Literature

Before convenience stores sprouted all over the country, one only had to walk a few

blocks from home to buy soap and shampoo from the nearest sari-sari store. These neighborhood

variety stores, opening in early morning and closing late at night just to keep their “suki” happy,

had been living by the word “convenience” for consumers even before big business used the

word to describe their stores. But these beloved sari-sari stores are facing great challenges.

More convenience stores are opening, redefining what convenience means with an expanded

selection of products and store hours that extend beyond the usual operating time of sari-sari

store owners. For example, the country’s leading convenience store operator, Philippine Seven

Corp., had over 2,000 7-11 stores in the country as of May. On top of this, the company is even

ramping up efforts to attract more franchisees, requiring only P300, 000 in cash outlay, marking

the company’s simplest and most affordable franchising package to date.

A top official of P&G Philippines, however, thinks that the reliable sari-sari stores, which

he said were mostly operated by women, are here to stay. Sari-sari store owners are an important

demographic for the local arm of Procter & Gamble Co., given that, according to company

General Manager Shankar Viswanathan, sari-sari stores account for 40 to 45 percent of company

sales in the country. P&G Philippines—the company that popularized brands such as Ariel, Tide,

Safeguard, and Head and Shoulders—still thinks that sari-sari store owners will remain relevant

although there will be increased competition from convenience stores (Canivel, 2017).

According to (Leviste, 2008), the sari-sari store as a business has very positive features such as

low capitalization and minimal management skills or capacity requirements, flexible working
PERCEPTION OF THE SARI-SARI STORE OWNER 5

hours, business that is readily replicable, and an appropriate vehicle to promote local products, it

also has it’s foes such as minimal margin, lack of appeal to big manufacturers or distributors due

to lack of inventory management system and low volume of transactions, too much competition,

and unregulated business.

According to the article (Small business Large business relationship). Small but growing

companies can offer mature partners access to new customers, innovative products and

management practices and opportunities to bask in the glow of the small business’s innovative,

contemporary image. Indeed, many observers believe that in recent years, festering suspicions

and stereotype in both the large-and small-business camps about the motivations and abilities of

the other have begun to give way to an increasing recognition of the positives that can be gained

by working cooperatively. “Entrepreneurs and corporate executives now need each other more

than ever. Both large corporations and small companies can brighten their global prospects by

forming collaborative partnerships that capitalize on their complementary strengths while

respecting the independence of each party”.

According to (Lorenciana, 2014), Sari-sari stores, believes as the backbone of the

consumer economy, make up 30-40 percent of the retails sales in the Philippines. Sari-sari store

is what most people consider as the easiest retail business to go into has become an integral part

of the Philippine society and has contributed both to the country’s economic growth and people’s

livelihood. Sari-sari stores, being a common part of the Filipino life, can be found in almost

every street corner of the Philippine barangays or barrios in both rural and urban areas.
PERCEPTION OF THE SARI-SARI STORE OWNER 6

Foreign Literature

Employment in smaller firms grows faster than employment in larger firms in growing

industries, not necessarily because smaller firms are more efficient in their operation, but

because of demand for the output of the industry and the high level of entry of smaller firms.

As employment in successful small firms increases within a growing industry and larger

firms enter from other industries, the average firm size increases. The percentage of small

business employment in the industry may then decline slightly, even though small businesses are

supplying most of the net new jobs. The rate of employment growth in small-business-dominated

industries in 1995 was higher than the national average and 10 times the employment growth in

large-business-dominated industries (U.S Small Business Administration, 1994).

According to the (Toughnickel, 2016), Business competition is hard on small business

due to the global economy and global competition. Now that there are so many options of hiring,

purchasing and selling on an international level, competition has become even more competitive.

This makes it even harder on small businesses trying to make a profit within their trade or

services. They have to face more and more businesses and markets and have to worry about

trying to beat out their competition. Large companies can easily hire workers online or from

other countries and pay the workers a much smaller wage or salary compared to small

businesses, who cannot easily access this labor market. Small businesses regulate themselves

according to their locations and what is within their range or scope of employment. They do not

have all the extra benefits or capital to expand and outsource like large companies.

According (Edmiston, 2007), Building businesses from the ground up and supporting the

growth and supporting the growth of existing enterprises has two complementary features; (1) to

develop and support entrepreneurs and small businesses (2) to expand and improve infrastructure
PERCEPTION OF THE SARI-SARI STORE OWNER 7

and to develop or recruit a highly skilled and educated workforce. Both efforts depend in large

part on improving the quality of life in the community and creating an attractive business

climate. Small businesses are potent job creators but so are large businesses. The attribution of

the bulk of net job creation to small businesses arises largely firms, not to especially robust job

creation by small firms. More important, data show that, on average, large businesses offer better

jobs than small businesses, both in terms of compensation and stability. There is little convincing

evidence to suggest that small businesses have an edge over larger businesses in innovation.

According to (Janeska-Iliev, 2015), The finding that development of a strategic plan, has

a positive impact on growth of small business, could lead to suggestions for owners and

managers in small business, as their businesses are moving from initial to advanced stages of

their growth, the focus from operational activity and day-to day working must change to tactical

and strategic thinking. The planning activity has to change from operational and financially

oriented to strategic oriented planning as an essential part of the overall strategic approach and of

the small business.

PERCEPTION OF THE SARI-SARI STORE OWNER 8

Method

Research Design

The purpose of this study is to know the perception of the sari-sari store owner

regarding to the establishing of bigger business in Magallanes, Cavite. As the study aimed to

identify those perception and analyze its effect, the researchers used survey research method.

Survey research is a quantitative research method used for collecting data from a set of panel or

respondents. The survey type is the most appropriate research method as the researchers wants to

know the perception of the sari-sari store owner.

Participants

The researchers of this study had a total of 50 respondents who owns Sari-sari store from

different barangay here in Magallanes, Cavite.

Materials and Instruments

The researchers used survey questionnaires containing yes-or-no questions. The survey

questionnaires focus mainly to the perception of the sari-sari store owner regarding to the

establishing of bigger business. It includes question about whether establishing bigger business

particularly the groceries can be a threat for their business or not.

Procedure

[1] First of all, the researchers thought of a topic that they will defend and they come up

with the “Small Business Perception”.[2] After they form a title, they thought of who will be

their respondents and gathered relevant information by browsing to the internet and reading

related articles that is needed for their topic. [3] They also analyzed different articles related to

their topic to help them to formulate questions. [4] After that, they printed out enough
PERCEPTION OF THE SARI-SARI STORE OWNER 9

questionnaires and distributed to their target respondents. The researchers analyzed the data

gathered based on their answer and they come up with the solutions.
 PERCEPTION OF THE SARI-SARI STORE OWNER 10

Results

Contingency Table

Barangay Age No. of Respondents Percentage

1 15-35 2 4%
36-70 0 0%
15-35 1 2%
2 36-70 4 8%
15-35 0 0%
3 36-70 3 6%
15-35 2 4%
4 36-70 2 4%
15-35 0 0%
5 36-70 3 6%
15-35 2 4%
Cabulusan 36-70 2 4%
15-35 3 6%
Bendita 36-70 3 6%
15-35 7 14%
Ramirez 36-70 13 26%
15-35 0 0%
Medina 36-70 3 6%
Total 50 100%

This table shows that the researchers have the total of 50 respondents that they use to be

part of their research. 4% of the respondents came from Barangay 1 having the age of 15-35.

10% came from Barangay 2, 6% from Barangay 3, 8% from Barangay 4, 6% from Barangay 5,

8% from Barangay Cabulusan, 12 % from Barangay Bendita, 6% from Barangay Medina and

40% of the respondents that came from Barangay Ramirez which the most total number of

respondents came from.

PERCEPTION OF THE SARI-SARI STORE OWNER 11

. 1. Do you think establishing big businesses here in

Magallanes can decrease the number of your customer?

No
30% Yes

No
Yes
70%

This graph shows that 70% of the respondents said that establishing big businesses can

decrease the number of their customers. While the remaining 30% said no.

2. Do you think establishing big businesses can

affect your monthly income?

28% Yes

No

72%

This graph shows that 72% of the respondents said that establishing big businesses can

affect their monthly salary. While the remaining 28% said no.
PERCEPTION OF THE SARI-SARI STORE OWNER 12

3. Do you think it can be threat/challenge to

your business?

Yes
28%
No

72%

This graph shows that 72% of the respondents said that it can be threat or challenge to

their business. While the remaining 28% said no.

4. Do you think your business can satisfy the

needs of the people than the big business?

14%
Yes

No

86%

This graph shows that 86% of the respondents said that their business can satisfy the

needs of the people than the big business. While the remaining 14% said no.
PERCEPTION OF THE SARI-SARI STORE OWNER 13

5. Do you think many people would prefer to go to the

big business rather than in small business like Sari-sari
store?

Yes

48% No
52%

This graph shows that 52% of the respondents said that many people would prefer to go

to the big business than in small business. While the remaining 48% said no.

6. Do you think big businesses can be a threat

for you to improve your business?

26% Yes

No

74%

This graph shows that 74% of the respondents said that big business can be a threat for

them to improve their business. While the remaining 26% said no.
PERCEPTION OF THE SARI-SARI STORE OWNER 14

7. Do you think big business can be considered as

your potential competitors?

20%
Yes

No

80%

This graph shows that 80% of the respondents said that big business can be considered as

their potential competitors. While the remaining 20% said no.

9. Do you think establishing big business can

fastened the economic growth of Magallanes than the
small business like sari-sari store?

Yes
22%

No

78%

This graph shows that 78% of the respondents said that establishing big business can

fastened the economic growth of Magallanes. While the remaining 22% said no.
PERCEPTION OF THE SARI-SARI STORE OWNER 15

9. Do you think establishment of big business in the

future can lead your business to bankruptcy?

Yes
42%
No
58%

This graph shows that 58% of the respondents said that establishment of the big business

in the future cannot lead their business to bankruptcy. While the remaining 42% said yes.
PERCEPTION OF THE SARI-SARI STORE OWNER 16

Discussion

In today’s society many businesses are being ventured by the entrepreneur. Some

businesses are sole proprietorship, partnership and corporation. Due to the many businesses are

known, many entrepreneur are competitive in terms of on how they can be patronized by the

society and the customer. In this study, the research conduct a research on which they will know

the perception of the small businesses in establishing bigger businesses. In conducting research,

they gathered a data that will support their research.

Based on the gathered data that presented, most of the respondents said that establishing

of big businesses can decrease the number of their customers that affect their monthly income.

Most of the respondents also said that establishing of big business can be threat and can be

considered as their potential competitors that supports the article of Toughnickel about the good

and bad effect of competition of the small and large business. It stated that there are many

options of hiring and purchasing and selling on an international level that makes the competition

between small business and big business become more competitive. It makes even harder on

small business trying to make a profit within their trade or services that is why they have to face

more businesses and have to worry about trying to beat out their customers.

Most of the respondents also said that their business can satisfy the need of the people

than the big business. This result is being supported by the article of Carlo S. Lorenciana and

Canivel. Carlo S. Lorenciana stated that sari-sari store is what most people consider as the easiest

retail business that become integral part of the Philippine Society and contributed both to the

country’s economic growth and people‘s livelihood. While Canivel stated that though there are

increase competition from convenience stores, sari-sari stores owners are important demographic

for the local arm of Procter and Gamble co., and still thinks that Sari-sari store are remain
PERCEPTION OF THE SARI-SARI STORE OWNER 17

relevant. In line with the bankruptcy, most of the respondents stated that even there will be an

establishment of big businesses in the future, their business will not lead to the bankruptcy. Most

of the respondents also said that establishing big business can fastened the growth of Magallanes,

Cavite than the small business. This result was contradict the article of James Botkin that stated

both large and small business can brightened the global prospects by forming collaborative

partnership that capitalize on their complementary strengths while respecting the independence

of each party.

Conclusion

After conducting and gathering a data, the researcher hypothesis was proven wrong.

Based from the data gathered, there is a significant difference in establishing bigger businesses to

small businesses here in Magallanes, Cavite. Based from the results, the respondents considered

the big businesses as their potential competitors and a threat for their business. The results also

shows that establishing big business can affect their entire business when it comes to the number

of customers and their monthly salary though their business can satisfy the needs of the people,

the respondents see that establishing big business can affect their business once it is establish in

the future. This results proves that establishing big businesses in the future can make changes on

what the small business used to do. Since the graph shows that there is significant difference

between this two businesses, the stated hypothesis in chapter 1 are proven wrong.

Recommendation
One of the biggest challengers for the small businesses is to compete with the big

businesses. But what should small business owners should do if there will be an establishment of

big businesses in the future? The researchers of the study recommend that the owner of the small

businesses should improve their establishment to attract the customers to go to their store. Also
PERCEPTION OF THE SARI-SARI STORE OWNER 18

for the future researchers who will going to conduct this study, they should also conduct the

effect of big businesses to the small businesses and how they can manage to compete with the

entrepreneur of big businesses. Lastly, to the customer, they should go to the business who can

satisfy their needs and wants as an individual.

PERCEPTION OF THE SARI-SARI STORE OWNER 19

References

(2016, April 22). Retrieved from Toughnickel.

Canivel, R. S. (2017, September 10). Retrieved from businessinquirernet:

https://business.inquirer.net/236575/sari-sari-stores-gear-greater-competition

Edmiston, K. (2007, January). Retrieved from researchgatenet:

https://www.researchgate.net/publication/5044046_The_Role_of_Small_and_Large_Busi

nesses_in_Economic_Development

Janeska-Iliev, A. (2015, October 1). 24. Retrieved from researchgatenet:

https://www.researchgate.net/publication/284163172_Factors_affecting_growth_of_smal

l_business_The_case_of_a_developing_country_having_experienced_transition/citation/

download

Leviste, E. N. (2008, March 15). Upscale Research. Retrieved from cardmri:

https://www.cardmri.com/cardbdsfi/wp-content/uploads/2018/06/Upscale-Research-On-

Mini-Variety-Sari-sari-Store-Project.pdf

Lorenciana, C. S. (2014, April 21). Retrieved from pressreader:

https://www.pressreader.com/philippines/the-freeman/20140421/281831461725816

Small business Large business relationship. (n.d.). Retrieved from

https://www.inc.com/encyclopedia/small-business-large-business-relationships.html

(1994). U.S Small Business Administration. Retrieved from

https://www.sba.gov/sites/default/files/files/stateofsb1996.pdf
PERCEPTION OF THE SARI-SARI STORE OWNER 20

Appendices
 PERCEPTION OF THE SARI-SARI STORE OWNER 21

Interview Guide Questions

We, the researchers of Grade 12-ABM (Charity) are gathering information about “The Perception of the
Small business with regards to the Establishing of Big Businesses here in Magallanes, Cavite”. Thus, we are
asking for your cooperation.
Directions: Check the line that corresponds to your answer.
2. Do you think establishing big businesses here in Magallanes can decrease the number of your customer? (Sa tingin
mo ba ang pagtatayo ng malalaking negosyo dito sa Magallanes ay makakabawas sa bilang ng iyong customer?)
______Yes _______No
3. Do you think establishing big businesses can affect your monthly salary? (Sa tingin mo ba ang pagtatayo ng
malaking negosyo ay makaaapekto sa iyong buwanang kita?)
______Yes _______No
4. Do you think it can be threat/challenge to your business? (Sa palagay mo ba maaari itong banta o hamon sa iyong
negosyo?)
______Yes _______No
5. Do you think your business can satisfy the needs of the people than the big business? (Sa iyong palagay ba ang
iyong negosyo ay makakapagbigay ng pangangailangan sa mga tao kaysa sa malalaking negosyo?)
______Yes _______No
6. Do you think many people would prefer to go to the big business rather than in small business like sari-sari store?
(Sa tingin mo ba mas pipilin ng mga tao na pumunta sa malalaking negosyo katulad ng mga Alfamart kaysa sa malilit
na tindihan katulad ng Sari-sari store?)
______Yes _______No
7. Do you think big businesses can be a threat for you to improve your business? (Sa tingin mo ba ito ay banta sayo
upang mas mapaunlad ang iyong negosyo?)
______Yes _______No
8. Do you think big businesses can be considered as your potential competitors? (Sa tingin mo ba ito ay matuturing
bilang iyong mga potensyal na kakumpitensya?)
______Yes _______No
9. Do you think establishing big business can fastened the economy growth of Magallanes than the small business
like sari-sari store? (Sa palagay mo baa ng pagtatayo ng malaking negosyo ay mas mapapabilis ang paglago ng
ekonomiya ng Magallanes kaysa sa malilit na tindahan?)
______Yes _______No
10. Do you think establishment of big businesses in the future can lead your business to bankruptcy? (Sa palagay mo
ba ang pagtatayo ng malalaking negosyo sa hinaharap ay maaring humantong ang iyong negosyo sa pagkalugi?)
______Yes _______No