DIFFUN NATIONAL HIGH SCHOOL

Diffun, Quirino

IMPACT OF THE RENOVATION TO THE DIFFUN SMALL-MEDIUM

ENTERPRISES

A Research Paper

Presented to

The Faculty and Staff of

Diffun National High School

Diffun, Quirino

In Partial Fulfillment

In Practical Research 1

Presented by:

Ruffa Mae Sausa

Marites Pico

Joemarie Mamaril

Jambi Ancheta

Alvin Zonio

Rizza Carino

Cherry Mae Pamulagan

 DIFFUN NATIONAL HIGH SCHOOL
Diffun, Quirino

CHAPTER I

THE PROBLEM AND ITS BACKGROUND

A. Rationale

Government wants to make improvement to our society. One way of

achieving this is through renovation of buildings in a public market. As cited by
Vainio (2011) the term ‘renovation’ is used in statistics to distinguish between
construction work on existing building stock and new construction; it includes
both repair work and work undertaken for other reasons. Sometime the
superior term for the concept discussed here is not ‘renovation’ but ‘repair’,
defined as the altering of a built object towards a desired state, either
technologically or functionally.
Moreover, renovation is undergoing a transition, with several
development alternatives to choose from. The existing building should stock
be made more energy-efficient through renovation and existing buildings
should be replaced with new and more energy-efficient. On the other hand,
when people heard the term ‘palengke’, they would always think a dirty and
smelly place but not anymore.
In a matter of fact, the Diffun Public Market (DPM) is currently
undertaking a renovation and vividly, if the DPM improvement will be
successful, more business entrepreneurs will likely be convinced to put up a
business given that the renovation offers convenience and more effectively
operations to happen.
As the renovation begins, business entrepreneurs are expected to deal
with some changes. Aside from being emplaced in a temporary location they
will have to face and adapt to their new environment, thus, affecting the
entrepreneurs’ performance as well as the business itself.

The purpose of this approach is not just to improve the DPM but also
to encourage business entrepreneurs and gain progress. The researchers
then wanted to conduct a study to further understand the effect of this
renovation to the owners of small-medium enterprises of the Diffun Public
Market.
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B. Statement of the Problem

The purpose of the study is to determine the impact of the renovation to

the small-medium enterprises of Diffun Public Market. This study aims to
answer the following specific questions:

1. What are the profile of business entrepreneurs in terms of:

a. Age
b. Gender
c. Educational level
d. Years in the Business
2. What are the effects of renovation in Diffun Public Market in terms of:
a. Income
b. Location
c. Consumers
d. Relocation Costs

C. Null Hypothesis

The renovation has no significant impact to the small-medium

enterprises of the Diffun Public market in terms their income, location,
consumers and expenses.

D. Scope and Delimitations

This study will attempt to know the impact of the renovation to the
small-medium enterprises. The researcher limited this research to the
business entrepreneur of Diffun Public Market.

E. Significance of the Study

The purpose of this study is to know the impact of the renovation to

small-medium enterprises of Diffun Public Market. This study may be made
useful to the following groups:

Business Owners. It can help them to increase their income not only for
those owners entity. The Business Owners will be informed of the different
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problems and consequences of the renovation knowing that this matter will
give them insights on how they could help their business in facing the
problems of gaining profits.

Potential Business Owners. It can give them new ideas and get
significant information on how they would run their business properly.

Future Researchers. Also, the researchers can gain new knowledge

through the result of this study that will help them write their research
proposals that will also serve as their reference.

Students. It can give them new ideas and get significant informations in
writing their research projects.
DIFFUN NATIONAL HIGH SCHOOL
Diffun, Quirino
 DIFFUN NATIONAL HIGH SCHOOL
Diffun, Quirino

CHAPTER II

REVIEW OF RELATED LITERATURE

This chapter reviews related literature and studies which serves as frame of
reference for this study. Related literature and studies, foreign and local, are
presented such that some of the present study’s variables have been tackled.

Foreign Literature

Renovation is the process to make change and renewing a building by

fixing what is already present and in some cases adding new components so
that it will be in a better condition. Construction economics, building
economics and assessments of building service life, the renovation need of
buildings is notably higher than the actual amount of building renovation. As
energy saving renovations become more common, the volume of building
renovation is forecast to grow even further. Building renovation suffers from
both a lack of suppliers and tailored solutions. Renovation has also become a
commercially interesting market for businesses, as property owners have
relinquish their own maintenance organizations.(Vainio,2011)

Moreover, the term ‘renovation’ is used in statistics to distinguish

between construction work on existing building stock and new construction; it
includes both repair work and work undertaken for other reasons.
Construction economics, a well-developed theory applied in several studies,
links construction to development of the social and economic structure
(Ruddock, Lopes 2006).

According to the theory (Bon curve), the purpose of construction is to

build spaces, areas and connections. The utility of the theory has been
demonstrated by comparing economies at different stages of development or
comparing regional development. Renovation projects are implemented with a
production-oriented new construction concept. In addition, a user-oriented
approach does not produce a good outcome if it does not include catering for
the special features of renovation construction. (Crosthwaite 2000).
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Local Literature

Renovation of buildings is a general recommendation in order to

reduce the operational energy consumption and their emissions associated.
Besides, the renovation of buildings allows reusing materials, increasing the
building life service and avoiding the deconstruction and new construction
impacts. However, it is necessary to be aware that the intervention itself
generate an impact (embodied energy, transportation and construction
process), and sometimes, energy systems upgrading does not mean a
consumption reduction and it also have influence on the city metabolism
(Michael, 2012).

Another literature from Eduard (2018) defined the strategies in order to

reduce the impact associated to buildings through renovations or
refurbishments, however, both approaches have differences in their own
standpoint. Besides, there are many concepts and terms associated to
renovation that do not allow to clarify the objective with a technical and
rigorously perspective. Facing the current uncertainties, life cycle assessment
technique allows focusing on an already confirmed methodology in order to
evaluate the potential environmental impacts associated to the renovation of
buildings. Building renovations with prefabricated façade and roof elements
change the architecture of a n apartment building. This can be seen as an
opportunity to improve the architecture and quality of the existing building
envelope. However, if the architecture of an existing apartment building
should be conserved, then traditional renovation measures should be favored.

Foreign Studies

Changes in use were the reason for renovating other types of

buildings. The study found that the efficient use of square meters in new
construction led to an increase in the need to renovate even newer buildings.
The interiors and fittings of residential buildings were customized, but the
structures were not renovated until the technical life span of the building was
reached. Proportionately, buildings constructed prior to 1960 were still
renovated most often and most extensively. (Matilainen et al., 1991).
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In addition, the renovation of buildings is often neglected due to

problems with financing or the high level of associated costs. Financing is a
particular problem when it comes to the renovation of public buildings. For
residential buildings, decision-making remains the most problematic issue that
slows down the renovation activities. The problems in the renovation work
itself are often technical, but they may also be related with the quality or
availability of resources (Lehtinen, 2002).

Moreover, A number of areas needed improvement. Know-how was

required for surveying, determining the renovation needs, planning the
renovation and for carrying out the actual work. Also issues related to
cooperation between the different parties of the project needed improvement.
Deficiencies were identified in the availability of services connected with
building renovation, model agreements and suitable materials, prefabricated
products as well as machinery and equipment. The expertise of designers and
builders who worked on new constructions was not applicable to renovation
projects. The study recommended expanding training to include building
owners (Barber,2003).

Local Studies
To start with a recent studies from Adlawan (2017) renovation work
may be left entirely unaccounted for. Buildings may be used until technically
or functionally exhausted, demolished, and then replaced with new buildings
constructed in their place. This is financially justifiable if the price of the land is
high in relation to the building’s value, or if demolishing an old building allows
a more profitable business to be built in its place.
With the same thought, Renovation itself also embodies evolutionary
growth theory, which says that growth requires both quantitative growth and
diversification of content. The accelerating pace of change in economic
sectors caused by exogenous variables requires renovation of the building
stock. Endogenous growth factors are represented by a growing and ageing
building stock. As each new generation of building stock comes up for
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renovation, the content of renovation activity becomes increasingly diverse

(misbe2011.fyper.com/proceedings/documents/85.pdf).
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CHAPTER III

RESEARCH METHODOLOGY

This Chapter presents the discussion on the research design, local

study, research instruments, data gathering procedures, respondents of the

study and the statistical tool used.

Research Design

This study employs the descriptive form of research. It described the

impact of renovation on small-medium enterprises in Diffun Public Market.

The profile of the respondents is being described as to their age, sex,

occupation and educational attainment.

Locale of the Study

This research is conducted in the Diffun Public Market.

Sampling Procedure

Purposive or judgment sampling is applied on this study because only

the affected small-medium enterprises of the renovation were taken as

respondents of this study.

Data Gathering Procedures

In the pursuit of this study, researchers seek the approval of the

respondents or the owners of the small-medium enterprises to conduct the

study. After the approval, the researchers administered the questionnaire.

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Tabulation, analysis, and interpretation of data is followed after administering

the questionnaire.

Data Gathering Instrument

The questionnaire consist of two parts; part 1 deals on the profile of the

respondents, part 2 deals with the impact of renovation in small-medium

enterprises in the municipality of Diffun Public Market the questionnaire used,

the Likert scale and range 1-4.

Scoring the Questionnaires

To give interpretation and significance to the data collected, these

numerical values, intervals and qualitative description were used.

Point Scale Qualitative Description

4 - 3.26-4.00 Strongly Agree

3 - 2.51-3.25 Agree

2 - 1.76-2.50 Strongly Disagree

1 - 1.00-1.75 Disagree

Statistical Treatment Data

The following tools were used in interpreting the data collected.

1. Percentage and Frequency. This is used to determine the profile of the

respondents.
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2. Weighted Mean. This statistical tool was used to determine the impacts

of the renovation in terms of the respondents’ income, location,

consumers and expenses.

3. ANOVA. This is to determine the significant deiffrence on the impats of

the renovation when the respondents are based on their type and

years in business.
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CHAPTER IV

PRESENTATION, ANALYSIS AND INTERPRETATION OF DATA

This chapter presents the data gathered as analyzed and interpreted in

response to the problems under investigation. Table forms are availed to

make the presentation clear and comprehensive.

I. Profile of the Respondents

Table 1. Frequency and Percentage Distribution of Respondents by Age

Age Frequency Percent

20 below 2 5.0

21-30 9 22.5

31-40 10 25.0

41-50 12 30.0

50 above 7 17.5
Total 40 100.0

The table presented above shows the frequency distribution and

percentage of the respondents when they are grouped according to their age.

Out of 40 respondents, 2 or 5% of them are 20 years old and below, 9 or

22.5% are in the bracket of ages 21-30 years old, 10 or 25% are ages 31-40,

12 or 30% are 41-50 years old and the ages 50 and above are 7 or 17.5%.
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Table 2. Frequency and Percentage Distribution of Respondents by Sex

Sex Frequency Percent

Male 6 15.0

Female 34 85.0
Total 40 100.0

As shown in Table 2, it revealed that majority of the respondents are

female. Out of 40 respondents, there are 34 or 85% of them while there only a

number of 6 males, 15% of the total.

Table 3. Frequency and Percentage Distribution of Respondents by their

Years in Business

Business Year Frequency Percent

6-10 20 50.0

11-15 11 27.5

16-20 2 5.0

21 and above 7 17.5

Total 40 100.0

The respondents were also identified based on their years in business.

The researchers selected the owners who established their business in the

Diffun Public Market before the renovation (which happened 5 years ago).

Knowing that this study focuses on the impact to the business owners who

experienced the renovation prior and after.

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It can be seen that 20 or 50% of their total number are the owners

whose business years started operating 6 to 10 years ago. 11 or 27.5% are in

the bracket of 11-15 years, 2 or 5% are in the years of 16-20 and finally, a

number of 7 or 17.5% are businesses already on their 21 and above years.

Table 4. Frequency and Percentage Distribution of Respondents by their

Business Type
Business Year Frequency Percent
Food Cart 5 12.5

Vegetable Market 10 25.0

Restaurant 10 25.0

Grocery Store 5 12.5

Meat Stand 10 25.0

Total 40 100.0

The different business types available in the locale of the study as well

as the frequency distribution and the percentage of the respondents when

they are grouped in terms of business distinction are illustrated in Table 4.

Random selection of 5 or 12.5 % from food carts are surveyed, 10 or 25% are

owners from vegetable market, there are 10 or 25% from restaurants, 5 or

12.5% from grocery stores and 10 or 25% are coming from meat stands.

Table 5. Impact of the Renovation to the Income of the Respondents

Mean Description
1. Gains more daily profits. 2.85 Agree

2. Expenses are still being recovered from 3.13 Agree

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the sales.
3. Business is not even suffering from any 2.98 Agree
loss.
4. Monthly revenue is yet meeting the 2.95 Agree
business expectations.
5. Current revenue is greater than the old 2.83 Agree
revenue.
AVERAGE MEAN 2.95 Agree
Legend: 3.26-4.00 Strongly Agree
2.51-3.25 Agree
1.76-2.50 Strongly Disagree
1.00-1.75 Disagree

Table 6. Impact of the Renovation to the Location of the Respondents

Mean Description
1. New location is easily found by 3.15 Agree
customers.
2. Designated area has a 2.78 Agree
big advantage over its competitors.
3. Renovated building has a good built and 2.90 Agree
structure.
4. Spot is accessible to many. 2.80 Agree
5. New location is more desirable than the 2.63 Agree
old one.
AVERAGE MEAN 2.85 Agree

Table 7. Impact of the Renovation to the Consumers of the Respondents

Mean Description
1. Customers know where the business is 3.05 Agree
relocated.
2. Retains old customers 3.18 Agree
3. Gains new customers. 3.08 Agree
4. Acquires both old and new customers. 3.13 Agree
5. Gains more customers than before. 2.95 Agree
AVERAGE MEAN 3.08 Agree

Table 8. Impact of the Renovation to the Expenses of the Respondents

Mean Description
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1. Spent expenditures the time prior 2.85 Agree

the renovation.
2. Affects the business’ productivity in 3.15 Agree
the time during the renovation.
3. Paid compensation expenses after the 3.13 Agree
renovation such as additional tax
incentives.
4. Invested additional finances in re- 3.03 Agree
establishing the business.
5. There is no much difference between 2.78 Agree
today’s expenses and before.
AVERAGE MEAN 2.99 Agree