University of the Philippines-Open University

Los Baños, Laguna, Philippines

Faculty of Management and Development Studies

Developing Micro Enterprises:

The FAB (Freeport Area of Bataan) Food Stalls Project

A Research Study
In Partial Fulfillment of the Course Requirement in
PM 299.2 – Research Methods in Public Administration

Submitted by:
Krizzia Katrina T. Ocampo
2005-38560

Submitted to:
Professor Josefina G. Tayag, DPA
Faculty In-Charge
 ACKNOWLEDGEMENT

I would like to express my profound gratitude and sincere appreciation to the

following persons whose valuable support and assistance contributed immensely to
the accomplishment of this paper:

My Professor, DPA Josefina Tayag, for all the learnings and guidance,

My colleagues and interviewees for all the assistance and for patiently answering my
questions,

My family for all the encouragement,

My loved one for all the advice and for constantly pushing me, and

Most especially, God, Who is the pillar behind my strength for His continuous
guidance.

ii
 ABSTRACT

Micro enterprises are one of the most vulnerable sectors in our society, usually
belonging to the informal economy. Thus, they remain unregulated which makes it
hard for the government to analyze their needs.

Acknowledging their role in our economy as well as in poverty alleviation as part of

what we call the Micro, Small, and Medium Enterprises (MSMEs), several policies
and programs were created and established to encourage their growth and support
them to become successful businesses.

This study aimed at evaluating one Project for micro enterprises which is the FAB
(Freeport Area of Bataan) Food Stalls Project. The researcher examined whether the
Project was successfully implemented and was able to attain its objective of what we
can summarize as developing micron enterprises.

To attain the objective and answer the question of its successful implementation, a
qualitative approach through interviews as well as examination of existing records
and literature, was conducted.

The researcher found out that the FAB Food Stalls Project was indeed able to
convert ambulant vendors to legal business owners and seminars were also given to
them to improve their entrepreneurial skills. Successes of the vendors were also
noted such as financial improvements.

On the other hand, the researcher also learned that the Project implementation
experienced some problems which were currently being addressed. It was also
further observed that micro enterprises in the Freeport face challenges that the
government has to address to support and encourage them in the best possible way.

In conclusion, the FAB Food Stalls Project can be considered a partial success
based on what it has accomplished. The Project was able to turn ambulant vendors
to legal entrepreneurs as well as enhance these entrepreneurs’ skills through the
provision of seminars.
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 TABLE OF CONTENTS

Abstract...................................................................................................................... i
Chapter I: Introduction
Introduction ...................................................................................................... 1
Research Problem ........................................................................................... 2
Tentative Answer ............................................................................................. 2
Objectives ........................................................................................................ 3
Significance of the Study ................................................................................. 3
Scope and Limitations of the Study ................................................................. 4
Chapter II: Situationer
Definition and Characteristics of Micro Enterprises ......................................... 5
Challenges and Limitations of MSMEs ............................................................ 7
Chapter III: Review of Related Literature
MSMEs, Economic Development, and Poverty Alleviation .............................. 9
Government Policies and Programs for MSMEs in Other Countries ............. 10
Government Policies and Programs for MSMEs in the Philippines ............... 11
Chapter IV: Research Framework
Theoretical Framework .................................................................................. 15
Conceptual Framework ................................................................................. 17
Definition of Terms ........................................................................................ 18
Chapter V: Methodology
Data Matrix Set .............................................................................................. 20
Research Design ........................................................................................... 22
Data Gathering .............................................................................................. 22
Sampling Procedures .................................................................................... 23
Data Analysis................................................................................................. 23
Chapter VI: Research Findings
Data from Interview with Key Personnel ........................................................ 24
Background of the Project................................................................... 36
Implementation of the Project ............................................................. 37
Effects of the Project ........................................................................... 38
Possible Improvements to the Project................................................. 39

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 Challenges and Limitations of Micro Enterprises in the Freeport ........ 39
Data from Records of the AFAB .................................................................... 40
Data from Literature....................................................................................... 41
Chapter VII: Summary, Conclusion, and Recommendations
Summary ....................................................................................................... 44
Conclusion ..................................................................................................... 45
Recommendations......................................................................................... 47
Bibliography ........................................................................................................... 49
Appendix
Appendix A: Informed Consent Form ............................................................ 52
Appendix B: Interview Questionnaire ............................................................. 58
Appendix C: Interview Transcripts ................................................................. 59

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 CHAPTER I
INTRODUCTION

The Micro, Small, and Medium Enterprises (MSMEs) play an important role in the
Philippine economy, employing almost a third of the country’s total employment and
accounting for 99.52% of all businesses. This according to a 2018 statistics brief
published by the Philippine Statistics Authority (PSA).

Acknowledging MSMEs’ position in the Philippines, several policies and programs

were put in place to support them. One of which was the Magna Carta for MSMEs or
Republic Act (RA) No. 9501 which amended RA 6977.

It is thus declared the policy of the State, as per said law, to “promote, support,
strengthen and encourage the growth and development of MSMEs in all productive
sectors of the economy.” With this principle, the State recognizes “the specific needs
of the MSMEs and shall undertake to promote entrepreneurship, support
entrepreneurs, encourage the establishment of MSMEs and ensure their continuing
viability and growth.”

Another is the MSME Development Plan 2017-2022. According to Executive Order

No. 50 which approved the plan, it “shall serve as the blueprint for integration and
collaboration of relevant government and private sector institutions for MSME
development.”

However, although policies are in place and MSMEs are already given importance in
the country, there are still businesses which belong to the informal economy. These
businesses “owned by poor, marginalized groups who depend on them as alternative
sources of income for basic survival.” (Akers, et. al., 2004 p. 45) remain unregistered
and unregulated. These businesses include ambulant vendors classified as micro
enterprises and defined as those vendors of goods or services without permanent
stalls or shops, moves from place to place, and are also referred to as street
vendors.

1
In the case of the Freeport Area of Bataan (FAB), ambulant vendors continue to
flourish. Brought about by the growth of businesses and increase in employment,
especially factory workers, in the area, the prevalence of ambulant vendors
increased in recent years.

Numerous reports from legal business establishments or those with appropriate

permits were received by the Authority of the Freeport Area of Bataan (AFAB) or the
Authority managing and operating the FAB. Although all reports were acted upon
accordingly, these vendors kept coming back whenever security officers are no
longer present and continued to become a recurring problem.

With the aim of encouraging the development of micro enterprises in this case and at
the same time addressing the difficulty at hand, the Authority thought of a way to
develop these vendors into legal business owners. After careful consideration and
planning, a partnership between the AFAB and a cooperative was established, and
the FAB Food Stalls Project begun.

Research Problem

Was the FAB Food Stalls Project successfully implemented? Was it able to reach its
objective of developing micro enterprises – converting the ambulant vendors to
legitimate legal business entities in the FAB as well as enhancing business owners’
entrepreneurial skills and capabilities?

Tentative Answer

At a certain percentage, the implementation of the FAB Food Stalls Project was
successful. However, it cannot be claimed that it is 100% successful. Although it
indeed was able to develop micro enterprises and convert ambulant vendors to legal
business owners, there is still room for improvement. The researcher believes that
there are still problems and issues that need to be ironed out if we look at the
implementation phase before we can call the Project a success.

2
Objectives

General Objectives

1. To analyze the current status of the Freeport Area of Bataan Food Stalls
Project – how it is currently being implemented and whether it was successful
in converting the ambulant vendors to legitimate legal business entities in the
FAB as well as enhancing their entrepreneurial skills and capabilities.

2. To discuss the role of encouraging and supporting microenterprises in the

Philippines in general, to see the context of the FAB Food Stall Project and
how the same contributes to the community, as a whole.

Specific Objectives

1. To discuss a situationer report of micro enterprises established in the

Freeport, including those that are part of the Project, with the following
information:
a. their needs, their benefits, problems, and issues encountered, if any
b. their achievements
2. To identify and examine the problems, if any, encountered in the
implementation of the Project.
3. To give recommendations on how to better improve the implementation of the
Project and other possible assistance to micro enterprises in the Freeport.
4. To assess whether the Project may be replicated in other areas.

Significance of the Study

The micro enterprises are part of the most vulnerable sector of the economy. Being
small, they are exposed to a lot of factors that deter their success. As such,
endeavors like the FAB Food Stalls Project provide additional support and
assistance to them in overcoming these challenges. Given the importance of such
Project, it is then necessary to conduct an evaluation of it.

3
The result of this study will be of help to the Project implementers in seeing the
effectiveness of this effort in providing for and assisting micro enterprises. This will
aid them in further analyzing what needs to be changed or improved in terms of
Project implementation. On a broader sense, this may be of help to the government
in coming up with projects and programs for micro enterprises such as the said
Project.

Scope and Limitations of the Study

The study focused on the evaluation of the FAB Food Stalls Project while also
examining the needs of micro enterprises.

Given some time constraints and unforeseen circumstances, the study only dealt
with the evaluation of the Project using existing records, literature and viewpoint of
the Agency and the Cooperative managing and implementing the Project.

4
 CHAPTER II
SITUATIONER

In this chapter, an overview of micro enterprises was discussed. As of this date, no

exact definition of MSMEs or micro enterprises to be specific have been universally
accepted. We therefore look at the characteristics of the enterprise of which may be
different depending on the country it is located. Further, the challenges and
limitations MSMEs face were also examined.

Definition and Characteristics of Micro Enterprises

We often hear that micro enterprises refer to small businesses but there is also the
term micro, small, and medium enterprises which seem to differentiate the micro and
small. Up to this day, there still lacks a universally accepted or exact definition of the
term with it usually varying depending on the place or context it will be used. To shed
light, we look into their characteristics.

Various definitions of micro enterprises can be seen if we conduct some searches.

These enterprises are commonly owned by micro entrepreneurs who choose to
create their own employment out of poverty with minimal employee and capital
investment. In the Philippines, based on the definition provided by the PSA, these
enterprises are those who have 1-9 employees and on the other hand an asset of up
to P3, 000,000.00 according to the Micro, Small, and Medium Enterprise
Development Council. (Philippine Statistics Authority, 2018; Magna Carta for
MSMEs, 2008)

In general, this division typically covers owner operated businesses or in other cases
includes small family operations with two to three members of the family involved
which requires low level set of skills. In cases of growth in the operations, these
enterprises usually hire additional workers which include members of the family –
children, brothers, sisters, or cousins, or friends, since they are easier to manage
and monitor. If we look further in other aspects, in terms of market, the common
customers are individuals who are comprised of neighbors, friends, and people
within the immediate community where the owner belongs.
5
Micro enterprises, in addition, mostly belong to the informal sector and as such may
disregard regulations and taxes as they have no registration with the government
and thus remain unregulated. With such characteristics resulting to having no
records, it is most often difficult to analyze and understand their needs as well as the
challenges the face in terms of business development. And due to the very nature of
informality, most of the jobs created are not fully covered and does not include social
protection systems and other similar benefits provided by the government.

Aside from the abovementioned characteristics, micro enterprises may also be

described depending on the place or country they are operating. In. With this,
notable difference can be seen. From the existing literatures, most of what is noted
depends on the type of country it is located – whether rich or poor or what we refer to
as first world or third world, respectively.

In first world countries micro enterprises are mostly engaged in non-traded services
which include childcare, retail sales, transport, or home, car, or office maintenance,
among others. As Spalter-Roth, Hartmann, and Shaw (1993) stated,
“Entrepreneurship requires all the effort and skill of a wage job, but it has higher
risks. People able to be self-employed can usually earn more in wage jobs.” This
may be one of the reasons why micro enterprises are more common in third world
countries since wage jobs are more abundant in first worlds (Schreiner, 2001).

In the case of third world countries, the sector is involved in producing services and
manufacturing goods. Majority of which are involved in small-scale farming while a
large portion are also engaged in selling small items or foods from the sidewalk or
from a small store which are usually within their residences. With this type of trades,
owners of micro enterprises in third world countries are required to only have a few
necessary skills and excel at limited or minimal tasks. (Harvie, 2003; Schreiner,
2001).

6
Challenges and Limitations of MSMEs

Although the importance of MSMEs is greatly acknowledged, this sector constantly

faces substantive challenges as well as limitations which results to difficulties in
sustaining the business and making it grow. Below are some of these as cited by
Nema and Verna (2019) and Schreiner (2001).

1. Lack of Coherent Policy and Regulatory Frameworks

For small entrepreneurs, technical regulations, compliance with Environment,
Health and Safety (EHS) standards, labor laws and regulations, as well as
taxation and financial reporting requirements can be burdensome and costly.
Moreover, lack of transparency and existence of bureaucratic systems can
interfere with the growth of MSMEs. If coherent policy and regulatory
frameworks are put in place, an environment conducive for MSMEs can help
promote their development.

2. Access to Financing
This is probably the most common problem encountered by MSMEs. As
capital is important in starting up a business and sustaining it in the long run,
and since this is what poor families lack, the existence of financing institutions
and their capability to offer services to the marginalized sector is highly
important. However, they find it difficult dealing with formal financial
institutions due to insufficient assets to use as collateral which results to high
transaction costs or interests since they are categorized as high-risk
borrowers.

3. Access to Basic Infrastructure

Access to the necessary infrastructure such as electricity supply, water
supply, road networks, as well as information and communication technology,
internet in particular, is important to MSMEs. Given their limited financial
capabilities, if the presence of good infrastructure cannot be seen, this may
pose an extra layer of problem that they need to overcome. For example, lack
of good road networks may cause higher value of goods sold compared to
those with access to a good one since transportation may become costly.
7
 4. Lack of Skills and Opportunities for Skills Development
As entrepreneurs, the existence of certain entrepreneurial skills and
competencies is crucial for the business to succeed in the long term. One of
the main abilities of successful business owners is their ability to recognize
and seize income generating opportunities. It is also significant to note the
ability to create relationships with people as well as good communication skills
to develop long-term customers. However, since most of these owners are
poor and does not have enough money for trainings, access to possible skills
development remains a challenge.

5. Imperfect Market Information

Since MSMEs have limited access to a lot of resources, such results to
incomplete, inaccurate, or imperfect data at hand. Such information failure
may come from possible misinterpretation on the correct costs or benefits of a
product or inaccurate or misleading information from outside sources. This in
turn causes problems in terms of rational decision making compared to
instances where they have full information. This may also be the root of
exploitation of sellers or entrepreneurs especially in cases where ignorance is
present.

As of this date, no exact definition of MSMEs or micro enterprises to be specific, are

universally accepted. We therefore looked at the characteristics of the enterprise of
which may be different depending on the country it is located. Despite this, we saw a
common characteristic which was that micro enterprises usually belong to the
informal sector and were usually either owner operated, or family operated involving
a small number of the family.

MSMEs up to now remains vulnerable and continues to face challenges and

limitations which hinders their growth and success. These include bureaucratic
systems, lack of access to financing, and lack of capabilities for entrepreneurship,
among others.

8
 CHAPTER III
REVIEW OF RELATED LITERATURE

The review of related literature first looked into the importance of MSMEs in
economic development and poverty alleviation. Then, acknowledging this, the review
examined the policies and programs in place for the sector in other countries as well
as of those in the Philippines in order to support them and help them grow.

MSMEs, Economic Development, and Poverty Alleviation

MSMEs offer income and employment opportunities for a significant portion of the
population – whether it be in rural or urban areas and provide public goods and
services. As such, they play an important role in economic growth as well as in
alleviating poverty within a country. This significant role is widely recognized, both by
developed and developing countries. (Gomez, 2008; Harvie, 2003)

Even in the earlier years, MSMEs have already been widely acknowledged as
valuable contributors to the economy by many countries. According to Halim, et al.
(2017), “The contribution of [these enterprises] to economic development has been
recognized since the late 1940s with the establishment of government agencies
responsible for this sector (1948 in Japan, 1953 in the U.S.) and the development of
national policies which offered different tax treatment, subsidies and guaranteed
loans (OECD, 2008).” Further, a positive relationship between the development of
the sector in recent years and growth are evident (Leegwater & Shaw, 2008).
Statistics show that MSMEs are major employers in the economy and are important
players in the value chains.

When we talk of poverty, central to the problem is lack of employment which mostly
roots to unavailability of employment opportunities. As we know, employment is the
key source for people to produce what they need such as food and income to be
able to pay for the desired goods or services.

In the absence of available employment, people tend to look for alternative sources
of income – one of which is to create or to put up their own businesses. However, for
9
the poor, lack of capital and education is usually a hindrance. These people usually
do start micro businesses such as selling foods on the streets or within their homes.
In other cases, specifically those who live in rural areas, most are involved in
agricultural or similar activities as either laborers or small-scale farmers. Such type of
businesses requires small investment as well as low skill sets which greatly
complements those belonging in the disadvantaged portion of the community.
(Harvie, 2003; Schreiner, 2001)

The role of MSMEs in alleviating poverty and providing employment cannot be

overemphasized in the work of Harvie as seen above. This in turn multiplies to other
positive effects in one country as well as its citizens. With the creation of job
opportunities, incomes and purchasing power are improved. Further, this also
contributes to lowering the overall cost of business. In the long run, it also
contributes to increasing investments in education and health within the family.

Such contributions of MSMEs, as observed in existing literatures, gives light to how

important it is to create policies, programs, and projects for them. It also shows how
such needs to be evaluated as to effectivity in catering to their needs like what this
study aimed at.

Government Policies and Programs for MSMEs in Other Countries

Governments in many countries around the world, acknowledging the importance of

MSMEs, have put in place an array of policies and programs which specifically target
the sector.

One of which involves the member countries of the Organization for Economic Co-
operation and Development (OECD). The OECD member countries are part of the
OECD Industry Committee Working Party on Small and Medium Sized Enterprises
which convenes twice a year to discuss SME performance and policies.

In the United Kingdom, for example, during the economic crisis, the government
promoted small businesses and urged them to register with the government on-line
procurement portal for them to be given opportunities in government procurements.
10
Similarly, in Mexico, the government supported MSMEs through procurement
policies. Through the Mexican stimulus package government offices were required to
acquire at least 20 percent of purchases form small and medium businesses.
(Vandenberg, 2009)

Support for MSMEs is also evident in Asia. The ASEAN Economic Community
(AEC), which comprises countries in Southeast Asia, has a goal “to transform
ASEAN into a single market and production base, a highly competitive economic
region, a region of economic development, and a region fully integrated into the
global economy” (Bano and Tabbada, 2015). Under one of AEC’s pillar which is
“Equitable Economic Development,” emphasis on the growth of MSMEs was given.
The ASEAN Strategic Action Plan for SME Development 2016-2025 or SAP SMED
2025 was thus created. This Action Plan’s vision is to have “Globally Competitive
and Innovative MSMEs” which are integrated with the AEC and supporting inclusive
development by 2025.

In India, there is The New Industrial Policy of 1999 which was “aimed to make a
friendly situation for the small industrial units to adapt to the rising difficulties of
globalization.” In this connection, a different Ministry of Small Industrial Units and
Agro and Rural Industries was created. The country has also provided different
schemes for financing MSMEs such as the Laghu Udyami Credit Card Scheme
which involves the provision of credit-friendly facilities to small ventures and credit
guarantee fund trust scheme which ensure free credit facility contacted out by
qualified loaning institutions to new and existing MSMEs. (SMEVenture, 2019)

Government Policies and Programs for MSMEs in the Philippines

Recognizing their role in the economy, the government similarly has come up with a
range of policies to help assist the sector. Key policies include the Magna Carta for
MSMEs Act, Barangay Micro Business Enterprises Act, Go Negosyo Act, and the
Youth Entrepreneurship Act (MSME Developmant Plan 2017-2022, 2018).

The Magna Carta for MSMEs Act or RA No. 9501 which amended RA 6977, or the
Magna Carta for Small Enterprises is already in place. In RA 9501, the potential of
11
MSMEs for more employment generation and economic growth which in turn can
help in providing “a self-sufficient industrial foundation for the country,” was
recognized. And it was thus declared the policy of the State to “promote, support,
strengthen and encourage the growth and development of MSMEs in all productive
sectors of the economy.”

Barangay Micro Business Enterprises Act of 2002 or RA No. 9178 (as amended by
RA No. 10644), an act promoting the establishment of Barangay Micro Business
Enterprises (BMBEs), allocating incentives, benefits, and other purposes, was also
passed into law. The aim of this is to contribute to the enhancement of the business
environment of micro enterprises.

There is also the Go Negosyo Act (RA No. 10644) which is an “Act promoting job
generation and inclusive growth through the development of micro, small, and
medium enterprises, mandating the establishment of Negosyo Centers in all cities,
municipalities, and provinces, which shall be responsible for promoting ease of doing
business and facilitating access to services for MSMEs.”

Another policy is the Youth Entrepreneurship Act (RA No. 10679), an “Act promoting
entrepreneurship and financial education among Filipino youth” through inclusion of
such learnings in all levels of education nationwide.

Aside from the aforementioned laws, another step of the government in supporting
MSMEs is the formulation of the MSME Development Plan 2017-2022. This plan is
intended to be “the blueprint for integration and collaboration of relevant government
and private sector institutions for MSME development.” Guided by its vision to create
“more globally competitive MSMEs that are regionally integrated, resilient,
sustainable, and innovative thereby performing as key drivers of inclusive Philippine
economic growth,” the Plan have three focus areas as specified below:

1. Business Environment
This area involves the improvement of business climate through
standardization and harmonization of MSME-related rules and regulations. It

12
 also puts importance to the improvement of access to finance through
streamlining and simplification of loan processes for MSMEs.

2. Business Capacity
Enhancement of management and labor capacities is a part of this area. The
strategy includes provision of mentoring and training to improve MSME
knowledge and enhance labor capacities through human resource
development. Another subsection is the improvement of access to technology
and innovation through creation of linkages between MSMEs and large
enterprises as well as provision of financing programs to support procurement
of necessary machinery and equipment.

3. Business Opportunities
Improvement of access to market is also considered significant. Thus, the
strengthening of value- and supply-chain linkages is necessary. Likewise,
availability of accurate market information as well as market analysis is also
included.

The above stated Plan will be of great help in further analyzing the needs and
limitations of MSMEs in the Philippines as what the researcher will also be
conducting in this research.

In addition to the above, somewhat similar to what Vanderberg (2009) stated

regarding the United Kingdom, in the Philippines government agencies are assisting
small businesses to register with the Philippine Government Electronic Procurement
System so they may be given a chance to participate in government procurements.

Although several programs and policies were already in place in the country, the
mere existence of such is not enough; regular evaluation is necessary to see
whether it needs fine tuning or improvements or whether it has to be changed
completely.

13
Summary

In the review of related literature, it was highly evident that MSMEs play a significant
role in economic development as well as in poverty alleviation through provision of
employment which in turn increases income sources and enhances buying power of
the people.

Given their importance and the challenges they face, government policies are put in
place across the world as well as in the Philippines. These policies are established to
help them overcome the present limitations and hindrances to their growth and in the
long run help MSMEs grow and succeed.

The literature stated a lot about the MSME sector and how government policies were
put in place to assist them. There is little to be seen, however, as to how such
policies were successful in reaching its objectives and assisting the MSMEs.
Considering that there are already existing policies and projects for MSMEs in our
country but little on the evaluation of it, what this research aimed to do is to give an
evaluation of a project intended for micro enterprises. It also intended to add
information on a project for micro enterprises that a government agency is
implementing and to possibly give the government ideas for projects for the micro
enterprises sector. It can also add as an example showing what are good practices
in project implementation and what things are needed to be avoided to ensure that
little problems are encountered.

14
 CHAPTER IV
RESEARCH FRAMEWORK

Theoretical Framework

What is evaluation? Papaconstantinou and Polt, in their review of policy evaluation in

innovation and technology in 1997 (as cited by Storey, et al, 2004) stated that:

"Evaluation refers to a process that seeks to determine as

systematically and objectively as possible the relevance, efficiency and
effect of an activity in terms of its objectives, including the analysis of
the implementation and administrative management of such activities".

According to Storey, et al (2004), based on the above definition certain key words or
statements are worth emphasizing. First is the word “process”. In any evaluation,
whether it be for a project, program, or policy, we must keep in mind that IT is not a
one-time activity which is done after something has concluded. It must be noted that
it is “an integral element of a process of improved policy or service delivery.”

Secondly is the phrase “as systematically and objectively as possible.” Although we

say that evaluation is not just done by the end of the program, it is traditionally
undertaken during that time wherein the existence of a rooted interest after a
program has been operational for quite a while is highly likely. With this, it is thus the
task of the program evaluator to be as systematic and objective as possible while
not neglecting the people which are part of the program.

Lastly, the third phrase in Papaconstantinou and Polt’s definition we highlight is “the
relevance, efficiency and effect of an activity in terms of its objectives”. It is assumed
that a certain policy or program have clear objectives to start with. However, more
often than not, objectives identified are often too general which may result to an
array of possible measures of success. These numbers of measure may then cause
those involved to pick measures which results will favor positively to what they would
want to happen to the policy or program being evaluated.

15
With the above context of evaluation at hand, many types of approaches to the
assessment of the policy or program impact have been used. These approaches
may be characterized within the “Six Steps to Heaven” framework by Storey (2000)
which is shown below:

Table 1. Six Steps to Heaven: Methods for Assessing the Impact of SME Policy
Monitoring
Step I Take up of schemes
Step II Recipients Opinions
Step III Recipients’ views of the difference made by the
Assistance
Evaluation
Step IV Comparison of the Performance of ‘Assisted’ with ‘Typical’ firms
Step V Comparison with ‘Match’ firms
Step VI Taking account of selection bias

This approach sees that there are stages in the assessment process – Step I being
the least sophisticated and Step VI being the most sophisticated. Such
sophistication may be referred to as the confidence the policy or program maker has
while all other factors are held constant.

Step I include the process of characterizing the participants of the program with
questions such as how many participated. Such information does not aide in
assessing the impact of the program. This is where Step II comes in wherein the
recipients of the program are asked for their views. However, this step is not
enough. There is Step III which focus is still obtaining answers from beneficiaries but
on a deeper level such as asking what would have happened if they were not part of
the program. Since the first three steps still includes some issues and concerns, we
proceed to the next three steps.

The evaluation part starts with Step IV which entails the comparison of program
participants’ performance to those who did not take part. However, since program
participants and non-participants may differ base on location, sector, and other
factors, we proceed with looking for businesses similar to those part of the program
for better comparison which is Step V. Likewise, there are still concerns with Step V.
Thus, we go into Step VI which tries to remove selection bias from the picture using
statistical techniques and random panels.

16
The above theoretical framework will be used to proceed with this paper to properly
address the evaluation of the Freeport Area of Bataan Food Stalls Project.

Conceptual Framework

Figure 1. Conceptual Framework

In this research paper, what we aimed to establish is whether the FAB Food Stall
Project was successfully implemented. The desired effects are that ambulant
vendors be converted to food stall lessees and that they are educated of the rules
and regulations in operating their stalls and they are aware of the business
registration processes they need to comply with. To be able to examine these effects
and the resulting outcomes like decrease in ambulant vendors within the Freeport,
enhanced entrepreneurial skills, and improve well-being, we need to look into the
necessary contributory factors. First and foremost is the area of concern which
resulted to the creation of the Project which is the count or census of reported
ambulant vendors. Second is the provision of trainings for these vendors to be what
we aimed them to be – food stall lessees with the necessary skills. In addition, it is
likewise essential to examine the existence of policies, information dissemination,
and monitoring.

17
It is of importance to understand and evaluate the items as stated above as they are
key factors in the evaluation of the Project we aim to accomplish. We must be able to
assess the presence, most especially of the contributing factors, to better understand
the implementation of the Project and try to dissect whether there was proper
planning conducted, and if the necessary steps have been taken prior, in order to
attain our desired objectives and outcomes which include decreased number of
ambulant vendors, enhancement of vendors entrepreneurial skills and capabilities,
and improved well-being of the general public due to the Project.

Definition of Terms

A. Ambulant Vendors – in the Philippines, they are either itinerant or semi-static.

Itinerant vendors are those who go around shouting their wares while semi-static
ones are those who are semi-fixed positions but may move about as the situation
necessitates. (Galace, J. N. (2000). Ambulant Vendors: Economic Issues and
Concerns. LEAPS: Miriam College Faculty Research Journal, 19(1). Retrieved
from http://ejournals.ph/form/cite.php?id=487)

B. Economic Growth - an increase in the the production of economic goods and

services, compared from one period of time to another. It can be measured in
nominal or real (adjusted for inflation) terms. Traditionally, aggregate economic
growth is measured in terms of gross national product (GNP) or gross domestic
product (GDP), although alternative metrics are sometimes used. (Storey, P. et al
(2004). Evaluation of SME Policies and Programmes. Retrieved from:
http://www.oecd.org/cfe/smes/31919294.pdf)

C. Evaluation – process that seeks to determine as systematically and objectively as

possible the relevance, efficiency and effect of an activity in terms of its
objectives, including the analysis of the implementation and administrative
management of such activities.
(https://www.investopedia.com/terms/e/economicgrowth.asp)

D. Legal business entity - an association, corporation, partnership, proprietorship,

trust, or individual that has legal standing in the eyes of law. A legal entity has

18
 legal capacity to enter into agreements or contracts, assume obligations, incur
and pay debts, sue and be sued in its own right, and to be held responsible for its
actions. (http://www.businessdictionary.com/definition/legal-entity.html)

E. Micro Enterprises – businesses which have 9 employees and below and an asset
of up to P3, 000,000.00. (Philippine Statistics Authority (2018). Philippine MSME
Statistics in Brief Retrieved from: https://dtiwebfiles.s3-ap-southeast-
1.amazonaws.com/elibrary/Growing+a+Business/MSME+Statistics/2018/2018+P
hilippine+MSME +Statistics+in+Brief.pdf; Magna Carta of MSMEs, 2008)

19
 CHAPTER V
METHODOLOGY

Table 2. Data Matrix Set

Sources of Analysis of Ethical

Data Needed Remarks
Data Data aspects
Status of Records of the Content Acknowled To verify
ambulant Authority analysis ge sources changes in the
vendors prior to managing the status of
and after the Freeport Statistical Informed ambulant
FAB Food Stall data consent vendors prior to
Project Interview of key analysis form and after the
personnel – two implementation
from the Agency Looking for of the Project
and one from themes and
the Cooperative subthemes
Challenges Interview of two Content Acknowled To see whether
faced by key personnel analysis ge sources the Project was
microenterprise from the Agency able to address
s in the Looking for Informed the needs of
Philippines in Existing themes and consent microenterprises
general and literature and subthemes form
most records
specifically in
the Freeport
Skills and Interview of two Content Acknowled To see whether
competencies key personnel analysis ge sources the Project was
needed by from the Agency able to address
microentrepren the needs of
eurs Existing microenterprises
literature
Success and Interview with Content Informed To analyze the
failures of the two key analysis consent implementation
FAB Food personnel from form of the Project
Stalls Project in the Agency and Looking for and provide
converting one from the themes and recommendation
ambulant Cooperative subthemes s as needed.
vendors to
legitimate
business
owners
Success and Interview with Content Informed To analyze the
failures of the two key analysis consent implementation
FAB Food personnel from form of the Project
Stalls Project in the Agency and Looking for and provide
enhancing one from the themes and recommendation
business Cooperative subthemes s as needed.

20
 owners’
entrepreneurial
skills and
capabilities

Given that this paper is an evaluation of whether the FAB Food Stalls Project was
successfully implemented and as such was able to reach its objective of developing
microenterprises – transforming ambulant vendors to legal business owners and
enhancing their entrepreneurial skills and capabilities, it was necessary first and
foremost to look at the status of the said vendors prior to the implementation of the
project. Content analysis was conducted on available records of the Authority of the
Freeport Area of Bataan (AFAB), the agency currently managing the Freeport.

In addition, interviews with two key personnel of the agency which are involved in the
project implementation was done. Consent from the interviewees was obtained
through Informed Consent Form (ICF) to ensure that they willingly participated on the
given study. Attached in Appendix B is a copy of the ICF for reference. The ICF
includes background on the research, why the interviewee was selected, duration,
procedures to be undertaken, benefits, observance of confidentiality, right to refuse
or withdraw.

To further delve into the development of microenterprises, the researcher looked at

and analyzed the key information pertaining to the matter. These included the
challenges faced by microenterprises in general and then those faced by businesses
of the same category inside the Freeport. It also examined the entrepreneurial skills
and competencies needed to become successful business owners. The above
analysis was done by gathering information through available literatures of which
were properly cited; and through interviews on the matter of which corresponding
permissions were asked.

Lastly, the researcher looked at the actual implementation of the Project by

analyzing the positive and negative points, and strengths and weaknesses. This was
accomplished through the conduct of interviews with key personnel involved in the
implementation of the project. Aside from the two key personnel of the AFAB which
were interviewed, one personnel from Dynamic Multipurpose Cooperative (DMPC)

21
involved in project creation and implementation was likewise interviewed. Attached in
this paper are the interview questions for reference.

Research Design

This research used the mixed method of utilizing both qualitative and quantitative
approaches to research. To give the researcher a better perspective on how the
Project under evaluation was conducted, including its impacts or outcomes, several
methods was used. This involved analysis of existing records, and interviews with
key personnel to have a better understanding on the premises of the Project, the
basis for implementation, and the actual result.

Data Gathering

Data gathering for this paper mainly involved interviews – key personnel pertaining
to the Project was interviewed. To gain A better understanding on how the project
came about and how it is being implemented as well as perceptions on its impacts,
personnel of the Authority in-charge with the implementation and monitoring of the
Project was interviewed. Likewise, since a Cooperative is also part of the Project,
personnel from the partner Cooperative was also interviewed.

Due to some unforeseen circumstances, one on one interviews cannot be

performed. Thus, an email interview was instead executed. The ICF and the
interview questionnaire were both sent to the participants for them to answer.
Replies were likewise sent via email and for further queries of the researcher an
email conversation was also done.

Further, existing records about the Project was utilized to analyze certain factors
such as number of ambulant vendors prior to the Project and trainings that were
already provided to the Food Stall Lessees. Related literature was also evaluated
and examined to aid in analysis.

Since face to face interviews were not conducted, evaluation and observance of
visual cues, tone, and possible hesitation in answering the questions presented were
22
not done. The aspect of including additional interpretation as to their answer vis-à-vis
their body language was not possible; thus, all responses were interpreted at face
value.

Sampling Procedures

A type of non-probability sampling, which is purposive sampling, was used to select

the interviewees. This was done to ensure that pertinent people will be included. Not
just any employee but an employee of the Authority and the Cooperative directly
involved in Project formulation and implementation needs to be interviewed and thus
this criterion was used in selecting the interviewee.

Data Analysis

Review and content analysis of existing related literatures to assess the needs of,
and challenges faced by microenterprises vis-à-vis those that were provided by the
Project was done. Content analysis was also performed on information gathered
through records and interviews.

23
 CHAPTER VI
RESEARCH FINDINGS

Data from Interview with Key Personnel

Data gathered in this section was a result of the email interview conducted with two
key personnel from the AFAB and one key personnel from DMPC, selected based
on their role on the Project. The interviewees includeD: 1. Mr. Alejandro Sugatain,
Officer In-Charge of the AFAB Registration Division which directly handles the
implementation of the Project, 2. Ms. Maria Jennifer Blanco, Enterprise Services
Officer II of the AFAB who is currently in-charge of monitoring and evaluating the
beneficiaries, and 3. Ms. Jocelyn Obdin, General Manager of DMPC who was part of
the Project from the very start and is the one in-charge of overseeing the Project
from the Cooperative’s side.

Questions pertaining to the background of the Project, their views on the

implementation of the Project – its success and failures, and recommendations for
improvement were asked to gain understanding of the Project. Further questions
were also asked on their opinions pertaining to micro enterprises. Informed Consent
Forms were sent via email together with the questionnaires which were returned with
e-signature or acknowledgement.

Table 3. Interview with Mr. Alejandro Sugatain

CONDENSED
THEMES/
QUOTES/ RAW DATA MEANING/ REMARKS
SUBTHEMES
DATA
“It started 2016 when the Started from the Start of the
AFAB, through its conduct of Project, Census
Community Services census of of ambulant
Department (CSD) ambulant vendors
conducted a census of vendors by the
the ambulant vendors Community
doing business within the Services
FAB’s industrial area.” Department
“A cooperative proposed Proposal from a Start of the
that they lease a vacant cooperative to Project, Trainings
land near the previous lease a land and for
location of the ambulant put up stalls and entrepreneurial

24
vendors, produce uniform give assistance skills,
stalls for the ambulant for trainings and Legitimization of
vendors … …assistance entrepreneurial ambulant vendors
to trainings and skills and help
entrepreneurial skills, and them become
help the ambulant legitimate
vendors become entrepreneurs in
legitimate entrepreneurs the FAB
operating businesses
within the FAB.”
“The objective of the Organize Objective of the
project is to organize ambulant Project,
ambulant vendors to one vendors into Legitimization of
place, and for them to one place for ambulant vendors
become legitimate them to become
entrepreneurs with valid legitimate
licenses from AFAB and entrepreneurs
other government with valid
agencies.” permits
“For a while, after the Ambulant Lessened There are still a
commencement of the vendors were ambulant number of
Project, there were no not cited for a vendors, Re- ambulant
cited ambulant vendors. while after the emergence of vendors which
However, given that there Project but later ambulant vendors means the
are still so many workers they emerged existing stalls
needing food in various again due to the are not enough
location not near the FAB need for food of
FSAs, other ambulant many workers in
vendors started selling various
food there illegally during locations
workers’ break times.”
“With the new Policy and A cooperative Implementation of The MOA was
Guidelines, the AFAB will will be allowed the Project the guiding
allow a cooperative to to lease a document of
lease a designated FAB designated FSA the Project.
FSA, and there will be a and a MOA will
Memorandum of be signed
Agreement (MOA) between the
between the two AFAB and the
specifying each cooperative
responsibilities to attain
the rationale and
objectives of the creation
of the FAB FSAs.”
“It is still a partial Partial success Implementation of Other
success. Since there are since there are the Project, Lack unqualified
still ambulant vendors still ambulant of policy vendors were
doing business in the vendors within accommodated
FAB. Also, previously, the FAB; due to lack of
because of the lack of Previously, policy

25
policy, other vendors (not there was a lack
previously ambulant and of policy which
with better capital) were caused
able to lease some of the unqualified
food stalls resulting to vendors to be
uneven market able to lease
competition causing some food stalls
chaos within their which resulted
respective FAB FSA.”” to uneven
market
competition
“One of the major Vendors were Legitimization of Increase in
success of this Project is legitimized and ambulant financial inflow
that we are able to experienced vendors, as an effect of
legitimize the vendors’ increase in Effects to the the project is a
entrepreneurs. There financial inflow Vendors, good point
have been reports that because of the Financial
they experienced steady business improvement
increase in the financial brought about
inflow in their family by the food stall
because of their steady
business in the given
FAB FSA.”
“…seminars and trainings Better Good points Seminars and
such as but not limited to entrepreneurial during trainings
Basic Accounting, Book skills were seen implementation, greatly helped
Keeping, Tax Filing, after the Project Effects to the the vendors
Marketing, and Inventory started Vendors, Better attain new
Checking provided by the entrepreneurial skills
AFAB, the cooperative, skills
and other partner offices I
believe that they have
better entrepreneurial
skills than before the
Project has started.”
“…the Project was There was no Implementation of They only used
implemented only clear Policy and the Project, Lack a MOA and not
through a MOA and not Guidelines for of Policy a policy
under a clear Policy and the Project
Guidelines.”
“…lack of monitoring of The monitoring Implementation of There are still a
the fulfillment of the of the fulfillment the Project, Lack lot that needs
provisions in the MOA of MOA of monitoring, to be
and lack of site inspection provisions and Lack of personnel addressed in
due to lack of personnel site inspection is the
of FAB Enterprise lacking due to implementation
Department-Registration lack of of the Project
Division (FED-RD).” personnel of
FED-RD

26
“…new ambulant vendors There is lack of Implementation of There are still a
are operating within the security the Project, Lack lot that needs
FAB because of lack of personnel, of monitoring, to be
security personnel, absence of Lack of addressed in
absence of fences within fences and no- personnel, Lack the
the whole of FAB, and teeth sanctions of Policy implementation
the no-teeth sanctions of of the policy for of the Project
the policy regarding ambulant
(illegal) ambulant vendors thus
vendors.” new ones
continue to
operate
“…with regards to the There was no Implementation of Lack of Policy
succession of the provision the Project, Lack is still a major
business and leased food covering of Policy concern
stall once that the succession of
awardee has died or has businesses
given up. Because there once awardee
was no provision before has died or
covering that, disputes given up,
among the family disputes among
member of the deceased family members
and other interested of the previous
parties became a regular awardee and
in the office.” other interested
parties was
regularly seen
“Consistent monitoring of Monitoring of Improvements on
FED-RD to uphold the FED-RD to the Project,
responsibilities of the uphold coop’s Enhanced
cooperative, as specified responsibilities monitoring
in the MOA; to ensure the under the MOA;
compliance of the Ensure
vendors as Business compliance of
Licensees; and to vendors and
safeguard that the Policy ensure that
and Guidelines are being policy and
followed.” guidelines are
being followed
“Greater sanctions for Greater Improvements on
ambulant vendors sanctions for the Project, Lack
operating businesses in vendors of Policy
the FAB without valid operating
Business Licenses will without
help as well.” Business
Licenses

27
“Identification of areas to Identify Improvements on Additional
be designated as FAB additional FSAs the Project, FSAs will not
FSAs to accommodate all to cater to the Additional Food only help
FAB workers with clean, needs of FAB Stall Areas ambulant
safe, and not expensive workers for vendors but
food. (There are clean, safe, and also workers
ambulant vendors inexpensive within the
because there are food Freeport
customers and yet there
is no nearby food stall…)”
“There are success Success stories Effects to the
stories that the FAB FSA are present with Vendors
was able to create. one vendor
Actually, one of them being able to
became a member of the expand outside
cooperative and was able the FAB through
to loan a capital for the loan from the
expansion of their cooperative
business in other areas
outside FAB.”
“…I think (this is not an The Project can Project replication
official answer) it has to be replicated by
be replicated by a a cooperative
cooperative and the and an LGU on
respective LGU since the expansion areas
direction is that AFAB will of the FAB
only register Businesses
qualified for Incentives in
the FAB Expansion
Areas…”
“There are some that Mismanagemen Challenges and
were not able to manage t of finances Limitations of
their finances well and resulted to non- micro enterprises,
resulted to non-payment payment of Mismanagement
of their lease.” lease of finances
“There are some that lack Some lack Challenges and There are still
marketing strategies and marketing Limitations of other skills that
chose to just stick with strategies and micro enterprises the vendors
the conventional stick to need to learn
carinderia selling. conventional
(Promos such as unli selling practices
rice, free drinks, and
combo meals appealed
more to the workers.)
“personal and family Personal and Challenges and
problems also got in their family problems Limitations of
way that was forced them caused micro enterprises
to close their businesses temporary
for a time resulting to closure of some
inability to pay lease.” which resulted

28
 to nonpayment
of lease
“Access as well to Processing of Challenges and
government forms and government Limitations of
submissions were still permits remains micro enterprises
hurdles to them that they a hurdle
need to learn to get use
to eventually.”

Table 4. Interview with Ms. Maria Jennifer Blanco

THEMES/
QUOTES DATA REMARKS
SUBTHEMES
“The Project started when The Project Background of
the FAB Residents started when the project, Start
Division under the CSD CSD conducted of the Project,
conducted a census of census of Census of
ambulant vendors to ambulant ambulant vendors
legitimize them.” vendors
“The project’s purpose is The purpose of Background of
to formalize the the project is to the project,
businesses conducted by formalize Objective of the
ambulant vendors within ambulant Project,
the Freeport Area of vendors and Legitimization of
Bataan by identifying a have them ambulant vendors
common area where they legally conduct
can legally conduct their business
vending.”
“During the initial census, There were 73 Background of Not all
there has been noted original the project ambulant
seventy-three (73) ambulant vendors
original ambulant vendors vendors but only censused were
but the successfully 50 applied for included in the
licensed businesses who Business Project
applied for FAB Business License initially
License were initially only
around fifty (50).”
“The ambulant vendors The ambulant Implementation of
within the Freeport Area vendors are the Project
of Bataan are being monitored by
monitored through the FED-RD and
FED-RD and the Public PSSD and a
Safety and Security partner
Department (PSSD). cooperative
There is a partner- overseeing
cooperative who documentation
oversees the and background
documentation and checking.
background checking of
vendors.”

29
“The improved life of the FAB Food Stall Effects of the The Project is
FAB Food Stall Lessees Lessees’ life Project, successful to
is observed. The number improved and Lessened some extent
of ambulant vendors at the number of ambulant vendors
the FAB is very much ambulant
lessened.” vendors was
lessened
“..able to formulate Success of the Effects to the
criteria of selection of Project seen Vendors, Effects
Beneficiaries; through the to the community
…able to draft policies to formulation of
ensure that the purpose criteria of
of the project is being beneficiaries,
well observed; Linkages establishment of
developed with DTI, BIR, linkages with
PCEDO and other other agencies,
relevant government and
agencies; Improved lives encouragement
of beneficiaries; to micro
Formalized sector of enterprises
community encouraging
microenterprises; More
safe and secure food
supply for FAB
employees;
Uncompromised traffic
and safety on vending
areas”
“…there are various Seminars/ Implementation of
seminars/trainings being trainings are the Project,
provided to the FAB Food being provided Provision of
Stall Lessees that focus to enhance seminars
on enhancing their entrepreneurial
entrepreneurial skills and skills and values
values.”
“During the project Random Implementation of Unqualified
implementation, we found individuals were the Project, vendors were
the need for screening of able to lease Selection of able to lease
beneficiaries for stalls which are beneficiaries stalls thus a re-
improvement. not in evaluation was
…Some of the originally congruence with conducted to
tagged ambulant vendors the Project’s see that the
did not pursue their objective. This Project is still
applications as Food Stall led to re- within its
Lessees and the slots evaluation/ objective and
foregone have been screening of this needs to
offered to random beneficiaries. be monitored
individuals… … it has throughout
somehow conflicted the
main objective of the

30
project… Because of this,
the vendors have been
re-evaluated…”
“Another challenge is the There is limited Implementation of
limited space within the space available the Project,
industrial area that is to within the Limited space
cater more food stall industrial area
lessees in the future.
Some areas cannot be
offered as it may conflict
with other
canteens/cafeteria
already operating within
the zone.”
“One of the low points I The Project only Implementation of Maybe we can
observe is that it only addresses food the Project look into future
addresses the ambulant vendors and not Projects which
vendors of food, but not other items or does not only
the other items/services. services deal with food
…If the products will not products
be limited to food, more
individuals/families who
engage to other type of
business will benefit on
the project."
“I suggest that there will Additional Healthy
be more than one cooperative to competition
cooperative to handle the handle the
project to encourage Project to
healthy competition encourage
amongst cooperative and healthy
likewise achieve the most competition and
effective approach to promote growth
promote growth to the of beneficiaries
beneficiaries.”
“…there are also other Examine the
ambulant vendors needs of the
/prospective vendors of community to
the following products/ see which type
services: motor spare of products
parts, fruits and really needs to
vegetables, novelty be catered to
items…”
“MOAs between the MOA between Improvements on Ease of doing
Authority and the AFAB and other the Project, business is one
Freeport Area of Bataan government Challenges and of the key
and other relevant agencies e.g. Limitations of factors we can
agencies such as DTI DTI and BIR to micro enterprises look into to
and BIR about one-stop establish one- assist vendors
registration will serve as stop shop for and micro

31
a better edge to address registration enterprises in
ambulant vendors’ processes; general
problems at the FAB. The Ease of doing
lesser privileged business will
community will appreciate encourage legal
the essence of legal business
business registration if registration
they can feel the ease of
doing business in their
community.”
“The lives of the FAB The lives of Effects of the
Food Stall Lessees have Food Stall Project
generally improved. They Lessees
do not have to go from improved as
one place to another to they are stable
offer their food products on their selling
and be cited with violation place and no
tickets while trying to longer illegal
make their living.”
The vendors were also Values Effects of the
exposed to values orientation Project, Provision
orientation seminars were of seminars,
seminars/trainings that provided to Additional
help them be equipped assist in entrepreneurial
with knowledge on keeping up their skills
keeping up their businesses
businesses and
developing better future.
“The initially ambulant The ambulant Legitimization of
vendors have been vendors were ambulant vendors
developed into formal developed into
SMEs whose businesses formal SMEs
are now FAB, DTI and which are
BIR Registered…” legally
registered
“…having a stall at the The ambulant Effects to the Security of
FSA instead of ambulant vendors vendors income was
vending offers them at experienced brought about
least security of every security in sales by the Project
day legal sales, sense of and sense of which greatly
business ownership and business helped the
exposure to relevant ownership vendors
marketing/retailing
seminars.”
“The FAB Food Stall The Project has Effects to the Since the
Project has a good a good impact in community Project has
impact to the smallest the community good impact in
unit of the community, that will the community,
that is, the families of enhance the the same can
FAB Food Stall lessees, way of living of be suggested

32
that when replicated on other families in other places
the other areas outside and boost or with the
the Freeport, will greatly economy when LGUs
enhance the way of living replicated in
of families in the other areas
countryside. It can also outside the FAB
boost the national
economy.”
“For me, the Micro Challenges and Micro
microenterprises, enterprises are Limitations of enterprises are
generally, are the most the most micro enterprises, vulnerable due
vulnerable type of vulnerable Lack of financing, to their
business in the marketing having small Lack of limitations
arena due to their small capital, entrepreneurial
capital, manpower and manpower and skills, Lack of
system resources and system market access
market limit.” resources and
market limit
“…now that the FAB is Some micro Challenges and Developments
undergoing renovations, enterprises are Limitations of also affects
some of the affected by micro enterprises micro
microenterprises are undergoing enterprises
affected as they need to renovations in
temporarily relocate to the FAB forcing
give way on the them to relocate
construction works on the
areas they are currently
leasing.”
“Priority on the slots at Slots on the Assistance to There is a need
FSAs - Some of the Food Stall micro enterprises to support and
vendors esp. those at the Areas and provide
walkways of FAB were temporary assistance to
given slots on the FSA to relocation were micro
relocate.; Relocation site given to micro enterprises
- While the wet market enterprises
establishment is being affected by on-
renovated, a makeshift going
marketplace has been renovations
built for the affected within the
vendors” Freeport

Table 5. Interview with Ms. Jocelyn Obdin

THEMES/
QUOTES DATA REMARKS
SUBTHEMES
“The food stall project The stall rental Background of It was from a
started when DMPCs project was the Project, business
manpower service presented to the Legitimization of perspective for
provider business was AFAB after one ambulant vendors DMPC when it
affected by DOLE of the Coop’s started

33
department order... Stall business was
rental Project was one of discontinued,
the many considerations with plans and
to diversification to other programs
business…This was focusing on
presented to AFAB helping
submitting the business ambulant
plans and programs vendors and the
focusing on how this will FAB community
help the ambulant
vendors and the FAB
community as well.”
“The objective behind this The objective Background of
project was to transform was to the Project,
the ambulant vendors transform Objective of the
into legitimate ambulant Project,
entrepreneurs and vendors to Legitimization of
eventually be members of legitimate ambulant
the cooperative to enjoy entrepreneurs vendors,
all the benefits and and be Provision of
privileges a member can members of the seminars
have and this includes coop to have
providing them seminars and
continuous education by trainings
giving seminars and
trainings.”
“The project is being There is a MOA Implementation of
implement through governing the the Project
partnership with AFAB partnership
govern by a MOA and set between AFAB
of rules and regulations and the coop
for smooth
implementation of the
business.”
“in the 1st 2 years of The vendors are Implementation of With the right
operation we have met now legally the Project, support,
the goal to transform the operating with Effects of the businesses can
vendors into SME's they permits and Project, grow
are now legally operating compliant to Legitimization of
with business permits government vendors
and are compliant to regulations and
other government has expanded
regulations like paying of their businesses
their taxes. We also could
say that from being small
business operators have
expanded their business
and are earning more
than what they had
expected.”

34
“…the vendors had Confidence was Effects of the
gained confidence since gained by the Project
they are already vendors since
legitimate businessmen they became
and businesswomen” legal business
owners
“They have gained a lot A lot of Effects of the
of entrepreneurial skills entrepreneurial Project, Provision
because the trainings that skills were of seminars,
we have provided had gained through Enhancement of
taught them how to do trainings entrepreneurial
business the right way.” provided skills
“It was not that easy upon Implementation Implementation of Vendors were
implementation. They was not easy the Project, a bit stubborn
were taught to abide with since the Challenges and since they are
the rules and regulations vendors are limitations of used to their
set forth, at first there are used to wrong micro enterprises previous
times they insist on practices and doings.
wrong practices they did not know Support from
were used to but their how to abide the agencies
positive perspective to with the rules at implementing
the project and the first the Project is
unending support of essential to
DMPC and AFAB slowly guide them and
made them accept that help them
there are things that they understand
should leave and learn to things.
adopt the best practices
for their own benefit.”
“The failure that was Selection of Implementation of Selection of
encountered during the qualified the Project, new
implementation was the awardee other Selection of beneficiaries
selection of who are best than the beneficiaries, was a
qualified to be awarded of originally listed Lack of policy challenge. A
the contract to rent other vendors was a policy provision
than that of the names problem pertaining to
listed on the originally this should be
tagged ambulant in place
vendors.”
“Improvements that can Additional Improvements on Additional
be done to the project is locations for the Project, locations can
to give additional stalls can be Additional Food address the
locations that we can put given on areas Stall Areas needs of
stalls most specially on with high workers
areas that have high workers
population of factory population
workers so that they can
avail quality yet low
priced foods and
goodies.”

35
 “The project had given The Effects to the
the entrepreneurs entrepreneurs Vendors
mindset that if they will learned that
continue to perform well performing well
and follow the rules of the and following
stall rental business, they the rules results
are assured of a to continuous
continuous business opportunity and
opportunity. The financial stability
opportunity had given
them financial stability.”
“…marami pang mga A lot are still Effects to the Additional
interesado na mag rent interested to community, Re- areas can be
ng stalls, mga bagong rent stalls emergence of looked into to
sulot na vendors within ambulant vendors assist other
the area, and mga micro
outside FAB.” enterprises

The tables above show the interview responses encoded to look for themes and
subthemes. Below is the discussion of these interview results which was broken
down into the following parts: Background of the Project, Implementation of the
Project, Effects of the Project, Possible Improvements to the Project, and Challenges
and Limitations of Micro Enterprises in the Freeport

Background of the Project

Start of the Project

According to the two interviewees from the AFAB, Mr. Sugatain and Ms. Blanco, the
Food Stall Project started when the AFAB through its Community Services
Department – FAB Residents Division, conducted a census of ambulant vendors
within the industrial area of the FAB. A cooperative then submitted a proposal to
lease a land and put up stalls to cater to these ambulant vendors. Ms. Blanco also
stated that there were initially seventy-three (73) ambulant vendors in the area which
were censused and fifty (50) of them eventually became part of the Project.

Objective of the Project

Mr. Sugatain stated that they wanted to organize the ambulant vendors into one
place and transform them to legitimate entrepreneurs. Ms. Blanco and Ms. Obdin
also stated the same – that the Project was established to legitimize the ambulant

36
vendors within the Freeport. Ms. Obdin also added that they wanted to provide
continuous education to these vendors through trainings and seminars.

Implementation of the Project

Basis of Implementation
To implement the Project, the AFAB and DMPC signed a Memorandum of
Agreement (MOA) wherein the responsibilities of both parties as well as some rules
and regulations were stated to reach its rationale and objectives. As Ms. Blanco
explained, the Project as well as the ambulant vendors were being monitored by the
AFAB’s FED-RD and the PSSD. The partner cooperative which is DMPC oversees
the documentation and background checking of vendors.

Good Points during Implementation

The Project was able to legitimize ambulant vendors registered with the AFAB, the
Department of Trade and Industry (DTI), and the Bureau of Internal Revenue (BIR)
and compliant WITH government regulations. This resulted to a lessened number of
ambulant vendors. There was even a time when there were no cited ambulant
vendors.

Also, seminars such as Basic Accounting, Bookkeeping, Tax Filing, Marketing,

Inventory Checking and Values Orientation were provided. Through this, the vendors
gained entrepreneurial skills.

Although good points were noted, there is still much that the Project can do.
Provision of seminars to vendors must be continuous to cover all areas necessary
and be able to address their needs.

Problems Encountered during Implementation

All three interviewees agreed that there was a lack of policy for project
implementation with Mr. Sugatain stating that there was no policy when the Project
was started – the MOA was the only basis for implementation. This became one of
the failures of the Project. One of the major drawbacks was that there were no clear
rules as to succession of business or selection of new awardee once one of them
37
decides to discontinue their business. Thus, other vendors (which are supposedly
unqualified) were able to lease Food Stalls. This created uneven market competition
and disorder on the Food Stall Areas. Once this happened, a screening of
beneficiaries was conducted, as Ms. Blanco stated, to select who really are qualified
to continue leasing.

In addition, Mr. Sugatain stressed that due to the lack of personnel of FED-RD,
monitoring to ensure fulfillment of MOA and site inspection remains a challenge.
There were also lapses in terms of security within the Freeport which added to the
limitations when it comes to monitoring.

It seems that not enough planning was conducted prior to starting the Project. All the
difficulties noted by the interviewees seem to point to one major problem – lack of
policy.

Effects of the Project

Effects to the Vendors

As shared by the interviewees, some of the Project beneficiaries experienced
improvements in their lives. Financial gains and stability were seen given the steady
business and the security of being a legal business owner.

The interviewees all noted that with the different trainings provided as earlier
mentioned, the vendors gained knowledge in running their businesses. Through this
the vendors also gained confidence and are earning more than what they expected.
Some even saw expansion of their businesses even outside the Freeport.

Effects to the Community

Ms. Blanco stated that the Project did not only impact the vendors themselves but
also their family as well as the Freeport community. She believes that the Project
somehow enhanced their way of living that when replicated in other areas outside
the Freeport may also boost economy.

38
Given that there were still many vendors interested in availing a Food Stall, may it be
new ambulant vendors within the Freeport or vendors outside, showed that the
Project somehow had a positive effect on the community.

Possible Improvements to the Project

Since there currently was limited space available for the Project, one suggestion for
improvement as mentioned by the interviewees was to add additional spaces to
accommodate more qualified vendors. Also, they affirmed that there were still a lot of
workers in the FAB that additional Food Stalls can cater to and offer clean, safe, and
affordable food.

Consistent monitoring of FED-RD to ensure that DMPC were doing their

responsibilities and that vendors were following the rules and greater sanctions for
ambulant vendors was also suggested by Mr. Sugatain.

All the possible improvements stated are worthy to be noted since the researcher
believes that it will all contribute to the success of the Project.

Challenges and Limitations of Micro Enterprises in the Freeport

As told by Mr. Sugatain and Ms. Obdin, there are vendors who still lacked knowledge
in doing business the right way, financial management and marketing skills and
strategies. Ms. Blanco also said that having small capital, lack of resources and
limits in terms of market were the challenges and limitations that hinder micro
enterprises.

Access to government forms and submissions or processing legal documents to

operate a business also remains a hurdle for micro enterprises.

Lastly, Ms. Blanco noted that developments within the Freeport also affected these
micro enterprises. She expressed that some were forced to relocate but noted that
the agency was helping these vendors.

39
Data from Records of the AFAB

Records of the AFAB show that the MOA between AFAB and DMPC was executed
in March 2017 stating the following, among others:
• The AFAB will provide the location for the Project
• DMPC will construct the stalls for rent to the vendors
• DMPC shall update the AFAB of any activities in the food stalls and the
business
• Both AFAB and DMPC will provide continuous education through trainings
and seminars

During the preparation stage, DTI orientation was conducted to assist the vendors
who were not yet registered to acquire DTI registration. In addition, the AFAB
through its FED-RD together with DMPC also conducted an orientation on the rules
and regulations for the operation of the food stalls. FED-RD also discussed with the
vendors the requirements they needed to prepare and submit to process their
Business Permits.

There were a total of seventy-three censused ambulant vendors in various locations

of the Freeport. But upon finalization, only fifty (50) ambulant vendors availed of a
stall and the others decided to stop operations. The vendors started processing their
permit on the last quarter of 2017. Below are the number of reported ambulant
vendors after the food stall operations officially started last October 2017:

Table 6. Data on Reported Ambulant Vendors

Number of Reported
Date Covered
Ambulant Vendors
November – December 2017 1
January – March 2018 2
April – June 2018 4
July – September 2018 2
October – December 2018 0
January – March 2019 14
April – June 2019 6
July – September 2019 5
October – December 2019 6
Source: AFAB FED-RD

40
It can be observed on the above data that there was only one (1) reported ambulant
vendor two months after the implementation of the Project. After the said period,
however, the number continued to increase with majority reported in 2019. This data
supports the answer of the interviewees that ambulant vendors were not sighted for
a while, but they re-emerged due to some circumstances within the Freeport.

Records of the FED-RD showed that inspections were conducted whenever there
were reported illegal vendors operating which conflicted with the operations of the
food stalls. In spite of this, we still see that they continued to operate as seen in the
data. This shows that what the agency is currently doing is not enough and that there
is a need to think of other ways to address the problem of illegal vending since this
affects the legal vendors such as the food stall lessees.

Data from Literature

MSMEs in the Philippines: Their Challenges and Needs

It is evident that MSMEs face a lot of difficulties in many countries around the world –
MSMEs in the Philippines are not that different. According to the MSME
Development Plan 2017-2022, below are their challenges and needs:

1. Access to Finance
When individuals get loans, banks usually look for previous credit records or
ask for collateral to ensure that the person will be able to pay. In the case of
micro enterprises, they usually lack credit information and does not have any
asset to serve as collateral which makes them unable to qualify for bank
loans.

Given that most people who wishes to start up their businesses do not have
the needed capital, the government should extend a hand and find ways to
aid them. Close coordination with public and private financial institutions to
streamline and simplify the loan process such as reduction of requirements
can be done.

41
2. Business Environment and Cost of Doing Business
Although there have been steps to ease and improve doing business in the
Philippines, some government procedures remain too bureaucratic and
requirements are still numerous, sometimes repetitive, and time consuming to
complete. Thus, processing of certain permits continues to be costly for micro
entrepreneurs.

It is of importance that the business climate is conducive for MSMEs. Different

government agencies that micro enterprises transact should examine and
ensure that requirements are lessened as to what really is essential and try at
best to reduce transaction costs and time. If it would be easier, a lot of micro
enterprises will be encouraged to have their businesses registered.

3. Access to Market
A lot of MSMEs lack technical knowledge which makes it hard for them to
enter desired markets.

Value-and-supply chain linkages need to be strengthened and market

information, analysis and other similar data shall be made available for easy
access of MSMEs.

4. Productivity, Efficiency, and Competitiveness

With the continuing technological advancement in the world, including the
country, many micro entrepreneurs still do not have access to new technology
and are still lacking in terms of technological capabilities. These often results
to failure to come up with innovations and engage in cost-effective
techniques.

Many micro entrepreneurs get into business without the necessary skills
needed. To support them, so that their businesses may last long and grow,
training and skills development is of essence. The government may tap both
public and private institutions to provide trainings that will enhance their
management and labor capacities.

42
 5. Impacts of climate change and ease of undertaking disaster recovery
The Philippines is one of the countries continuously visited by typhoons
resulting to landslides and other similar calamities. Most of the time the small
businesses are affected therefore their resilience needs to be strengthened
and the government should provide business continuity program for them.

Based on the findings from the literature, the researcher observed that most of what
was mentioned was also cited by the interviewees. All these challenges and needs
are likewise seen in the micro enterprises within the Freeport, particularly in the
vendors who are part of the Project.

43
 CHAPTER VII
SUMMARY, CONCLUSIONS, AND RECOMMENDATIONS

Summary

The purpose of this research study was to find out whether the FAB Food Stalls
Project was successfully implemented – to examine whether it was able to reach its
objective of developing micro enterprises by converting ambulant vendors to
legitimate legal business entities in the FAB as well as these business owners’
entrepreneurial skills and capabilities. To delve further on this, the researcher aimed
at analyzing the status of the Project, including problems encountered if any and
provide needed recommendations for improvement. The researcher also wanted to
find out how encouraging and supporting micro enterprises helps them. To be more
specific, the researcher intended to see the situation of micro enterprises within the
Freeport including those that are part of the Project and analyze what assistance can
be given to them.

At the course of this research, we examined the definition and characteristics of

micro enterprises which are owner operated businesses or most of the times small
family businesses with a small number of the family involved in the business. Micro
enterprises usually belong in the informal sector remaining unregulated which makes
it hard for the government to analyze their needs. It was also seen that MSMEs are
important parts of society which helps in economic growth as well as in poverty
alleviation. However, they remain vulnerable and continue to face challenges and
limitations. Acknowledging them as an important part of society, government
programs and policies around the world, including the Philippines, were put in place
to assist them further and help them grow.

Data were gathered through interviews and records which showed that the FAB
Food Stalls Project was indeed able to convert ambulant vendors to legal business
owners and seminars were also provided to them to improve their entrepreneurial
skills. Financial improvements were also seen given by stability in their incomes.
These effects in turn impacted the community in a positive way.

44
On the other hand, we also saw that the Project implementation was not smooth
sailing after all as there were problems encountered along the way which are
currently being addressed by the parties involved.

Lastly, as the researcher studied further, there were still challenges that micro
enterprises face and needs, in general as well as in the Freeport, that the
government must address to support and encourage them in the best possible way.

Conclusions

The theoretical framework used in this study is about policy evaluation which is the
methods for assessing the impact of SME policy framework by Storey (2000). This
assessment process was divided into two sections which WERE ON Monitoring and
Evaluation. For this research, this was adjusted since the views presented were
mostly from the Project implementers.

For the monitoring stage, first, we looked at some details of the Project which told us
that there were fifty (50) participants at the start of the Project. These were all
ambulant vendors in various locations within the Freeport censused by the AFAB. In
a partnership with AFAB, through a MOA, DMPC constructed the food stalls to be
leased out to the vendors. After these details, we looked at the opinions or views
pertaining to the Project as well as its effects or the difference it made. Based on the
accounts of the interviewees, the vendors first found it hard to comply with certain
rules since they were new, but they later were able to adjust. Monitoring of the
Project was also a hurdle due to some constraints from the side of AFAB.

Now, to the next level of our assessment or the evaluation part we look at the
additionality or the difference the Project brought about. The interviewees shared
that the vendors experienced improvements in terms of their businesses and in turn
their life in general. The food stall vendors found stability and security in their
businesses especially income wise. Moving to the next steps, we compared them
with other similar businesses. In contrast to other ambulant vendors who are
constantly being apprehended and thus must stop selling after a while, these

45
vendors as legal entities were free from such worries. They were also able to gain a
lot of new knowledge in doing their business by being a part of the Project.

Given all the above, we can conclude that the Project indeed brought about positive
changes to the vendors. Security and confidence in doing their business were
provided by the Project.

As for the conceptual framework, we looked into the different factors that would
contribute to our desired effects of converting the ambulant vendors to food stall
lessees, and making them aware and knowledgeable of the registration they need to
acquire and the rules they may follow. These factors will then lead to the outcome of
decreased ambulant vendors, vendors with enhanced entrepreneurial skills and
capabilities and improved well-being of the public brought about by the first two
stated outcomes.

Firstly, we noted that a census was conducted to account for possible Project
beneficiaries. Once this was done and the list was finalized, record showed us that
orientation meetings were conducted to assist them in registering their businesses
with the DTI, BIR, and AFAB and to inform them of the rules and regulations they
must follow. However, it must be noted that although all these were done, there was
no clear policy for the implementation of the Project to begin with. This was, from
the researcher’s point of view, one of the key reasons why there were problems
encountered during implementation. As we know, a policy is a vital requirement in
these types of Project and a lack thereof will sooner or later cause breakdowns.

At a certain level, we can deduce that the Project was able to reach its desired
outcomes as there was a decrease in the number of ambulant vendors. Further, the
mindset of vendors when it comes to doing their business as well as well as their
skills, brought about by the seminars and trainings provided, improved. It was also
worth mentioning that there were still vendors who wanted to be a part of the Project
which shows us that it somehow had a positive effect on the community or the
public.

46
Based on the above observations, we can conclude that, similar to the researchers
hypothesis, the Project was partly a success since it was indeed able to transform
ambulant vendors into legitimate business owners with the necessary permits for its
operation. Also, to some extent, it was able to improve the entrepreneurial skills of
the vendors through the provisions of seminars/trainings. We cannot, however, claim
that is fully successful as of date. There were still many things that need to be
addressed with regards to its implementation as what was likewise noted by the
researcher in the hypothesis. The parties are still currently in the process of ironing
out the difficulties experienced. We can conclude that the lack of policy contributed
greatly to some of the Project’s failure such as the entry of unqualified vendors which
defeated the Project’s purpose.

Recommendations

To ensure that the problems encountered and currently faced by the Project are
straightened out, a comprehensive policy pertaining to the Project implementation,
which includes qualification of beneficiaries, monitoring, fines and penalties for
violations and other such provisions must be put in place. Discussion amongst
people involved including FED-RD, PSSD, and DMPC should be done to gather
suggestions and recommendations. This will serve as the bible in dealing with the
Project and its rules and regulations.

It is also recommended that the Project implementers, based on the challenges and
needs of the vendors they have observed, create a plan as to what seminars or other
assistance can be further provided to ensure that they succeed and their business
will not fail in the long run. The MSME Development Plan 2017-2022 may also be
studied as to the plans of the government and from there create something more
specific to the Freeport and its micro enterprises.

Given that there are still needs for food stalls in the Freeport, adding additional
locations can be looked into. However, it must be ensured that the vendors are well
distributed and in strategic locations to ensure stable income and avoid uneven
competition amongst themselves. Stalls which cater to other products, although is
not yet of priority, may also be studied and pursued in the future if really needed.
47
Suggestions for Further Research

Due to the limitations encountered by the researcher, the scope of this research was
only able to gather the views of the implementing bodies which are AFAB and
DMPC. The successes and problems encountered by the vendors were only noted
based on their accounts. In connection, it is suggested that further and more in-depth
study be conducted regarding the Project. Surveys and interviews with Project
beneficiaries will be a great contribution to the study to ensure that it is not one sided
and that they themselves can explain what they experienced.

It is further recommended that other members of the community such as other

personnel of the implementing agency, other vendors not part of the Project and the
public as well be asked for opinions and comments on the Project. This will give a
more broad and unbiased review or evaluation of the Project and its implementation.

Once further study has been conducted and all problems have been addressed, it is
then that we can better evaluate and see if such a Project may be done or replicated
in other areas outside the Freeport.

48
 BIBLIOGRAPHY

Bhuiyan, A.B., et al. (2014). Entrepreneurship Development and Poverty Alleviation:

An Empirical Review. Journal of Asian Scientific Research. Retrieved from:
http://www.aessweb.com/pdf-files/JASR-5-2014-4(10)-558-573.pdf

Gomez, G. (2008). Do micro-enterprises promote equity or growth?. Retrieved from:

https://www.researchgate.net/publication/239543392_Do_micro-
enterprises_promote_equity_or_growth

Harvie, C. (2003). The Contribution of Micro-enterprises to Economic Recovery and

Poverty Alleviation in East Asia, Working Paper 03-07, Department of
Economics, University of Wollongong. Retrieved from:
https://ro.uow.edu.au/cgi/viewcontent.cgi?article=1074&context=commwkpap
ers

Lateh, M. et al. (2017). Micro Enterprise Development and Income Sustainability for
Poverty Reduction: A Literature Investigation. International Journal of
Business and Technopreneurship. 7. 23-38. Retrieved from:
https://www.researchgate.net/publication/316561533_Micro_Enterprise_Devel
opment_and_Income_Sustainability_for_Poverty_Reduction_A_Literature_Inv
estigation

Magna Carta for Micro, Small, and Medium Enterprises (2008). Retrieved from:
https://www.officialgazette.gov.ph/2008/05/23/republic-act-no-9501/

Micro, Small and Medium Enterprise Development Plan for 2011-2016. Retrieved
from: http://www.philexport.ph/c/document_library/get_file?uuid=ca09521f-
f2b2-4412-9de7-88d076fe5706&groupId=127524

Micro, Small and Medium Enterprise Development Plan 2017-2022 (2018).

Retrieved from: http://www.philexport.ph/c/document_library/get_file
?uuid=e77ef7f0-d768-422f-8330-3090c0ce97bd&groupId=127524

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Nema, D & Verma, T. L. (2019). Role Of Micro, Small And Medium Enterprises
(MSMES) In Achieving Sustainable Development Goals. Retrieved from:
https://www.researchgate.net/publication/334544756_Role_Of_Micro_Small_
And_Medium_Enterprises_MSMES_In_Achieving_Sustainable_Development
_Goals

Philippine Statistics Authority (2018). Philippine MSME Statistics in Brief Retrieved

from:https://dtiwebfiles.s3-ap-southeast1.amazonaws.com/elibrary/Growing+a
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Schreiner, M. (2001). Microenterprise in the First and Third Worlds. Retrieved from:
http://microfinance.com/English/Papers/Microenterprise_in_First_and_Third_
Worlds.pdf

SMEVenture. (2019). Indian Government’s major MSME Policy initiatives for small
businesses. (2019). https://www.smeventure.com/indian-governments-major-
msme-policy-initiatives-for-small-businesses/

Storey, P. et al (2004). Evaluation of SME Policies and Programmes. Retrieved from:

http://www.oecd.org/cfe/smes/31919294.pdf

UP Institute of Small Scale Industries - Diliman. (2020). Uplifting Micro, Small, and
Medium Enterprises (MSMEs) in the Philippines thru DTI's 7Ms: Suggested
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Vanderberg, P. (2009). Micro, small and medium-sized enterprises and the global
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ublication/wcms_108413.pdf

Zainol, N. R., et al. (2017). Examining the effectiveness of micro-enterprise

development programs in Malaysia. Journal of International Studies, 10(2),
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51
 APPENDIX

Appendix A: Informed Consent Form

University of the Philippines-Open University

Los Baños, Laguna, Philippines
Faculty of Management and Development Studies

This Informed Consent Form is for the personnel of the Authority of the Freeport
Area of Bataan/ Dynamic Multipurpose Cooperative who I am inviting to participate in
the research titled “Developing Micro Enterprises: The FAB (Freeport Area of
Bataan) Food Stalls Project.”

Krizzia Katrina T. Ocampo

Master of Public Management
University of the Philippines – Open University

This Informed Consent Form has two parts:

• Information Sheet (to share information about the study with you)
• Certificate of Consent (for signatures if you choose to participate)

You will be given a copy of the full Informed Consent Form

52
 Part I
Information Sheet

Introduction

I am Krizzia Katrina T. Ocampo, a student at the University of the Philippines – Open

University taking up Master of Public Management. As part of my course
requirements under PM 299.2 – Research Methods in Public Administration, I am
conducting a research study entitled, “Developing Micro Enterprises: The FAB
(Freeport Area of Bataan) Food Stalls Project.”

I am going to give you information and invite you to be a part of this research.

This consent form may contain words that you do not understand. Please ask me to
stop as we go through the information and I will take time to explain. If you have
questions later, you can ask them of me or of another researcher.

Purpose of the research

This study is aimed at evaluating whether the FAB Food Stalls Project was
successfully implemented and was able to reach its objective of developing micro
enterprises by converting the ambulant vendors to legitimate legal business entities
in the FAB as well as enhancing their entrepreneurial skills and capabilities. The
implementation will be examined as to its successes and problems encountered, if
any.

Further, I would like to know the status of these micro enterprises in the Freeport in
connection with the Project and try to see the benefits attained as well as their needs
and concerns, if any, and make recommendations on possible interventions and
assistance.

53
Type of Research Intervention

This research will involve your participation in an interview which would last for about
15 to 30 minutes.

Participant Selection

I am inviting you to be a part of this research because I feel that as one of the
personnel engaged in the implementation of the FAB Food Stalls Project, your
knowledge and understanding on the matter will be of great help to the study.

Voluntary Participation

Participating in this study is completely voluntary. Even if you decide to participate

now, you may change your mind and stop at any time. You may choose not to
continue with the interview for any reason. You may think through it and decide
whether you will participate or not.

Procedures

I am asking you to help me learn more about the FAB Food Stalls Project. If you
agree to be part of the research study, you will be asked to answer questions or
share information pertaining to the Project implementation, including positive and
negative points, and strengths and weaknesses of the Project.

During the interview, I will sit down with you. If you do not wish to answer any of the
questions during the interview, you may say so and I will move on to the next
question. The information recorded is confidential, and no one else except me and
my professor will have access to the information documented during your interview.
The entire interview will be recorded, but no-one will be identified by name on the
recording. The recording will be kept on a private storage until the research is
complete and will be deleted afterwards.

54
Duration

The research takes place over a month in total. During that time, I will visit you at
least once for an interview. The interview will most likely last for about less than one
hour.

Benefits

The study will not have any direct benefit to you as an individual, but your
participation is likely to help the organization you are in, in evaluating and improving
the Project. Further, it will give an opportunity for us to find out more about the micro
enterprises and propose possible assistance and interventions for them.

Confidentiality

The information that will be collected from this research project will be kept private
and will only be used solely for the purpose of this study. If you prefer, your name will
not be disclosed by reasons of privacy and confidentiality. Only the researcher and
the research adviser will know and will have access to any information you share.

Right to Refuse or Withdraw

You do not have to take part in this research if you do not wish to do so. You may
stop participating in the interview at any time that you wish. I will give you an
opportunity at the end of the interview/discussion to review your remarks, and you
can ask to modify or remove portions of those, if you do not agree with my notes or if
I did not understand you correctly.

Who to Contact

If you have any questions, you can ask them now or later. If you wish to ask
questions later, you may contact me through the following: 09322860750 or
krizzia.ocampo11@gmail.com.

55
 Part II
Certificate of Consent

Participant’s Consent

I have been invited to participate in the research about the FAB Food Stalls Project. I
have read the foregoing information, or it has been read to me. I have had the
opportunity to ask questions about it and any questions I have been asked, have
been answered to my satisfaction. I consent voluntarily to be a participant in this
study.

Print Name of Participant: ___________________________________

Signature of Participant: ____________________________________

Date: ___________________________
Day/month/year

56
 Statement of the Researcher

I have accurately read out the information sheet to the potential participant, and to
the best of my ability made sure that the participant understands that an interview
will be conducted.

I confirm that the participant was given an opportunity to ask questions about the
study, and all the questions asked by the participant have been answered correctly
and to the best of my ability. I confirm that the individual has not been coerced into
giving consent, and the consent has been given freely and voluntarily.

A copy of this ICF has been provided to the participant.

Print Name of Researcher: ___________________________________

Signature of Researcher: ____________________________________

Date: ___________________________
Day/month/year

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Appendix B: Interview Questionnaire

On the FAB Food Stall Project

1. How did the FAB Food Stalls Project start?
2. What was the objective behind this Project?
3. Were there many ambulant vendors in the Freeport? Did the Project affect
these numbers?
4. How is the Project being implemented?
5. Do you think the Project was successfully implemented? Why? Why not?
6. What do you think are the successes or good points of the Project and its
implementation?
7. Do you think the Food Stall lessees gained new entrepreneurial skills and
capabilities through this Project?
8. Were there challenges faced during Project implementation?
9. What do you think are the failures and low points of the Project and its
implementation, if any?
10. What improvements do you think can be done to the Project?
11. What do you think are the impact of the project on the lives of the FAB Food
Stall Lessees and micro enterprises in the Freeport as a whole?
12. Do you think the same Project can be done and replicated in other areas
outside the Freeport?

On microenterprises
1. What do you think are the challenges faced by microenterprises in general
and most specifically in the Freeport?

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Appendix C: Interview Transcript

Interview with Mr. Alejandro Sugatain, Officer In-Charge of the Registration

Division of the Authority of the Freeport Area of Bataan.

On the FAB Food Stall Project

1. How did the FAB Food Stalls Project start?
Response:
It started 2016 when the Authority of the Freeport Area of Bataan (AFAB),
through its Community Services Department (CSD) conducted a census of
the ambulant vendors doing business within the Freeport Area of Bataan’s
(FAB) industrial area.

A cooperative proposed that they lease a vacant land near the previous
location of the ambulant vendors, produce uniform stalls for the ambulant
vendors (subject to monthly lease), and they manage the area including but
not limited to waste segregation and management and improvement of the
area, assistance to trainings and entrepreneurial skills, and help the ambulant
vendors become legitimate entrepreneurs operating businesses within the
FAB. Also, they were tasked to report to AFAB any ambulant vendors that will
operate business within the FAB.

2. What was the objective behind this Project?

Response:
The objective of the project is to organize ambulant vendors to one place, and
for them to become legitimate entrepreneurs with valid licenses from AFAB
and other government agencies.

3. Were there many ambulant vendors in the Freeport? Did the Project affect
these numbers?
Response:
Originally, there were 73 regular ambulant vendors tagged during the census.
However, upon the organization of the AFAB designated FAB Food Stall
Areas (FSAs), only 50 were accepted. However, some claimed that they are
59
 regular ambulant vendors as well but unfortunately was not present during the
3 census in the area.

Among the 73 ambulant vendors, only 35 continued their business in the

designated FAB FSAs as of today.

For a while, after the commencement of the Project, there were no cited
ambulant vendors. However, given that there are still so many workers
needing food in various location not near the FAB FSAs, other ambulant
vendors started selling food there illegally during workers’ break times.

4. How is the Project being implemented?

Response:
With the new Policy and Guidelines, the AFAB will allow a cooperative to
lease a designated FAB FSA, and there will be a Memorandum of Agreement
(MOA) between the two specifying each responsibilities to attain the rationale
and objectives of the creation of the FAB FSAs.

The AFAB will still be the final approval to the selection and awarding of each
Food Stalls in order to assure that it will be awarded to the target beneficiary
of the Project, which are the ambulant vendors.

Once conditions in the MOA are being fulfilled, other requested locations for
FAB FSA are being considered for AFAB’s approval.

5. Do you think the Project was successfully implemented? Why? Why not?
Response:
It is still a partial success. Since there are still ambulant vendors doing
business in the FAB.

Also, previously, because of the lack of policy, other vendors (not previously
ambulant and with better capital) were able to lease some of the food stalls
resulting to uneven market competition causing chaos within their respective
FAB FSA.
60
6. What do you think are the successes or good points of the Project and its
implementation?
Response:
One of the major success of this Project is that we are able to legitimize the
vendors’ entrepreneurs. There have been reports that they experienced
increase in the financial inflow in their family because of their steady business
in the given FAB FSA.

Also, AFAB was able to capitalize the proposal of the Cooperative to produce
uniform food stalls for the vendors, making it look more pleasing and neater
for the workers and the FREs.

7. Do you think the Food Stall lessees gained new entrepreneurial skills and
capabilities through this Project?
Response:
Yes. Through the seminars and trainings such as but not limited to Basic
Accounting, Book Keeping, Tax Filing, Marketing, and Inventory Checking
provided by the AFAB, the cooperative, and other partner offices, I believe
that they have better entrepreneurial skills than before the Project has started.

8. Were there challenges faced during Project implementation?

Response:
So many. Because the Project was implemented only through a Memorandum
of Agreement and not under a clear Policy and Guidelines.

In addition to that, problems arose due to lack of monitoring because of the

lack of personnel of the FAB Enterprise Department – Registration Division.

9. What do you think are the failures and low points of the Project and its
implementation, if any?
Response:
As I said before, one of it will be the lack of monitoring of the fulfillment of the
provisions in the Memorandum of Agreement and lack of site inspection due
to lack of personnel of FED-RD.
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 Also, new ambulant vendors are operating within the FAB because of lack of
security personnel, absence of fences within the whole of FAB, and the no-
teeth sanctions of the policy regarding (illegal) ambulant vendors.

Another one is with regards to the succession of the business and leased food
stall once that the awardee has died or has given up. Because there was no
provision before covering that, disputes among the family member of the
deceased and other interested parties became a regular in the office.

10. What improvements do you think can be done to the Project?

Response:
Consistent monitoring of FED-RD to uphold the responsibilities of the
cooperative, as specified in the MOA; to ensure the compliance of the
vendors as Business Licensees; and to safeguard that the Policy and
Guidelines are being followed.

Greater sanctions for ambulant vendors operating businesses in the FAB

without valid Business Licenses will help as well.

Identification of areas to be designated as FAB FSAs to accommodate all

FAB workers with clean, safe, and not expensive food. (There are ambulant
vendors because there are customers and yet there is no nearby food stall.
Moving forward, I think what will help most is that AFAB should have a
provision that each company should provide enough mess halls and canteens
that will able to accommodate all their workers.)

11. What do you think are the impact of the project on the lives of the FAB Food
Stall Lessees and micro enterprises in the Freeport as a whole?
Response:
There are success stories that the FAB FSA was able to create. Actually, one
of them became a member of the cooperative and was able to loan a capital
for the expansion of their business in other areas outside FAB.

62
 They also find out that having legal business is not more expansive than
doing it illegally.

Their perception right now with the government is somehow changing as they
see that the government is helping them out.

12. Do you think the same Project can be done and replicated in other areas
outside the Freeport?
Response:
Yes. But, I think (this is not an official answer) it has to be replicated by a
cooperative and the respective Local Government Unit (LGU) since the
direction is that AFAB will only register Businesses qualified for Incentives in
the FAB Expansion Areas, so that Business Permits will still be with the LGU
and will be able to help their economy.

On microenterprises
1. What do you think are the challenges faced by microenterprises in general
and most specifically in the Freeport?
Response:
There are some that were not able to manage their finances well and resulted
to non-payment of their lease.

There are some that lack marketing strategies and chose to just stick with the
conventional carinderia selling. (Promos such as unli rice, free drinks, and
combo meals appealed more to the workers.)

Also, personal and family problems also got in their way that was forced them
to close their businesses for a time resulting to inability to pay lease.

Access as well to government forms and submissions were still hurdles to

them that they need to learn to get use to eventually.

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Interview with Ms. Maria Jennifer Blanco, Enterprise Services Officer II of the
Registration Division of the Authority of the Freeport Area of Bataan.

On the FAB Food Stall Project

1. How did the FAB Food Stalls Project start?
Response:
Ms. Jennifer is not yet part of the Authority of the Freeport Area of Bataan
when the Project was started. As far as she knows, the Project started when
the FAB Residents Division under the Community Services Department
conducted a census of ambulant vendors to legitimize them.

2. What was the objective behind this Project?

Response:
The project’s purpose is to formalize the businesses conducted by ambulant
vendors within the Freeport Area of Bataan by identifying a common area
where they can legally conduct vending.

3. Were there many ambulant vendors in the Freeport? Did the Project affect
these numbers?
Response:
During the initial census, there has been noted seventy-three (73) original
ambulant vendors but the successfully licensed businesses who applied for
FAB Business License were initially only around fifty (50). As the project
continues to roll out as of this year, more applicants are enrolling.

4. How is the Project being implemented?

Response:
The ambulant vendors within the Freeport Area of Bataan are being
monitored through the FAB Enterprise Department - Registration Division
(FED-RD) and the Public Safety and Security Department (PSSD). There is a
partner-cooperative who oversees the documentation and background
checking of vendors.

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 Once there is a reported ambulant vendor presence, PSSD will notify FED-RD
or cause the vendor to visit the FED-RD office for proper orientation on doing
business within the FAB. If the vendor is amenable to secure business
license, he/she will be endorsed to the cooperative handling the FAB Food
Stall Lessees for background investigation. Once the screening has been
passed, the beneficiary will apply for a Business License. If the application is
successful, he/she will become a legitimate business licensee in the FAB.

The cooperative will submit to AFAB the reports on the compliance of Food
Stall Lessees and other relevant information. FED-RD conducts inspection to
check if the policies on the operation at the Food Stall Areas are observed.
The aforementioned will be the basis on the annual renewal of Business
Licenses of FAB Food Stall Lessees, or the revocation of the same,
whichever is applicable.

5. Do you think the Project was successfully implemented? Why? Why not?
Response:
Yes. The improved life of the FAB Food Stall Lessees is observed. The
number of ambulant vendors at the FAB are very much lessened.

6. What do you think are the successes or good points of the Project and its
implementation?
Response:
a. Being able to formulate criteria of selection of Beneficiaries
b. Being able to draft policies to ensure that the purpose of the project is
being well observed.
c. Linkages developed with DTI, BIR, PCEDO and other relevant government
agencies
d. Improved lives of beneficiaries
e. Formalized sector of community encouraging microenterprises
f. More safe and secure food supply for FAB employees
g. Uncompromised traffic and safety on vending areas

65
7. Do you think the Food Stall lessees gained new entrepreneurial skills and
capabilities through this Project?
Response:
Yes, it is because there are various seminars/trainings being provided to the
FAB Food Stall Lessees that focus on enhancing their entrepreneurial skills
and values.

8. Were there challenges faced during Project implementation?

Response:
During the project implementation, we found the need for screening of
beneficiaries for improvement. As a result, the number of originally listed
ambulant vendors to become food stall area beneficiaries narrowed down.

Another challenge is the limited space within the industrial area that is to cater
more food stall lessees in the future. Some areas cannot be offered as it may
conflict with other canteens/cafeteria already operating within the zone.

9. During screening of beneficiaries, I believe you conducted interviews, were

there any difficulties or problems raised to you by the Food Stall Lessees?
Response:
Yes. There were complaints/difficulties like the following:
a. Size of the stall - they are asking if it could be adjusted to a larger size
b. Position/ location of the stall - some of the stalls experience too much sun
exposure, they ask if there could be canopies for sun protection
c. Size of capital and conflict on the market tariff - there were complaints
about some vendors who did not follow the set tariff on the food /beverage
items on the Food Stall Areas, this resulted to unbalance sale
opportunities amongst lessees and the affected lessees protested about it.

10. In connection also to the screening, why were some beneficiaries not qualified
and removed? If they are not qualified, why did you think it happened that
they were able to become Food Stall Lessees although not qualified?

66
 Response:
Some of the originally tagged ambulant vendors did not pursue their
applications as Food Stall Lessees and the slots foregone have been offered
to random individuals who were interested in putting up their food selling
businesses in the FAB.

However, as mentioned above, it has somehow conflicted the main objective

of the project, and that is to promote income generation for ambulant vendors
who have small capital and whose daily living expenses were being covered
by their sales at the Food Stalls.

Because of this, the vendors have been re-evaluated and the AFAB FAB
Enterprise Department- Registration Division (FED RD) came up to a point
system in identifying qualified vendors who applied for a stall but were not
listed as ambulant vendors.

11. What do you think are the failures and low points of the Project and its
implementation, if any?
Response:
One of the low points I observe is that it only addresses the ambulant vendors
of food, but not the other items/services.

Another is that currently, as already mentioned, there is a small area for Food
Stalls to cater increasing number of prospective beneficiaries.

12. You said the Project only addresses food vendors and not other items or
services. What other items or services do you think are needed?
Response:
As of writing, there are also other ambulant vendors /prospective vendors of
the following products/ services which are not being covered by FSAs:

a. Vulcanizing shop and motor spare parts

b. Fresh fruits and vegetables (nilalako)
c. Household essentials
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 d. Souvenirs and other novelty items
e. Cosmetics

13. What improvements do you think can be done to the Project?

Response:
a. More than one managing cooperative. I suggest that there will be more
than one cooperative to handle the project to encourage healthy
competition amongst cooperative and likewise achieve the most effective
approach to promote growth to the beneficiaries.
b. Development of more food stall areas. As the count of vendors wanting to
lease continue to rise, there is a need for more areas of business.
c. More diverse products/services to offer. If the products will not be limited
to food, more individuals/families who engage to other type of business will
benefit on the project.
d. Formal Partnership with Government Agencies. Memorandum of
Agreements between the Authority and the Freeport Area of Bataan and
other relevant agencies such as Department of Industry and Bureau of
Internal Revenue about one-stop registration will serve as a better edge to
address ambulant vendors’ problems at the FAB. The lesser privileged
community will appreciate the essence of legal business registration if they
can feel the ease of doing business in their community.

14. What do you think are the impact of the project on the lives of the FAB Food
Stall Lessees and micro enterprises in the Freeport as a whole?
Response:
The lives of the FAB Food Stall Lessees have generally improved. They do
not have to go from one place to another to offer their food products and be
cited with violation tickets while trying to make their living.

The vendors were also exposed to values orientation seminars/trainings that

help them be equipped with knowledge on keeping up their businesses and
developing better future. Most of them rely on the income brought by vending
68
 at the FAB Food Stall areas which are very strategic for such kind of
business.

The initially ambulant vendors have been developed into formal SMEs whose
businesses are now FAB, DTI and BIR Registered, and we hope they find
fulfilment on being registered and legal, by having businesses they can really
call their own.

15. Now that the vendors are already legalized, do you think there were
improvements financially for them?
Response:
Yes, because having a stall at the FSA instead of ambulant vending offers
them at least security of every day legal sales, sense of business ownership
and exposure to relevant marketing/retailing seminars.

16. Do you think the same Project can be done and replicated in other areas
outside the Freeport?
Response:
Yes, definitely. The FAB Food Stall Project has a good impact to the smallest
unit of the community, that is, the families of FAB Food Stall lessees, that
when replicated on the other areas outside the Freeport, will greatly enhance
the way of living of families in the countryside. It can also boost the national
economy.

On microenterprises
1. What do you think are the challenges faced by microenterprises in general
and most specifically in the Freeport?
Response:
Yes. The following has been arranged for them:

a. Priority on the slots at FSAs - Some of the vendors esp. those at the
walkways of FAB were given slots on the FSA to relocate.

69
 b. Relocation site - While the wet market establishment is being renovated, a
makeshift marketplace has been built for the affected vendors.

2. You said that there were micro enterprises affected by renovations, were
there any assistance given to them by your agency?

Response:
For me, the microenterprises, generally, are the most vulnerable type of
business in the marketing arena due to their small capital, manpower and
system resources and market limit.

At the Freeport, I think, this challenge is minimized because the Freeport

consistently aims to promote a fair business ground for aspiring
microenterprises and support them on the way by projects like the FAB Food
Stall Areas.

However, now that the FAB is undergoing renovations, some of the

microenterprises are affected as they need to temporarily relocate to give way
on the construction works on the areas they are currently leasing.

Interview with Ms. Jocelyn Obdin, General Manager of Dynamic Multipurpose

Cooperative

On the FAB Food Stall Project

1. How did the FAB Food Stalls Project start?
Response:
The food stall project started when DMPCs manpower service provider
business was affected by DOLE department order on no to contractualization.
Stall rental Project was one of the many considerations to Diversification to
other business as part of the strategic plan of the cooperative. This was
presented to AFAB submitting the business plans and programs focusing on
how this will help the ambulant vendors and the fab community as well.

70
2. What was the objective behind this Project?
Response:
The objective behind this project was to transform the ambulant vendors into
legitimate entrepreneurs and eventually be members of the cooperative to
enjoy all the benefits and privileges a member can have and this includes
providing them continuous education by giving seminars and trainings.

3. Were there many ambulant vendors in the Freeport? Did the Project affect
these numbers?
Response:
Yes, there were a lot of ambulant vendors in the freeport area and this
number is beneficial to the project.

4. How is the Project being implemented?

Response:
The project is being implement through partnership with AFAB govern by a
MOA and set of rules and regulations for smooth implementation of the
business.

5. Do you think the Project was successfully implemented? Why? Why not?
Response:
Yes, the project was successfully implemented. Why, because in the 1st 2
years of operation we have met the goal to transform the vendors into SME's
they are now legally operating with business permits and are compliant to
other government regulations like paying of their taxes. We also could say
that from being small business operators have expanded their business and
are earning more than what they had expected.

6. What do you think are the successes or good points of the Project and its
implementation?
Response:
The success and good points of the project is the vendors had gained
confidence since they are already legitimate businessmen and

71
 businesswomen. That AFAB is always side by side with DMPC to
continuously give development on their business to grow more.

7. Do you think the Food Stall lessees gained new entrepreneurial skills and
capabilities through this Project?
Response:
I can say yes. They have gained a lot of entrepreneurial skills because the
trainings that we have provided had taught them how to do business the right
way.

8. Were there challenges faced during Project implementation?

Response:
Yes, there were challenges along the way. It was not that easy upon
implementation. They were taught to abide with the rules and regulations set
forth, at first there are times they insist on wrong practices they were used to
but their positive perspective to the project and the unending support of
DMPC and AFAB slowly made them accept that there are things that they
should leave and learn to adopt the best practices for their own benefit.

9. What do you think are the failures and low points of the Project and its
implementation, if any?
Response:
The failure that was encountered during the implementation was the selection
of who are best qualified to be awarded of the contract to rent other than that
of the names listed on the originally tagged ambulant vendors.

10. What improvements do you think can be done to the Project?

Response:
Improvements that can be done to the project is to give additional locations
that we can put stalls most specially on areas that have high population of
factory workers so that they can avail quality yet low priced foods and
goodies.

72
11. What do you think are the impact of the project on the lives of the FAB Food
Stall Lessees and micro enterprises in the Freeport as a whole?
Response:
The project had given the entrepreneurs mindset that if they will continue to
perform well and follow the rules of the stall rental business, they are assured
of a continues business opportunity. The opportunity had given them financial
stability.

12. Marami pa po bang mga ambulant vendors na nagsabing gustong magtinda

sa stall?
Response:
Yes, marami pang mga interesado na mag rent ng stalls, mga bagong sulot
na vendors within the area, and mga outside fab.

13. Since currently expanding po ang FAB sa other areas, if you will be given the
opportunity would you want to undertake the same Project in other areas in
order to assist other micro enterprises?
Response:
Talagang humihingi pa ang aming kooperatiba sa afab ng mga posibleng
additional na locations para mag expand ang aming rental business at
mabigyan pa ng stalls ang mga marami pang interesadong umupa.

73