Common Factors Needed To Build A Profitable Small Business in South Caloocan City

GOD-FEARING RECIPROCATING COMMITTING TO 1
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COMMON FACTORS NEEDED TO BUILD A PROFITABLE

SMALL BUSINESS IN SOUTH CALOOCAN CITY
In Partial Fulfilment of the

Requirements for the Subject
Business Research
By:
DIONARCE , ZYRA T.
EVANGELISTA, MA. THERESA M.
MACABALITAO, REYNALYN M.
LANZUELA, NATHALIA NICOLE
TANEZA, SOFIA RENAFE S.
2021
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CERTIFICATION
This thesis entitled “COMMON FACTORS NEEDED TO BUILD A PROFITABLE

SMALL BUSINESS IN SOUTH CALOOCAN CITY“, prepared by Zyra Dionarce,
Ma. Theresa M. Evangelista , Nathalia Lanzuela, Sofia Taneza, Reynalyn
Macabalitao, in partial fulfilment of the requirements for the degree Bachelor of
Science in Business Administration. Major in Marketing Management has been
examined and now recommended for Oral Examination.
Evaluation Committee
Prof. EIVIN B. TOLENTINO, DBA

Adviser
APPROVAL
Approved by the panel on Oral Examination on July 1, 2021 with the grade of 84_.
Prof. MA. LOURDES P. FLORESTA, MAED, MSCHEM

Chairman
Prof. RONALDO A. DOROTEO, MBA Dr. ROCK BRYAN B.MATIAS

Member Member
Accepted in partial fulfillment of the requirements for the degree Bachelor of

Science in Business Administration, Major in Marketing Management.
Prof. MA. LOURDES P. FLORESTA, MAED, MSCHEM

Dean
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CERTIFICATION OF ORIGINALITY
This is to certify that the research work presented in this thesis entitled
Common Factors Needed to Build a Profitable Small Business in South Caloocan
City. We hereby declare that this thesis is our own work and that to the best of our
knowledge and belief. This thesis does not contain words or ideas taken from
published sources or written by another person nor material to which to a
substantial extent has been accepted for award of any other degree or diploma of a
university or other higher education institution, except where proper referencing
and acknowledgement were made.
Researchers:
Dionarce, Zyra T.
Evangelista, Ma.Theresa M.
Lanzuela, Nathalia Nicole
Macabalitao, Reynalyn M.
Taneza, Sofia Renafe S.

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ABSTRACT
Title : Common Factors Needed to Build a Profitable Small Business South
Caloocan City.
Researcher : Dionarce Zyra T, Evangelista Ma. Theresa M, Lanzuela Nathalia
Nicole, Macabalitao Reynalyn M, Sofia Renafe Tañeza
Degree : Bachelor of Science in Administration, Major in Marketing
Management
Institution : Global Reciprocal Colleges
Year : 2021
Adviser : Prof. Eivin B. Tolentino
The main purpose of this study is to determine what are the common
factors needed to build a profitable small business in South Caloocan City.
It attempted to answer the following questions ; (1) common factors
needed to build a profitable small business (2) when do proprietors start their own
small business (3) what are the sources of the owner to build their small business.
This study used the descriptive method of research. There’s 60
respondents utilized for the documentary analysis. The instrument used was
researcher made, extremely important, slightly important, important, slightly
unimportant, and extremely unimportant. Statistical treatment of data includes
percentage and mean.

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Based on the data gathered, the following conclusions were drawn: in their
profile, majority of the respondents are business owners at the age of 21-25 years
old. Generally, it was found out that majority out of the 60 respondents has yearly
income ranges 50,000-60,000. 2011-2015 who have the highest start of the year in
doing small business with the percentage of 38.33%.
It is, therefore, recommended for the business owners that the decision of
building a business is based on the plan that gives time to achieved, but it depends
on the owners on how they look for a type of business and build it in their own way.
It is also important to plan first find some references and site some previous studies
to be a guide on how to build a lifelong and profitable business.

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Acknowledgements
The researchers would like to say thank you to the following individuals to
make this study possible namely:
Mr. Eivin B. Tolentino, the researcher’s adviser, for his patience and
mentoring us throughout the process of completing this research paper.
To all respondents who participated to answer the survey form questionnaire.
The researcher parents, for their kindness, support and for providing all the
needs financially and for the understanding.

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Table of Contents
Title of Page i
Certificate of approval Sheet ii
Certificate of Originality iii
Acknowledgement iv
Abstract v
Table of Content vi
List of tables vii
List of Figures viii
1. THE PROBLEM AND ITS BACKGROUND
Introduction 1-3
Theoritical Framework 4-5
Conceptual Framework of the study 6-7
Statement of the Problem 7-8
Hypothesis 8
Scope and limitations of the study 8
Significance of the study 8-9
Definition of Terms 9-10

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2. REVIEW OF RELATED LITERATURE AND STUDIES
Small business 11
Small and Medium Enterprises 11-12
Innovation and Market structure growth 13-14
SME's 14
Environmental Management 15
Business Strategy 15-16
Definition of Small Business Owner 16-18
3. RESEARCH METHODOLOGY
Research Design 19-20
Participants of the Study 20-21
Setting of the study 21
Research Instrument 22
Validation of the Research Instrument 22
Statistical treatment of data 23-24

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4. PRESENTATION ANALYSIS AND INTERPRETATION DATA
Demographic Profile of the Respondents 25-26
Year started 27
Common Factor needed to build a profitable small business 28
Quarter to start of Business 29
Source of Capital 30
5. SUMMARY CONCLUSION AND RECOMMENDATION
Summary Finding 31-32
Conclusion 33
Recommendation 33
BIBLIOGRAPHY 34-35
APPENDICES 36-41
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CHAPTER I
THE PROBLEM AND ITS BACKGROUND
1.1. Introduction
Small business has become an important topic for the ones who are
building their own business and to manage properly and organize their
thoughts. Its importance and significance that due to the fact that small
business has the fundamental basis for building a competitive environmental,
as well as the basis for middle class in society. It provides flexible and fast
satisfaction for the needs of consumers; It’s serves also as an effective
providing jobs for the ones who are spending their time to offer the wants and
needs of customer.
Small business privately owned corporations, partnership, or sole
proprietorships that have fewer employees and less annual revenue than a
regular-sized business or corporation. Businesses are defined as “small” in
terms of being able to apply for government support and qualify for
preferential tax policy varies depending on the country and industry. Small
business can also be classified according to other methods, such as annual
revenues, shipments, sales, assets, or by annual gross or net revenue or net
profits, the number of employees is one of the most widely used measures.
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The definition of small business is an independently owned and
operated company that is limited in size and in revenue depending on the
industry. A local bakery that employs 10 people is an example of small
business. A manufacturing facility that employee less than 500 people is an
example of a small business. Sometimes called a small business, a small-
scale enterprise is a business that employs a small number of workers and
does not have a high volume of sales. Such enterprises are generally
privately owned and operated sole proprietorship, corporations or partnership,
in this study the researcher will make it valid research paper about the small
business within South Caloocan City through having a well increased of
income or a profitable one. The researcher will tackle on how this study will
help other proprietors build their own business through knowing and setting
the common factors needed. This will enhance also more the abilities of the
businessmen's / businesswomen's on how they build their own small
business.
One study showed that small, local business is better for a local
economy than the introduction of new chain stores. By opening up new
national level chain stores, the profits of locally owned businesses greatly
decrease and many businesses end up failing and having to close. This
creates an exponential effect. When one store closes, people lose their jobs,
others businesses lose business from failed business, and so on. In many
cases, large firms displace just as many jobs as they create.

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There are some characteristics which small business refers and based
researchers and analyst of a small or owner managed business generally
behave as if nominal organizational forms ( e.g., partnership, sole-trader, or
corporation), and the consequent legal and accounting boundaries of owner-
managers often do not delineate their behaviour to accord with implied
separation between their personal and business interest. Lenders also often
contract around organizational (corporate) boundaries by seeking personal
guarantees or accepting privately held assets as collateral. Because of this
behaviour, researchers and analysis may wish to be cautious in the way they
assess the organizational types and implied boundaries in contexts relating to
owner managed. Independence is another advantage of owning a small
business. A small business owner does not have to report to a supervisor or
manager. In addition, many people desire to make their own decisions, take
their own risks, and reap the rewards of their efforts. Small business owners
possess the flexibility and freedom to making their own decisions within the
constraints imposed by economic and other environmental factors. However,
entrepreneurs have to work for every long hour and understand that ultimately
their customers are their bosses.
Several organizations in the United States also provide help for the
small business sector, such as the internal revenue service's small business
and self employed one stop resource. Small business (often carried out by
family members) adjust quicker to the changing conditions; however, they are
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closed to the absorption of new knowledge and employing new labor from
outside.
Also, this gives the other entrepreneurs and proprietors specifically in
South Caloocan City more insight on making a small business. To learn
everything of the proprietors needed to run a successful small business,
including business planning, small business financing, marketing, hiring
employee and more aspects. The aim of this paper is to determine the factor
that is needed to build a small business which is a profitable one.

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1.2. Theoretical Framework
Small business would not need special consideration if our economy
were basically a competitive one. A large and growing segment of our
economy has sufficient market and political power to make our economy
basically non-competitive. Small firms tend to provide price competition, to
lead in the development of new products and processes, and to generate new
innovations and new employment. Government policy tends to create artificial
economies of scale, giving an unwarranted advantage to the very large firm.
As a first approximation, a policy of government neutrality on firms of varying
size is needed. But, because of discriminations which already exist which
favour large firms over small firms, special small business programs may be
necessary to provide an equitable policy base. Unfortunately, programs
designed to benefit all business, like the investment tax credit, tend to
primarily benefit larger firms (Berney, 1979). This is the case for two reasons.
First, there is a basic difference in production relationships: large firms tend to
be more capital intensive and small firms more labour intensive. Second, the
more complex a rule or regulation, the more costly it is for small business to
use it. Consequently, even the employment tax credit, which should benefit
the small firm is not used by them. Instead, it tends more to benefit the larger
firm.
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Neutrality, as a governmental policy, would appear to demand different
treatment for firms of varying size. As an example, the “regulatory flexibility”
concept applies different standards to different sized firms so that the burden
of regulation is more equitably distributed. The concept of encouraging or
requiring financial institutions and other lenders to establish “dual prime rates”
is a further example. Since small firms appear to have much higher debt to
equity ratios and rely more heavily on shorter-term bank credit, they are more
heavily burdened by a tight money policy which forces increases of interest
rates. Thus, dual prime rates help to spread the burden of rising interest costs
more equally.
As many people prefer to work for themselves, equalizing the burden
of government policy could only serve to increase the basic growth rate for
small business, thus providing an easier start for entrepreneurs and would
encourage a more rapid rate of economic growth. None of these discussions,
however, argues that small business should be protected from failure. The
more efficient firms will succeed and prosper, and the least efficient will not.
Many currently successful entrepreneurs learn how to improve their
production processes or managerial skills from their failures.
What is being recommended as a first step is that government should
concentrate on equalizing burdens and benefits in order to achieve true
neutrality. If private economies of scale do indeed exist, new firms must grow
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to survive; what the government should not create are artificial economies of
scale with public policy.
A strong argument for further action can also be made: it appears that
significant external benefits are produced by an economic system with a
dynamic small business sector. Since these benefits go to society as a whole
rather than entrepreneurs alone in the form of increased profits, a freely
operating market without government assistance does not generate as many
new small businesses as would be optimal for our society. To internalize the
benefits that come from small business, governmental programs need to be
devised to increase the rate of return on new, innovative small businesses.
Should this happen, we could then anticipate increased rapid rates of
innovation and technological change, more rapid rates of employment growth,
expanded price competition in all sectors of the economy, and improved
export capabilities, in short, true flexibility in our capitalistic system.

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1.3. Conceptual Framework
INPUT PROCESS OUTPUT

Profile of the  Conducting a The dealings of a
respondents: survey using
successful business
a) Age google form
questionnaires owners in South
b) yearly income to determine the Caloocan City on
c) Year Started to have following:
how they started to
a small business
build
Common Factors  Determine the
needed to build a small common factors their own business,
business and a needed of the common factors
profitable one. entrepreneurs to needed to have a
When do proprietors build their own
small business that
start their small profitable small
business? business. is profitable one,
What are the sources  Gathering, and

of the owner to build analysis and
also the strategies
their small business? interpretation of
data. they do to make
their income much
more increased than
before.
FEEDBACK
Figure 1 Conceptual Framework of the Study
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The paradigm presents the components with their corresponding data
The input is the agent or results. As seen in the figure, this is
composed of profiles of the respondents, age of the owner, year started to
have a small business, yearly income and section that plays an essential role
with the involvement of the respondents.
It is noted that before results are arrived at, a process is involved. This
means setting into action with the means to attain results. There would be a
content analysis and concise statements on how to start a small business and
also to the Google form survey questionnaires for the business owners in
South Caloocan City.
With a precise and powerful output is arrived at. In the output which
indicates the common factors needed of entrepreneur to process the
designing, launching and running on a business.
1.4. Statement of the Problem
The study sought to determine the Common Factors Needed to Build a
Profitable Small business in South Caloocan City.
Specifically, it sought to answer the following questions
1. What is the demographical information of the respondents in a small
business?
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1.1 Age of the owner
1.2 Yearly income
1.3 Year started
2. What are the Common Factors needed to build a profitable small
business?
3. When do proprietors start their own business?
4. What are the sources of the owner build their small business
1.5. Hypothesis
There’s is no significant relationship between the profiles of the
respondents, the common factors needed to start a small business, the
advantages of starting in a small business, things that the entrepreneurs do to
make their business become a profitable one.
1.6. Scope and limitation of the Study
The research that will be conducted only about the Common Factors
Needed to Build a Profitable Small business. The researchers conducted this
study, its location of Google form survey is within South Caloocan City. The
survey that will be going to conduct is only for business owners.

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1.7. Significance of the Study
The significance of this study rests on the findings it surfaces at setting
a light to this issue may be beneficial to the following:
To the Entrepreneur – may have an own clear decision to start and build a
small business alone.
To the Future Entrepreneur may able to take this as an additional
knowledge for them to understand the different factors needed to build and
start a small business and make it a profitable one.
To the Business Owners – may aid more for them to have a widely ideas
and strategies to make their small business more profitable.
To the Future Researchers – who will gather data in order for them to
benefit and to have a quite knowledge about what are the common factors
needed to build a profitable small business.
1.7. Definition of Terms
For the better understanding of the concepts used in this study, the
following terms defined according to operational and contextual definition.
Asset. Something valuable that an entity owns, benefits form, or has use of
in generating income.
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Entrepreneur. Is an individual who, rather than working as an employee,
runs a small business and assumes all the risks and rewards of a given
business venture, idea, or good or service offered for sale. The entrepreneur
is commonly seen as a business leader and innovator of new ideas and
business processes.
Fundamental Basis. Serving as , or being an essential part of, a foundation
or basis; basic; underlying; fundamental principles.
Gross. Aggregate amount prior to any deduction or discount
Net profit. The actual profit made on a business transaction, sale, etc., or
during a specific period of business activity, after deducting all cost from
gross receipts.
Net revenue. The total revenue in accounting period minus all expenses
during the same period if income taxes and interest are not deducted, is
called operating profit (or loss, as the case may be) called earnings, net
earnings, or net profit
Profitable. Things that profitable make money or are beneficial in other
ways. Businesses hope to be profitable in the financial sense, but a profitable
relationship is one that's good for everyone involved.
Small business. Privately owned corporations, partnership, or sole
proprietorship have fewer employees and/or less annual revenue than a
regular- sized business or corporation.

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Revenues. Revenue is money earned by a business, or income received by
the government from taxes.
Sales. The activity or business of selling products or services, an alternative
term for sales revenue or sales volume.

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CHAPTER II
REVIEW OF RELATED LITERATURE AND STUDIES
This chapter is comprises of the studies and literatures both local and
foreign investigated by the researcher all of which are significant and have a
striking semblance to substantiate the research study. All these gave
additional insights to the study. Like those in other countries, SMEs in the
Philippines make significant contributions to the overall economy and the
country's pursuit of economic development. Data show Filipino SMEs to make
more up more than 99% of all business in the country.
Small business
Small businesses often face a variety of problems, some of which are
related to their size. A frequent cause of bankruptcy is under capitalization.
This often is the result of poor planning rather than economic conditions.
Small and Medium Enterprises
Small and medium enterprises have long been building blocks of the
Philippine economy comprising more than a majority of the total businesses
operate in the country. Despite the numbers given and their contributions,
many problems beseech the sector. One is in the aspect of the Economic
Factors. Areas such as accounting systems, financing, working capital
management and capital budgeting are some of the basic concerns of an
SMEs which if not given the necessary attention could have an impact on the
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performance of the enterprise as a whole. The organizational performances of
these enterprises are also dependent on these Economic Factors practices
such as their competitive advantage, profitability, productivity, sustainability
and innovation
According to the law, BMBEs are critical to the economic
development because they are the stepping stone in the formulation of the
development of Filipino entrepreneurial talent. This act also aims to
incorporate the informal sector through granting specific incentives to these
firms therefore giving them a chance to be part of the mainstream of the
economy. Given these, the law endeavors to strengthen the BMBEs because
in doing so, it is tantamount to having more jobs and live hood for the people
and more so better quality of life for the Filipino people
According to Reyes (2012) in her study entitled “Rural Micro -
Enterprise Promotion Program: An Assessment on the Impact of the
Financing Delivery Role of Small Business Corporation to MSMEs in Albay,
Ragay and Sipocot CamarinesSur”, R.A. 9178 otherwise known as the
Barangay Micro Business Enterprise Act of2002 provided assistance to the
micro businesses through offering incentives and benefits for these firms.
One major incentive is the income tax exception awarded to the registered
BMBEs. The aim of the law is to incorporate the micro enterprises to the main
stream economy since they contribute a lot to the economic growth. Also, it’s
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aim is to strengthen the said sector thus leading to job creation, livelihood and
better quality of life of Filipinos. (Reyes, 2012)
Davidsson et al. (2010) reported that growth may be related to new
markets, especially in the case of technology firms, with reference to
diversification. They are also of the opinion that growth may occur
alternatively as an integration of part of the value chain, a sort of vertical
growth, or when a firm introduces itself within a market not related to the
technology in which it works, which would be a non-related diversification.
Another type of growth may be related to the combination of market-product
by entrance into the market.
Innovation and Market structure growth
Innovation and market structure determine growth. There is a great
probability that small innovating firms grow faster than big firms that shun
innovations (Daunfeldt & Elert, 2013). Market structure has an influence on
the firm´s growth capacity, especially service ones which are more
heterogeneous and tend to grow less than industrial firms. Although industries
require heavy investment, service firms quit the market quickly (Teruel-
Carrizosa, 2010).
If, on the one hand, small enterprises require specialists and counseling
firmsless, with increasing chances of growth (Davidsson et al., 2010), the use
of their abilities to enhance growth derives from the learning process acquired
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by experience and over time. The firm´s growth will depend on the use of their
learning capacity to develop efficiency
SMEs
SMEs lack both managerial and technical skills for their effectiveness
(Rahman and Ramos 2010). They are less active than large firms in open
innovation because of their particular characteristics such as organization,
culture and strategy. A study by the OECD found that only 5-20% of SMEs
are actively using open innovation approach. Studies on open innovation in
SMEs are fragmented (Bianchi et al.2010; Colombo et al.2014). Some
scholars argue that SMEs can achieve greater benefits from the open
innovation than larger firms because of their less bureaucracy, increased
willingness to take risks, and faster ability to react to changing environments
(Parida et al.2012). In addition, studies also show that open innovation is a
promising means for SMEs to overcome their challenges and increase their
profitability (Gassmann et al.2010). Methods that can help SMEs to overcome
barriers to the successful implementation of open innovation are necessary to
explore. Consequently, integration of fragmented state of the literature is
essential. The objective of this study is to examine current research on open
innovation in SMEs to integrate empirical findings and to point out future
research agenda.
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Environmental Management
Environmental Management Related Concepts Environmental
management is the management of a company's activities that have an
impact on the environment. Their objectives are to limit emissions of
pollutants, conserve natural resources, minimize environmental hazards and
create a safe workplace.
Small business engagement in environmental management
Small business’ engagement in environmental management practices is
vital as it is currently estimated that small businesses are contributing up to
70% of global pollution (Hillary, 2000), but small businesses are a disparate
group and they do not think as a collective and they often work in isolation.
This isolation makes it easier for them to ignore the individual impact they
may be making on the environment, yet it is estimated that they are
collectively contributing a considerable ecological footprint (Hillary, 2000)
Business Strategy
A business strategy focuses on a certain business field and identifies a
proper approach to establish an advantageous position to compete. Another
explanation of a business strategy is it focuses on a certain business unit and
studies how to enhance its competitiveness, such as choosing a more
attractive segmented market. From the perspective of business operations,

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there are different levels of strategies. Generally, academia categorizes
strategies into Corporate Strategy, Business Strategy and functional strategy
Chovlette Thaoman (2013) in addition, to ensuring that the business
has enough capital, the small business owner must also be mindful of
contribution margin (sales minus variable costs). To break even, the business
must be able to reach a level of sales where the contribution margin equals
fixed costs. When they first start out, many small business owners under price
their products to a point where even at their maximum capacity, it would be
impossible to break even. Cost controls or price increases often resolve this
problem.
Halabi et al (2010) investigated whether and how financial
information is used in small businesses. They determined that small business
managers possessed a very basic understanding of both accounting and
finance and tended to rely upon an external accounting service for general
business advice.
Definition of Small-Business Owners
The definition of a small-business owner varies. The most standard
definition of a small-business owner is the proprietor of a firm with fewer than
500 employees (SBA, 2016). The SBA (2012) has also defined a small
business as one that is independently owned and operated, organized for
profit, and is not dominant in its field. While there is no one accepted
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definition of a small business in the literature, the range of workers appears to
be from one to 500 employees. For the purpose of this study, the definition of
a small-business owner was a person who begins a privately owned small
business, takes on financial risks in seeking profits, and who employs 50 or
fewer employees (Lawrence, 2014)
Small Business Financing Providing financial assistance to new
small-business owners is a risky proposition for an investor. Cheng (2015)
published results of bank lending processes for small businesses and
concluded financers use governance as one of many criteria to determine
business credit worthiness. Therefore, new small-business owners face
challenges associated with financing a new business launch (Arslan & Staub,
2013). Gartner, Frid, and Alexander (2012) noted that obtaining external
financing is difficult; therefore, small-business owners typically use owner
resources or bootstrap financing. Owner resources can include obtaining
home equity or mortgage loans, savings, or using a personal credit card for
expenses associated with the business.

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Malmstrӧm (2014) discussed how small-business owners seek
innovative methods of resourcing. An innovative method was using bootstrap
financing to stretch existing resources without obtaining external financing.
Bootstrapping can include delaying self-compensation and using existing
household resources, as well as human capital, talent, and support from
family and friends. Malmstrӧm noted that small-business owners use three
main bootstrap financing strategies for resource mobilization: quick-fix
bootstrapped who rely on internally oriented activities to improve cash flow
such as delaying or eliminating personal compensation or private savings;
proactive bootstrapped who focus on networking oriented means for
accessing resources such as sharing, borrowing, or trading resources with
other business owners; and efficient bootstrapped who engage externally
oriented resources by using negotiation strategies such as seeking the best
possible conditions and/or delaying payments.

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CHAPTER III
RESEARCH METHODOLOGY
This chapter will represent the research strategies, methods,
instruments and process of data collection analysis, selection of the sample
treatments that the researchers will use in interpreting the data.
3.1 Research Design
In order to determine and describe the common factors that needed to
build a profitable small business in south Caloocan towards quantitative,
descriptive were used.
According to Creswell Quantitative research emerged around 1250
A.D. and was driven by investigators with the need to quantify data. Since
then quantitative research has dominated the western cultural as the research
method to create meaning and new knowledge. What constitutes a
quantitative research method involves a numeric or statistical approach to
research design. Leedy and Ormrod (2001) alleged that quantitative research
is specific in its surveying and experimentation, as it builds upon existing
theories. The methodology of a quantitative research maintains the
assumption of an empiricist paradigm (Creswell, 2003). The research itself is
independent of the researcher. As a result, data is used to objectively

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measure reality. Quantitative research creates meaning through objectivity
uncovered in the collected data.
Quantitative research deals in numbers, logic, and an objective stance.
Quantitative research focuses on numeric and unchanging data and detailed,
convergent reasoning rather than divergent reasoning. To quantify data and
generalize results from a sample to the population of interest. To measure the
incidence of various views and opinions in a chosen sample
Alternatively, sometimes follow by qualitative research, which is used to
explore some findings further. (Snap Survey, 2010)
According to Statistics Solutions (2017), quantitative research most
often uses deductive logic, in which researchers start with hypotheses and
then collect data that can be used to determine whether empirical evidence to
support that hypothesis exists.
3.2. Participants of the Study
The tables below present the profile of the small business in South
Caloocan in terms of age, year started (Table 1) and the year income ratings
(Table 2)
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Table 1
Profile of Respondents in Terms of Age and year started
VARIALBLE LEVEL FREQUENCY PERCENTAGE

21 - 25 25 41. 7%
26 - 35 11 18.3 %
36 - 45 9 15%
AGE 46 - 60 15 25 %
2000 - 2005 4 6.7 %
2006 - 2010 17 27.3 %
YEAR 2011 - 2020 23 38.3%
STARTED 2021 4 6.7 %
Table 2
The year Income ratings
VARIABLE LEVEL FREQUENCY PERCENTAGE

50,000 - 60,000 28 46.7%
YEARLY 61,000 - 70,000 18 30 %
INCOME
80,000 - 89,000 9 15 %
90,000 above 5 8.3 %
3.3. Setting of the Study
This study will be conducted at South Caloocan City through surveys
of the small business owners. The selection of respondents will be based on
having a small business. The number of correspondents will only have 60
business owners.
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3.4. Research Instruments
To come about the needed data, the researchers will use a
researcher’s made patterned after some models and through researcher’s
readings. The instrument will be further designed to overcome the objective
proposed in this study.
Part I - This caters to the personal information of the business
owners such as, age, yearly income and year started of the business
Part II -This caters on the information proper covering the
common factors needed to build and start a small business that is a profitable
one.
The proponents will go to release a questionnaire. Each Common
factor should be answered by the respondents. When the common factors
needed are given by the business owners the researcher will collect all the
data's and rank it.
3.5. Validation of the Research Instruments
The researchers present the draft of the survey questionnaire to their
professor Eivin B. Tolentino for their suggestions and validation as well

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3.6 Statistical Treatment of Data
To render the meaning and significance of the data surfaced at, the
following statistical tool will be used. All responses for every single term I the
questionnaire were tallied and the results were tabulated.
The following statistical tools used in the analysis and interpretation of
the data were.
1. Percentage was used in determining the frequency distribution of
the respondents according to their demographic profile.
Formula:
P = f / n x 100%
Where:
P (%) = Percentage
f = Frequency
n = Total number of respondents

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2. Weighted Mean was also utilize by the researchers to determine the
performance level of the respondents.
Formula:
Where:
wx= The weighted mean
Σf x = Sum of all the score
n = Total number of respondents
3. Chi-square This test is used only when it can be assumed that the two
distributions have the same variance. When this assumption is violated, see
below. The chi-square statistic to test whether the means are different can be
calculated as follows:
Where:
X2 = Chi-squared
O = Observer
E = Expected
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CHAPTER IV
PRESENTATION, ANALYSIS AND INTERPRETATION DATA
This chapter includes the presentation, analysis and interpretation of
data. It imparts the findings obtained from the primary instruments used in the
study.
1. Demographic Profile of the Respondents
These are the results of the questionnaires form that were distributed to
60 small business owners at South, Caloocan City. Every table represents the
percentage of each number.
Table 1
Demographic profile of respondents according to Age
Age Frequency Percentage
21 – 25 25 41.67%
26 – 35 11 18.33%
36 – 45 9 15%
46 – 60 15 25%
Total: 60 100%
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As shown in table 1 its clearly that ages 16 – 25 get the highest
percentage with 41.67%. Follow by 26 – 35 with 25%. Third is 46 above with
18.33% and the last ranges from 36 – 45 which has 15%, with a total of 60
respondents.
Table 2
(Yearly Income)
Yearly Income Frequency Percentage
50,000 – 60,000 28 46.67%
60,000 – 70,000 18 30%
80,000 – 89,000 9 15%
90,000 and above 5 8.33%
Total: 60 100%
As shown in table 2 46.67% is the highest among all who claim their
yearly income is in 50,000 – 60,000. Followed by 30% who claim their yearly
income is in 60,000 – 70,000. The third one is 15% with yearly income of
80,000 – 89,000. The last one is 8.33% with 90,000 above of yearly income.
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Table 3
(Year Started )
Year Started Frequency Percentage
2000 – 2005 4 6.67%
2006 – 2010 17 28.33%
2011 – 2015 23 38.33%
2016 – 2020 12 20%
2021 4 6.67%
Total: 60 100%
As shown in table 3 2011 – 2015 who have the highest start of the
year in doing small business with percentage of 38.33%. The second one is
20006 – 2010 with percentage of 28.33%. The third one is 2016 – 2020 with
percentage of 20%. The last one is 2000 – 2005 and 2021 with the same
percentage of 6.67%
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Table 4
Common Factors needed to build a profitable small business
The common factors needed to build a profitable small business are
economic factor, production, risk management, social control, perseverance,
planning, time management, enthusiasm and belief and level headed
approach with an average of 4.6
Common Factors Weighted Mean
Economic Factor 4.5
Production 4.8
Risk Management 4.7
Social control 4.6
Perseverance 4.4
Planning 4.9
Time management 4.6
Enthusiasm and belief 4.4
Level headed approach 4.5
Average 4.6
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Table 5
Start of Business
Frequency Percentage
Quarter 1 27 45%
Quarter 2 15 25%
Quarter 3 11 18.33%
Quarter 4 7 11.67%
Total: 60 100%
As shown in table 13 Out of 60 respondents 27 or 45% said that it would
be better to start a business in the month of January- March. The next one is
15 or 25% said that it would be better to start a small business in the month of
April-June. The third is 11 or 18.33% said that it would be better to start a
small business in the month of July-September. The last one 7 or 11.67%
said that it better to start a business in the month of October-December.

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Table 6
Source of Capital
Choices Frequency Percentage
5-6 or Arabian 4 6.67%

Lenders
Loan 23 38.33
Savings 27 45%
Heritage 4 6.67%
Others 2 3.33%
Total: 60 100%
As shown in table 14 Out of 60 respondents 27 or 45% said that they got
their capital for the construction of their small business came from their
savings. The next one is 23 with percentage of 38.33% said their capital
came from loan. Third is 4 said that their capital came from 5-6 or Arabian
lenders and heritage with same percentage of 6.67%. The least one 2 or
3.33% said that they got the capital in others sources for their small business.
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CHAPTER V
SUMMARY CONCLUSION AND RECOMMENDATION
The purpose of this study is to determine the Common Factors Needed
to Build a Profitable Small Business in South Caloocan City wherein based on
the respondents, small business is really important because it provides
flexible and fast satisfaction for the needs of customers. It serves also as
effective providing jobs for the ones who are spending their time to offer the
wants and needs of the customer.
We prove also that in South Caloocan City, small businesses include
service or retail operations such as convenience stores, small groceries,
bakeries etc. starting small business is complex, time-consuming and life-
altering. There are many more things that go into running it than just providing
the product(s) or service(s) that your business offers, however. You'll also be
responsible for your business's finances, protecting your business and
personal assets, keeping your business legal, paying taxes, keeping records,
managing employees and more.

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If you understand what you're doing and know how to minimize the
risks and challenges, the independence, personal satisfaction and financial
rewards you can achieve as an entrepreneur can make starting a small
business the best decision you'll ever make. Make your dream a reality.
Summary Findings
2. Demographic Profile
Majority of the respondents at the age of 21-25 years old got the
highest percentage.
3. Common Factors Needed to Build a Profitable Small Business in South
Caloocan City
Majority of the respondents said that planning is extremely
important
4. When do proprietors start their own business
Majority of the respondents said that it would be better to start a
small business in the month of January to March
5. What are the sources of the owner to build their small business
Majority of the respondents said that they got their capital for the
construction of their small business came from their savings.

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Conclusion
In the modern world people can no longer expect large enterprise to
guarantee them jobs for life. Individuals are increasingly expected to seek out
their own opportunities, actively create value and behave ethically, rather than
faithfully follow rules and routines set by others. In particular, today's young
people need to learn to be enterprising and when setting up their own
business. Being enterprising involves taking responsibilities for decision
making, progressive, self-reliant, and ambitious and holding your values, as
well as being able to initiate and see them through into action
Recommendation
Everyone wants to be more profitable. After all, profit is how we keep
score in business. It's not about what you make it is all about what you keep.
Sometimes the simplest ideas can help you increase your profits. If you're
ready to jumpstart the money making activities in your enterprise you are
willing to ask for referrals.
One of the best ways to grow your business is through referrals from
happy customers. Put a statement at the bottom of your invoices, on
proposals, and the back of your business cards.

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Bibliography
According to Reyes (2012) Rural Micro-Enterprise Promotion Program:
Barangay Micro Business Enterprise Act of2002
Davidsson et al. (2010) reported that growth may be related to new markets
Daunfeldt & Elert, 2013 Innovation and Market structure growth
Rahman and Ramos 2010 SMEs
According to the law BMBEs
Bianchi et. al.2010; Colombo et al.2014 Studies on open innovation in SMEs
are fragmented
Parida et al.2012 In addition, studies also show that open innovation is a
promising means for SMEs
Gassmann et al.2010) Methods that can help SMEs
Chovlette Thaoman (2013) in addition, to ensuring that the business has
enough capital,
Halabi et al (2010) investigated whether and how financial information is
used in small businesses.
The SBA (2012) has also defined a small business as one that is
independently owned and operated,

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Cheng (2015) published results of bank lending processes for small
businesses
(Arslan & Staub, 2013). Gartner, Frid, and Alexander (2012) noted that
obtaining external financing is difficult; therefore, small-business owners
typically use owner resources or bootstrap financing.
Malmstrӧm (2014) discussed how small-business owners seek innovative
methods of resourcing.
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APPENDIX A
Research instruments
“ Common Factors Needed to Build a Profitable Small Business
in South Caloocan City “
SURVEY QUESTIONAIRE:
1. DEMOGRAPHIC PROFILE
1. AGE:
21-25 years old. 26-35 years old
36-45 years old 46-60 years old
2. YEARLY INCOME
50,000-60,000 60,000-70,000
80,000-90,000 90,000 and above
3. YEAR STARTED TO HAVE SMALL BUSINESS
2000-2005 2006-2010
2011-2015 2016-2020
2021
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2. WHAT ARE THE FACTORS NEEDED TO BUILD A PROFITABLE
SMALL BUSINESS
HOW
IMPORTAN
T IS IN EXTREMELY SLIGHTLY IMPORT SLIGHTLY EXTREM
TERMS OF IMPORTANT IMPORTAN ANT UNIMPORTA ELY
STARTING T NT UNIMPOR
FACTORS TANT
IN A SMALL
BUSINESS
2.1
ECONOMIC
FACTORS
2.2
PRODUCTI
ON
2.3 RISK
MANAGEM
ENT
2.4 SOCIAL
CONTROL
2.5
PERSEVER
ANCE
2.6
PLANNING
2.7 TIME
MANAGEM
ENT
2.8
ENTHUSIA
M AND
BELIEF
2.9 LEVEL-
HEADED
APPROACH
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3. WHEN DO PROPRIETORS START THEIR OWN SMALL BUSINESS
QUARTER 1 (JANUARY-MARCH)
QAURTER 2 (APRIL-JUNE)
QUARTER 3 (JULY-SEPTEMBER)
QUATER 4 (OCTOBER-DECEMBER)
4. WHAT ARE THE SOURCES OF THE OWNER TO BUILD THEIR
SMALL BUSINESS
5-6 or Arabian lenders
Loan
Savings
Heritage
Others
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APPENDIX B
CURRICULUM VITAE
EXCELLENCE
MA.THERESA M. EVANGELISTA
#19 A. lake st. Barangay Salapan San Juan City
+63 929 669 5021
evangelistatere65@gmail.com
PERSONAL DATA:
Nickname: Tere
Age: 21 years old
Birthday: August 3, 1999
Nationality: Filipino
Civil status: Single
Religion: Roman Catholic
Mother's Name: Antonia Evangelista
Father's Name: Vicente De Jesus Evangelista
EDUCATIONAL BACKGROUND
TERTIARY : St. Augustine School of Nursing
Senior High School
3F Highway 54 plaza,986 stanford st.EDSA,1500
Mandaluyong City
2016 – 2018
SECONDARY: San Juan National High School

Corazon De jesus, San Juan City
2012 – 2016
PRIMARY: Calauag Elementary School

Calauag, Naga City
2006 – 2012
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NATHALIA NICOLE LANZUELA

387 Libis Gochuico Caloocan City
09556414399
nathalianicoleeee@gmail.com
PERSONAL DATA:
Nickname: Nicole
Age: 21 years old
Birthday: April 8, 2000
Mother's Name: Roselyn Lanzuela
Father's Name: Anthony Penonia
TERTIARY : Arellano University

Gov. Pascual Ave, Malabon, Metro Manila
2016-2018
SECONDARY: Kasarinlan High School

Kaunlaran Village Tuna St, Maypajo, Caloocan, Metro
Manila
2012-2016
PRIMARY: Kasarinlan Elementary School

Kaunlaran Village Tuna St, Maypajo, Caloocan, Metro
Manila
2006-2012
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REYNALYN M. MACABALITAO
64 Bahay Pari St. Gen T. De Leon Valenzuela City
09632591598
macabalitao.r.grc.20180500301@gmail.com
PERSONAL DATA:
Nickname: Ena
Age: 21 years old
Birthday: October 22, 1999
Mother's Name: Roselyn Macabalitao
Father's Name: Arnel Macabalitao
TERTIARY : Our Lady of Fatima University

2016-2018
SECONDARY: General Tiburcio National High School

2012-2016
PRIMARY: Marulas Central School

2006-2012
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SOFIA RENAFE S. TAÑEZA

3 Reparo st. Bagong Barrio Caloocan City
09672900143
Sofia.taneza175@gmail.com
PERSONAL DATA:
Nickname: Pia
Age: 21 years old
Mother's Name: Joey S. Tañeza
Father's Name: Dave John C. Tañeza
TERTIARY : 10th Ave, Apec School Grace Park West

2016-2018
SECONDARY: Bagong Barrio National High School

2012-2016
PRIMARY: Morning Breeze Elementary School

2006-2012
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ZYRA T, DIONARCE
50 Aguilar st. Brgy. Bungad SFDM, Quezon City
09613516875
Dionarce.t20180500403@gmail.com
PERSONAL DATA:
Nickname: Zy
Age: 27 years old
Mother's Name: Evangeline Dionarce
Father's Name: Eduardo Dionarce
TERTIARY :
SECONDARY: ALS Capitol City Baptist Church
111 West Avenue, Brgy. Bungad

1105 Quezon City
2017-2018
PRIMARY: Tinowaran Elementary School
Brgy. Tinowaran Catarman Northern Samar

2006-2007

Common Factors Needed To Build A Profitable Small Business in South Caloocan City

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GOD-FEARING RECIPROCATING COMMITTING TO 1

COMMON FACTORS NEEDED TO BUILD A PROFITABLE

In Partial Fulfilment of the

This thesis entitled “COMMON FACTORS NEEDED TO BUILD A PROFITABLE

Prof. EIVIN B. TOLENTINO, DBA

Prof. MA. LOURDES P. FLORESTA, MAED, MSCHEM

Prof. RONALDO A. DOROTEO, MBA Dr. ROCK BRYAN B.MATIAS

Accepted in partial fulfillment of the requirements for the degree Bachelor of

Prof. MA. LOURDES P. FLORESTA, MAED, MSCHEM

Common Factors Needed to Build a Profitable Small Business in South Caloocan

published sources or written by another person nor material to which to a

university or other higher education institution, except where proper referencing

and acknowledgement were made.

Lanzuela, Nathalia Nicole

Taneza, Sofia Renafe S.

Title : Common Factors Needed to Build a Profitable Small Business South

Researcher : Dionarce Zyra T, Evangelista Ma. Theresa M, Lanzuela Nathalia

Nicole, Macabalitao Reynalyn M, Sofia Renafe Tañeza

Degree : Bachelor of Science in Administration, Major in Marketing

Institution : Global Reciprocal Colleges

Adviser : Prof. Eivin B. Tolentino

factors needed to build a profitable small business in South Caloocan City.

It attempted to answer the following questions ; (1) common factors

This study used the descriptive method of research. There’s 60

researcher made, extremely important, slightly important, important, slightly

unimportant, and extremely unimportant. Statistical treatment of data includes

percentage and mean.

doing small business with the percentage of 38.33%.

to be a guide on how to build a lifelong and profitable business.

make this study possible namely:

mentoring us throughout the process of completing this research paper.

To all respondents who participated to answer the survey form questionnaire.

needs financially and for the understanding.

Certificate of approval Sheet ii

Certificate of Originality iii

List of tables vii

List of Figures viii

1. THE PROBLEM AND ITS BACKGROUND

Theoritical Framework 4-5

Conceptual Framework of the study 6-7

Statement of the Problem 7-8

Scope and limitations of the study 8

Significance of the study 8-9

Definition of Terms 9-10

2. REVIEW OF RELATED LITERATURE AND STUDIES

Small and Medium Enterprises 11-12

Innovation and Market structure growth 13-14

Business Strategy 15-16

Definition of Small Business Owner 16-18

Research Design 19-20

Participants of the Study 20-21

Setting of the study 21

Validation of the Research Instrument 22

Statistical treatment of data 23-24

4. PRESENTATION ANALYSIS AND INTERPRETATION DATA

Demographic Profile of the Respondents 25-26

Common Factor needed to build a profitable small business 28

Quarter to start of Business 29

5. SUMMARY CONCLUSION AND RECOMMENDATION

Summary Finding 31-32

THE PROBLEM AND ITS BACKGROUND

business has the fundamental basis for building a competitive environmental,