Gingoog City Comprehensive National High School Senior High School P The Problem and Its Scope

Gingoog City Comprehensive National High School Senior High School page 1
CHAPTER I
THE PROBLEM AND ITS SCOPE
Introduction
Each year thousands of people make the decision to begin their own
business. Throughout the world, business is seen as the powerful strength in
economic growth (Radipere and Dhliwayo, 2014). Do more educated people make
better business owners? Zaleski (2013) stated that business owner with higher
levels of education were more likely to obtain profits than those with less education.
Education is commonly believed to be important for the success of the
business. Thapa (2016) found a positive association between education and small
business success. The owner’s with four (4) or more years of college or university
education were less likely to fail (Boden and Nucci, 2014).
A study made by Osman (2015) of Malaysia states that retailers usually do
not have a formal education so they end up in closing their business. Moreover,
Ayaz Ahmed Chachar (2013) revealed that when the growth orientation and owners'
education are put on close observation, the lack of owners’ education with sufficient
skills in the use of new equipment is a major impediment to growth.
Education is important to ensure an efficient use system, to benefit the
company, to overcome difficulties in implementation and expanses. Education is
accepted to be the key process in supporting of organizational development (Akar,
Esen & Ozer, 2013). Owners have to know what to do and how to do it in order to
increase performance of an organization and emphasized the importance of
education.
The education of owners can impact the path to business success because
it is the process of building absorptive capacity of owners such as confidence,
knowledge and skills. One of the success factors in small business is the education
level of the owner, which can assist the business to survive and manage a complex
environment and keep business profitability (Takahashi, 2015).
According to Karloef & Loevingsson (2015) the definition of profitability is
considered to be a return on investment capital, which has been around for more
than a century. In past couple of years, the center of attention has shifted from return
on investment to cash flow, which indicates that the idea of stable profit seems to be
insignificant as long as an organization has the ability to generate enough cash flow,
no matter the means of achieving that. Some corporations followed this notion and
ended up making irrational choices.
In the Philippines, a study of Parilla (2016) found out that the importance of
business in the improvement of the country had been definitely important. Private
sector improvements a business improvement are essential ingredients for achieving
the Time Improvement Goal of reducing poverty.
However, for some time there has been common respect that business is the
device that drives the economy of most nations. This has led to a growing interest in
the development of education programs to encourage and enhance business, and a
recognition that much research needs to be carried out into what makes an business
owner and how these features may best be reported (Gorman, Hanlon, and King,
2013).
On the other hand, education of the owners is one of the factors that impact
the profitability of the business. Those with higher levels of education, such as
diplomas and degrees should be encouraged to take up business education on as
career options since the businesses they would run will perform better and this
would be good for the economy. (Radipere and Dhliwayo, 2014).
Undeniably, as observed by the researchers there are alarming number of
small retail businesses that end up in closing their business and we want to correlate
if education has an impact to the business. According to the Data Entry Machine
Operator in Business Permits and Licensing Section that every year there are almost
six(6) small retail businesses in Gingoog City that did not manage to survive, so, it
was owned and run by another businessmen.
The present study is an attempt to determine the impact of education towards
business profitability of small retail businesses. Its participants are the selected small
retail business owners in Barangay 20, Gingoog City. Thus, this study will possibly
know the educational level of the owner.

Statement of the Problem
This study aims to determine the impact of owner’s education on the
profitability of small retail businesses. The participants were taken are the current
business owners of the selected small retail businesses in Barangay 20, Gingoog
City. The respondents must be involved in day to day running of the business.
Specifically, it sought to answer the following questions:
1. What is the educational level of the business owners?
2. How do business owners perceive the necessity of education in
business?
3. How do business owners perceived their profitability level?
4. Does education has a significant impact on the profitability of the
business?
Scope and Limitations
The study focused on the impact of education on the profitability of selected
small retail businesses in Barangay 20, Gingoog City. Small retail business owners
profile was determined to the level of education (Elementary Level, High School
Level, College Level, and College Graduate).

Significance of the Study
The result of this study will benefit the following:
Business Owners. The result of the study will be primarily beneficial to them which
would help the business owners to manage their business in making better profits
through education.
Future Business Owners. The result of the study will encourage the future
business owners to understand the importance of education in running a business.
The Researchers. The result of the study will give additional knowledge to the
researcher as aspiring business owner on how to make the business profitable and
sustainable.
Other Researcher. The result of the study will help other researcher on their future
studies as reference.
Definition of Terms
In business, terminology can have depth meanings. To provide a better
understanding for the meanings of words and phrases in the context of the study,
the readers can gain greater clarity through the definitions. The following terms are
used throughout the study:
Business - the activity of selling or buying goods or providing in exchange of
money.
Education - the knowledge, skill and understanding that you get from attending
school.
Profitability - an act of making money or to earn profit.
Retail - the sale of goods to the public in relatively small quantities for use or
consumption rather than for resale.
Small Business - a business that is independently owned and operated that is
limited in size and in revenue depending on the industry.
Theoretical Framework and Conceptual Framework
This study is anchored on the following theories and findings namely:
Economic Theory
The economic theory, propounded by Becker (1975) Bosma et al., (2004)
Gimeno et al., (1997) is termed as Human Capital Theory. This theory offers the
concept of an impact coming out of acquired variables like experience and education
on career outcomes. The hypothesis which is a basis this theory clearly entails that
education can serve both as a determinant in decision-making as well as rendering
benefits to particular industries (Sorensen and Chang, 2006).
Furthermore, economic theory or Human Capital theory emphasizes how
education increases the productivity and efficiency of owners and workers (Olaniyan
and Okemakinde, 2008:158). The application of this theory will majorly focus on the
role of levels of formal education which are implied or considered to be an
investment that will fetch monitory gains. Van der Sluis et al. (2004) on the subject of
Meta-analysis has given informative account of a link between education and
individual’s choice to go for a kind of business, and education level and owner’s
output in industrially developed countries. The owner’s output is an outcome of
formal education that he or she has acquired. The result of increase in sales, profit,
employees and customers during the trade activity confirms the fact that owner’s
performance is a direct corollary of the relationship that it has with the acquisition of
formal education.
In addition, the relationship that is developed between acquisition of formal
education and owner’s performance has a relative perspective. The performance of
SMEs mainly depends on the characteristics such as owners’ formal education,
profit, sales/turnover and number of employees. Therefore, the acquisition of formal
education is taken as productive strategy of success and competitive edge in the
SME business (Gundry & Welsch, 2001; Deakins and Markfeel, 2003; Davidsson et
al., 2005).
Oligopoly Theory
Oligopoly theory makes predictions about profits, and empirical research up
to the 1970’s mainly emphasized the relationship between business structure and
rate of profits; it apparently seemed to make sense to compare profit rates between
industries rather than price. Not all theories of imperfect competition points to higher
profits in concentrated businesses, though. For example, in the Chamberlain model,
the effects of entry and excess capacity leave the oligopolist with only normal profits,
and Posner (1975) argued that oligopolists presented with opportunities to set the
price above marginal cost will incur greater costs to attain higher sales. Posner
expects this process to continue until marginal costs have risen to the level of price.
Predictor Criterion
Moreover, the expectation is that an inefficient retail businesses in a highly
competitive business area may not be able to remain in business because prices
and extension gross profit are low, translating inefficiency into low profit, while an
inefficient retail businesses possessing a monopoly position in a local area can
remain profitable enough, due to the business power opportunity to charge higher
prices and earn higher gross profits. However, a monoply business may not have
the same ability to operate as efficiently as a business operating under intense
competition (Leibenstein, 1966, 1976).
Given with the theories and concepts, figure 1 below shows the schematic
presentation of variables of the study. The researchers have assumed that owner’s
level of education has an impact on profitability of the business.

Education Profitability
Figure 1. Schematic Presentation Showing the Interplay of Variables in the
Study.
Hypothesis.
Ho: There is no significant impact between education and business
profitability.
CHAPTER II
REVIEW OF RELATED LITERATURE AND STUDIES
This chapter presents a review of related literature and studies. It discusses
major insights and materials to further support the present problem being studied.
Discussion on the impact of level of education on the profitability of small retail
business in Barangay 20, Gingoog City. Foreign and local setting studies are
presented to give a more wide view of the research problem under investigation.
Foreign-Related Literature and Studies
In United Kingdom, experience to work experience in smaller businesses has
a recognizable impact on the work market choices that people make next. In short
do people who are exposed to small business then become more likely to follow a
business profession? The final strand questions whether it can make a difference in
terms of recognizable business results (Cowling, 2009).
Preliminary research highlighted the fact that few, past studies had focused
on the owners of SMEs and in particular if educational attainment had any effect
upon business profitability. This study indicates that there was indeed some
evidence of a positive link between the level of education, of Hyderabad SME
owners and business profitability. At the very least, this highlights the need for
further study, whilst at the same time making Hyderabad’s policy-makers aware of
the potential benefits of investing in educational support for owners of local SMEs
(Ayaz Ahmed Chachar, 2013).

SME owners in Czech Republic perceive the role of the state and whether
this perception differs according to their level of education. It was found that the
lower education the businesspersons have, the higher satisfaction with the role of
the state in the business environment of Czech Republic. Better-educated
businesspersons are more aware of administrative obstructions when starting a
business. Majority of SMEs we’re not satisfied with the financial support for
businesses provided the state (Kamil, et. al 2017).
According to Atamian & VanZante (2014) small business owner need to
understand the necessity of continuing education in their plans for success. It was
recommended that small business owners continue their education through
acquiring knowledge and skills from any resources available. It is revealed that the
success of owners of small businesses was his/ her commitment to attaining the
standard of excellence (Fahed-Sreih & Morin- Delerm, 2012).
In the face of economic and social conditions that Albania confronts
nowadays, the development of the small business enterprises has a primary place
as well as an important role, too. The business and enterprises literature shows that
there are many factors determining the success and the growth of an enterprise. The
profit is one of the most important factors for an enterprise to survive in a competitive
environment. Consequently, it is an important indicator of SMEs’ performance. The
profitability refers to the possibility of an enterprise to be financially successful. This
can be assessed prior to entering the business or can be used to analyze an
enterprise that currently is under operation. In this paper, profitability of SMEs is

being measured through linear regression model (Bitila Shosha, PhD Candidate,
2014).
According to Karloef & Loevingsson (2015), profitability is the notion that any
organization needs for its survival, but at the same time, in the past, many were
convinced that even though it is crucial for the company, it should not be the only
driver for equity or cash investment. As for any other business firm, the profitability of
a grocery retail store is a consequence of the interplay between environmental
factors and internal factors. Retail managers are constantly faced with the challenge
of making decisions and taking actions, in order to satisfy consumers’ needs and
wants, and respond to the actions of competitors.

CHAPTER III
METHODOLOGY
This chapter described and explained the research design, the population,
sampling procedures and data gathering method used in the study. It also outlines
the details of the instrument of the study, scoring procedures as well as data
analysis. It is expected that the chosen methodology will bring information through
the collection and analysis of the data on the impact of owner’s level of education on
the profitability of small retail businesses.
Research Design
This study employed a quantitative research approach utilizing correlational
research design of conducting a research. The primary purpose of a correlational
study is to determine the relationship between variables and if there is a relation. A
correlational study examines the variables in their natural environment, not including
the researcher- imposed treatment (Simon, M. and Goes, J., 2011).
Respondents of the Study
A list supplied by the Business Permits and Licensing Section revealed that
there are approximately 339 small retail businesses in Brgy.20, Gingoog City (List of
Business Establishment as of September 24, 2019). For the purpose of this study
the population could be regarded as all small retail businesses in Brgy.20, Gingoog
City. A nonprobability sampling procedure was used and a convenient sample was
drawn, purely on the basis of availability and accessibility. The final population
comprised of 56 respondents.
The criteria of choosing the respondents were that:
 Respondents must be the owners of the small retail business.
 And respondents must be involved in day to day running of the business.
Sampling Design
This study employed the purposive sampling. Purposive sampling is a non-
probability sampling in which researchers use when they want to access the
particular subset of people, as all participant of the study are selected in which they
fit a particular profile (Ben Foley, 2018).
This study also engaged the convenience sampling design because the
researchers choose the respondents that are available and accessible. Etikan,
Musa, and Alkassim (2015) define it as also known as Haphazard Sampling or
Accidental Sampling. A type of nonprobability or nonrandom sampling where
members of the target population that meet certain applied criteria, such as easy
accessibility, environmental proximity, availability at the given time, or the willingness
to participate are included for the purpose of the study.

Research Instrument
This study used modified questionnaire from the study of Njambi (2016) entitled
“An Evaluation of Entrepreneurship Education as a Tool used by the Government to
Promote Growth and Development of SMEs in Kenya: A Case Study of the KPMG
Top 100 SMEs”.
This study also used modified questionnaire from the study entitled
“ Employees Satisfaction and Profitability for some selected Telecommunication
Companies in Mogadsihu Somalio”
The questionnaire was pre-tested among of the respondents identified in the
sample to ensure reliability and validity.
Scoring Procedures
The following procedures guided the organization of data in the study.
A. Education
Range Point Value Description Interpretation
Education is not necessary

1.00- 1.75 1 Strongly Disagree for business owner.
Education is less needed for

1.76- 2.50 2 Disagree business owner
Education is necessary for

2.52- 3.25 3 Agree business owner
3.26- 4.00 4 Strongly Agree Education is mostly needed

for business owner
Range Point Value Description Interpretation
1.00- 1.75 1 Very Low The profit of the business

is very low
1.76- 2.50 2 Low The profit of the business

is low
2.52- 3.25 3 High The profit of the business

is high
3.26- 4.00 4 Very High The profit of the business

is very high
B. Profitability
The questionnaire was pre-tested among of the respondents identified in the
questionnaire follows the Rating Scale. This scale determined the magnitude or
degree of frequency.
Reliability Test
All survey questionnaires used in this study, were piloted and subjected to a
reliability test using SPSS. The reliability coefficient resulted to for the owner’s level
of education and for profitability of small retail businesses.
Data Gathering Procedures
The main data gathering instrument selected for this study was the
questionnaire. After getting permission from the concerned school authority, the
researcher visited small retail businesses in Brgy.20, Gingoog City and administered
questionnaires to the business owners. The researcher covered the area of study in
1 day to complete the questionnaire. The research gathered the data needed to
answer the research questions, and the questionnaire used. Questionnaires were
done to especially to validate the answer of respondents. The forms were already
filled up; the researcher gathered the data and proceeded with the analysis,
tabulation, investigation and interpretation of data.
On the other side, the research must not force the participants to cooperate or
participate, because the researcher must value and respect the privacy and
confidentiality of the participant. Some of researchers may use this as the basis of
their research to gain additional knowledge or information about the related topic in
their chosen study that indicate the measurement of education level of the owners
and the profitability of small retail businesses.
Statistical Treatment and Data Analysis

The data collected was edited and analyzed by used of SPSS. Descriptive
statistics and simple linear regression was used to analyze the data and the findings
were presented.
CHAPTER IV
PRESENTATION, ANALYSIS AND INTERPRETATION OF DATA
This chapter discusses the results of the data obtained from the instrument used
in the study. The data were collected and processed and then interpreted in
response
Problem 1: What is the educational level of the business owners?
Figure 1 Education levels of respondents
Elementary level
High School level
College Level
College Graduate
Education levels
1.79 %
23.2
1%
elementary level
highschool level
college level
50 college graduate
%
25%
Out of 56 retailers 28 or 50% are college graduate. The study also showed
that out of 56 retailers 14 or 25% have attained college education and 13 or 23.21%
retailers have attended high school education. The study, further, reveals that only 1
or 1.79% of the retailer is not exposed to highest level of education.
Problem 2: How do business owners perceive the necessity of education in
business?
Table 1
Frequency, Percentage and Mean Distribution
Of Education to Business Owners
Range Point Description Interpretation Frequency Percentage

Value
1.00- 1.75 1 Strongly Education is not 3 5.36%
Disagree necessary for
business owner.
1.76- 2.50 2 Disagree Education is less 6 10.71%

needed for
business owner.
2.52- 3.25 3 Agree Education is 25 44.64%

necessary for
business owner.
3.26- 4.00 4 Strongly Education is mostly 22 39.28%

Agree needed for
business owner.
Total 56 100%
Mean: 3.13 SD: 0.94 Interpretation: Education is necessary for business
owner
Indicators Mean SD Description
For me,
1. Education is important to 3.36 .943 Strongly Agree

the performance of the
business.
2. Education provides new 3.33 .931 Strongly Agree
ideas about how to run a
business.
3. Education has helped the 3.23 .894 Agree
business to be ahead of
competition.
4. Education contributes to the 3.39 .779 Strongly Agree
success of the business.
5. Education is necessary for 3.16 .987 Agree
the owners who want to
start a business.
6. Persons who have formal 3.11 1.073 Agree
education usually become
successful.
7. Business owner with higher 2.93 1.006 Agree

level of education were
more likely to obtained
profits.
8. Education increases the 3.07 .970 Disagree
productivity and efficiency of
the business owners.
9. The performance of the 2.70 .893 Disagree
business depends on the
owner’s education.
10. Business owners need to 3.04 .953 Agree
understand the importance
of education in putting up a
business.
Table 1 shows the frequency, percentage and mean distribution of education
in business. With an overall mean of 3.13, the result implies that education is
necessary for business owners.
According to Atamian & VanZante (2014) small business owner need to
understand the necessity of continuing education in their plans for success. It was
recommended that small small business owners continue their education through
acquiring knowledge and skills from any resources available. It is revealed that the
success of owners of small businesses was his/her commitment to attaining the
standard of excellence (Fahed-Sreih & Morin- Delerm, 2012). .
Problem 3: How do business owners perceived their profitability level?
Table 2 shows the frequency, percentage and mean distribution of business
profitability level (n=56). It also showed the overall mean of 3.22 and a standard
deviation of 0.64 and interpreted as high.
Table 2
Frequency, Percentage and Mean Distribution of
Business Profitability Level (n=56)
Range Point Description Interpretation Frequency Percentage

Value
1.00- 1.75 1 Very Low The profit of the 0 0
business
is very low
1.76- 2.50 2 Low The profit of the 18 32.14%

business is low
2.52- 3.25 3 High The profit of the 36 64.29%
business is high
3.26- 4.00 4 Very High The profit of the 2 3.57%
business
is very high
Total 56 100%
Mean: 3.22 SD: 0.64 Interpretation: The profit of the business is high
Indicators Mean SD Description
The annual average profit of 2.59 .654 High

the business is ____.
The business inventory 2.64 .672 High
turnover is actually_____.
The sales growth of this 2.66 .581 High
business is _____.
The return on asset of this 2.79 .594 High
business is _____.
The return on capital of the 2.88 .715 High
business is _____.
Table 5 shows the frequency, percentage and mean distribution of business
profitability level (n=56). The descriptive result implies that the profit of most of the
small retail businesses in Brgy.20, Gingoog City is classified as high. Profit is one of
the most important factors for an business to survive in a competitive environment.
Profitability is the notion that any organization needs for its survival, but at the
same time, in the past, many were convinced that even though it is crucial for the
company, it should not be the only driver for equity or cash investment
Problem 4: Does education has a significant impact towards the profitability of
the business?
Hypothesis: There is no significant impact between education and business
profitability.
Table 2
Simple Linear Regression Analysis between Education and Business
Profitability
Independent Regression T P- Value

variable Coefficient
Education .243a .1842 .071
Constant: 2.211
R2: .059
F- Value: 3.394
Sig. Level: .071
Ho1: is accepted
The study determined whether education impact the business profitability.
The simple linear regression (SLR) was used to compute the degree of impact of
education on profitability of small retail businesses.
Table 5 shows that education has no significant impact on the profitability of
the business.
As shown in Table 6, education has no significant impact towards the
profitability of the business with significance level of 0.071. This implies that
education has no significant impact on business profitability. According to David
(2017) that higher education does not necessarily leads to success. However,
another thing that successful people in business have is the desire to create
something that advances society in some way that is also generate at least a
moderate profit. He also stated that other business people are successful because
they learn to copy successful organization and their peers in those organizations. Do
not believe that college is the end-all solution to business success. Some are born
into family business, but most are actually hardworking people who had an idea and
persevered.
The result of this study is also supported by Robinsons, et al (2013) that
through expertise and hard work a business owner can be succeeded without proper
educational background.
According to Entreprenoria (2019) that there are a lot of successful business
owners in the Philippines today that never had much of a formal education but was
still able to achieve a great deal in life and in business. These individuals were able
to make their mark in the world of business despite their lack of formal education.
On the other hand, the survey seems to reveal that inadequate education is
not a major reason for small retail businesses to be successful.
CHAPTER V
SUMMARY, CONCLUSIONS, AND RECOMMENDATIONS
This chapter presents the summary, findings and conclusion of the
study. It also discusses appropriate recommendations from the findings and
conclusions of the study.
SUMMARY
The Problem. This study aims to determine the impact of owners educational level
on the profitability of small retail businesses. The participants were taken are the
current business owners of the selected small retail businesses in Barangay 20,
Gingoog City. The respondents must be involved in day to day running of the
business. Specifically, it sought to answer the following questions: (1) What is the
educational level of the business owners? (2)How do business owners perceive the
necessity of education in business? (3) How do business owners perceived their
profitability level? (4) Does educational has a significant impact on the profitability of
the business?
Research Methodology. The study utilized the correlational research design using
survey questionnaire specific for each of the predictor and criterion variables. Signed
and approved letters of permission were secured from the office of the school
principal to conduct the survey outside of Gingoog City Comprehensive National
High School. Upon receiving the approval, the questionnaires were distributed to the
small retail business owners in Barangay 20, Gingoog City. They were then
retrieved; data were tabulated and analyzed using SPSS. The statistical treatment
used ere the frequency, percentage, and mean distribution and Simple Linear
Regression (SLR) for establishing the impact of the predictor variable and the
criterion variable.
Findings. The findings of the study were summarized as follows:
1. Small retail business owners in Barangay 20, Gingoog City were mostly a college
graduate. It reveals that education is necessary for business owners.

2. The profitability level of the small retail business in Barangay 20, Ginoog City is
classified as high.
3. Education has no significant impact on the profitability of the business.
Conclusions
The study aimed to determine the impact of education on the profitability of
small retail businesses in Barangay 20, Gingoog City. It was on this premise that the
following conclusions were:
The success of the business does not depend on the owner’s education.
Moreover, education can play a significant role in small businesses but it does not
mean that more people equipped in education, the more they succeed.
Recommendations
Based on the findings and conclusions of the study, the researchers, arrived
at the following recommendations to the following entities:
1. To the small retail businesses
The result of this study will help the businesses more profitable and continue
to operate in a long period of time.
2. To the small retail business owners
The findings could be a good source of a business owner to enhance their
skill in running the business.
3. To the future researchers

With the base of this research, the future researchers can gain additional
knowledge as aspiring business owner on how to make the business profitable and
sustainable.
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APPENDIX A: Letter of Approval
IDJYA D. YDER, Ph.D.

Principal III
GCCNHS
THRU: SUSAN T. APAREJO, Ph. D.
Assisting Principal
Dear Ma’am:
Praised be the Omniscient God!

The undersigned, a team leader of a group of section Aris, is seeking for your
permission to conduct a study in for a research entitled, “Impact of Education
towards the Profitability of Selected Small Retail Businessess in Barangay 20,
Gingoog City.”
The Quantitative Research is purposed to determine the relationship of Education

and Profitability of Retail Businesses. Please be assured that the ethical standards
in research are of paramount consideration in the conduct of the study.
Thank you very much for your approval.
Very truly yours,
JESSA MAE GALGO

Team leader
Endorsed by:
CONNIE M. OBEDENCIO
Research Instructor
Recommending Approval: Approved by:
SUSAN T. APAREJO, Ph.D. IDJYA D. YDER, Ph.D.

Assisting Principal Principal III
APPPENDIX B: Consent Letter
October 04, 2019
Dear Ma’am/Sir,
Greetings of Peace!
We are Accountancy, Business and Management (ABM) Grade 12 students of

Gingoog City Comprehensive National High School who are currently conducting a
research study on the “ The Impact of Education towards the Profitabilty of
Selected Small Retail Businesses in Brgy. 20, Gingoog City ” . The study is a
major requirement in Practical Research 2 course. In this regard, we would like to
solicit your permission to allow us to float questionnaires to your employees as the
main respondents of our study in your vicinity at your convenient time. Rest assured
that the data gathered will remain absolutely confidential and to be used in
academic purpose only.
We believe that you are with us in our enthusiasm to finish the requirement as
compliance for our subject and to gain new insights with the results of this study
which may be relevant to us as future members of the corporate world, We hope
your positive response on this humble matter.
Respectfully yours,
JESSA MAE P. GALGO

Team Leader
Endorsed by:
CONNIE M. OBEDENCIO,MBM
Practical Research-2 Teacher
Recommending Approval: Approved by:
SUSAN T. APAREJO, Ph.D. IDJYA D. YDER,Ph.D.

Assissting Principal Principal III
APPENDIX C: Survey Questionnaire
Impact of Owner’s Education towards the Profitability of Small Retail

Businesses in Barangay 20, Gingoog Cit
This questionnaire is part of study that seeks to determine the impact of level
of education towards the profitability of small retail businesses in Gingoog City.
Please answer the questions sincerely.
Thank you very much.
PART I: DEMOGRAPHIC DATA FORM

Direction: Put a check between the parentheses.
1. Name(Optional):_______________________________________________
2. Educational Level: ( ) Elementary Level ( ) High School Level

( ) College Level ( ) College Graduate
PART II:
A. Education
Directions: Read each statement and check the choices you think the most correct
for you. There are no right and wrong answers. Please check one answer in each
box.
1- Strongly Dis-Agree 2- Dis- Agree 3- Agree 4- Strongly Agree
Item 1 2 3 4
For me,
1. Education is important to the performance of the

business.
2. Education provides new ideas about how to run a
business.
3. Education has helped the business to be ahead of
competition.
4. Education contributes to the success of the
business.
5. Education is necessary for the owners who want to
start a business.
6. Persons who have formal education usually
become successful.
7. Business owner with higher levels of education
were more likely to obtained profits.
8. Education increases the productivity and efficiency

of the business owners.
9. The performance of the business depends on the

owner’s education.
10. Business owners need to understand the
importance of education in putting up a business.
B. Profitability
1-Very Low 2- Low 3- High 4- Very High
Item 1 2 3 4
1. The annual average profit of the business is

_____.
2. The business inventory turnover is actually
_____.
3. The sales growth of this business is _____.
4. The return on asset of this business is
_____.
5. The return on capital of the business is
_____.
APPENDIX D : Curriculum Vitae
Personal Information
Name : Jestony R. Cagmat
Address : Zone 10 barangay 19 Gingoog City
Date of Birth : September 12, 2001
Place of Birth : Gingoog City
Civil Status : Single
Parents : Mr.Pedro R. Cagmat
: Mrs.Analiza R. Cagmat
Father’s Occupation: Driver
Mother’s Occupation: Housewife
Religion : Roman Catholic
Educational Attainment
Elementary :
Junior High School : Gingoog City Comprehensive National High School
Senior High School : Gingoog City Comprehensive National High School
Grade Level : Grade 12
Track : Academic
Strand : Accountancy Business and Management

Section : Aris
Research Adviser : Mrs. Connie Obedencio
Contact Information
Cellphone Number : 09559004372
Email Address : jestony.cagmat106@gmail.com
CURRICULUM VITAE
Name : Riza Mae F. Sabado
Address : P-2,Brangay 23, Gingoog City
Date of Birth : October 1, 2002
Place of Birth : Davao City
Parents : Mr. Eddie S. Sabado
:Mrs. Ma. Rezaide F. Sabado
Father’s Occupation: Security Guard
Mother’s Occupation: Housewife
Religion : Roman Cathollic
Elementary : San Isidro Elementary School
Junior High School : Davao City National High School
Track : Academic
Strand : Accountancy Business and Management

Section : Aris
Contact Information
Email Address : Rizamaefaboradasabado@gmail.com
CURRICULUM VITAE
Name : Reline S. Batahoy
Address : Lunao Riverside Gingoog City
Date of Birth : March 20 2002
Place of Birth :Lunao Riverside Gingoog City
Parents : Reynante Batahoy
: Evangeline Batahoy
Father’s Occupation : Driver
Mother’s Occupation : Sales Lady
Religion :Roman Catholic
Elementary : Lunao Central School
Junior High School : St’ Mary’s Academy
Track : Academic
Strand : Accountancy and Business Management

Section : Aris
Contact Information
Email Address : reline20batahoy @gmail.com
CURRICULUM VITAE
Name : Jessa Mae P. Galgo
Address : P-7, Brgy. Agay-Ayan, Gingoog City
Date of Birth : August 03, 2002
Place of Birth : Brgy. Pigsalohan, Gingoog City
Parents : Sanny L. Galgo Sr.
Cecelia P. Galgo
Father’s Occupation: Security Guard
Mother’s Occupation: Housekeeper
Elementary : Lunao Central School
Grade Level : 12
Track : Academic
Strand : ABM
Section : Aris
Contact Information
Email Address : jessagalgo999@gmail.com
CURRICULUM VITAE
Name : Stelour Mae V. Lustria
Address : Purok 7, Barangay 26, Gingoog City
Date of Birth : November 14, 2001
Place of Birth : Gingoog City
Parents : Steve M. Lustria
Lourdes V. Lustria
Father’s Occupation: Driver
Mother’s Occupation: Barangay Treasurer
Elementary : Don Restituto Baol Central School
Grade Level : 12
Track : Academic
Strand : ABM
Section : Aris
Contact Information
Email Address : maelustria26@gmail.com

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THE PROBLEM AND ITS SCOPE

business. Throughout the world, business is seen as the powerful strength in

Education is commonly believed to be important for the success of the

education were less likely to fail (Boden and Nucci, 2014).

A study made by Osman (2015) of Malaysia states that retailers usually do

skills in the use of new equipment is a major impediment to growth.

Education is important to ensure an efficient use system, to benefit the

company, to overcome difficulties in implementation and expanses. Education is

accepted to be the key process in supporting of organizational development (Akar,

increase performance of an organization and emphasized the importance of

it is the process of building absorptive capacity of owners such as confidence,

environment and keep business profitability (Takahashi, 2015).

According to Karloef & Loevingsson (2015) the definition of profitability is

ended up making irrational choices.

sector improvements a business improvement are essential ingredients for achieving

the Time Improvement Goal of reducing poverty.

the development of education programs to encourage and enhance business, and a

diplomas and degrees should be encouraged to take up business education on as

would be good for the economy. (Radipere and Dhliwayo, 2014).

Undeniably, as observed by the researchers there are alarming number of

was owned and run by another businessmen.

The present study is an attempt to determine the impact of education towards

know the educational level of the owner.

Statement of the Problem

This study aims to determine the impact of owner’s education on the

Specifically, it sought to answer the following questions:

1. What is the educational level of the business owners?

2. How do business owners perceive the necessity of education in

3. How do business owners perceived their profitability level?

4. Does education has a significant impact on the profitability of the

Scope and Limitations

The study focused on the impact of education on the profitability of selected

Level, College Level, and College Graduate).

Significance of the Study

The result of this study will benefit the following:

business owners to understand the importance of education in running a business.

In business, terminology can have depth meanings. To provide a better

used throughout the study:

Business - the activity of selling or buying goods or providing in exchange of

Profitability - an act of making money or to earn profit.

consumption rather than for resale.

Small Business - a business that is independently owned and operated that is

limited in size and in revenue depending on the industry.

Theoretical Framework and Conceptual Framework

This study is anchored on the following theories and findings namely:

The economic theory, propounded by Becker (1975) Bosma et al., (2004)

education can serve both as a determinant in decision-making as well as rendering

benefits to particular industries (Sorensen and Chang, 2006).

Furthermore, economic theory or Human Capital theory emphasizes how

role of levels of formal education which are implied or considered to be an

Meta-analysis has given informative account of a link between education and

output in industrially developed countries. The owner’s output is an outcome of

In addition, the relationship that is developed between acquisition of formal

education and owner’s performance has a relative perspective. The performance of

SMEs mainly depends on the characteristics such as owners’ formal education,

profit, sales/turnover and number of employees. Therefore, the acquisition of formal