Savings Pattern

According to the study Savings Behavior among Small Business Owners in

Nigeria: A Case Study of Enugu Metropolis (2017), people with low incomes often find it

difficult to save. The same is true for small business owners, who are thought to

contribute the most to national economic growth. Small and medium-sized business

owners have limited access to credit because of their poor saving habits.

Based on the study of Remo (2017), 55% of the respondents only allotted less

than 10% of their income for savings. According to the study's findings, the majority of

respondents prioritized savings the least. One of the most notable Filipino money

attitudes is that they do not plan their personal finances. It is also uncommon to come

across people who have their own retirement plans. The majority of Filipinos spend their

hard-earned money on impulse.

De Vera (2018) argued that high prices of basic commodities make savings more

complex. According to the Bangko Sentral ng Pilipinas' Inflation Report for the First

Quarter of 2020, analysts expect inflation to ease but remain within the target range,

with inflation risks tilted to the downside due primarily to subdued demand in the midst

of the COVID-19 pandemic. Furthermore, inflation has risen in recent years as a result

of the impact of President Duterte's signing of the first stage of the TRAIN tax reform

package in December 2017.

Furthermore, the level of competition was high because the majority of business

owners ran the same type of operation, which was merchandising. There was no

competitive advantage among businesses to improve their value in the eyes of

consumers. As a result, the income generated by the business to be saved in a formal

or informal savings scheme was insufficient to expand the business to small, medium,

or large enterprises.

In terms of income allocation, the majority of respondents were more likely to

prioritize food and other expenses over saving. Due to the continuous increase in goods

and services such as food, education, and other needs, their income is insufficient to

meet their goals.

The emergence of shopping malls has influenced the operations of small

shopkeepers and other unorganized business outlets, according to the study Impacts of

Shopping Malls on Small Retail Outlets: A Study in Calicut City (2017). The sales

figures and operating profits have been shown to be in a downward trend. According to

the study, the net earnings of small shops have decreased since the arrival of shopping

malls. Furthermore, 50% of small business owners have a significant difference in their

saving patterns, and their gross savings have not increased.

Similarly, Mathews (2018) discovered that 65% of small shopkeepers have a

significant difference in their saving patterns and no increase in their gross savings.

According to the study, the net earnings of small businesses have decreased since the

arrival of shopping malls because of their image as more convenient than public streets,

with their spacious parking garages, well-maintained walkways, and private security

guards.