CHAPTER THREE: RESEARCH METHODOLOGY

3.0 Introduction
The research methodology refers to the way in which a researcher plans to collect information or
data. The chapter is important components that essentially map out the methods utilized for the
research and it focus on approach in which the planned activities were structured, and
implemented. Furthermore the chapter reveals the general approaches used for conducting this
research. Mainly, the chapter covers the research design, sample, and data collection instruments
of the study.

3.1 Operational Definitions of the Variables

Inflation-IV: Inflation is defined as an increase in the overall level of prices in the economy. Itis
not because goods become more valuable but otherwise because the money becomes less
valuable. In other words, a same amount of money at a certain time can purchase fewer goods or
services than at the previous time. Alternatively, inflation can be described as a decrease in the
value, or the purchasing power, of money. (Mankiw 2011, 643.)

Small business-DV: Small business is defined as a privately owned corporation, partnership, or

sole proprietorship that has fewer employees and less annual revenue than a corporation or
regular-sized business. The definition of small in terms of being able to apply for government
support and qualify for preferential tax policy (Kriz, 2015)

3.2. Research Type

This study researcher used descriptive research design. Descriptive design, frequently used to get
information towards the current outstanding situation to determine what is existing to consider
variable conditions and it also describes characteristics of population or phenomena (Bhat, 2017)

3.3. Research Approach

The researcher used quantitative during this research. Because, this approach is mainly collected
through questionnaires, this method is more objective in measuring data as comprehensive way
informs of graphical methods, quantitative approach is used to measure by numbers, ratios and
percentages (Sajjad, 2016).
3.4 Sample Design
3.4.1 Target Population
The study population was carried out the Hargeisa particularly, Gobanimo town. The target
population of the study was focused on the Small business who consists of 120 including the
business owners and public finance experts.

Table 3.1: Target Population

S/n Population Category Target Population
1 Small Business owners 100
2 Public finance expert 20

3.4.2 Sample Size

This refers to the number of staffs to be selected from the target population to establish a sample
(Zamboni, 2018). The size of the sample should neither be excessively large nor too small. It
should reflect proper representation of the population, in order to ensure that, the researcher has
used the rule of thumb, since the target population is less than 1000, as the rule applies 30% of
the population was selected, as a sample; 0.3*120 = 36 so the sample size taken was 36
respondents from the Small Business Gobanimo town.

3.4.3 Sampling Techniques

In sampling technique researcher used both probability and non-probability sampling. In
probability sampling, simple random sampling was used use since our target population were
homogenous and in non-probability sampling, purposive sampling was used which helped the
researcher to purposely select a top business management which researcher believes that he/she
has more experience and knowledge related to the field of the study.

Total population= 120

Sample Size= 36

Sampling Fraction=
(36120 )=0.3
Sample fraction= 30 %
Table 3.2: Sampling frame
Classification of Sample Frame Total Sampling Sample Size
 Population Fraction
Small Business owners 100 30% 30
Public finance expert 20 30% 6

3.4.4 Sampling Frame

The sampling frame is the elementary units or the group of cluster of such units that may form
the basis of sampling process. Sampling Frame is a list or set of directions for identifying all
elements in a study population (Kothari 2004). The following table indicates the sample frame of
the study.

3.5 Sources of Data

The research was collected data from both primary and secondary sources of data.

3.5.1 Primary Data Sources

The primary data are gathered through the way of doing experimental research. Consequently,
there were different techniques of collecting primary data, as through the following instruments
such as questionnaires, interviews and observations during research.

3.5.2 Secondary Data Sources

The secondary data sources of this study were gathered from the documentations, Ministry of
trade annual reports, abstracts, revenue reports of Ministry finance and the reports of public
financial institutions.

3.6 Data Collection Instruments

In data collect instrument, in order to achieve its specific objectives and overall advantages to the
beneficiaries, the study will use and adopt questionnaire because questionnaires have the benefit
to quote a large area simply, quick data collection and easy to explain respondents for the
questions they do not understand. In order to become easy and understandable to the respondents
there was a plot testing for the questions before they distributed. Three days was allocated to
undergo pilot testing of the questionnaires. The pilot testing helped to get timely correction and
inputs in the questionnaires.
3.7 Data Analysis and Interpretation
The researcher used descriptive statistics by using descriptive analysis and also, the researcher
used SPSS (statistical package for social science) and word charts, as a data analysis tool. After
the analysis and computation of data, the result was summarized and presented in table and
charts by the researchers.

3.8 Data Presentation Tools

In this research, the researcher presented the data and information collected through
questionnaire, in tables, pie charts, bar charts etc. to be easily seeable and understandable

3.9 Ethical Consideration:

The researcher will confirm the confidentiality of the information that the respondents will
provide, to establish the practice of ethics in this study, the following activities researcher will
implement; the researcher will share to the respondents the purpose and the objective of the
study to ensure voluntary participation of the respondents; as it only for academic purpose with
complete confidentiality, in order to get better understanding and to be obtained effective and
efficient information for respondents. In addition, no participant’s name will mention to keep
anonymity and any result from any respondent will not be shared with anyone else. Moreover,
the researcher will ask permission to the people that he will study and the researcher will avoid
any thing that will cause physical and emotional harm to the subject. Therefore, to collect the
data, the researcher will receive support letter from Civil Service Institute, particularly,
Department of Human Resource Management about the research topic and will ask permission
from the Business owners to conduct the study.