Inquiries,Investigation and Immersion

THE EFFECTS OF ONLINE

PLATFORM IN SMALL, MEDIUM
ENTERPRISE IN PARADISE III

Researchers:

Ballon, Leanne T.
Bason, Rose Jane D.
Llandelar, Carla Grace
Villafuerte, Margaret Claire Anne G.
Walinsundin, Guia Kyla
 INTRODUCTION

In the Philippines, 99.1% of the Business are small and

medium enterprises (SMEs) and only 0.99% are large enterprises.
Republic Act No. 9501, The Magna Carta for Micro, Small and
Medium Enterprises(MSMEs) signed by President Gloria
Macapagal Arroyo on 23 May 2006 defines micro enterprises as
entities with total assets of not more than Php 3,000,000 small
enterprises as the new law R.A9501 Amends the17 years old RA.
6977 or the Magna Carta for Small, Medium and large business
micro enterprises. SMEs are perceived to have greater linkages to
micro enterprises.(Backward Linkage) and medium and large
business (Forward Sub-Contracting Links). Among the rational for
developing SMEs im the Philippines includes the fact that they use
resources more efficiently than large enterprises.

The goal of this study is to know how many residents of

paradise III adapt online platform to micro enterprises who used to
manage sari-sari store, groceries and street food vendors.
RESEARCH QUESTION

General Question:

What is the level of adaptiveness of small, medium

enterprises using online platform?

Specific Question:

What is the effect of online platform in a small, medium

enterprise?

Can online platform gives more profit in a small, medium

enterprise?
Significance of the Study

The researchers believe that the finding of the study may serve as
a basis or guide in dealing with establishing a business, the result
of this study may be beneficial to the following.

Student - The findings of this study can provide and contribute to

the existing knowledge and to the attitude towards venituring a
Micro enterprise business. they will know the possible benefits in
establishing a micro enterprises business, it may help them grow
and know how to handle problems and overcome fears in
Business industry.

Parents - This will make them understand and learn how to

establish micro enterprise that can help their daily life their social
status livelihood and financial support, they can also got some tips
start the this study, this allow the to start their own business
anytime and anywhere because it can start with low start-up
capital.

Teachers - The finding of this study would be significant

instrument that could be used to their students, the practices
evaluated in this study that is necessary for Student development.

Future Researcher - This research study could give insight and

ideas for them because it provides valid reliable information that
may useful to them, This may encourage them to conduct further
research studies on “What is the level of adaptiveness of
small,medium enterprises situated in paradise III to the online
platform business”
RELATED STUDIES AND LITERATURES

Title: Definition of a small firm

Author: Storey

Date of Publication: 2004

Title: Analyzed the financial performance of Small -
Medium enterprises in the Philippines

Definition of a small firm (STOREY, 2004) Firms vary in their level

of capitalization, sales and employment. Researchers, scholars
and international body have always attempted to provide a
standard definition of SMEs. No such definitions have been
accepted universally. Analyzed the financial performance of Small-
Medium enterprises in the Philippines (MENDOZA, 2015) In the
study, results showed the enterprises performed favorably in
liquidity, activity and leverage but suffered from a low-level
profitability. Using correlation analysis, the results show a
significant linear relationship between liquidity and activity, liquidity
and leverage, and activity and leverage. The study recommends
the SMEs should revisit their strategies for improving profitability
and use financial performance information in making critical
decisions.

Author: Mendoza

Date of Publication: 2015

Title: Examines the accessibility of small-medium

enterprises to finance in the Philippines

An investigation made by Mendoza (2015), analyzed the financial

performance of Micro, Small and Medium Enterprises in the
Philippines using secondary data from financial statements for the
past three years. each of these measures has no significant
relationship with profitability. Using t-tests, the results show no
significant difference in the liquidity,profitability, and inventory
turnover of the enterprises when grouped according to
organizational form, business type, and asset size. However, a
significant difference exists in receivable turnover, asset turnover,
and debt ratios. The study recommends the MSMEs should revisit
their strategies for improving profitability and use financial
performance information in making critical decisions. Firms should
connect financial performance to the larger external environment
of the business so they will continue to play an important role in
the growth of the economy.

Title: Examines the accessibility of small-medium enterprises to

finance in the Philippines

Author: Aldaba

Date of Publication: 2012

Aldaba (2012), examines the accessibility of small and

medium enterprises to finance in the Philippines. In the study it
was found that the enterprises performed favorably in liquidity,
activity and leverage but suffered from a low-level
profitability.Using correlation analysis, the results show a
significant linear relationship between liquidity and activity, liquidity
and leverage, and activity and leverage. However, each of these
measures has no significant relationship with profitability. Using t-
tests, the results show no significant difference in the liquidity,
profitability, and inventory turnover of the enterprises when
grouped according to organizational form, business type, and
asset size. However, a significant difference exists in receivable
turnover, asset turnover,and debt ratios. SMEs particularly the
smaller ones have been unable to access funds due to their limited
track record, limited acceptable collateral, and inadequate financial
statements and business plans. The bank survey showed that the
top reasons for turning down financial requests were the firms’
poor credit history, insufficient collateral,and insufficient sales,
income or cash flow, unstable business type, and poor business
plan.
Another study performed by Ackah and Vuvor (2011), investigates
the challenges faced by small and medium enterprises in obtaining
credit in Ghana. A quantitative approach was adopted in the study.
Questionnaires were given to 80 SMEs in the Acra and Tema
Metropolis in Ghana using the convenience sampling technique.
Results were shown that there are institutions such as bank and
non-bank financial institutions tha tare willing to provide funds to
SMEs but Ghanaian SMEs are not able to meet the requirements
of these financial institutions. Chief among these requirements is
the issue of collateral, which most SMEs cannot provide. Aside this
is the other issue of small equity base of these SMEs among
others. Secondly, those who are able to access this credit are also
faced with high interest rates and short repayment periods making
it very difficult to embark on any developmental or expansion
projects. Another interesting revelation with regards to the high
rate of defaults in repayment of loans contracted, relates to the
tight Cash flow situations of these SMEs that is mostly due to
difficulties in the management of the account receivables of the
respective SMEs surveyed.

SCOPE AND LIMITATIONS

The study focused on “ What is the level of adaptiveness of

small,medium enterprises situated in paradise III to the online
platform business “ The assessment is 2019-2020 with the age
range 25 and above. Includes in this study are the profile of the
respondents in terms of age,sex and income per day. The effects
of micro enterprise to its owner in terms of livelihood, financial
support and social status.

The location choose Barangay Paradise III As their location per

study because of accessibility provided by the number of the
respondents and also because one of the researchers lived in the
said Barangay.

RESEARCH DESIGN

The Research employs the quantitative design to enhance

the research and make study reliable and valid. Quantitative
research design is a Formal,Objective,Systematic process in which
numerical data are used to obtain information about the variables.
It is used to describe and examine relationships between and
among variables
(LAMAR,2005). This design will be used since the main purpose of
the study is to determine the level of adaptiveness of
small,medium enterprises situated in paradise III to the online
platform business.

RESPONDENTS AND SAMPLE SIZE

Respondents

The respondents of our study are the residents of Paradise

III. The respondents in business are Business, Authorities,
Individual persons from whom data and associated information are
collected for use in compiling statistics the profile of the
respondents consists of Age, Sex, Ownership, Income and Size.
This terms will prominent affect our research topic.

Sample size is the total number of individuals that the

researcher will include depends on various factors, In this
research, the researcher choose a sample of ten(10) small and
medium business owners in Barangay Paradise III of San Jose Del
Monte, Bulacan.
The sample of this study was selected through probability
sampling wherein every member of the population has an
equal chance of being selected.

SAMPLING TECHNIQUE

In this study, the research uses purpose sampling to obtain

the sample according to Nicolo Poulou. K. (2022) purposive
sampling refers to a group of non-probability sampling technique in
which units are selected because they have characteristics that
you need in your sample. In other words, units are selected ‘’on
purpose’’ in purpose sampling. In this study, the researcher will
take micro enterprises in Barangay Paradise III City of San Jose
Del Monte Bulacan to make data more valid and choose base on
the purpose of research. Therefore, the researcher is interested in
investigating the level of adaptiveness of small, medium
enterprises situated in Paradise III City of San Jose Del Monte
Bulacan.
DATA GATHERING INSTRUMENT

The data gathering instruments that used to the small, medium

business enterprise to the researchers used questionnaire that
was drawn out from previous studies and research for it is proven
to be much more effective on the type of research that we are
having. The researchers also used this method of data gathering
for it known to have less bias and the least expensive way of
Collecting data. And it also promotes open-minded options related
to our study to also avoid any kind of bias in the method of
collecting this data. It also encourage the respondents to be more
cooperative due to the fact that it is much more comfortable to
respond and much open to options but still related and specific to
our type of research that the researcher is conducting.

DATA GATHERING PROCEDURE

The study was approved by the research adviser and data

collection began. The researchers collected. The data by means of
survey questionnaire on how the small medium enterprises in
Paradise III adapt online platform business. The researcher asked
permission first to the respondents to send the link of google form
that contains the list of questions and waited the participants to
respond. After gathering data, The researcher now collected and
tallied the score and to apply the statistical treatment to be used in
the study.