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Bwicit Na Defense Mamamatay Na Kami Dahil Dito Ih
Bwicit Na Defense Mamamatay Na Kami Dahil Dito Ih
A Research Presented to the Faculty of Senior High School Department of South East-
In Partial Fulfillment
By:
VILCHES, ALYSSA
MAY 2023
APPROVAL SHEET
This thesis entitled: The Effects of Inflation Rate to the Profit of Small Food
Business Owners along Barangay Payatas, Quezon City prepared and submitted
by, Francisco, Trixie Kae T. Giro, Britney Angel A. Empang, William Bill
Gates,Reporada, Ma. Renzy, Lara, Jeliane Joy Vilches, Alyssa Demonteverde,
Prince Ronald has been approved and accepted in partial fulfillment of the
requirements for the subject, INQUIRIES, INVESTIGATION AND IMMERSION
PANEL OF EXAMINERS
NAME
CHAIRMAN
SOUTH EAST-ASIA INSTITUTE TRADE AND TECHNOLOGY
ACKNOWLEDGEMENTS
The researcher would like to express her gratitude to the following persons
involved, who helped her and gave their overwhelming support to make all these
things possible:
Name of the School Pres. President, South East-Asia Institute of Trade and
encouragement, advises and pleasant suggestion for the refinement of the study.
constructive feedback throughout this process. I am grateful for your contribution. Your
RESPONDENTS, for the cooperation and time that they have given to complete
Last but not least, I would like to thank the ALL-POWERFUL GOD who has
blessed me with heavenly wisdom, strength, peace of mind, unity, and hope that this
paper will be a success. Lord, I thank You for all these Blessing.
INITIALS OF RESEARCHERS
T.K.T.F
A.E.V
W.B.E
P.D
J.L
M.R.R
B.A.G
SOUTH EAST-ASIA INSTITUTE TRADE AND TECHNOLOGY
DEDICATION
Researchers’ Name
VILCHES, ALYSSA
TABLE OF CONTENTS
Title Page
Approval Sheet
Acknowledgemen
Dedication
Table of Contents
Abstract
Introduction
Definition of Terms
Local Literature
Foreign Literature
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Local Studies
Foreign Studies
Research Design
Selection of Co-researchers
Sampling Technique
Research Instrument
Treatment of Data
Question 5: What are the problems you encountered and how you handle it?
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RECOMMENDATIONS.
Eiditic Insights………………………………………………….………………..83
Implication………………………………………………………………………..85
Symbolism………………………………………………………..………………87
Recommendations …………………………………………….………………88
REFERENCES………………………..…………………………………………90
APPENDICES………….………………………………………………………96
CURRICULUM VITAE……………………………………..………………98
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ABSTRACT
CHAPTER 1
Did you ever heard about Inflation? Or at least did you know what is inflation? As a
regular consumer of goods and services you must be able to know what is inflation.
How inflation affects us, and what are the possible solution to overcome this type of
economic phenomenon. Especially if you are a food business owner. And as a
consumer, you’ve probably heard how inflation affects the prices of the things you buy.
Inflation is seen by farm people as a threat—perhaps the greatest threat they currently
face—to their economic well-being. This concern appears in practically every survey or
other forum in which opinions on the subject have a chance to be expressed. I would
like to explore the nature of these concerns and the impact of recent inflationary
episodes that created them. The nature of farmers’ concerns about inflation is not as
easy to specify as might be supposed. The reason is that the term "inflation" has, in
general usage, come to refer to a wide variety of economic evils. Almost everything that
reduces real incomes is called inflation by someone. In particular, it often seems to be
the case that farmers, when they express concern about inflation, have in mind not the
general price level per se, but rather a failure of farm product prices to rise as fast as
farm input prices. The basic problem perceived has to do with the relative prices of
products and inputs and could arise under deflation or recession as well as inflation. My
subject today is the consequences of a macroeconomic inflationary environment on
agriculture .i.e., a sustained increase in the general level of prices.
Inflation is a rise in prices, which can be translated as the decline of purchasing power
over time, and decreasing the value of currency. You can measure it with the consumer
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price index (CPI), which assesses the average price increase of a basket of selected
goods and services over some period of time cost of goods and services.
Inflation is and has been a highly debated phenomenon in economics. Even the use of
the word inflation has different meanings in different contexts. Many economists,
business people, and politicians maintain that moderate inflation levels are needed to
drive consumption, assuming that higher levels of spending are crucial for economic
growth. Though this may seem alarming, inflation is a natural part of the economy. If
the inflation rate stays around 2%, then it’s considered acceptable. Still, sometimes the
rate spikes higher and more quickly than normal, which is, the usually problem of the
consumers. When the rates go up fast, it's usually go down slow. It’s essential to
understand the effects of inflation on small businesses, so you can prepare for it and
protect your profits. As prices rise, the purchasing power of consumers and businesses
goes down—which means they get less than what they used to for the same amount of
money.
The world of business has undergone a significant change because of inflation. And
when the COVID-19 pandemic came, the inflation rate of our country rates go up fast,
than the usual. The pandemic has brought a lot of changes in society, notably in Food
Business. These changes are highly effects the sellers, farmers, consumers, small
business owners, and also our Food Industry. According to Int J Antimicrob Agents
2020 Aug, COVID-19 is caused by infection with the severe acute respiratory syndrome
coronavirus 2 (SARS-CoV-2) virus strain. Some small food business owners lose their
businesses because of the pandemic, also many employees like minimum wage earners
lose their jobs too. It is so hard for them to buy their daily goods and needs at that
time. And come to think that the inflation in our country is goes up faster than it's
usual.
The Federal Reserve typically targets an annual rate of inflation for the U.S., believing
that a slowly increasing price level keeps businesses profitable and prevents consumers
from waiting for lower prices before making purchases. There are some, in fact, who
believe that the primary function of inflation is to prevent deflation. Others argue that
inflation is less important and even a net drag on the economy. Rising prices make it
harder to save money, driving individuals to engage in riskier investment strategies to
increase or even maintain their wealth. Some claim that inflation benefits some
businesses or individuals at the expense of others.
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The main purpose of this study is to know the effect of inflation rate to the profit of the
food business owners along Brgy. Payatas. This study aims to identify the effect of
inflation rate to the profit of selected food business owners. Especially, the following
questions:
2. How inflation rate affect the income of the food business owners?
3. How inflation rate affected the consumers?
In food business, many small business owners have to increase the prices of
their products because of the high inflation of the country. Consumers face rising
prices, escalating risk of layoffs, and decreasing purchasing power. This is especially
true for those who do not receive salary or wage increases that keep up with the cost
of living.
For the Students- The whole process of research opens new doors of learning and
literary growth. Studies reveal that research helps restore and protect memory and
enhances mathematical and problem solving skills.
Consumers- The key role of consumers is to inspire workers such as producers and
marketers to push themselves to create and render product and services to their very
best. This study will focus on how consumers will be aware of the increasing rate of
inflation rate affecting the price of goods and services; aims to help them find ways or
solution about the particular matter.
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Future Business Owners- This whole process of this research will benefit the future
and current business owners. This study was filled with long term and useable findings
throughout the process. It helps to acquire assets, attract new talent and fund
investments. It also drives business performance and profit.
This study is all about the effects of inflation rate on the profit of selected small
food businesses. This study will help Consumers, Aspirants business owners and future
researchers and this study will spread knowledge containing how to handle the
problems in business and to make it successful in times of inflation. We researchers, will
use face to face survey to gather data, make it personally know the rants or opinions of
the people. Our respondents are selected small food owners, so researchers will
conduct this study to ask them how they survive the inflation and to know how it
affects their business profit. This survey will focus on brgy. Payatas calendar year 2022-
2023.
H0: There is no significant between the Effect of Infaltion rate and the Small Food
Business Owners along Brgy. Payatas, Quezon City.
H1: There is a significant between the Effect of Inflation rate and the Small Food
Business Owners along Brgy. Payatas, Quezon City.
H2: It will help the consumers and future small business owners to improve their
business tactics in times of highly inflation rate in our country. Give them an idea how
to solve problems about their business and helps to improve their profits.
DEFINITION OF TERMS
Inflation- is the rate of increase in prices over a given period of time. Inflation is
typically a broad measure, such as the overall increase in prices or the increase in the
cost of living in a country.
The Food Business- The food service industry encompasses all of the activities,
services, and business functions involved in preparing and serving food to people eating
away from home. This includes all types of restaurants from fine dining to fast food.
Profit- is the money you have left after paying for business expenses. There are three
main types of profit: gross profit, operating and net profit. Gross profit is biggest. It
shows what money was left after paying for the goods and services sold.
The Consumer Price Index- (CPI) is a measure of the average change overtime in
the prices paid by urban consumers for a market basket of consumer goods and
services.
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CHAPTER 2
LOCAL LITERATURE
FOREIGN LITERATURE
According to President Gerald Ford in 1974, The rate at which prices increase over a
specific time period is known as inflation. Inflation is often measured in broad terms,
such as the general rise in prices or the rise in a nation's cost of living. Yet it can also
be computed more precisely for some products, like food, or for services, like a haircut,
for instance. In any situation, inflation refers to how much more expensive the
pertinent collection of goods and services has grown over a predetermined time frame,
most frequently a year. According to Kenton, W. (2002) Profit is a financial gain
obtained, if the revenue of an activity of a certain business is greater than the
expences, cost and taxes engaged it is hitting the goal of an activity. Any profit earned
funnels back to the business owner, who chooses to either keep the cash, distribute it
to shareholders as dividends, or re-invest it back into the business. Refit is the money
both a business gained after accounting for all expences. According to Agricultural
Economics 57 (10), 474-483, 2011. Small enterprises frequently lack the resources
necessary to carry out the necessary R&D activities. Nonetheless, they have the ability
to innovate with regard to their goods, procedures, methods of distribution, and
geographical markets. Hence, the level of innovation can be high even for small and
medium-sized businesses (SMEs). According to the literature, a firm's marketing
capabilities are crucial for innovation in the food business in order to ensure that the
innovation reflects the needs of the market.
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FOREIGN STUDIES
According to a joint report from the U.S. Chamber of Commerce and MetLife, 86% of
small business owners are concerned about the impact inflation will have on their
business. And for good reason: Companies that aren’t adequately prepared stand to
lose a significant portion of their revenue and market share—or even go out of
business. In fact, a different survey conducted by the review website Digital indicated
that 65% of small businesses expect to close permanently if inflation increases.
However, inflation affects every industry differently. How it’ll impact your business
depends in part on what kind of business you have. For instance, companies with
essential offerings—such as gas stations or grocery stores—will be less affected by
inflation than those that provide discretionary ones. After all, we’ll always need gas and
food for the foreseeable future, regardless of the state of the economy. On the other
hand, nonessential purchases like beauty products and entertainment are often
postponed or abandoned when wallets are light and budgets are tight. But regardless of
what kind of business you own or what industry you’re in, you can typically expect to
see some or all of the following during high inflationary periods.
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LOCAL STUDIES
Year-on-year inflation in the Philippines accelerated to 8.1 per cent in December 2022
from 8 per cent the previous month, the highest since November 2008, authorities said.
Philippine Statistics Authority (PSA) head Dennis Mapa said the the country's average
inflation rate for 2022 stood at 5.8 per cent, higher than the 2021 average at 3.9 per
cent, reports Xinhua news agency. Mapa attributed the faster December inflation rate to
the growth rate in food and non-alcoholic beverages at 10.2 per cent, followed by
restaurants and accommodation services, 7.0 per cent; the housing, water, electricity,
gas and other fuels, 7.0 per cent. Socioeconomic Planning Secretary Arsenio Balisacan
said faster food inflation is driven by higher prices of vegetables (32.4 per cent) and
sugar (38.8 per cent) amid higher input costs and lower production. "Weather
disturbances in the previous months disrupted farmers' planting calendar," Balisacan
said, adding the higher demand due to the holiday season also pushed inflation up for
restaurant and accommodation services. Meanwhile, the PSA said the core inflation,
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which excludes volatile food and energy items in the headline inflation, rose to 6.9 per
cent in December.
Despite upside risks, the Philippines’ full-year inflation rate for 2020 settled below the
midpoint of the Bangko Sentral ng Pilipinas’ (BSP) target range for the year, the
National Economic and Development Authority said. The Philippine Statistics Authority
reported today that in December 2020, the country’s headline inflation rate accelerated
to 3.5 percent, coming from 3.3 percent in November 2020 and 2.5 percent in
December 2019. Despite this, the country’s average inflation rate for 2020 settled at 2.6
percent, only slightly higher than the 2.5 percent in 2019 and well within the 2 to 4
percent inflation target range of the government for the year. “Even with the low
inflation environment, there is still a need to improve supply chain efficiency to ensure
that prices of essential goods and services remain stable,” Acting Socioeconomic
Planning Secretary Karl Kendrick T. Chua said. The faster inflation in agricultural
products could be traced to lower production following the damage caused by previous
typhoons. Meanwhile, meat inflation inched up for the third consecutive month owing to
the decline in domestic swine production due to the African Swine Fever (ASF). Chua
emphasized the need to establish processing facilities that will prevent wastage and
spoilage of farm harvests, such as the Benguet Agri-Pinoy Trading Center in the
Cordillera region where a large part of the country’s supply of vegetables is sourced.
CHAPTER 3
RESEARCH METHODOLOGY
METHODS OF RESEARCH
gather the needed data. It includes research design, sampling techniques, research
RESEARCH DESIGN
study scheme. Qualitative research explores the phenomenon. The ultimate aim of
research reports that reflect the researcher’s ability to illustrate or describe the
examines the effects of inflation rate to the profit of small food business owners The
phenomenon, refraining from any pre-given framework, by remaining true to the fact
(Schram, 2006).
SELECTION OF CO-RESEARCHERS
The researchers choose the people residing in Payatas Queszon City to be a co-
researcher in this study. Researchers will interview at least five (5) residences who
experience how inflation rate affects their business . Before interview was conducted,
researchers asked first their inform consent to assure that they are willing to share their
experiences. The co- researchers will help researchers by giving their insight on their
lived experiences.
SAMPLING TECHNIQUE
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to the purpose of the researchers. They are chosen as the researcher’s sample, because
they are of firm proof of evidences being the representative of the total population
(Laerd, 2012).
RESEARCH INSTRUMENTATION
The researchers used the interview as a method in gathering the data needed in
the study
interviewer and the interviewee or the co-researcher. The interviews were used to get
necessary information from the subjects that may support this study. The researchers
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used an open ended question in the interview which gave unlimited information more
TREATMENT OF DATA
All the data were collected from co- researchers and recorded these through the use of
electronic gadgets like cellphone, interview protocol and voice recorder and inform
consent.
These were transcribed after listening. And the transcript was read carefully after
analyzed. Insights and themes were derived from the shared business experiences of
the respondents.
CHAPTER 4
INTERPRETATION, ANALYSIS AND PRESENTATION OF DATA
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CO-RESEARCHER
person; it's not enough. The minimum wage should be one thousand pesos a day if you
have a lot of people in the family and you are renting a house and your three children
are studying. So you really need to be patient and work hard for everyone's
development.
Sometimes it was good, sometimes it was not; it depends on the customer's demand.
Well, the problem with that is that we were going to change it and look for a fresh
product for them.
Ms. K-POP
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Almost 1 year
It was okay, hmmm, sellable, and they prefer Korean food products.
Yeah, ‘cause when inflation arises, goods and prices also increase. And for example,
we, the sellers, need to increase the price of our products, but our customers
sometimes cannot afford that price, so they will choose not to buy it because the price
has gone up.
Of course, financial was the problem because, of course, with the high price, if you
really don't have enough money, you can't buy the necessities, especially since they are
very expensive. Well, they just need to save.
Mrs. Veggies
Before the pandemic, it was good! It's not like today; now it's weaker than in the past.
Before, the price of sugar was only 65; now it used to be 95 to 100 per kilo.
The main problem here is that sometimes we lack money for capital; we experience bad
days in business, but we also experience good days.
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And as a business owner, you need to fight! Never ever try to give up, because we
must not give up.
Well yes, not like today; now it's weaker than in the past. Before, the price of sugar
was only 65; now it used to be 95 to 100 per kilo.
The main problem here is that sometimes we lack money for capital; we experience
bad days in business, but we also experience good days. And as a business owner, you
need to fight! Never ever try to give up, because we must not give up.
Well yes, It's hard right now, unlike before. The main problem was when we started to
lack capital. Also, when the prices rise faster than usual, your products aren't that easy
to sell, and the seller and consumers are unable to buy them.
Well, we don't have a choice; the prices of goods now are not just like before. Before,
the price of sugar was affordable, but now it isn't. So of course what you bought should
be returned to you. Even if you earn little by little, if nothing is returned to you, it will
be a real loss.
Mrs. Butcher
Meat shop.
More than 15 years. It depends; sometimes it was good, sometimes not. It was okay.
Ahm, about the customers, sometimes they were complaining about the prices because
they weren't the same as before.
Increasing, it doesn't go down sometimes; the price today is low, but tomorrow it will
go up again, so we also have to raise the price.
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We can't be stable when our product goes up; our price will also go up because we can
lose money if we don't keep up with the flow of the product's increase. Yes, because of
the price.
It's hard to budget when everything is high, according to what they complain about.
Sometimes we lose money because they don't buy anymore because they don't have
the budget. If they buy it, it's not per kilo. If their budget is only 50 or 100 pesos, they
will only buy more if there is an occasion; if not, they just buy a little bit.
CHAPTER 5
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SUMMARY OF FINDINGS
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CONCLUSION
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RECOMMENDATIONS
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BIBLIOGRAPHY
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APPENDICES
INTERVIEW QUESTIONNAIRE
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LETTER OF PERMISSION
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DOCUMENTATION
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CURRICULUM VITAE