1

Financial Management among Sari-Sari Store Owners in Toril, Davao City

An Undergraduate Thesis

Presented to the Faculty of the

College of Accounting

Education

Submitted By:

Arcon, Cris Louie S.

Montante, Reginald T.

() - 092
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ABSTRACT

In the Philippines, existence of sari-sari stores can be seen anywhere. Along with that,
issues are also prevalent. When a company experience losses, they can no longer
cope to it and end up to termination of its existence because of its poor financial
management. This paper aims to determine the level of financial management among
sari — sari store owners in Toril, Davao City. Data was gathered from l$$ Sari-Sari
store owners by the use of survey &uestionnaire. Their level of awareness for
Financial (anagement were analy)ed by the use of mean, profile of the
respondents were measured by fre&uency and null hypothesis was tested by the
use of F-test. The result of this study revealed that in terms of sex, financing and
operating show that male or female have significant difference on financial
management. In terms of the age, financing, operating and investing show no
significant difference. *astly, in terms of educational attainment, it shows that the
three variables agreed that there is a significant difference. As a whole, the
researcher found out that there is significant difference between the level of
Financial (anagement and the respondent+s profile.

Keywords: Financial management, t-test, sari — sari store owners, Toril, Davao City,
Philippines
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CHAPTER 1

INTRODUCTION

Rationale of the Study

Small and Medium Enterprises are very popular and can be a great factor in

an economy especially in a developing nation (Rama/rishnan, 20(0 1. Different

literatures concerning on small firm2s financial management have a great number

and studied by different researchers and are comple3 in nature. A study made by

4aida and Chand (20(01 focused mainly on the several problems that would

affect the survival and e3istence of business but forget to include the factors

affecting the financial management and broad on its nature. 5omez (20(01

emphasized the lac/ of training of sari 7 sari stores and the size of it to compete

with other /inds of established business. 8hile a study by 8il/ie (20(01 said that

most stores have insufficient fund due to lac/ of investment and conscious price

entrepreneur would li/e to buy goods at historical cost for them to gain at the same

time. For this research paper, we would li/e to concentrate to a retail business

specifically called sari sari store and the level of

financial management applied by store owner of it, to improve the /nowledge about

financial management of mall enterprise and if financial

management sari 7 sari store owners in Toril, Davao City conform with the financial

management of different places.

Objective of the Study

This study will determine the level of Financial Management of Sari-Sari

Store owners in Toril, Davao City.

Specifically, this study will see/ to achieve the following objectives:

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(. To determine the profile of Sari-Sari Store owners in terms of:

(.( Se3

(.2 Age

(.0 Educational Attainment

2. To determine the level of Financial Management in terms of:

2.( Investing
2.2 Financing
2.0 Operating
0. To determine the significant difference between the level of

Financial Management and the respondents2 profile

Research Hypothesis

• There is no significant difference between the level of financial management

and the respondents2 profile.

Significance of the Study

The study of Financial Management on Sari-Sari Stores in Toril, Davao City

can be relevant to the business management. This study can be helpful in different

/inds of business specifically small enterprises. In addition, this study will be

beneficial to the following:

Store Owners. The result of the study will be primarily beneficial to them which

would help store owners in their decision ma/ing as they manage their business.

Future Entrepreneurs. The result of the study will encourage future entrepreneurs

having a small budget to engage to business and can have an idea on how to start their

own business.

Lending Company. The result of the study will widen their /nowledge in terms of

small enterprises in acquiring of funds.

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Customers. The result of the study will ma/e the business effective and eventually

the customers will be served accordingly and satisfactorily.

The Researchers. The result of the study will give /nowledge to them as the

researchers would want to have their own business and on how to ma/e an effective

financial management.

Other Researcher. The result of the study will help other researcher on their future

studies as reference.

Definition of terms

Sari-sari store 7 refer to microenterprise with no employee and having a starting

capital asset of PhP 0,000 or less.

Financial Management 7 it is an application of management s/ills and /nowledge

being applied by the owners in governing their business in terms of investing,

financing and operating.

Toril, Davao City 7 it is a place in the Philippines, Mindanao area specially located in

Davao City District 0 where the study was conducted.

Profile 7 pe rsonal identification of respondents that may affect the financial

management applied corresponding to se3, age and educational bac/ground.

CHAPTER 2

REVIEW OF RELATED LITERATURE

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Related Literatures

This section features different studies regarding the effect of owners profile

specially age, gender and educational bac/ground in financial management, level of

financial management and the difference of owners profile towards the level of

financial management. The definition of financial management and some problems

encountered of it is first discussed. The owners2 profile specially age, gender and

educational bac/ground that may affect financial management is thoroughly

reviewed. 4e3t, the level of financial management of sari-sari store owners. Lastly,

the difference of sari sari store owners pr ofile towards the level of fi nancial

management.

Financial Management. Meredith (20001 said that financial management is

one of the areas of management which play the fundamental role to the fulfillment of

any small business. In addition, Peel, Pope and 8ilson (200(1, financial management

and profitabi lity can also be called as liquidity and profitability. Amin (20(01

ac/nowledged that there are troubles being faced by Indian retailers that hold bac/

their success. Industry in India faced lac/ of power supply, lac/ of credit management

and corruption.

Small businesses li/e retail store really aid a nation on its escalation. The size

doesn2t matter because it allows fle3ibility and more rapidly decision - ma/ing

because of its distinctiveness of innovation, drive and competence (<ropp, Lindsay =

Shoham, 200>1.

Owning a small business has an advantages and disadvantages. Advantages

li/e one can2t fire you; one decides your wor/ schedule, gain thorough understanding

and opportunities about business. Disadvantages li/e money and savings

consumption, demanding duties and unli/able e3perience losing capital (Collins,

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2013). If a small enterprise be unsuccessful, the major causes is lack of planning,

unacceptable financing and poor management. When starting a small business, there

are only two possibilities, achievement or failure. Because of its size,

mismanagement will certainly result its own death and it cannot learn from its own

mistakes (Longenecker, Moore and Palich, 2006).

Age. Generally, traditional family business that can be considered failed still

being sustained by middle and old-aged retailers. Their purpose is not for earnings

anymore but to carry on their family legacy (Watson and Everett, 1999).

The typical life of a small business is 5 years. A finding says that 90% of the

failed businesses are less than 10 years. An age of a business certainly associated to

failure (Peterson and Shulman, 1983).

The research in the Organization for Economic Co-operation Development (2012) who found out that because of lim
world of business.

Gender. Gender is another demographic issue which could influence credit

management practices along with micro-enterprises. Halkias (2008) postulated that in

relation to entrepreneurial connection and business possession, there is still an

important and methodical gap between genders. Evans and Winston (2008) made a

similar claim to that of Halkias (2008). In their study on loan delinquency among

small business owners in Ghana, they initiate that single college educated women

managed their credit more practically than both men in general and married women.

In 2003, about 1,121,687 or 36.8 percent of total employment women

participated in labor force and 30.3 percent of it are women entrepreneurs (Arias,
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2007). Richardson (2004) compared women to men in Africa. Gender doesn't matter

but women have inferior access to their own resources, timely busy and less access to

formal education and skills training. Opportunities to women are much lower than

men and they faced harder access to support. Kibera (1997), presented in his previous

studies that women run at least 70% of business enterprise.

Educational Background. According to Chong (2010), managing credit

practices is affected by the education achieved of the respondent which concludes

that if you have high level of attained education, you have superior credit

management.

Osman (2005) of Malaysia found out that retailers typically don't have a

proper education so they end up in an established family-type business. A study in

India discovered that more retailers are undergraduate (Selvakumar & Muthumoni,

2011).

According to Kauffman Foundation (2009) in his previous study, he found out

that there is similar characteristic between businessman and college students for that reason, owners reaching colleg

Devol (2013) were right that better educated workers have more abilities in

improving production.

Investing. Based on Cooley and Pullen's research (2001), businesses should

have a cash management program to spend appropriately the resources it has and to

properly assign it to the operation. Investing properly the cash like savings accounts,

certificates of deposit, treasury bills, repurchase agreements, commercial papers,

shares, bonds and other investments to avoid cash surplus and make the most of its

asset.

Small businesses must invest their resources as it should be because they are

at risk to bankruptcy and should generate positive cash flows (Wellalage and

Locke,
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2010). Small businesses should invest further on quality they are giving to customer

because customer contentment will be a great advantage in their operation (Foreman

— Peck, 2005).

According to Zeitun, Tian and Keen (2007), it is important that a manager or

an owner of a business should be knowledgeable enough of managing cash in

business operation to have a positive result. The investment's function measures a

business effort, like acquiring fixed assets that can be used in the business (Brealey,

2006).

Operating. Retailers have the influence to find its own supplier. Retail and

suppliers should build a good connection because they both concerned channeling of

goods (Pearson, 2013). In a study made in India, the outcome shows that greater part

of retailers with 86.50% procure raw materials from open market. Retailers should be

convenient and prepare plans like proper store atmosphere, product variety and

procurement and suitable placement of products within the retail store. (Selvakumar

& Muthumoni,2011).

According to Pamaos (2014), sari-sari stores get their supplies from

bagsakan” or middlemen who get their supplies from the supplier in bulk with

normal and bulk discount. For Selvakumar and Muthumoni (2011), to participate with

competitors, retailers should be exclusive and appropriate to customers' needs. The

basic retailing approach is giving the uppermost quality to the customer; it will perfectly

lead the retailer to success.

Reyes (2012) mentioned that small business owners should be familiar with

how to manage the outflow of their inventories, how much to accumulate and goods

should be bought on time. Further, Nielsen (2012) implied that sari-sari store owners
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should innovate because of fast development of convenience store, a stiff

competition is present. Sari-sari stores should manage with the fast varying taste of

the customers. In India, small enterprises have a unique advantages like it focus

more on somewhat small market and facilitate an effective usage of resources of

capital and skills which might remain unutilized. (Shah and Khedkar, 2006)

According to Richardson (2004), in Zambia, people would rather decide to function

in an informal basis because it's easier to trade outside the formal frameworks for

registration, taxation and regulation. For Ramakrishnan (2013), most of the small

enterprises function weak because it lacks proper computation of total expenses,

total revenue, profit etc., for they do not keep an organized record.

Financing. In acquiring source of funds for small business, it is a steady

difficulty to them most of the time. This might be due to the small approval rate of

the banks. Besides, defaults of the good companies is due to the borrowers who use

the funds for personal benefits at expense of the company which caused the banks

now to be more vigilant in reviewing loans to lessen defaults. In Central Bank of

Malaysia, they introduced a micro-finance illustration which is suited for small

business in the state of Malaysia that constitutes 80% of the business. (Aris, 2007)

The scheme of Rm 500 to Rm 50,000 with no collateral desired. However, proper

credit management is innate for solvency and continued existence of

microenterprises. (Aris, 2007) It will develop credit worthiness which improves

future financing accessibility. (Asselbergh, 2002)

The major source of capital for their enterprise is borrowing or even own

savings in Micro-enterprises in Malaysia. (Ganbold, 2008) Malaysian micro-

enterprises contended that the trouble faced in obtaining financing included

inadequate financial track record and insufficient documents to support loan

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applications. (Aris, 2007) Small enterprise is a profitable market and it can be

develop more by unlocking its potentials. Nations are now lending to this kind of

enterprise (International Finance Corporation, 2010).

In Australia, government and industry give attention to small businesses as a

new avenue because of its great potential in the industry (Coulton, 2007). Capital

start-up doesn't matter because in Malaysia small and medium enterprise is

considered as the backbone of the industry because of its continual contribution to

the expansion of their economy (Aris, 2007). Financing a business, an owner should

have a good standing in which it is their source to cover the funds needed

(Miculeac, 2013).

Theoretical Framework

Okoye and Ezugwu (2009) studied that profile such as age, gender and

educational background of the owner of an enterprise have an implication on their

management. With exposure to fundamental practices of management, it imparts

positively on the performance of the business. Based on their study, they found out

that sexual characteristics do not influence the level of skills but educational

accomplishment do. Their learning will be the theoretical foundation to verify the

level of financial management among sari-sari store owners in Toril, Davao City.

Conceptual Framework

Owner’s Profile Level of Financial

Management
• Age
• Sex • Investing
• Educational • Financing
Attainment • Operating
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Figure 1: Conceptual Framework showing the variables of the study

This framework would merely elaborate the study of level of financial

management among sari-sari stores in Toril, Davao City. The x variables of this

study are the sari-sari store owner's profiles which comprise the age, gender and

educational background.

The level of financial management may vary depending on the age of the

sari- sari store owners. It's like age which will help determine how experienced they

were as an owner and how they apply financial management to their store.

Male and female have different perception about a business and they both

have their weaknesses and strengths when making a decision. In the level of financial

management, gender will be a great factor to the magnitude of application.

Lastly will be the educational attainment. School learning will enhance the

knowledge on how to properly apply the financial management. Educational

attainment especially when an owner is a professional has great factor.

Level of financial management in terms of investing, financing and operating

should be measured. These terms will be the basis on how to properly apply financial

management. Investing will measure how an owner will use its asset to grow much

faster in a proper venture and exercising the most pote ntial effort of an asset.

Financing will measure how to acquire own resources and the risks o f it. Operating

will measure the productivity of the business.

CHAPTER 3

METHODS
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This section presents methods and process in terms of research design,

research respondents, research instrument, data gathering procedures and the

statistical tool. The researcher also identified the profile of the respondents and the

period that the study was conducted. All the steps are explained based on interview

and observation in the conduct of data gathering.

Research Design

This study used the descriptive — survey method in designing the research as most appropriate. According to Hu
dealings, circumstances or processes.

Research Respondents

The respondents were 100 sari-sari store owners residing in Toril, Davao City.

As the respondents, they were chosen basically by the availability and nearest to the
proponents. Researchers aimed to know the level of financial management among sari-sari store owners in Toril,

Research Instruments

This study used questionnaire as the prime source of information in gathering

data to meet the specific objectives by listing query which was duly validated and

presented for reliability. The draft of the questionnaire was constructed by the

researcher and the revisions were adapted.

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These lists of questions were distributed to owners which were filled by their

corresponding answers in the questions. There were questions asked first with their

personal information, saving capability, to budget their sources, payment of debts

and income generation.

Data Interpretation

*ange of Means Descr pt on nterpretat on

4,21 - 5,0 Ver/ HighSari-Sari store owner has excellent

practice and

knowledgeable of financial

management

3,40 - 4,20H gh Sar -Sari store owner has ver/ good

practice

and know edge of financ a

management

2,61 - 3,40 Moderate Sari-Sari store owner has adequate

practice

and knowledge of financial

management

1,81 - 2,60 Low Sar -Sari store owner has bare /

adequate

practice and knowledge of financial

management
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1.00 - 1.80 Very Low Sar -Sari store owner has itt e

adequate

practice and knowle dge of financial

management

Data Gathering Procedure

The procedure was systematically arranged in acquiring information from the

respondents. The following are the facilitated steps followed by the researchers in

gathering of data:

1. The researcher asked permission to every store owners to conduct study through

visiting the location and by showing the letter of approval or for inquiry which will

be

done from the period of February, 2014.

2. The researcher conducted an initial interview with the owner of the sari-sari stores on

the same day. The discussion would be about the basic information about the

business

and about customers' information.

3. After the initial conversation, the researcher will start to distribute the questionnaire

to the respondents with corresponding specification that is relevant to the conduct of

research. The owner explained to the researcher their flow of every transactions and

the information gathered served as the additional data for the study.
4. The researcher browsed the internet for input information that is significant and will

support the study. The data gathered are related on the financial management. In

achieving the objective of this study, the researcher will use library technique

through research by the use of books, journals, and prior thesis samples in gathering

data as a source of information and the related studies of financial management on

sari-sari stores.

Statistical Tool
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This study employed statistical treatment such as Frequency and Percentage,

Mean, F-test and Descriptive Analysis. These tools were used to identify whether to

accept or reject the null hypothesis. The following tools were used in this study:

Frequency and Percentage. This tool was used in the study to get the

summarized number of the same group of respondents from the total respondents. In

this study, it was used to determine the profile in terms of age, sex and the educational

attainment of the respondents. Percentage was used to identify its portion in 100

percent.

Mean. This was used to determine the level of Awareness of Financial

Management. This is to identify the average of the response of the respondents

according to the indicators such as always, sometimes, half, seldom and never.

F-test. This was used to determine the level of financial management in a

business. This is to identify if there is significant difference between the level of

financial management in terms of investing, financing and operating to the profile

such as age, gender and educational attainment of the owner.

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CHAPTER 4

RESULTS AND

DISCUSSION

This chapter shows the results of the survey conducted by the researcher and

its following discussions. A summary of the demographic characteristics (Gender,

Age and Educational Attainment) of the respondents are reported in the first parts.

Then the second part shows level of awareness of financial management of the sari —

sari store owners in terms of investing, financing and operating. Lastly, it shows

the correlation between the sari — sari store owners' profile and their level of

awareness of

financial management.

TABLE 1

Respondents’ Profile
Descriptive Variable Frequency (f) Percentage (%)
Gender
Male 10 10%
Female 90 90%
TOTAL 100 100%
Age
19-25 7 7%
26-32 121 2%
33-39 12 12%
40-46 2323%
47-53 16 16%
54-60 19 19%
61-67 9 9%
68-74 2 2%
TOTAL 100 100%
Educational Attainment
Elementary Level 6 6%
Elementary Graduate 3 3%
High School Level 121 2%
High School Graduate 24 24%
College Level 2929%
College Graduate 2525%
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Vocational 1 1%
TOTAL 100
100%

Out of one hundred respondents, majority (90%) were female sari — sari store

owners. Females having 90% dominated the total owners surveyed and only 10%

were males. This figure really shows women are more active in engaging to sari-sari

store business. This conforms to what Kibera, (1997) presented in his previous studies

that women run at least 70% of business enterprise. And it is also supported by Arias,

(2007) by her statement that about 1,121,687 or 36.8 percent of total employment

women participated in workforce and 30.3 percent of it is women entrepreneurs,

surely women are active in business. But it contrasted to Richardson, (2004)

compared women to men in Africa. Gender doesn't matter but women have has lower

access to their own resources, timely busy and less access to formal education and

skills training. Opportunities to women are much lower than men and they faced

harder access to support.

Ages from 40 — 46 are the most active in engaging to sari — sari store business

while the ages from 68 — 74 are the least active. This shows that most Filipinos are

active to engage into sari — sari store business at this stage. In support to the research

in the Organization for Economic Co-operation Development (2012) who found out

that because of limited work experience, young people face more problems than older

men believing that they have stronger attachment to the world of business. It

contrasted to the study of Watson and Everett, (1999) that mostly traditional family

business that can be considered failed still being continued by middle and old-aged

retailers. Their objective is not for profit anymore but to continue their family legacy.
 19

More than a quarter (29%) of the respondents surveyed were College level,

telling that most of entrepreneurs engaged in sari — sari store business have the basic

education and unfinished college education needed to run their business. College

levels are now more active in sari — sari store business. According to (Kauffman

Foundation, 2009 ) in his previous study, he found out that there is similar

characteristic between businessman and college students for that reason, owners

reaching college level are likely to have an entrepreneurial viewpoint. A study in India

revealed that more retailers are undergraduate (Selvakumar & Muthumoni, 2011). It

conforms to the result that mostly college level or undergraduate engages in sari — sari

store business. A study made by Osman (2005) of Malaysia said retailers usually don't

have a formal education so they end up in a traditional family-type business, also

supported the result.

Table 2 shows that sari — sari store owners of Toril, Davao City were aware on how

they are running the sari — sari store business. They are not just engaging their

capital for nothing. According to Pourghajan and Zabih (2013), managing financial

resources plays important role on building profitable organization.

TABLE 2

Level of Awareness of Financial Management of Sari — Sari Store Owners

Financial Management Variables Mean Descriptive Level

Investing 3.78 High

Financing 4.32 Very High

Operating 3.82 High

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Grand Mean 3.97 High

Investing has a mean score of 3.78 with a description of high. An implication

of this finding is that sari—sari store owners have very good practice and knowledge

of financial management in terms of investing. Financing has a mean score of 4.32

with a description of very high. An inference of this result is that sari—sari store

owners have excellent practice and knowledge of financial management in terms of

financing. Operating has a mean score of 3.82 with a description of high. An

inference of this finding is that sari—sari store owners have very good practice and

knowledge of financial management in terms of operating. Based on results, the

overall financial management among sari-sari store owners in Toril, Davao City has

an overall mean of

3.97. According to Zeitun, Tian and Keen (2007), it is important that a manager or an

owner of a business should be knowledgeable enough of managing cash in business

operation to have a positive result. Success of operating the business depends on the

good performance and how an owner handles cash for day to day operation. The

investment's function measures a business effort, like acquiring fixed assets that can

be used in the business (Brealey, 2006). Financing a business, an owner should have

a good standing in which it is their source to cover the funds needed (Miculeac,

2013).
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TABLE 3

Significant Difference between the Level of Financial Management and the

Respondents’ Profile

Level of Financial
t-valueP-Value Interpretation
Profile Management

Investing 1.228 0.222Not Significant

Financing Operating 1.993 0.049Significant 0.017Significant
Sex 5.932

F-Value
Investing 0.499 0.833 Not Significant

Age Financing 1.085 0.379 Not Significant

Operating 0.665 0.701 Not Significant

Investing 0.856 0.035 Significant

Educational
Financing 0.922 0.01 Significant
Attainment
Operating 0.957 0.003 Significant

In terms of gender, there is no significant difference between investing and

sex of the respondents which signifies that whether male or female, it has no

difference between them. For financing and operating for the sex of respondents,

there is significant difference between them. Gender really matters and there will be

a great difference between male and female. This result was agreed earlier where

gender roles on SME's performance has developed considerably over 15 years

(Carter, 2001). And

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it conforms to what Kibera, (1997) presented that women run at least 70% of all

informal SME's worldwide.

In terms of age, investing, fi nancing and operating have no significant

difference. Even an owner came from different kind of ages; it doesn't matter because

it will not matter when engaging to sari-sari store business. Researches in the OECD

(2012) were right about young people face more problems because of limited work

experience than older people having already an attachment to the business world.

In terms of educational attainment, the three variables came with the same

result which is significant difference. It tells us that educational attainment really

matter and having a degree or being a professional can have a bigger edge between

the others who didn't finished their education. Indeed Devol (2013) were right that

better — educated workers have more abilities in improving production, it confirmed

the importance of educational attainment.

CHAPTER >
 23

FINDINGS, CONCLUSION AND RECOMMENDATION

This chapter presents the rundown of the research done, the conclusions

drawn and the recommendations made as an outgrowth of this study.

Summary Findings

1. Based on the profile of Sari — sari store owners, it showed that female sari

sari store owners dominate or have greater number compared to the male one. Sari —

sari store owners were mostly run by owners aging from 40 — 46 which are middle-

age people. Based on the data gathered, sari — sari store owners in Toril, Davao City

are mostly college level.

2. Sari — Sari store owners in terms of investing and operating showed high

level of financial management which means, sari — sari store owners in Toril, Davao

City has very good practice and knowledge of financial management. While in

financing, it resulted in a very high which means sari—sari store owners have excellent

practice and knowledge of financial management.

3. Significant difference was established between respondent's educational

attainment and in gender in terms of financing and operating with the sari-sari store

owner's financial management. In contrast, there is no significant difference

established on the other variables under study. It implies that regardless of

respondents' age, their financial management is the same.

Conclusion

Based on the finding stated, the following general and relevant conclusions

were drawn. It's showed that most of the respondents were female and accordingly,

engaged to business of sari — sari store since naturally women are devoted, more

careful and thrifty. This explanation will be supported according to Kibera (1997),

that women run at least 70% of business enterprise. Ages 40 to 46 were found as

most
 24

owners of the business. This simply elaborate that aside from having another source

of income, this age would think of saving for their future and to be insured for having

an easy-made business for them to be productive for pecuniary interest. Due to the

difficulty of having a job, college level individual would acquire this kind of business.

According to Kauffman Foundation (2009) study, students after reaching college level

are likely to have an entrepreneurial viewpoint. The researcher findings revealed that

there is no significant difference of financial management among sari-sari store

owners in Toril, Davao City in terms of age and in gender in terms of its investing.

The significant differences established were between respondent's educational

attainment and in gender in terms of its operating and financing. Further research

which is related in the study can improve and dig deeper in the other possible ways

regarding financial management of sari — sari store owners that can contribute more

in guiding everyone who wants to engage in sari — sari store business or retail

trading effectively.

Recommendation

Based on the fi ndings and conclusions presented, th e following

recommendations are given:

• That the financial management among sari-sari store owners in Toril, Davao

City should be maintained and improved for future purpose.

• Future entrepreneurs should attend various trainings and programs organized

by government or other bodies; this will help them polish more their financial
management and decisions. Kautilya (2011), an Indian philosopher, royal adviser, and professor of economi
education enriches peop leJs understanding of themselves and said that

education is an investment in human capital, and it can have a great impact on

a nationJs growth and development.
 25

• For the lending company, this will be the basis for them to have an open arms

relation to lend for the starting capital to sari-sari store owners.

• Customer should build more close relation and trust with them as it goes to
show that sari-sari stores in Toril, Davao City have high financial

management. This would result to greater income for owners and hike to
economic abundance as a whole.
• These enumerated guidelines/policies with regard to financial management

may be of help to those who are currently sari-sari store owners in Toril,

Davao City and to the researchers who plan to put up a business.

• Future researchers may conduct research to verify the soundness of the

findings of this study.