Introduction

Internet cafés are sprouting like mushrooms all around us. This is due to the fact
that a large number of Filipinos, even if they are very young and old, are very much
computer-minded nowadays. Moreover, there is a growing popularity of internet use
such as social networking, instant messaging, net surfing, and blogging, e-
commerce, gaming and researching online. The increasing demand for internet
access and the services available over the internet has made internet cafés a very
promising source of good income.

The statements above made internet café a viable business but this do not spell the
success on this kind of business venture. There are several factors to take into
consideration for the business to sustain its existence – that is by improving its
ability to earn profit. Profitability is very important for a business because if they
don’t make profit in their operation then the business has to end. There are several
factors affecting the profitability of internet cafés. This study will focus on two
factors namely; the characteristics of internet cafés and internet users or
customers.

Due to fierce competition and over saturation of net cafés, owners will encounter
difficulty in sustaining the business existence. They need to fight for competitive
market share to derive income. Therefore, there is a necessity to analyze factors
significantly affecting the ability of the business to earn profit. This would give them
ideas on how they improve their operation and consequently enhance their
profitability and sustainability.

Statement of the Problem

The study aimed to determine the level of profitability of Internet cafés in Poblacion,
Santa Maria, Bulacan, the research attempted to describe the internet cafés
operating in the community including the problems faced by the internet café
industry. Moreover, the profile of internet users, their internet habits, complaints
and difficulties are also part of the study.
Specifically, the research endeavored to answer the following:

1. What are the factors affecting the profitability of internet cafés operating in
Poblacion, Santa Maria, Bulacan in terms of:

1.1. Characteristics of internet cafés

1.1.1. Geographic location

1.1.2. Number of internet work stations
 1.1.3. Speed in internet access
1.1.4. Types of services provided
1.1.5. Type of organization
1.1.6. Hourly rental of equipment
1.1.7. Amount of initial investment

1.2. Characteristics of internet users

1.2.1. Age group

1.2.2. Sex
1.2.3. Source of income
1.2.4. Education attainment
1.2.5. Internet cafés services availed
1.2.6. Internet usage pattern
1.2.7. Reason for using/Patronizing internet cafes

2. What is the level of profitability of internet cafés operating in Poblacion, Santa

Maria, Bulacan in terms of the following

2.1. Payback period = Average Investment / Net Income

2.2. Profit = Total Revenue – Total Cost
2.3. Return on Investment = Net Income / Average Investment

Significance of the Study

Internet cafés is a growing industry on this era of modern technology. This type of
business is very popular among computer-minded and business-minded persons.
Although there is an increasing number of internet cafés, there are only limited
studies conducted in this industry. Conducting this study will add to the body of
knowledge regarding this technology – dependent small business enterprise.

Specifically, the findings in this study will provide additional information to serve the
following individuals:

Internet café owners. The findings in this study will help them evaluate their
profitability. This study will enable them to assess their own operation. The findings
in this study will inform them whatever problems, possible solutions and
recommendations to further improve their operation.

Prospective operators. The study will make them aware of the pros and cons of the
business. It will also give them an idea of the market of internet cafés.
Consequently, the study will serve as a tool for them to decide whether to finally
engage on this business or not.
Internet users. This will enable them to addressed their demands, complaints and
difficulties in availing internet café services. This study will be of great importance
for them to know the ability of internet cafés to satisfy their demands.

Community. The community of barangay Poblacion as well as the municipality of

Santa Maria, Bulacan will be beneficial of the study because it will capture the level
of profitability of legitimate internet café business which pay respective taxes. This
study will make them aware of the contribution of this industry in today’s progress
and development.

Researchers. This study served as great part for the completion of the researcher’s
course requirement. This has given them challenge in attaining the data needed for
the study. It help them developed their self-esteem, increased their vocabulary and
kept their determination to finish what they have already started.

Other researchers. This study will be an effective tool and reference for the
researchers who would intend to make further relevant study regarding internet
café industry.