Impact of Mall Establishments To Sme's

Pamantasan ng Cabuyao
College of Business Administration and Accountancy 1
Chapter 1
THE PROBLEM AND ITS BACKGROUND
Introduction
“We should strive to welcome change and challenges, because they
help us grow. We need to constantly be challenging ourselves in order to
strengthen our character and increase our intelligence.” --- H.G. Wells, The
Time Machine
Many individuals patronize goods that are more affordable than those
which are expensive. That is why many people still choose to shop retail
enterprises. In that way, people would be able to buy such goods that are
just enough to them without sacrificing its cost and quality.
The retail sector forms a critical element of a community’s economic and
social welfare. It provides people with choices and services. These choices
are until recently very limited in township areas. The pre-1994 retail
landscape was dominated by small, often informal businesses offering basic
household necessities to relatively low income earners. This has resulted in
township residents’ preference to shop outside townships, known as ‘out
shopping’. These businesses served as conveniences hops to primarily lower
income groups and attracted only a small portion of the consumer spending
in township areas. The majority of township workers engaged in economic
activities outside the townships with most of their shopping being in the main
city centres or at shopping malls at the fringes of township areas The retail
sector covers both organized and unorganized retail chains. The organized
retail refers to trading activities undertaken by registered retailers like
publicly traded supermarkets, corporate-backed hyper-markets, retail chains
and also the privately owned large retail business. On the other hand, the
unorganized retail refers to the traditional formats of low-cost retailing
mainly local shops, owner managed general stores, convenience stores,
pavement vendors, hawkers etc.
Mall culture has produced birth of a new dimension economy which
has established a close linkage between agricultural and urban-industrial
economies of this city. This type of economy initiates a business economy
that has extended its long roots since colonial period. As of this year, City of
Cabuyao has 3 Shopping Malls namely, Centro Mall which is located in Pulo
City of Cabuyao Laguna, Walter Mart Cabuyao in Brgy. Banlic, and Save More
which is also located in Brgy. Banlic.
As shopping malls continue to expand, we need to know what is their
impact especially to the small-retail businesses; their advantages and
disadvantages. It is for the reason that the retail sector still gives a very big
contribution to the GNP and GDP of our country. We cannot deny the fact
that these small businesses are the root of all the big establishments of the
country. Nobody starts at a large business easily. So for them to still
continue their businesses, they should consider the ways on how they could
help themselves.
Background Of The Study
Most of the businesses started from scratch. A business can be
established when there was a person who wanted to be an entrepreneur.
A retailer is a business that sells products to consumers for his
personal or family used. The retailers are pieces of an integrated system
called the supply chain and the final distribution channels. A merchant
purchases goods or products in large quantities from manufacturer directly,
then sells lesser quantities to the buyer to profit. It is completed in any fixed
locations like stores or door-to-door. Retailing could include subordinated
services such as delivery.
A shopping mall is a modern, chiefly North American, term for a form
of shopping precinct or shopping center, in which one or more buildings form
a complex of shops representing merchandisers with
interconnecting walkwaysthat enable customers to walk from unit to unit.

A shopping arcade is a specific form serving the same purpose. Many early
shopping arcades such the Burlington Arcade in London, the Galleria Vittorio
Emanuele II in Milan and numerous arcades in Paris are famous and still
trading. However, many smaller arcades have been demolished, replaced
with large centers or "malls", often accessible by vehicle. Technical
innovations such as electric lighting and escalators were introduced from the
late nineteenth century. From the late twentieth
century, entertainment venues such as movie
theaters and restaurants began to be added. As a single built structure, early
shopping centres were often architecturally significant constructions,
enabling wealthier patrons to buy goods in spaces protected from the
weather (http://en.wikipedia.org/wiki/Shopping_mall).
Cabuyao is one of the country’s best places to invest business. Several
business establishments like malls, can be seen around Cabuyao. Parts of
these establishments are small type of businesses which can be seen
everywhere: in commercial buildings, along the highway, in residential areas
and even within the vicinity institutions. The rise and fall of businesses are
also notable. Some small businesses open and operate just for a short
period, while other businesses expand and operate for a longer period even
with the existence and emergence of the malls. Best example is the SABOSA
merchandising located in Banlic which has a Branch expansion in Mamatid and
San Isidro. Through this observation, the researchers come up with this topic to
assess the business survival of those micro- businesses upon the existence of
malls. On how they can survive and continue their businesses.
Theoretical Framework
According to O’ Farrel and Hitchins (2002) the Strategic Management
Perspective Theory which is used to explain the two environments that carry out
the business. The external environment which deals with the suppliers,
customers and competition and the internal environment which deals with the
personal and leadership factors of the entrepreneur. They concluded that a
combination of internal and external variables supports the growth of small
organizations.
According to Murray (1984) the Entrepreneurial Strategic Theory is the
means through which small organizations establish and re-establish the
fundamental set of relationship with the environment and the uncertainties.

Conceptual Framework
Input Process Output
The demographic
profile of micro-
business enterprises
in terms of:
 Nature of the
business
 Business
Location
 Years of
1. Data Collection
Operation
2. Survey and Sustainability of
 Number of
Questionnaire Business
Employees
3. Data Operations.
The impact of Mall Interpretation
Establishments to 4. Data Analysis
micro-business
enterprise in terms
of:
 Sales
 Product
Movement
 Customer
Retention
FEEDBACK
Figure 1: This figure shows the overview on what the study is all about. It
presents the variables that are relevant to the study.

Statement Of The Problem
The researchers’ perspective why this study was conducted, primarily, is
to determine the Impact of Mall Establishments to the micro-business
enterprises in selected barangays in the City of Cabuyao Laguna: basis for
Business Continuity. Specifically, it will answer the following questions:
1. What is the demographic profile of micro-business enterprises in
terms of:
1.1 Nature of the Business;
1.2 Business Location;
1.3 Years of Operation and;
1.4 Number of Employees?
2. What is the impact of Mall Establishments to micro-business enterprise
in terms of:
2.1 Sales;
2.2 Product Movement and;
2.3 Customer Retention?
3. Is there any significant difference between the demographic profiles
of the micro-business enterprises to the impact of mall establishments to
micro-business enterprise in the City of Cabuyao, Laguna?

4. What action plan maybe designed for the micro-business enterprises
as basis for business continuity?
General Objective
To identify the impact of mall establishments to micro-business
enterprises in selected barangays in the City of Cabuyao, Laguna as basis for
the continuance of the business.
Specific Objectives:
To determine the significant difference of the mall establishments and
micro-business enterprises in selected barangays in the City of Cabuyao
Laguna.
Hypothesis of The Study
Null Hypothesis: There is no significant difference between the
demographic profiles of the micro-businesses to the impact of mall
establishments to micro-business enterprise in the City of Cabuyao Laguna.

Significance Of The Study
This study is significant since it would help to assess the impact of
mall establishments to micro-business enterprise which is essential to the
growth of economy as to the following:
Government- they would be able to regulate the businesses in the
country, which could also furnish some of the methods and strategies best
suited to the needs of micro-business enterprises to make them more
profitable and contribute to the society as well.
Micro-Business Owners- they would be able know all the factors
that might affect the length of their business’ existence. Also, this can serve
as their guide on how they will improve their business.
New Business Entrants- they will now have an idea, on what will
be the advantages and disadvantages of having the same kind of business.
And on how they will avoid failures in their business.
Future Researchers- they can gather information that is related to
their topic and make researches that are in line with this.
Scope And Limitations Of The Study
This study covers the impact of the mall establishments to micro-
business enterprises in the selected barangays in the City of Cabuyao,
Laguna. The effect of the mall establishments would be the determined
based upon its sales, its Product movement and the Customer Retention and
will serve as a basis for their business continuity. However, every study has
its own limitation, since our study is focused in the City of Cabuyao, Laguna,
only the perspectives of the respondents residing and operating business in
the City of Cabuyao, Laguna is studied and analyzed. The information came
from the interview questionnaires that is distributed, as well as the
information from literatures which had been cited and reviewed.
The researchers have chosen 2 barangays, wherein they chose their
respondents and conducted their survey. Namely, Brgy. Banlic and Brgy.Pulo
which has a total of 41 micro-businesses. The researchers also delimit their
respondents with regards to the nature of their business which is the Mini
Groceries, RTW (Ready-to-wear) Boutiques, Meat shop Retailers and
Vegetables and Fruit stands.

Definition Of Terms
Below are the important terms for clarity and understanding which
both theoretically and operationally convey ideas in the scope and context of
the study.
Competition - Rivalry for supremacy trying to win something or be more
successful than someone else.
Competitor- Someone who is trying to win or do better than all others
especially in business or sports.
Convenience- The quality or situation that makes something easy or useful
for someone by reducing the amount of work or time to do something.
Customer Focus- The orientation of an organization towards serving its
clients’ needs
Hawkers - A person who travels around selling goods, typically advertising
them by shouting.
Micro-Business - A business that operates on very small scale. Capital
range is from P0 – P300, 000.
Out shopping-Purchased of goods by consumers outside their local trading
area.
SME’s- Any business activity/ enterprise engaged in industry, agri-
business/services, whether single proprietorship, cooperative, partnership or

corporations who’s total assets, inclusive of those arising from loans but
exclusive of the land on which the particular business entities office, plant
and equipment are situated.
Product movement-It is defined as the inflows and outflows of the stocks
(Inventory) of the business.

Chapter 2
REVIEW OF RELATED LITERATURE AND STUDIES
In every research, we need to connect it with the works that is
already done to attain the overall relevance and purposes of the study. The
review of literature thus becomes a link between the research proposed and
the studies that is already done.
Foreign Literature
Firm performance refers to the firm’s success in the market, which
may have different outcomes. Firm performance is a focal phenomenon in
business studies. However, it is also a complex and multidimensional
phenomenon. Performance can be characterized as the firm’s ability to create
acceptable outcomes and actions. Success, in general, relates to the
achievement of goals and objectives in whatever sector of human life. In
business life, success is a key term in the field of management, although it is
not always explicitly stated. Success and failure can be interpreted as
measures of good or indifferent management. In business studies, the
concept of success is often used to refer to a firm’s financial performance.
However, there is no universally accepted definition of success, and

business success has been interpreted in many ways. (Foley & Green 1989).
There are at least two important dimensions of success: 1) financial
vs. other success; and 2) short- vs. long-term success. Hence, success can
have different forms, e.g. survival, profit, return on investment, sales
growth, number of employed, happiness, reputation, and so on. In other
words, success can be seen to have different meanings by different people.
In spite of these differences, people generally seem to have a similar idea of
the phenomenon, i.e. of what kind of business is successful.
The Economic and Fiscal Impacts, so far as concerned malls tend to
have a positive fiscal impact for the host community. Some writers have
made conceptual links between shopping malls semiotic messages and
consumer emotions, fantasy and acting (Kowinski 1985, Zepp 1986).
Because the mall is enclosed it is protected from the outside world and
controlled inside.
According to Zenia Kotval and John R. Mullin (2009), malls also
provide decent second jobs or par time jobs for children spouses and senior
citizens. Further they have mentioned their work about impacts and
downtowns. According to them malls hurt downtowns. Local department
stores that are unable to compete with the mall in terms of prices and variety
will inevitably close. Family owned stores will suffer and few will survive the
transition.
According to Anuradha Kalhan (2007) who have made a study in
Mumbai “only 14 percent of sample of small shoppers and hawkers has also
so far been able to respond to the competitive threat of the malls”. Dionne
Bunsha (2007) has highlighted in his paper, In Mumbai, where there is
conflict over every inch of space, hawkers are losing the battle. In the past
few years, several street vendors have been forced to vacate. The
booksellers along Flora Fountain, as much a part of the landscape as the
monument itself, have been evicted.
“In the brick-and-mortar retail world, it is said that the three most
important decisions you’ll make are location, location and location. Careful
determination of new sites is critical for most retail and consumer services.
Dickey (2010),
Local Literature
According to Philippine Department of Trade and Industry (2011),
SME’s in the Philippines make significant contributions to the overall economy
and the country’s pursuit of economic development. Filipino SME’s make up
to 99 percent of all businesses in the country, provide more than two-thirds
of the country’s employment, and is responsible for almost one-third of the

country’s income.
According to Jo Balucanag-Bitonio (2010), a professor/program
coordinator at Private and State Universities MSME’s in the Philippines plays a
major role in the economic development through their contribution to the
rural industrialization, rural development and decentralization of industries,
creation of employment opportunities and more equitable income
distribution. As of 2009, the MSME’s sector accounted for about 99.06% of
the registered businesses in the country. By which 63% of the labor force
earn a living. Around 35.07% of the total sales and Value-Added in the
manufacturing come from MSME’s as well.
According to Senator Edgardo J. Angara during the launch of The
Philippine Home-based Business and Career Summit Expo 2011 last August
12 at the SM Mega trade Hall, he stated that “MSME’s are the real back-bone
of our economy. People do not realize that your businesses have greater
direct impact on Filipinos’ lives than those big players. But more than this,
MSME’s provides opportunities who could not have started businesses
otherwise. Studies have shown that through MSME’s, disadvantage members
of society like the elderly and disabled, are able to earn income. In fact,
about 30% of the poor in our country have turned to entrepreneurship.

Meanwhile, according to CBC.Blogspot.com (2009), Competition is
also present to malls. This competition aims for greater full of customers or
purchasers using different marketization techniques. The Philippines
practices a free-market society wherein government intervention is limited
only to some tax, waste, and other regulations based on constitutional laws.
Market globalization has entered the arena because of the goal to promote
healthy competition for the benefit of accumulating wealth. But, industries
that are weak-namely our local products are being trashed. With today’s
dynamic changes brought about by these innovations, it also somehow
serves as a catalyst for the people to be driven to a strongly materialistic
lifestyle.
In Sigmund Freud’s book, The Future of An Illusion, he considers
religion as a defense mechanism for everyday life. It becomes a defense
mechanism for the consumers to shop and shop so they will able to avoid
and forget their loneliness and life frustrations. In other’s defense, they
consider shopping as something that a therapeutic or something that calms
their moods and soothes their nerves but in some cases due to the intense
desire of entirely abandoning the reality that is life, some consumers get lost
and turn into shopaholics.

In Dagupan City, while some residents have been lured by mall
chains, many still shop at homegrown stores where they “feel at home and
comfortable.”Pangasinan hosts two major shopping malls—the SM City in
Rosales town and Robinsons Place in Calasiao town. SM is also planning to
build a mall in Dapupan and negotiations are ongoing, says Mayor Benjamin
Lim, whose family owns and operates Magic. Magic has branches in several
towns in Pangasinan, Nueva Ecija and the Ilocos provinces. Lim says Magic’s
sales dropped by 15 to 20 percent, much like many other Dagupan stores,
when Robinsons opened its store in March. “But our experience is that the
newly established malls affect local retailers only for a year or two, then
sales will return to the original level,” he says.
He cites Magic’s store in Villasis town, where sales dropped when SM
City Rosales opened, only to see sales rise again. “[Major shopping malls
from Metro Manila] will go to regional centers like Dagupan, Urdaneta City,
San Carlos City and San Fernando City in La Union. So we created a business
model that will withstand the stiff competition by going to bigger towns. We
will go where they will not go to enable us to survive competition,” Lim says.
Lim says Magic designs its stores to fit the population and economy of their
target areas, complete with a staff that is trained to deal with local culture
and behavior.
“Sari-sari store owners used to travel to Dagupan to buy their
supplies. Now that Magic stores are closer to their communities, they don’t
have to spend on transportation and they do not need to buy supplies that
they could stack for weeks. They can come every day because we are in the
vicinity. Our business direction is to service not only walk-in customers but
people in the barrio, through the sari-sari store,” he says.
“Local malls also help local suppliers, with which the big time players
would not deal—suppliers for chicken, local meat products, vegetables,
aquatic products and eggs. We also have house brands and get locally-
produced items like candles and preserved food,” Lim says.
According to the Daily Inquirer newspaper (2012), The Philippines’
shopping mall chains have virtually taken over the provinces, branching
toward every urbanizing town or city to offer products that provincial
customers used to buy only from Metro Manila stores. Their expansion into
the provinces was originally perceived as the death knell for home grown
businesses, particularly in northern and central Luzon. But many of these
stores, it turned out, have been surviving due to their more personalized
approach, affordable prices, and knowledge of their localities.
Foreign Studies
According to the study conducted in Pune City particularly in
Maharashtra (2010), they measured the impact of shopping malls to the
sales and turnover of the small retailer shops. There are around 100 malls in
the city. Only four malls have been selected by random sampling method
from those areas where malls have not been established in planned colonies
/ towns. The selected malls represent four corners of the city. From each
selected mall area 50 each small shoppers (with in the radius of 1 kilometer
of selected mall), has been chosen randomly for comprehensive study. Thus,
4 malls, 200 small shoppers have undergone for comprehensive study. They
found out that if the number of malls is increasing then the retailers have to
take some preventive measures for their survival. The customers may be
habituated with malls so the existence of small shoppers will be a question
mark. The people employed in the small shoppers are barely literate and
cannot be replaced with the organized retail. The 40 million persons are
currently employed in unorganized sector cannot be replaced with the
organized sector due to various reasons. The employment is the unorganized
sector is informal employment. It implies the absence of contracts, rights, HR

policies and bargaining power. Hence exploitation of employees in the sector
will increase.
In the present study the focus has been given completely on this
segment and the impact of the malls on the small shoppers are harmful. If
preventive measures were not taken then the competition may worsen the
situation of small shoppers. From the above findings, it is recommended that
grocery sector should be standardized for optimum results. The retail format
has to be Indianized, in terms of communication, assortment, ambience,
service and locational points, due to other retail product factors. Grocery is
low involvement goods, customers hardly waste time in purchasing these
goods. But the customers have become more aware regarding grocery still
they are price sensitive.
The retailers have to redesign the retail format strategies on the basis
of customized regional approach. The analytical mass of the research makes
it sufficiently evident exclusive showrooms and branded companies and
goods (like Wal Mart) are not feasible in the Indian scenario and they have
to reframe their strategies.
According to the study conducted in South Africa (2007), they
founded out that in order to fully understand the impact of chain store
expansion in emerging markets, a sample of small informal and formal

township retailers located in Soshanguve were interviewed. The
socioeconomic status of the survey area’s population is representative of all
the groups typical of township areas, from the low-income to middle-income
and higher-income groups. The average annual household income amounted
to approximately R53 800 in 2006 (Municipal Demarcation Board, 2006).
The business environment of the study area consists primarily of
informal home-based (spaza/tuck shops) and small township retailers typical
of the pre-1994 retail township environment. Two adjacent shopping malls
were opened in Soshanguve in March 2006 and house more than 70 shops
representative of all the major franchises and national grocery chain stores.
These include, inter alia, food and grocery retailers, furniture and clothing
stores as well as fast food outlets, banks, music shops and electronic stores.
The respondents were asked several questions on the impact of the
new shopping malls on the surrounding small retailers. These questions
ranged from perceived small business mortalities to more exact questions on
the decrease or increase in turnover, profitability, stock movement and
product range of existing individual businesses.
Descriptive statistics confirm a generally negative impact of the
shopping malls on the surrounding small informal and formal township
retailers. In their study they founded out that almost half of the respondents
(47.0 per cent) reported a decline in the number of small businesses in their
immediate vicinity during the six month’s existence of the shopping malls. It
also shows that almost three in every five small business retailers
experienced a decline in their businesses’ profitability, turnover, stock
movement and product range. Only a small minority reported better business
conditions (between 1% and 4% of respondents). The rest of the discussion
analyses the effect of the retailers distance from the malls as a
discriminatory factor on their relative performance as well as other possible
factors that may enhance the survival of small businesses amidst direct
competition from national retailers. Independent t-tests were conducted to
compare the group means using distance from the shopping malls as the
independent variable and the variables mentioned above as dependent
variables.
The normality assumptions for the dependent variables were
examined using the Kolmogorov-Smirnov test and Shapiro-Wilk statistic. The
results show that the scores for the dependent variables deviate significantly
from normality. It was therefore decided to do both parametric and non-
parametric comparisons of the groups to verify the results.
According to the study conducted by Robert Mcgaffin (2009),
Township and rural area economy have been boosted over the past 15 years
by the significant growth of the black middle class and the expansion of the
social grant system. This growth in income and the saturation of retail
Centre’s in suburban areas, have led to a rapid increase in the number and
size of formal shopping centres in township and rural areas. The number and
size of shopping Centre’s developed in second economy areas since 1962,
which total 160 Centre’s containing approximately 1.7 million square metres
of retail floor space. 53% of this floor space has been developed since 2000.
The growth of this Centre’s has been met with mixed reactions. Some feel
that these Centre’s undermine the survival and growth of local small
enterprises while others argue that these Centre’s bring a wider range of
goods at a lower price closer to the local population. Furthermore, others
state that these centers can play an important catalytic role in stimulating
nodal development in these areas. Both qualitative and quantitative methods
are being used to undertake the study.
Qualitatively, face‐to‐face interviews are being undertaken with
developers and investors involved in retail development in these secondary
economies. Their studies findings show that based on a particular set of
indicators, the development of the Jabulani Mall has had a generally positive
impact. This is reinforced by the fact that 96% of the consumer survey
respondents rated their overall level of satisfaction with the mall as

“acceptable” to “very positive”. Similarly, 73% of the consumer survey
respondents indicated a perceived need for the mall to be expanded.
However, these positive findings are tempered by the fact that the mall did
lead to a decline in the number of local traders in the area as well as a
decline in consumer support for local traders. It remains to be seen whether
the other five case studies will reveal similar findings and whether
differences will emerge between the large metropolitan centres and the more
rurally located centres.
According to a provisional study by David Neumark, Junfu
Zhang and Stephen Ciccarella called "The Effects of Walmart on Local Labor
Markets," (2010) for every two jobs Walmart "creates," three local jobs are
destroyed. With due respect to Walmart, this is not the kind of economic
development neighbourhood small businesses need. Everywhere you look
in New York, mom-and-pop shops help anchor our busiest and most vibrant
business districts. Fordham Road in the Bronx, Flatbush Ave.
in Brooklyn, Jamaica Blvd. in Queens, 125th St. in Manhattan, and Forest
Ave. on Staten Island are thriving proof that our city's small businesses are
the engine that powers New York City's economy.

Local Studies
According to Sago, a travel blogger (2012), he said that “there must
be a lot of unemployed Filipinos today,”. Because for a non-holiday, non-
weekend Thursday afternoon, most of the people should be at work
somewhere, either in air-conditioned offices or manufacturing factories, but
not in a mall shopping or strolling about for the same reason as I am. I am
of course, talking in a general sense. This led me to ponder on how the mall
culture developed in the Filipino society and how relevant are they today. I
witnessed how SM North Edsa in Quezon City dominated our weekend family
trips. Through the years, more malls were built around the metro and
eventually spread in major provinces nationwide. To summarize it, the
Filipinos made the malls their second home as the owners were able to catch
the fancy of the consumers either through providing all their basic needs
from supermarkets to pharmacies, and from life’s leisure products such as
apparels up to entertainment. if the United States have ‘parks’ , we have the
malls.
Today, the mall market is one of the major segment of consumers,
hungry for leisure and ready to spend. If you think about it, consumer
vulnerability can be easily abused in the name of commercialism and rob
them off their hard-earned money.

According to Philippine Institute Development and Studies (2009),
Competition is a touchy subject in the developing world. In the Philippines,
the unvarnished truth is that there is hardly a culture of competition.
Protectionist tendencies, often with political backing, are powerful enough to
block the entry of other economic players—local or foreign. Even in the
domestic market, there is a raft of anticompetitive practices that make it
doubly harder for new entrants to penetrate retail channels. Regulatory
capture exacerbates market failures so there is a need to improve the
regulatory regime. This may be addressed by having a competition policy
framework that has appropriate regulation as a subset.

Synthesis Of The Reviewed Related Literature And Studies
The researchers believe that each and every literature and studies
stated in this research is similar on our present study. They relate and
differentiate the research based on the flow of their network analysis from
the proposed study. There is one thing that is common in the previously
related literature and studies. It is the value of Micro, Small and Medium
enterprises (MSME’s) in the growth of the economy in our country. Almost all
of them value the MSME’s rather than the other businesses because they
believe that they contribute a lot in many terms. Such as the foundation of
employment and the scale of assets. They play a major role in the country’s
industry decentralization, creation of jobs, equitable income distribution and
more earnings.
The mall culture in the Philippines is already there. We cannot deny
the fact that everybody would shop at their own convenience. But Filipinos
are also price wise. They prefer goods with higher quality and more
affordable. Filipinos also differ from other countries because they believe in
the “SUKI SYSTEM” wherein they could get discounts or additional item to
the seller that they always go which is not allowed in Malls.
Competition would always enter especially when you are in the field of
business. Micro-business enterprises could be established with or without a
high educational level. The only key is that micro-business needs to strive
harder. There’s a saying that “If you can’t beat them, join them.” Every big
achievement, starts from a small ones.

Chapter 3
RESEARCH METHODOLOGY
This chapter covers the research design and method, respondents of
the study (which includes the sampling method), data collection instruments
and statistical treatment of data. It discussed the procedural in seeking
answers to the research problems of the study.
Methods Of Research
This study utilizes the descriptive method of research. As a
widely accepted method, the descriptive method of research is a fact-finding
study that involves adequate and accurate interpretation of data. It is used
to gather information regarding the impact of mall establishments to micro-
businesses in the City of Cabuyao Laguna. It is designed to gather
information about the present existing conditions to describe the nature of
the situation as it exists at the time of the study and explores the cause of
the particular phenomena. In addition, the results from the descriptive
research could help us capture interesting, naturally occurring behavior
(Forzanoet. al., 2010). The technique used under descriptive method is the
normative survey approach and evaluation, which is commonly used to

explore opinions from respondents who can represent a whole population.
The researchers opted to use this kind of research considering the desire to
acquire first hand data from the respondents, so as to formulate rational and
sound conclusions and recommendations for the study.
The researchers used direct-data survey in this study which is survey
questionnaire. The direct-data type of survey is a reliable source of first-hand
information because the researchers directly interact with the participants.
Survey is appropriate in this study because the study deals on the impact of
mall establishments to micro-business enterprises in selected barangays in
the City of Cabuyao where information must be gathered from the owners of
the business. It also helped the researchers in the formulation of
generalization from the responses. The respondents is given ample time to
answer the questions.
In terms of approach, the study employed quantitative approach. The
quantitative approach, focused on obtaining the numerical findings, used
with the survey method.
Description of Respondents
The respondents of the study are focused on micro-business
enterprise owners in selected barangays in the City of Cabuyao, Laguna. The

researchers selected the respondents that operate business in Brgy. Banlic
and Brgy.Pulo. The study was conducted only in the area of City of Cabuyao,
Laguna. The researchers used the Slovin’s formula to determine the
computed sample size of 41 micro-business enterprises from the population
of 71. The computed sample size was fifty-eight percent (58%) of the micro-
businesses in the City of Cabuyao, Laguna. Shown below is the Slovin’s
formula used in computing the sample size of the population:
Slovin’s Formula:
To determine the sample size, the Slovin’s formula with 10% margin
of error was used.
Formula:
N
𝑛=
1 + N (e2)
Where:
n= sample size
N= population size
e= margin of error
Sources of Data
The researchers conducted pre-survey to some business owners of
barangay Banlic and Pulo, in the City of Cabuyao, Laguna. The primary data
came from the distributed questionnaire to micro businesses owners. The
first part of the questionnaire was about the demographic profile of the micro
businesses owners including the location, nature of business, number of
workers and the length of existence of their business while the second part
of the questionnaire was about the impact of mall establishments to micro
businesses in terms of sales, stock movement and product range. The
supported documents came from the municipality of Cabuyao. The
information from books, unpublished thesis and other related articles were
also used to widen the knowledge and understanding about the topic under
studied. Other activities done during data gathering were visiting places like
libraries of Faith University, Collegio De San Juan De Letran and Pamantasan
ng Cabuyao.
Research Instrument
The survey questionnaire was the one of the instruments that is used
in the study. This instrument was administered directly to several micro
businesses in barangay Banlic and Pulo. It was designed in a form of
checklist which contained probable answers. There was a blank part provided
where the respondent had to supply the additional information aside from
the given option. The researchers made it a point that the items would be
sufficient enough to answer the questions under the statement of the
problems. The questionnaire was validated by the adviser and pre-tested.
The questionnaire was divided into two parts. The first part was the
demographic profile of the micro business and the second part was about the
impact of mall establishments to micro-business enterprises.
Data Gathering Procedure
The researchers gathered the data with the use of the database in the
City of Cabuyao to get the list of micro businesses. With the permission from
other heads of the government agencies, the researchers were able to collect
all the names of businesses in Cabuyao, registered in the barangay.
The researchers formulated questionnaire based on the data gathered. The
retrieval of the questionnaire will be after two to three days. After that, they
interpreted and analyzed the data. The researchers used tabulation form and
other formulas needed to compute the result of the survey.
Evaluation and Scoring
In this study, the Likert’s five point grading was used to measure the
impact of mall establishments to micro-business enterprises in selected
barangays in the City of Cabuyao, Laguna. The results of the response were
interpreted using the scale below.
VERBAL
RATING SCALE INTERVALS INTERPRETATION
5 4.50-5.00 STRONGLY AGREE
4 3.50-4.49 AGREE
3 2.50-3.49 MODERATELY AGREE
2 1.50-2.49 DISAGREE
1 1.00-1.49 STRONGLY DISAGREE
Statistical Treatment of Data
1. Percentage
The demographic profile of the respondents was described using
frequency distribution and percentage statistics.
Formula:
𝑓
𝑃= × 100
𝑁
Where:
P= percentage
f= frequency of responses
N= total number of case

2. Weighted Mean
It is a method which was employed to interpret data from responses
provided. These responses were interpreted according to point scale that
was used to determine the weighted mean response of the terms provided in
the questionnaire.
Weighted mean formula written as:
W (m) = x = ∑fx….
∑f
Where:
X = weighted Mean
∑ = Summation Response
F = Frequency of Response
Weighted Mean Interpretation
VALUES RESULT INTERPRETATION
4.50-5.00 Strongly Agree Not Affected
3.50-4.49 Agree Less Affected
2.50-3.49 Moderately Agree Moderately Affected
1.50-2.49 Disagree Affected
1.00-1.49 Strongly Disagree Highly Affected

3. Analysis of Variance (ANNOVA)
It is used by the researchers to differentiate the impact of Mall
establishments to micro-business enterprise and micro-business profiles.
F= between group mean square
Within group mean square
4. T-test
T test is used to compare two different set of values. It is generally
performed on a small set of data. T test is generally applied to normal
distribution which has a small set of values. This test compares the mean of
two samples. T test uses means and standard deviations of two samples to
make a comparison. The formula for T test is given below:

Chapter 4
REPRESENTATION, ANALYSIS AND INTERPRETATION OF DATA
Presented in this Chapter are the analysis and interpretation of data
taken from the responses of selected Micro-Business Enterprises owners in
Brgy. Pulo and Brgy. Banlic City of Cabuyao Laguna.
Problem 1: What is the demographic profile of the micro-business
enterprises?
Presented under the problem stated were five (5) tables which
provided the demographic profile of selected micro-business enterprises in
Brgy.Pulo and Brgy. Banlic in the City of Cabuyao Laguna in terms of Nature
of the Business, Location, Years of Existence, No. of Employees and Start-up
Capital.
1.1 Nature Of The Business
Table 1.1 shows the frequency distribution and percentage
distribution of micro-business enterprises in Brgy. Pulo and Brgy. Banlic
according to the nature of their business.

1.1 Nature OF BUSINESS
Table 1.1 revealed the frequency and percentage distribution of the
Micro-Business Enterprises according to their nature of business.
TABLE 1.1
Frequency and Percentage Distribution of Micro-Business
Enterprises
According to Nature of Business
NATURE OF FREQUENCY PERCENTAGE RANK

BUSINESS
MINI GROCERY 12 29 1.5
RTW (READY-TO- 7 17% 4
WEAR) BOUTIQUES
MEAT SHOP 10 25% 3
RETAILERS
VEGETABLES AND 12 29% 1.5
FRUIT STANDS
TOTAL 41 100%
The findings revealed that twelve (12) or 29 percent of the
respondents were in line with the Mini Grocery and the other twelve (12) or
29 percent of the respondents were in line with Vegetables and Fruit Stands;
ten (10) or 25 percent were engaged to Meat Shop retailing and seven (7) or
17 percent of the respondents were engaged in Ready-To-Wear Boutiques.

1.2 Business Location
Table 1.2 showed the frequency and percentage distribution of the
Micro-Business Enterprises in terms of their Business Location.
TABLE 1.2
Enterprise
According to their Business Location
BUSINESS RANK
LOCATION FREQUENCY PERCENTAGE
PULO 17 41.50% 2
BANLIC 24 58.50% 1
TOTAL 41 100%
As shown in the table, twenty-four (24) or 58.50 percent of the micro-
business enterprise were located at Brgy. Banlic City of Cabuyao Laguna and
seventeen (17) or 41.50 percent of the micro-business enterprise were
located at Brgy. Pulo City of Cabuyao Laguna.
1.3 Years Of Operation
Micro-Business Enterprises according to their Years of operation.

TABLE 1.3
Enterprises
According to Years of Operation
YEARS OF
OPERATION FREQUENCY PERCENTAGE RANK
1-2 YEARS 4 9.76% 5
3-4 YEARS 7 17.07% 3
5-6 YEARS 10 24.39% 2
7-8 YEARS 7 17.07% 4

MORE THAN 9
YEARS 13 31.71% 1
TOTAL 41 100%
The gathered results showed that thirteen (13) or 31.71 percent of
the respondents operated for the range of more than 9 years; ten (10) or
24.39 percent operated for the range of 5-6 years;seven (7) or 17.07 percent
operated in the range of 3-4 years; seven (7) or 17.07 percent operated
withthe years of 7-8 years and three (3) or 9.76 percent operates in the
range of 1-2 years.

1.4 Number Of Employees
Micro-Business Enterprises according to their number of employees.
TABLE 1.4
Enterprise
According to their Number of Employees
NUMBER OF
EMPLOYEES FREQUENCY PERCENTAGE RANK
One-two 26 63.41% 1
Three-four 13 31.71% 2
Five-six 1 2.44% 3.5
Seven-eight 0 0% 5
More than 9 1 2.44% 3.5
TOTAL 41 100%
The findings revealed that thirteen (13) or 31 percent of the micro-
business enterprises had more than 9 employees in their business; ten (10)
or 25 percent had 5-6 employees; eight (8) or 20 percent have 3-
4employees; seven (7) or 17 percent had 7-8 employees and three (3) or 7
percent had 1-2 employees.

Problem 2: What is the Impact of Mall Establishments to micro-business
enterprises?
Shown under the above-stated problem was the Impact of Mall
Establishments to Micro-Business enterprises in selected barangays in the
City of Cabuyao Laguna in terms of the following: Sales, Product Range and
Stock Movement.
2.1 Sales
Presented in the table 2.1 was the Impact of Mall Establishments to
the Sales of Micro-Business Enterprise in selected barangays in the City of
Cabuyao Laguna.
Table 2.1
Impact of Mall Establishments to the Sales of Micro-Business
Enterprise in selected barangays in the City of Cabuyao Laguna
Sales Weighted Verbal Rank

Mean Interpretation
The increase in the order size 2.68 Moderately 1
(volume of orders) of existing Affected
customers has been affected upon
the existence of malls.
The attainment of the sales quota 2.56 Moderately 3
increased. Affected
There is an increase in the rate of 2.61 Moderately 2
discount and consignment. Affected
The estimated monthly sales have 2.41 Affected 5
increased upon the existence of
the malls.
The estimated monthly profit of 2.46 Affected 4

the business increased.
Overall weighted mean 2.55 Moderately

Affected
The impact of Mall Establishments on the sales of the micro-business
enterprises with regards to the order size (volume) of the existing customers
has a corresponding weighted mean of 2.68 and moderately affected. The
sales of the micro-business enterprises with regards to the attainment of the
sales quota have a corresponding weighted mean of 2.56 and moderately
affected. With regards to the rate of discount and consignment in the sale of
the micro-business enterprises has a corresponding weighted mean of 2.61
and moderately affected. With regards to the estimated monthly salesit is
affected and has a corresponding weighted mean of 2.41. And the sales of
the micro-business enterprises with regards to the estimated monthly profit
have a corresponding weighted mean of 2.46 and it is also affected.
According to Sameer Ahmad Shalla (2013), the emergence of
shopping malls has severely influenced operations of small shopkeepers and
other unorganized business outlets. The sales figures and operating profits
have been shown to be badly experiencing a receding behavior. A study on
the “impact of malls on small shops and hawkers in Mumbai” (Kalhan, 2007)
unambiguously indicated that there has been a severe impact of malls on the
unorganized retail shops operating in the vicinity of malls. The study further
stated that Mega Malls are making deep inroads in the sales of retailers
operating in the unorganized retail sector.

2.2 Product Movement
the Product Movement of Micro-Business Enterprise in selected barangays in
the City of Cabuyao Laguna.
Table 2.2
Impact of Mall Establishments to the Product Movement of Micro-
Business Enterprise in selected barangays in the City of Cabuyao
Laguna
Product Movement Weighted Verbal Rank

Mean Interpretation
The volume of (products/stocks) 2.76 Moderately 2.5

ordered from the distributor Affected
the malls.
The cycle of purchase and 2.76 Moderately 2.5
replacement of stock of goods Affected
the malls.
The conversion of product into 2.83 Moderately 1
cash or credit increased upon the Affected
existence of the malls.
The movement of goods into, 2.15 Affected 5
through and out of a place
increased.
The quantity of goods sold and 2.37 Affected 4
disposed increased.
Affected
The impact of mall establishments on the product movement with

regards to the volume of (products/stocks) ordered from the distributor of
the micro-business enterprises was moderately affected with a composite
weighted mean of 2.76. With regards to the cycle of purchase and
replacement of stock of goods of the micro-business enterprises was
moderately affected with a composite weighted mean of 2.76. The product
movement with regards to the conversion of product into cash or credit of
the micro-business enterprises has a composite weighted mean of 2.83and
moderately affected. The movement of goods into, through and out of a
place of the micro-business enterprises was affected with a composite
weighted mean of 2.15. And the product movement with regards to the cycle
quantity of goods sold and disposed of the micro-business enterprises was
affected with a composite weighted mean of 2.37.
According to Anuradha Kalhan (2007) who has made a study in
Mumbai “only 14 percent of sample of small shoppers and hawkers has also
so far been able to respond to the competitive threat of the malls”. Dionne
Bunsha (2007) has highlighted in his paper, In Mumbai, where there is
conflict over every inch of space. “In the brick-and-mortar retail world, it is
said that the three most important decisions you’ll make are location,
location and location. Careful determination of new sites is critical for most
retail and consumer services. Dickey (2010),

2.3 Customer Retention
the Customer Retention of Micro-Business Enterprise in selected barangays in
the City of Cabuyao Laguna.
Table 2.3
Impact of Mall Establishments to the Customer Retention of Micro-
Business Enterprise in selected barangays in the City of Cabuyao
Laguna
Customer Retention Weighted Verbal Rank

Mean Interpretation
The number of old customers duly 2.59 Moderately 3

patronizing the products increased Affected
upon the existence of the malls.
The number of walk-in customers 2.61 Moderately 2
increased upon the existence of Affected
the malls.
Dealing with the demands of 2.73 Moderately 1
customers. Affected
Gives discounts to customers with 2.39 Affected 4
bulk orders.
Gives rewards to your customers 2.34 Affected 5
that will make you stand out in a
good way.
Affected
The impact of mall establishments on the customer retention with
regards to the number of old customers duly patronizing the products of the
micro-business enterprises was moderately affected with a composite
weighted mean of 2.59. With regards to the number of walk-in customers of
the micro-business enterprises it was affected with a composite weighted
mean of 2.61. The impact of mall establishments on the customer retention
with regards to dealing with the demands of customers of the micro-business
enterprises was affected with a composite weighted mean of 2.73. The
customer retention with regards to discounts of customers with bulk orders
of the micro-business enterprises was affected with a composite weighted
mean of 2.39. With regards to the rewards given by the micro-business
enterprises to their customers was affected with a composite weighted mean
of 2.34.
According to Kotler and Armstrong (1996) define customer satisfaction
as the level of a person’s felt state resulting from comparing a product’s
perceived performance or outcome in violation to his/her own expectations.
The efficient satisfaction of customer needs is the ultimate test of a business
enterprise’s success and focus of business activity should be to serve
customer needs and wants more efficiently than competitors (Jain 2000).
The long term survival of a business enterprise depends not only on the
sales volume and the variety of business enterprise’s products but also on
the former’s ability to satisfy the needs of customers efficiently. There is a

direct positive link between service quality and customer behavioral
intentions and strong customer service leads to customer satisfaction, which
will in turn, lead to loyal behavior.
The perceived value of products relative to price, staff friendliness and
willingness to assist as well as the quality and freshness of products, store
appearance, and the degree of customer service are some of the factors
affecting customer satisfaction (Gomez et al. 2004). A satisfied customer is
the only true asset of the business enterprise and represents the sole
justification of the business enterprise’s existence (Cant et al. 2006).
Table 2.4
Summary on the Impact of Mall Establishments of the Micro-
business enterprises in the City of Cabuyao, Laguna
INDICATORS Weighted Verbal Rank

Mean Interpretation
SALES 2.55 Moderately 2

Affected
PRODUCT MOVEMENT 2.57 Moderately 1
Affected
CUSTOMER RETENTION 2.53 Moderately 3
Affected
Composite weighted mean 2.55 Moderately
Affected
As noted in the table, micro business was moderately affected by mall
establishments. Among the three, product movement got the highest rank
and have impact upon the existence of the mall establishment in micro-
business enterprises with weighted mean of (x̄=2.57)., Sales is moderately
affected and (x̄=2.55), Customer Retention is also moderately
affected(x̄=2.53).
Problem 3: Is there any significant difference between the demographic
profiles of the micro-business enterprises to the impact of mall
establishments to micro-business enterprises in the City of Cabuyao, Laguna?
Table 3.1 Comparing differences on the Impact of Mall
Establishment to Sales when grouped According Business Profile
BUSINESS COMPUTED TABULATED INTERPRETATION

PROFILE VALUE VALUE
1. Location 3.14 2.306 Reject Ho:
Significant
2. Nature of 0.422 3.24 Accept Ho:
Business Not Significant
3. No. of 1.364 3.24 Accept Ho:
Employees Not Significant
4. Years of 0.796 2.87 Accept Ho:
Existence Not Significant
As shown in the table 3.1, in terms of location a computed value of
3.14 is greater than the tabulated value of 2.306; therefore the null
hypothesis is rejected. These means that there is a significant difference on
the impact of mall establishment to micro-business enterprises. In terms of
nature of the business the computed value of 0.422 is less than the
tabulated value of 3.24, in terms of No. of employees the computed value
of 1.364 is less than the tabulated value of 3.24, in terms of years of
existence the computed value of 0.796 is less than the tabulated value of
2.87; therefore the null hypothesis of nature of the business, No. of
employees, and years of existence is accepted. These means that there is
no significant difference on the impact of mall establishment to micro-
business enterprises.
Establishment to Product Movement when grouped According
Business Profile

PROFILE VALUE VALUE
1. Location 1.04 2.306 Accept Ho:
Not Significant
3. No. of 0.231 3.24 Accept Ho:
Employees Not Significant
4. Years of 1.317 2.87 Accept Ho:
Existence Not Significant
Table 3.2 showed that the business profile of the micro-business
enterprises in terms of location had a computed value of 1.04, less than the
tabulated value of 2.306, Nature of Business had a computed value of 0.71,
less than the tabulated value of 3.24, No. of employees had a computed
value of 0.231, less than the tabulated value of 3.24, and Years of existence
had a computed value of 1.317, less than the tabulated value of 2.87.
Therefore the null hypothesis is accepted and there is no significant
difference on the impact of malls to product movement when grouped
according to their business profiles.
Establishment to Customer Retention when grouped According
Business Profile

PROFILE VALUE VALUE
1. Location 2.52 2.306 Reject Ho:
Significant
3. No. of 12.048 3.24 Reject Ho:
Employees Significant
4. Years of 3.705 2.87 Reject Ho:
Existence Significant
Table 3.3 showed that only the Nature of the Business was no
significant difference on the impact of the malls to Customer Retention of the
micro-business enterprises when grouped according to business profile,

which had a computed value of 1.553, less than the tabulated value of 3.24.
In terms Location the computed value of 2.52 is greater than the tabulated
value of 2.306, No. of employees had a computed value of 12.048 is greater
than the tabulated value of 3.24 and the Years of Existence had a computed
value of 3.705 is greater than the tabulated value of 2.87 therefore the null
hypothesis is rejected and there is a significant difference to the impact of
malls to customer retention when grouped according to business profiles.
Problem 4: What business plan maybe design for the micro-business
enterprises as basis for business continuity?
Table 4.1 Action plan for the Micro-business Enterprises
As Basis for business continuity
Planned Effective Practice and Target Date Responsible

Action Strategy of Person
Completion
Sales
1.Monthly sales Measure and monitor Short-term Micro-

monthly sales progress. goals Business
(6 months) Owners
2.Monthly Profit Make simultaneous
changes in costs, prices Short-term Micro-
and sales. Consider other goals Business
factors including (6 months) Owners
competitor response, and

your cost structure.
Product
Movement
1. Movement of Positioning strategies
goods into, should not be considered
through, and out static. If competitor Short-term Micro-
of a place. offerings change, the goals Business
business environment (6 months) Owners
changes or the
positioning strategy
proves to be marginal or
unworkable, changing it
too often can confuse
customers, make it
necessary
2. Quantity of Monitor the volume of

goods sold and each product's sales by
disposed. day, week, period and/or Short-term Micro-
quarter. goals Business
(6 months) Owners
Monitoring of products is
essential to ensure that
all consumers get the
quality, satisfaction and
maximum benefits they
need for money spent to
acquire these products.
Customer
Retention
1. Giving Customer referral Short-term Micro-

discounts to incentive program is a goals Business

customers. way to encourage (6 months) Owners
current customers to
refer new customers to
the store. Free products,
big discounts and cash
rewards are some of the
incentives that can be
used.
2.Giving rewards Rewarding people for Short-term Micro-

to customers their loyalty and giving goals Business
customers something Owners
tangible - a real reason
to come back. Incentives
to return could include
special pricing and
bonuses and gifts.
3. Dealing with The design, build quality,

the customer’s reliability and service Short-term Micro-
demand. ability of product or goals Business
service must be of the Owners
standard of customers
want, need and expect.
Speaking to your
employees politely and
pleasantly, without
sarcasm or parody, and
treating them at least as
well as you would want

them to treat your
customers. Long-term
success and customer
retention belongs to
those who do not take
ethical shortcuts.
Chapter 5
SUMMARY OF FINDINGS, CONCLUSIONS AND RECOMMENDATIONS

Findings
1. The following findings were the demographic profile of micro-business
enterprises.
Nature of the business
The findings revealed that twelve (12) or 29 percent of the
respondents is in line with the Mini Grocery and the other twelve (12) or 29
percent of the respondents is in line with Vegetables and Fruit Stands; ten
(10) or 25 percent is engaged to Meat Shop and seven (7) or 17 percent of
the respondents is engaged in Ready-To-Wear Boutiques.
Business Location
The findings revealed that, twenty-four (24) or 58.50 percent of
the micro-business enterprise is located at Brgy. Banlic City of Cabuyao
Laguna and seventeen (17) or 41.50 percent of the micro-business
enterprise is located at Brgy. Pulo City of Cabuyao Laguna.
YEARS OF OPERATION
The gathered results state that thirteen (13) or 31.71 percent of the
respondents operated for the range of more than 9 years; ten (10) or 24.39
percent operated for the range of 5-6 years; seven (7) or 17.07 percent
operated in the range of 3-4 years; seven (7) or 17.07 percent operated with
the years of 7-8 years and three (3) or 9.76 percent operated in the range of
1-2 years.
NUMBER OF EMPLOYEES
The findings revealed that thirteen (13) or 31 percent of the micro-
business enterprises had more than 9 employees in their business; ten (10)
or 25 percent had 5-6 employees; eight (8) or 20 percent have 3-4
employees; seven (7) or 17 percent had 7-8 employees and three (3) or 7
percent had 1-2 employees.
Impact of Mall Establishments to the Sales, Product Movement and

Customer Retentionof Micro-Business Enterprise in selected
Barangays in the City of Cabuyao Laguna
Sales
The findings revealed that sales is not significantly related to the
location of the enterprise supported by x2-value 25.55 less than the tabular
value 36.41. The micro-business can be established anywhere an
entrepreneur wanted to establish. Sales, is not significantly related to the
years of operation of the enterprise, supported by x2-value 14.95 less than
the tabular value 26.29.Also the sales isnot significantly related to the
Number of workers of the enterprise supported by x2- value 14.40 less than
the tabular value 21.02.
Product Movement
The findings revealed that the product movement is not significantly
related to the business location of the enterprise, supported by x2-value
27.14 less than the tabular value 36.41, it is not significantly related to the
years of operation of the enterprise and is supported by x2-value10.14 less

than the tabular value 26.29.The life of the business depends on their
customers and it is in the strategies of the entrepreneurs on how they could
prolong their survival.
Customer Retention
The customer retention has no significant relationship with the business
location its x2- value 2.52 is less than the tabular value 7.84.It is significantly
related with the years of existence which has anx2- value of 42.32 which was
greater than the tabular value of 41.34.It is not significantly related to the
number of workers of the micro-business enterprise supported by x2-value
11.72Less than the tabular value 32.67.The micro-business enterprises would
still continue to make sales even if there are malls surrounding in it.It is a
matter of making strategies that would retain old customers and help gain
new ones to make their sales bigger and higher.
Conclusions
On the basis of the result of the study, the following conclusions were
drawn.
1. Mini groceries are the most common type of micro-business
enterprise in Brgy. Banlic and Brgy. Pulo, City of Cabuyao, Laguna. The
respondents are already in the field of their business in the range of more
than 9 years. Since it is a micro-business enterprise, the respondents has a
range of 1-2 workers only. The start-up capitals of the respondents were
ranging from 101,000-200,000.
2. The Product Movement of the Micro-business enterprises is the one
which is more moderately affected upon the existence of the malls.
3. There is no significant relationship between the demographic profile
of the micro-business enterprise and the impact of the malls to the micro-
business enterprise.
Recommendations
Based on the conclusions drawn above, the researchers recommend the
following:
1. Micro-business enterprises should maintain and enhance their
approaches like greetings (Good Morning Sir/Ma’am, Goodbye and
Thank you Sir/ Ma’am) to the incoming customers and those who are
already leaving the store. Another is their employees should practice

courtesy and politeness to the customers. They should entertain
criticisms from the customers to be able to improve their approach.
2. The micro-business owners should be more knowledgeable and have
more unique business strategies like having promos such as Buy One
Take One for the products that has a slow movement. Discounts for bulk
orders, and rewards to the customers who has been loyal to the store.
3. The business owners must know how to do inventories like monitoring
the in and out of the products. The delivery date of the goods, especially
those who have perishable goods since the product movement is the
one that is more affected.
4. The business owners must check their balances weekly and do
comparative checking to see if their business is still doing well.
5. The micro-business enterprise must maintain a harmonious
relationship with the customers since the customers are the real
backbone of their business.
6. The government must set laws by having a competition policy
framework that has appropriate regulation as a subset to protect the
smaller retailers and the new entrants.
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Hawkins, D.I.R.J. Best and K A Coney (2002), “Consumer Behaviour:
Building Marketing Strategy”’ Tata McGraw Hill.
Kaushal Rajeev, Raghu banshi C.S. and Sinha, BK,(1987),” Purchasing
Behaviour Pattern of the Consumer and Their Brand Preferences for
Washing Soap/ Detergents - A Case Study of Simla City”, Indian Journal of
Marketing, Vol VII, No.4 December 1976 pp 9-14
Singh J.D. (1981), “A Study of Brand Loyalty in India,” Indian Journal of
Marketing, Vol. XI, No. 11-12 July Aug pp 15-20

Rao Ramkrishna, Rama, Raju, B. Ram Prasad, ASVS, (1987), “Husband wife
Involvement in Buying Decision Making;” The Economic Times, Bombay,
Oct 1, p 8.
Merriam Webster for the definitions
Electronic References:
CITY OF TSHWANE (2006) Geographical Information System,

http://www.gis.tshwane.gov.za (Accessed 9 February 2007).
EPROP COMMERCIAL PROPERTY SOUTH AFRICA (2004) “Soweto to get

R250m shopping mall”, www.eprop.co.za/news/article (Accessed 7 March
2007).
PROPERTY SOUTH AFRICA (2005) “R80m shopping centre expected to

boost township’s development”, www.eprop.co.za/news/article (Accessed 7
March 2007).
EPROP COMMERCIAL PROPERTY SOUTH AFRICA (2006) “National retailers

sign-up as construction on Maponya Mall gets
underway”,www.eprop.co.za/news/article(Accessed 7 March 2007).
Unpublished Thesis:
Rosalyn Alimagno, TeodyBancifra Jr., Diane Desengano, Trixie Jade Pasilan
(October 2013) “Factors Affecting The Sales Performance of Seleted
Retailing Business in the City of Cabuyao Laguna”.
Victor James Agarcio, Jowett Candulisas, Khristian James Francisco, Marco
Obrero, (October 2012) “The Perceived Effects of Cityhood on Selected
Small and Medium Enterprises in Cabuyao City, Laguna”
Appendix 1:
EDITOR’S CERTIFICATE
This is to certify that this thesis entitled: “IMPACT OF MALL
ESTABLISHMENTS TO MICRO-BUSINESS ENTERPRISES IN
SELECTED BARANGAYS IN THE CITY OF CABUYAO LAGUNA: BASIS
FOR BUSINESS CONTINUITY” prepared and submitted by Mary Grace P.
Cantuba, Mara Mirjana A. Carbo, Lyka T. Jumauay and Ariane May P.
Paclibar has been edited by the undersigned.
PROF. MILARITA G. JACQUEZ

Editor
Appendix 2:
STATISTICIAN CERTIFICATE
This is to certify that this thesis entitled: “IMPACT OF MALL
ESTABLISHMENTS TO MICRO-BUSINESS ENTERPRISES IN
SELECTED BARANGAYS IN THE CITY OF CABUYAO LAGUNA: BASIS
FOR BUSINESS CONTINUITY” prepared and submitted by Mary Grace P.
Cantuba, Mara Mirjana A. Carbo, Lyka T. Jumauay and Ariane May P.
Paclibar has been statistically reviewed by the undersigned.
MS. REMEDIOS BUCAL, MBA

Statistician
Appendix 5:
SURVEY QUESTIONNAIRE FORM
We, 4th year BSBA students major in Financial Management of Pamantasan ng Cabuyao, would like to
request your cooperation to honestly and objectively answer the questions in relation to our study
“Impact of Mall Establishments to Micro-Business Enterprises in Selected Barangays in City of Cabuyao
Laguna: A Basis for Business Continuity ”.
Feel free to add additional remarks in the space provided. Please do not leave any item in the
questionnaire blank.
We consider your business in this undertaking to be very valuable. Rest assured that all
information obtained in the study will be treated with utmost confidentiality.
Thank you for your sincerest participation and warmth cooperation.
The Researchers
RESPONDENT INFORMATION SHEET
PART I
Micro-Business Demographic Profile
Name of Business: __________________________________________

Business Location: __________________________________________
DIRECTION: Kindly check the appropriate box that corresponds to your answer.
1. What is the nature of the micro-business you have?
Mini Groceries
RTW (Ready-To-Wear) Boutiques
Meat shop Retailers
Vegetables and Fruits Stands
Others please specify: ________________________

2. How long does your business operating?
1-2 years
2-4 years
5-6 years
7-8 years
More than Nine years
Others please specify: ___________________

3. As of this year, how many employees do you have?
1-2
3-4
5-6
7-8
More than 9
Others please specify: ___________________
PART II.
DIRECTION: Assess if the statements listed below is affected upon the existence of the
malls. Check the box that corresponds to your answer. Please be honest and objective
with your answers.
5- STRONGLY AGREE 2- DISAGREE

4- AGREE 1- HIGHLY DISAGREE
3- MODERATELY AGREE
IMPACT OF MALL ESTABLISHMENTS TO MICRO-BUSINESS ENTERPRISES.

SALES 5 4 3 2 1
The increase in the order size (volume of orders) of existing customers
has been affected upon the existence of malls.
The attainment of the sales quota increased.
There is an increase in the rate of discount and consignment.
The estimated monthly sales has increased upon the existence of the
malls.
Please Specify:
(Before): ___________________
(After): ___________________
The estimated monthly profit of the business increased.
Please specify:
(Before): ___________________
(After): ____________________
PRODUCT MOVEMENT 5 4 3 2 1
The volume of (products/stocks) ordered from the distributor
increased upon the existence of the malls.
The cycle of purchase and replacement of stock of goods increased
The conversion of product into cash or credit increased upon the
existence of the malls.
The movement of goods into, through and out of a place increased.
The quantity of goods sold and disposed increased.

CUSTOMER RETENTION 5 4 3 2 1
The number of old customers duly patronizing the products increased
The number of walk-in customers increased upon the existence of the

malls.
Dealing with the demands of customers.

Gives discounts to customers with bulk orders.

Gives rewards to your customers that will make you stand out in a good
way.
OTHER INFORMATION
1. Where do you get your supplies?

______________________________________________________________________________
______________________________________________________________________________
_______________________________________
2. Do you think your business would be able to survive to the competitive threats of the m all?
Yes
No
Maybe
Why?_______________________________________________________________________________
___________________________________________________________________________________
______________________________________________
3. What strategies do you apply in order to survive the competition brought by the malls?
Having Price Advantage (Making it more Affordable).
Having more personalized approach to the customers.
Having more accessible environment in the business.
Having use of modern equipments to make transactions faster.
Dealing with the demands of customers.
Others please specify:
___________________________________________________________________________________
_________________________________________________
Appendix 3:
Request Letters
February 23, 2015

Mr. Epifanio A. Aidalla Jr, MPA

Dear Sir:
May we introduce ourselves, Mary Grace P. Cantuba, Mara Mirjana A. Carbo,
Lyka T. Jumauay, Ariane May P. Paclibar, 4thyear BS in Business
Administration major in Financial Management students of Pamantasan ng
Cabuyao under the college of Business Administration and Accountancy,
currently entitled in Research Study are conducting” IMPACT OF MALL
ESTABLISHMENT TO MICRO-BUSINESS ENTERPRISES IN SELECTED
BARANGAY IN THE CITY OF CABUYAO, LAGUNA: BASIS FOR
BUSINESS CONTINUITY”.
As partial fulfillment for the completion of the course, BACHELOR OF

SCIENCE IN BUSINESS ADMINISTRATION, may we request your permission
to be our Adviser.
We are looking forward for your favorable response on this matter.
Very respectfully yours,
The Researchers:
Cantuba, Mary Grace P.

Carbo, Mara Mirjana A.
Jumauay, Lyka T.
Paclibar. Ariane May P.
February 23, 2015
Prof. Milarita G. Jacquez

Dear Sir:
Lyka T. Jumauay, Ariane May p. Paclibar, 4thyear BS in Business

to be our English Editor.
The Researchers:

Jumauay, Lyka T.
February 23, 2015
Ms. Remedios Bucal, MBA

Dear Sir:
Lyka T. Jumauay, Ariane May p. Paclibar, 4thyear BS in Business

to be our Statistician.
The Researchers:

Jumauay, Lyka T.
Appendix 6
BUSINESS LIST IN THE CITY OF CABUYAO LAGUNA

Appendix 7
TABULATION
Appendix 8
CURRICULLUM VITAE
Appendix 4
CERTIFICATE OF RECOMMENDATION
This thesis is hereby recommended for Oral Examination in partial
fulfillment of the requirements for the degree of Bachelor of Science in
Business Administration Major in Financial Management.
TITLE: “THE IMPACT OF MALL ESTABLISHMENTS TO MICRO-
BUSINESS ENTERPRISES IN SELECTED BARANGAYS IN THE CITY
OF CABUYAO LAGUNA: BASIS FOR BUSINESS CONTINUITY”
The Researchers:
CANTUBA, MARY GRACE P.
CARBO, MARA MIRJANA A.
JUMAUAY, LYKA T.
PACLIBAR, ARIANE MAY P.
MR. EPIFANIO A. AIDALLA JR., MPA

Thesis Adviser

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Pamantasan ng Cabuyao

College of Business Administration and Accountancy 1

THE PROBLEM AND ITS BACKGROUND

“We should strive to welcome change and challenges, because they

help us grow. We need to constantly be challenging ourselves in order to

just enough to them without sacrificing its cost and quality.

The retail sector forms a critical element of a community’s economic and

landscape was dominated by small, often informal businesses offering basic

household necessities to relatively low income earners. This has resulted in

township residents’ preference to shop outside townships, known as ‘out

shopping’. These businesses served as conveniences hops to primarily lower

in township areas. The majority of township workers engaged in economic

retail refers to trading activities undertaken by registered retailers like

publicly traded supermarkets, corporate-backed hyper-markets, retail chains

unorganized retail refers to the traditional formats of low-cost retailing

mainly local shops, owner managed general stores, convenience stores,

pavement vendors, hawkers etc.

Mall culture has produced birth of a new dimension economy which

has established a close linkage between agricultural and urban-industrial

economies of this city. This type of economy initiates a business economy

which is also located in Brgy. Banlic.

As shopping malls continue to expand, we need to know what is their

impact especially to the small-retail businesses; their advantages and

country. Nobody starts at a large business easily. So for them to still

Background Of The Study

Most of the businesses started from scratch. A business can be

established when there was a person who wanted to be an entrepreneur.

A retailer is a business that sells products to consumers for his

personal or family used. The retailers are pieces of an integrated system

purchases goods or products in large quantities from manufacturer directly,

locations like stores or door-to-door. Retailing could include subordinated

services such as delivery.

A shopping mall is a modern, chiefly North American, term for a form

of shopping precinct or shopping center, in which one or more buildings form

a complex of shops representing merchandisers with

interconnecting walkwaysthat enable customers to walk from unit to unit.

trading. However, many smaller arcades have been demolished, replaced

with large centers or "malls", often accessible by vehicle. Technical

late nineteenth century. From the late twentieth

century, entertainment venues such as movie

theaters and restaurants began to be added. As a single built structure, early

shopping centres were often architecturally significant constructions,

enabling wealthier patrons to buy goods in spaces protected from the

Cabuyao is one of the country’s best places to invest business. Several

business establishments like malls, can be seen around Cabuyao. Parts of

these establishments are small type of businesses which can be seen

everywhere: in commercial buildings, along the highway, in residential areas

merchandising located in Banlic which has a Branch expansion in Mamatid and

malls. On how they can survive and continue their businesses.

According to O’ Farrel and Hitchins (2002) the Strategic Management

personal and leadership factors of the entrepreneur. They concluded that a

combination of internal and external variables supports the growth of small

According to Murray (1984) the Entrepreneurial Strategic Theory is the

means through which small organizations establish and re-establish the

fundamental set of relationship with the environment and the uncertainties.

Input Process Output

presents the variables that are relevant to the study.

Statement Of The Problem

The researchers’ perspective why this study was conducted, primarily, is

to determine the Impact of Mall Establishments to the micro-business

enterprises in selected barangays in the City of Cabuyao Laguna: basis for

Business Continuity. Specifically, it will answer the following questions: