THE STUDY OF THE EFFECTS OF EMPLOYMENT IN A

SOLE- PROPRIETORSHIP BUSINESS

A Research Project
Presented to
Mr. Alfredo C. Salum

By:
Domingo, Cyber R.
Cruz, Dangelica
Licuanan, Justine
Alfaro, Chickie,
Rotairo, Justine Angelica
Santos, Lyan Pore

March 2018
 TABLE OF CONTENTS

Introduction I

Scope and Limitation of the Study I-II

Preparation II

Summary of Findings II-III

Recommendations IV

Conclusion V

BIBLIOGRAPHY 5

APPENDICES 6
INTRODUCTION:

As eloquently stated by the “U. S. Department of Commerce”, Sole proprietorship is a

business owned by a single person who receives all profits and assumes all risks. Owners

of this form of business are “self-employed" - usually the owners are the active manager.

Every organization and business entity perform its desirable task with the aid of resources

as men, machine, materials, and money. Except manpower, other resources are considered

non-living but manpower is a live and generating resource.

According to Jean Murray (2017), An employee is hired for a specific job or to provide

labor and who works in the service of the employer.

The relationship between the business and its employees are factual and critical. Especially

if the business entity needs to operate with much manpower than other resources.

In the Philippines, practicality is abundant and dominant where it is considered as a social

norm nowadays. Certain business aspirants built a seven-figure business and they don’t

acquire employees for the reason that the wage allocated to the workers can be allot to their

existing capital.

According to the Behavioral Management-based view, employees are the resources and

assets of an organization. If a business, in terms of area and labor - doesn’t acquire

employees, certain unfavorable outcomes can be recognized.

SCOPE AND LIMITATION OF THE STUDY:

The study is focused on the EFFECTS OF EMPLOYMENT IN A SOLE-

PROPRIETORSHIP BUSINESS. The business was conducted in the vicinity of Camiling

Market; at Quezon Avenue, Luna St, Arellano St, and Jacinto St. The respondents were

the business owners and their regular employees.

PREPARATION

We devised procedures. First, we plan on what we should do when we interview a sole

proprietorship business owner and listed down the numerous questions that were

appropriate and suitable for the economic entity. We divided the task to each one of us -

We managed our allotted time to make sure that we finish our composition in a given

time period. Then we list down the locations of our respondents. We asked the

respondents about their availability to have a one on one interview, as researchers we

explained first our motives in the nature and scope of the study we were conducting.

After that, the respondents were asked certain questions constructed for the attainment of

desired results. As a result, data were gathered regarding their perception on “The effects

of employment in a Sole-Proprietorship business” which truly helped for the completion

of the study.

SUMMARY OF FINDINGS

This category presents the summary of the study, conclusions derived from the

findings and recommendation of the researchers.

1. According to their respective financial statements, the cash flows or the on-going

asset of the business entity is similar to the amount they garnered on the preceding

months.

2. There is no signs of surge and escalation in the income.

 3. The family of the owners are also the employees.

4. Human labor is not imminent especially if the owner is exhausted from a past

activity outside the workplace.

5. According to the financial statement from Freecise Fitness Center, there’s an

upsurge in the income of the business in November 2017, the month that they

acquired an employee. The employee monitored all services available and kept

track of the transactions inside the business.

6. Six out of the seven selections felt pressured managing the business alone.

7. Trust and Practicality were the common factors why the business proprietors

don’t acquire employees.

8. There’s a leak of potential income because certain services are not rendered

properly due to the lack or of employees available.

RECOMMENDATIONS:

Based on the findings and conclusions, the researchers have the following

recommendations:

1. Business owners should monitor the competition and the capacity of labor needed

for the business to operate at ease.

2. The proprietors should hire low-budget employees to eradicate common labor

problems in the business.

3. Proprietors should be educated to have knowledge about the in-and-out of a

business entity.
Conclusion

The researchers conclude that:

The owners of the numerous Sole Proprietorship businesses around Camiling are

still testing and experimenting different formulas that can manifest success.

Employment has been a hard decision for them as they see business as an earning

machine without having expense. Practicality envelops their mindset as they

strive toward providing good and satisfying services to their customers which cost

their time and labor respectively.

In correlate to that, business owners are having a hard time managing the business

alone because of practicality, trust issues and responsibility. They want their

monetary unit to be allotted to important materials (e.g. equipment’s) instead to be

given as the wage of their employees.

Their time and labor has dramatically consumed, leaving them exhausted and

drained for the next business activity. This certain scenario can cost the business a

lot of money for the ignored and oversight services and particulars.

BIBLIOGRAPHY

(July 1997) U.S Department of Commerce “Types of Business Entities”, pages

31-33

(December 2017) Jean Murray “All about Sole Proprietorship”, 39886

APPENDICES

APPPENDIX A

Letter for the Selections

 Letter for the Selections
Good Day! Sir/Madame;

With deepest sincerity and gratitude - We, the students of Grade 11 – Accountancy,
Business and Management wish to conduct a survey as part of our requirements in Practical
Research 1.

Our topic was analyzed thoroughly and approved with the following details listed below:

The topic is focused on “THE STUDY OF THE EFFECTS OF EMPLOYMENT IN A

SOLE- PROPRIETORSHIP BUSINESS”

The research aims to find out how hiring/acquiring employees in a Sole-

Proprietorship business can affect its performance and competitiveness and also how they
can help effectively and efficiently.

We chose your business for the reason that it is suited and appropriate for the integration
of our research. We would like to convey to you our desire and yearning that you would
be one of our selections.

Your participation involves a series of interview which will include personal-related

questions.

Rest assured that whatever information gathered will be kept classified and confidential.

Thank you for your cooperation and God bless!

Respectfully yours: Domingo, Cyber R.

Cruz, Dangelica
Rotairo, Justine Angelica
Alfaro, Chickie
Licuanan, Justine NOTED by:
Alfredo C. Salum
Santos, Lyan Pore Teacher
QUESTIONS:

1. What are the services you offer? (can be enumerated)

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2. How do you manage the business independently? (can be subjective)

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3. Do you feel the pressure managing the business alone?

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4. What are the common problems you encountered by the services you offered? (out
of stock, customer dissatisfaction, etc.)

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5. Do you have plans on hiring employees?

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6. If you’ll acquire any employees, how much will be their minimum wage? (Any
amount is accepted)

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