NORTHERN ILOILO POLYTECHNIC STATE COLLEGE

SCHOOL OF MANAGEMENT
Business Administration Department
Estancia, Iloilo

FINANCIAL LITERACY OF SOLE PROPRIETORSHIP BUSINESS OWNERS

An Undergraduate Research Paper

Presented to
The Faculty of Business Administration Department

In Partial Fulfillment of the Requirements for the degree

Bachelor of Science in Business Administration
(Marketing Department)

By

Renan I. Aguilar, Ceasar M. Arellano, May Ann V. Bernal,

Cherrie Anne B. Belga, Gherrelene G. Caro,
Jonamay V. Trofeo

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 NORTHERN ILOILO POLYTECHNIC STATE COLLEGE
SCHOOL OF MANAGEMENT
Business Administration Department
Estancia, Iloilo

APPROVAL SHEET

FINANCIAL LITERACY OF SOLE PROPRIETORSHIP BUSINESS OWNERS

An Undergraduate Research Paper for the degree

Bachelor of Science in Business Administration

By

Aguilar, Renan I., Arellano, Ceasar M., Bernal, May Ann V.,
Belga, Cherrie Anne B., Caro, Gherrelene G.,
Trofeo, Jonamay V.

Approved by the Research Committee

MARILYN B. DE LOS REYES, MBM

Research Paper Adviser

MA. FE B. BELASOTO, Ed, D.

Panel Chairperson

MICHELLE B. BACO, DPA. ANIE G. VILLA, MAT (ICT)

Member Member

RODERICK B. PILAPIL, MBM JOSEPH T. BANEHIT, MA. Ed.

Member Member

FARRELL G. BACABAC, MBA

Chairperson, BSBA Program

JOMARTIN C. LIMSON, DPA.

Dean, School of Management

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 NORTHERN ILOILO POLYTECHNIC STATE COLLEGE
SCHOOL OF MANAGEMENT
Business Administration Department
Estancia, Iloilo

Aguilar, Renan I., Arellano, Ceasar M., Bernal, May Ann V.,
Belga, Cherrie Anne B., Caro, Gherrelene G., Trofeo, Jonamay
V.
FINANCIAL LITERACY OF SOLE-PROPRIETORSHIP BUSINESS OWNERS
Unpublished Undergraduate Research Paper, Bachelor of
Science in Business Administration, Northern Iloilo
Polytechnic State College, Estancia, Iloilo, March 2019.

ABSTRACT

This descriptive study aimed to determine the financial

literacy of sole proprietorship business owners in Poblacion

Zone II, Estancia, Iloilo. The respondents of the study

were the one hundred twenty nine (129) sole proprietorship

business owners of Poblacion Zone II, Estancia, Iloilo who

were chosen through a random sampling. The researchers-made

questionnaire/checklist was used to gather data. The

gathered data were analyzed and interpreted using the

frequency, percentage, and mean as descriptive statistics

and t-test, one-way ANOVA for inferential statistics.

Findings revealed that the financial literacy of sole

proprietorship business owners in terms of record keeping,

budgeting, financing and saving when taken as an entire

group and when classified as to age, sex, educational

attainment and length of business operation found out that

age, below 30 years old and 30-45 years old were highly

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 NORTHERN ILOILO POLYTECHNIC STATE COLLEGE
SCHOOL OF MANAGEMENT
Business Administration Department
Estancia, Iloilo

literate in terms of record keeping, budgeting and saving

and literate on financing. Those 45 years old are highly

literate in terms of budgeting and saving and literate on

record keeping and financing. It was also found out that

male and female has the same level of financial literacy in

terms of record keeping, budgeting and saving which is

highly literate and literate on financing. When classified

as to educational attainment result revealed that

elementary, high school and college level has the same level

of financial literacy in terms of record keeping, budgeting

and saving which is highly literate and literate on

financing. And on length of business operation, 10 years and

below are highly literate in terms of record keeping,

budgeting and saving and literate on financing, those above

10 years are highly literate in terms of saving and literate

in terms of record keeping, budgeting and financing. There

was no significant difference on financial literacy of sole

proprietorship business owners in terms of record keeping,

budgeting, financing and saving when classified as to age,

sex, educational attainment and length of business operation

in terms of financing and saving.

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 NORTHERN ILOILO POLYTECHNIC STATE COLLEGE
SCHOOL OF MANAGEMENT
Business Administration Department
Estancia, Iloilo

Keywords: financial literacy, sole proprietorship,

educational attainment, length of business operation,
record keeping, budgeting, financing, saving.

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 NORTHERN ILOILO POLYTECHNIC STATE COLLEGE
SCHOOL OF MANAGEMENT
Business Administration Department
Estancia, Iloilo

ACKNOWLEDGEMENT

The journey of this research had been a long and

arduous story of challenges, hurdles and triumphs that have

finally led to the fulfillment of a cherished, lifelong

academic dream. Thus, the researchers are in deep gratitude

and sincerely to the following people who have contributed

significantly to this process and we wish humbly and happily

to acknowledge each and every one who made this research

possible.

Prof. Marilyn B. Delos Reyes, the thesis adviser, for

the unselfish guidance and support, endearment, suggestions

and corrections to finish the study;

Dr. Ma. Fe B. Belasoto, panel chairperson, for the

encouragement and sharing her invaluable time and effort in

guiding and providing such ideas and insight for the

refinement of this work;

Dr. Michelle B Baco, Prof. Anie G. Villa, Prof.

Roderick B. Pilapil, the panel member, for the intelligence,

corrections, suggestions and comments;

Prof. Joseph T. Banehit, the panel statistician, for

the patience in correcting and editing the manuscript,

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 NORTHERN ILOILO POLYTECHNIC STATE COLLEGE
SCHOOL OF MANAGEMENT
Business Administration Department
Estancia, Iloilo

assisting in computing and analyzing the data, and

interpretations of the results;

We would like to extend our warmest gratitude to our

Department Chairman Prof. Farrell G. Bacabac and to the Dean

of School of Management, Dr. Jomartin C. Limson, for the

help and efforts and as well as the encouragement in

finishing this study;

To the Respondents of the study, for giving their

invaluable time and cooperation;

To the researchers parents, for their overflowing love,

support and for understanding us in times of our

shortcoming.

Above all, to the Omnipresent Almighty God, for His

spiritual guidance, steadfast love and sustaining grace, as

well as blessings that leads us to finish this study.

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 NORTHERN ILOILO POLYTECHNIC STATE COLLEGE
SCHOOL OF MANAGEMENT
Business Administration Department
Estancia, Iloilo

TABLE OF CONTENTS

Page

TITLE PAGE i

APPROVAL SHEET ii

ABSTRACT iii

AKNOWLEDGMENTS vi

TABLE OF CONTENTS viii

LIST OF TABLE xi

LIST OF FIGURES xii

CHAPTER
I INTRODUCTION

Background of the study

Theoretical and Conceptual framework 3

Statement of the problem 5

Hypothesis 6

Significance of the study 6

Scope and limitation of the study 7

Definition of terms 8

II REVIEW OF RELATED LITERATURE

Financial literacy 11

Sole Proprietorship 14

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 NORTHERN ILOILO POLYTECHNIC STATE COLLEGE
SCHOOL OF MANAGEMENT
Business Administration Department
Estancia, Iloilo

Page

Studies about financial literacy 15

Related studies 23

III METHODOLOGY
Research design 27
Respondents of the study 28
Locale of the study 29
Research instrument 29
Data gathering procedure 31
Statistical data analysis procedure 31

IV PRESENTATION, ANALYSES AND INTERPRETATION OF DATA

Financial literacy of sole proprietorship business

owners of Poblacion Zone 2, Estancia,
Iloilo in terms of record keeping, budgeting,
financing, saving when taken as an entire
group and when classified as to age and sex 33

Financial literacy of sole proprietorship business

owners of Poblacion Zone 2, Estancia,
Iloilo in terms of record keeping, budgeting,
financing and saving when taken as an entire
group and when classified as to educational
attainment and length of Operation 36

Difference on the financial literacy of sole

proprietorship business owners when
classified as to age and educational
attainment 39

Page
Difference on the financial literacy of sole
proprietorship business owners when classified
as to sex and length of business operation 41

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 NORTHERN ILOILO POLYTECHNIC STATE COLLEGE
SCHOOL OF MANAGEMENT
Business Administration Department
Estancia, Iloilo

V SUMMARY, CONCLUSIONS AND RECOMMENDATIONS

Summary 44
Conclusions 47
Recommendations 48
References 49

Appendices 52
A Letters 53
B Survey Questionnaire 55

LIST OF TABLE

Table Page

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 NORTHERN ILOILO POLYTECHNIC STATE COLLEGE
SCHOOL OF MANAGEMENT
Business Administration Department
Estancia, Iloilo

1. Distribution of Respondents 28

2. Financial literacy of sole proprietorship

business owners of Poblacion Zone 2, Estancia,
Iloilo in terms of record keeping, budgeting,
financing, saving when taken as an entire
group and when classified as to age and sex 35

3. Financial literacy of sole proprietorship

Business owners of Poblacion Zone 2, Estancia,
Iloilo in terms of record keeping, budgeting,
financing and saving when taken as an entire
group and when classified as to educational
attainment and length of business operation 38

4. Difference on the financial literacy of sole

proprietorship business owners when
classified as to age and educational
attainment 41

5. Difference on the financial literacy of sole

proprietorship business owners when classified
as to sex and length of business operation 43

LIST OF FIGURES

Table Page

1. Paradigm of the Study 5

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 NORTHERN ILOILO POLYTECHNIC STATE COLLEGE
SCHOOL OF MANAGEMENT
Business Administration Department
Estancia, Iloilo

2. Map of Poblacion Zone 2, Estancia, Iloilo 29

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