1
SCHOOL OF BUSINESS AND GOVERNANCE
MANAGEMENT ACCOUNTING DEPARTMENT
ENTREPRENEURIAL ORIENTATION, MARKETING STRATEGY,
AND BUDGETING AS PREDICTORS OF PERCEIVED FINANCIAL
PERFORMANCE AMONG MICRO-ENTERPRISES IN DISTRICT 1,
DAVAO CITY
An Undergraduate Thesis
Presented to
The Management Accounting Department
in partial fulfillment of the requirements for
MANAGEMENT ACCOUNTING RESEARCH
Baclaan, Andrie John B.
Cancino, Kate R.
Geralde, Eloisa Marie S.
Mutia, Fritzel S.
Rafallo, Kate Diane P.
Sasoy, Maynard Rico S.
Researchers
Dr. Christhoffer P. Lelis, LPT, MAT-Math, MBA
Research Adviser
March 2023
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ABSTRACT
This study aimed to discover whether entrepreneurial orientation, marketing
strategy, and budgeting significantly influence the perceived financial performance of
micro-enterprises in District 1, Davao City.
The study utilized a descriptive-correlational research design. The research
respondents in this study were managers or business owners of micro-enterprises in
Davao City. Furthermore, the data were analyzed using frequency distribution, mean and
standard deviation, and multiple regression analysis (MRA). The data was collected
through face-to-face visitation with informed consent and a survey questionnaire, and 186
respondents were selected through a cluster sampling method. The results showed that
out of three (3) entrepreneurial orientation, marketing strategies, and budgeting
predictors, only marketing strategies and budgeting significantly influenced the perceived
financial performance. Moreover, it was found that 16.9% of the variation in perceived
financial performance could be accounted for by two variables, with marketing strategies
having the highest significant influence compared to budgeting. This recommends that
marketing strategies can be key in driving success for micro-enterprises. Also, it is
essential to conduct similar studies in other places and introduce new variables in the
Philippines and other districts in Davao City.
Keywords: Perceived Financial Performance, Entrepreneurial Orientation, Marketing
Strategies, Budgeting, Micro-Enterprises
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ACKNOWLEDGMENT
Appreciative acknowledgment of those who helped and gave guidance to the
researchers; this research would not make it through the process without the support and
guidance given to the following people:
To the thesis adviser, Dr. Christhoffer P. Lelis, LPT, MAT-Math, MBA, despite
his busy schedule, he gave his time in encouraging and enlightening the researchers with
words, patience, motivation, and guidance to the researchers. The researchers would like
to thank him for his unselfish way of teaching, his expertise, and his consideration
towards the work made.
To the Panel of examiners, headed by Dr. Jovelyn A. Castro, LPT, Dr. Cleofe A.
Arib, CPA, and Dr. Michelle Rose M. Juadiong, for sharing your valuable suggestions
and comments. You have been an invaluable source of motivation to the researchers and
helped them identify their shortcomings and aim for a purposeful study. Your extensive
knowledge and experience in the research field are highly appreciated and have been of
great help in achieving our research goals. We thank you for your time and effort in
helping to ensure the success of our research project.
To the Department Chair of Management Accounting, Mrs. Kaye B.
Mosqueda-Binoya, CPA, MBA, for your outstanding support and guidance during the
research process. Your expertise in the field of research was invaluable in helping us to
reach our objectives. Your willingness to provide timely responses to our questions and
concerns was greatly appreciated. Your assistance was instrumental in helping us to stay
on track with our research goals.
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To the research respondents, for your cooperation and participation in our
survey. We appreciate your willingness to answer our survey questions. Your feedback is
invaluable to the success of our research. We are highly thankful for your support and
kind cooperation.
To the researchers' families, friends, and batchmates, for your unwavering
support. Your moral and emotional support during this research project has been
invaluable. We are also grateful for the financial help that you provided us with.
All of this would not be probable without the blessings and guidance of our Lord,
giving the researchers courage and strength to complete this research paper. All glory and
honor are yours now and forever.
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v
TABLE OF CONTENTS
Title Page
Ii
Abstract
IIii
Acknowledgment
III
iii
Table of Contents
Vv
List of Tables
viii
VIII
List of Figures
ix
IX
Chapter 1
Introduction
1
1
Background of the Study
1
Research Gap
5
Theoretical Framework
7
Entrepreneurial Orientation Theory
7
Innovativeness
9
Riskiness
9
Proactiveness
9
Marketing Mix (4P’s)
10
Product
11
Price
11
Place
12
Promotion
12
Goal-Setting Theory
12
Financial Ratio Analysis
14
Liquidity
14
Leverage
15
Profitability
15
vi
6
Conceptual Framework
16
Statement of the Problem
20
Null Hypothesis
21
Objectives of the Study
21
Significance of the Study
22
Scope and Limitation
24
Definition of Terms
25
Chapter 2
Review of Related Literature
26
26
Entrepreneurial Orientation
26
Marketing Strategy
28
Budgeting
32
Perceived financial performance
35
Synthesis
39
Chapter 3
Methodology
41
41
Research Design
41
Research Locale
41
Respondents
42
Sampling Frame
42
Sample Design and Size
43
Research Instrument
44
Data Collection Procedure
49
Statistical Treatment
52
Ethical Considerations
54
Chapter 4
Findings and Implications
55
56
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7
Profile of Micro-Enterprises
56
Level of Entrepreneurial Orientation of the Micro-Enterprises in District 1,
57
—--Davao City
Level of Marketing Strategy of the Micro-Enterprises in
60
District 1,Davao City
Level of Budgeting of the Micro-Enterprises in District 1, Davao City
62
Level of Perceived Financial Performance of the Micro-Enterprises in
64
District 1, Davao City
Significant Factors that Influence the Perceived Financial Performance of
66
Micro Enterprises in District 1, Davao City
Influence of Entrepreneurial Orientation, Marketing Strategy, and Budgeting to
68
the Perceived Financial Performance of Micro-Enterprises in District 1, Davao City
Implication to Theories
71
Implication to Practice
74
Implication to Research
75
Chapter 5
Summary, Conclusions, and Recommendations
78
78
Summary
78
Conclusion
80
Recommendation
81
REFERENCES
85
APPENDICES
Appendix A: Survey Questionnaire
100
Appendix B: Survey Question References
103
Appendix C: Survey Validation Form
108
Appendix D: Statistical Data Analysis Results
114
Appendix E: Reliability Test Results
121
Appendix F: Total Number Of Registered Micro Enterprises
124
Appendix G: Curriculum Vitae
125
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LIST OF TABLES
Table 1.1 Summary of Theoretical Framework
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Table 3.1 Number of registered micro-enterprises in the
42
First District of Davao City
Table 3.2 Target number of respondents per cluster
44
Table 3.3 Survey Questionnaire Validation Result
46
Table 3.4 Cronbach Alpha Results of the Survey Questionnaire
47
Table 3.5 Interpretation table for Entrepreneurial Orientation
47
Table 3.6 Interpretation table for Marketing Strategy
48
Table 3.7 Interpretation table for Budgeting
48
Table 3.8 Interpretation table for Perceived Financial Performance
49
Table 3.9 Statistical Treatment
52
Table 4.1 Business Profile-Business Age
56
Table 4.2 Business Profile-Business Size Capital
57
Table 4.3 Level of Entrepreneurial Orientation of the Micro-enterprises in
58
District 1,Davao City
Table 4.4 Level of Marketing Strategy of the Micro-Enterprises in District 1,
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Davao City
Table 4.5 Level of Budgeting of the Micro-Enterprises in District 1, Davao City
62
Table 4.6 Level of Perceived Financial Performance of the Micro-Enterprises in
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District 1, Davao City
Table 4.7 Assumption Checks for Regression Model
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Table 4.8 Regression Coefficients
69
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LIST OF FIGURES
Figure 1.1 Entrepreneurial Orientation Theory by Miller (1983)
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Figure 1.2 Marketing Mix 4P’s by E. Jerome McCarthy (1960)
11
Figure 1.3 Goal-Setting Theory Model by Locke and Latham (1960)
13
Figure 1.4 Research Paradigm
16
Figure 3.1 Taro Yamane Formula
43
Figure 3.2 Sample Size Computation
44
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CHAPTER 1
INTRODUCTION
Background of the Study
Financial performance pertains to the extent to which financial objectives are
achieved (Verma, 2020). It is a complete evaluation of the firm's overall assets, liabilities,
equity, and expenses. Further, financial performance measures how effectively a
company can utilize resources from its primary line of business and generate income. It is
also a broad indicator of a company's long-term financial stability (Kenton, 2022). A tool
used to measure, track and analyze the financial health of a business is the Key
Performance Indicator or KPI, and through using these metrics: profitability, solvency,
liquidity, efficiency, and valuation (Stobierski, 2020).
Moreover, various factors can affect a business's perceived financial performance,
including entrepreneurial orientation. Several past studies have demonstrated that
businesses with an entrepreneurial orientation frequently experience increases in financial
performance (Cho & Lee, 2020). Next,
marketing strategies (product, pricing,
promotion, and distribution) are also known to directly affect the financial performance
of a firm (Abdullah Saif, 2015). On the other hand, Banks (2018) suggests that a
business's success is based on budgeting. Budgeting guides the business in its planning
and controlling its finance. It is a proactive strategy for managing the business's finances.
It allows the business to plan for both short-term and long-term expenses by ensuring that
it is spending only what it earns. It is a practical approach for businesses with various
expenses and incomes to manage their finances (Shim & Siegel, 2012). A well-planned
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budget contributes to making more informed financial decisions, resulting in better
financial performance.
In the global setting, according to the study of Patricia (2022), the performance of
microbusinesses in Kericho County has raised concerns due to poor entrepreneurial
orientation practices. Another study by Nyello and Kalufya (2021) states that
micro-businesses in Africa, particularly Tanzania, do not perform well financially and are
considered not entrepreneurially oriented due to various business environment issues.
They remain insignificant in producing and maintaining low-quality jobs while unable to
contribute to the economy's growth. With that, entrepreneurial orientation substantially
had an impact on financial performance. Additionally, Entrepreneurial orientation can
boost micro-business financial performance even under unfavorable economic
conditions.
Moreover, small businesses in Indonesia encountered problems with increasing
competition in their community, threatening their existence in the industry and their
financial performance. Factors such as globalization and technological advancements
drive businesses into intense competition (Pangemanan & Walukow, 2018). Due to the
importation of comparable goods from other regions, the market is seeing this
competitive pricing. Also, they lack a solid plan of action or marketing strategy that could
give them an edge over rivals. Further, Nigeria's marketing efforts are poor, with a rate of
(70%); this shows that there is no efficient marketing plan for those products on the
market (Jovanov & Stojanovski, 2012).
In addition, regarding budgeting, 50% of micro-businesses in the US were found
to lack budget records in 2020. It was found that budgeting was deemed unnecessary and
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treated by business owners and managers as irrelevant to their business growth (Roddy,
2021). Further, a study by Mbogo et al. (2021) revealed that businesses in Australia,
Yemen, Sri Lanka, and India found that budget planning and control have a favorable and
considerable impact on Financial Performance, specifically on sales growth.
In the Philippine setting, 99.58% of the business enterprises in the country are
MSMEs. Among this number, 90.58% are micro-enterprises making them a considerable
part and contribution to the Philippine economy (Department of Trade and Industry,
2021). According to Rapisura (2019), micro-enterprises have faced increasing challenges
throughout the years. In 2004, micro-enterprises were found to lack managerial and
entrepreneurial skills, technology access, research and development funds, low product
efficiency, limited access to finance and information, and hampered business climate due
to high production costs.
Further, in the study by Gamad (2017) on the MSMEs in Metro Manila, it was
revealed that it is essential for businesses to develop better entrepreneurial concepts and
strategies as it is an important factor in increasing a firm's performance. The researcher
suggests that businesses should pursue a sustainable mode of operation through joint
marketing efforts, corporate social responsibility, and economic and environmental
dimensions to impact financial performance positively. Furthermore, according to
Cammayo and Perez (2021), in their study on the MSMEs in Isabela province, firms must
improve their marketing efforts to attain their economic and social objectives. With that
in mind, companies must develop coherent marketing strategies that will enable them to
attain maximum financial performance. In Quezon province, it was discovered that the
MSMEs in Quezon have poor financial performance linked to the low adaptation of
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contemporary marketing tactics (Almase, 2017). The business practices of the
micro-manufacturing businesses in the four districts of the province of Quezon were
investigated in this study. It was found that the financial performance of MSMEs has a
significant and direct association with contemporary marketing methods.
In terms of budgeting, MSMEs were found to experience difficulties accessing
finance. This was the lack of records and plans in finance and business (Senate of the
Philippines, 2012). Anoos et al. (2020) determined that most MSMEs in Danao, Cebu
City, moderately practice budgeting. Their only priority was to sell and be able to pay
their obligations, such as bills, rent, utilities, and more. According to the study, the lack
of budgeting affects the financial performance or the business's profitability. Another
research study by Barbosa (2021) states that budgeting is vital in achieving the business
goal through its available resources. The study found that MSEs in Tanauan, Leyte, rarely
practice financial management, such as budgeting, since most owners and managers need
to learn more about these practices' importance.
In the local setting, micro-business owners in Davao face the same issues as the
Philippines' entrepreneurs. The difficulties include a lack of research and development
and poor access to technology and finance (Castillo et al., 2016). A study by Guhao and
Sulayon (2022) on micro-enterprises in Davao del Sur shows that market and
entrepreneurial orientation contribute to the business's overall performance. The result
showed that business performance declined when businesses failed to analyze customer
data and could not meet customers' expectations. According to Dindo and Eugenio
(2020), the emergence of the marketing concept has fundamentally altered how
businesses devise and carry out their plans for meeting their objectives. Micro-businesses
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in Davao Region showed that consumer dissatisfaction has resulted in unfavorable
customer behaviors that would have a detrimental impact on financial performance and,
more critically, sustainability. As a result, marketing and customer satisfaction becomes
increasingly important and should become one of organizations' main priority (Syndlar,
2022). On the other hand, in today's competitive environment, enterprises that refuse to
innovate regularly, do not consider risk, and are not resourceful tend to have low business
performance (Guhao & Sulayon, 2022).
Additionally, the Davao City Chamber of Commerce and Industry Inc. (DCCII)
stated that businesses in Davao city are struggling to stay afloat due to challenges in
boosting sales growth and the rapid increase of expenses (Padillo, 2022). A study by
Tamayo (2018) found that some of the indicators of financial risks encountered by
micro-enterprises in operating their business are the inability to meet monetary
obligations, lack of capital budgeting, and failure to acquire fair financial standing.
Moreover, in a survey by Sucuahi (2013), micro-entrepreneurs in Davao city were found
to be negligent at planning budgets for long periods. The study also reveals that
micro-enterprises do not account for the return of their capital expenditures (Kagan,
2022), and their planned budget is not followed and consistently monitored. Thus,
micro-enterprise owners in Davao City need to be better equipped with knowledge of
financial management, especially in budgeting, to be more financially well-performing.
Research Gap
Based on the review of related literature, studies conducted on the impacts of the
entrepreneurial orientation of micro-enterprises on financial performance were conducted
in countries such as South Korea, Malaysia, Tanzania, and areas in South Africa (Cho, Y.
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H., & Lee, J.-H., 2020; Mamum & Fazal, 2018; Nyello & Kallufya, 2021; Fatoki, 2017).
There was a study on entrepreneurial orientation in Metro Manila; however, the study
focused on MSMEs as a whole and concentrated on the sustainability of a business
instead of financial performance (Gamad, 2017). In addition, a study on entrepreneurial
orientation was conducted in Davao City and Cotabato City, but it was directed at
manufacturing companies (Flauta, 2021).
Moreover, studies on marketing strategies also focused on MSMEs as a whole
rather than on micro-enterprises precisely (Hadiyati & Hendrasto, 2021; Cammayo &
Perez, 2021; Trivedi, 2013; Josephson, 2014). A study on marketing strategies in the US
was limited to small businesses (King, 2018). Another study also used the marketing mix
theory to study businesses' marketing strategies, but the study centered on the chocolate
manufacturing industry in Macedonia (Marjanova et al., 2016). In the Philippines, a study
was conducted in the Quezon province; however, it focused on micro-manufacturing
companies and discussed business strategies in general (Almase, 2017). In Davao del Sur,
a study on micro enterprises' marketing strategies was conducted using the marketing mix
theory. However, this study utilized the financial capabilities of micro-enterprises instead
of financial performance as one of its variables (Castillo et al, 2016).
Regarding budgeting, studies conducted mainly were related to their budget
process and focused on small and medium enterprises only (Abongo, 2017; Susuawu,
2020; Mbogo et al., 2021; Chi et al., 2015). There was a study conducted on the SMEs in
the Isabela Province regarding their budget practices and how it affects financial
performance (Fortuna, 2021). However, the study used the business types such as
servicing, merchandising, and manufacturing as one of its business profile determinants.
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It was later found in the study that business types do not necessarily impact the budgeting
practices of a business. Additionally, this study also did not include micro-enterprises. In
the local context, studies were limited to financial management practices and did not
specifically discuss budgeting practices (Sucuahi, 2013; Tamayo, 2018).
Through this study, the researchers would bridge the empirical gap by imparting
knowledge and evidence on the relevance of entrepreneurial orientation, marketing
strategy, and budgeting on micro-enterprises' perceived financial performance in Davao
city's first district. This study utilized entrepreneurial orientation, marketing strategy, and
budgeting as its independent variables and the perceived financial performance of
micro-enterprises in the first district of Davao City as its dependent variable.
Theoretical Framework
This study was anchored on four theories: Entrepreneurial Orientation Theory,
Marketing Mix (4P’s), Goal-Setting Theory, and Theory of Financial Ratio Analysis. To
better comprehend the study, the following theories were presented, which served as their
basis.
Entrepreneurial Orientation Theory
The Independent variable entrepreneurial orientation was anchored on the
Entrepreneurial Orientation theory by Danny Miller (1983); it has three dimensions:
Innovative, Riskiness, and Proactiveness. According to Miller, prosperous businesses are
frequently innovative, proactive, and risk-takers. Miller gave this concept the moniker
"entrepreneurial orientation" (Cho & Lee, 2020). An entrepreneurial business engages in
the markets with innovative products that carry some risk, takes the lead in innovation,
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and squeezes its competitors (Farsi et al., 2013). According to the study by Nair (2016),
businesses with high entrepreneurial orientation tend to compete in the market using
high-performance design, reliable quality, and on-time delivery. The outcome is in line
with how innovative businesses compete with proactive businesses. Most businesses with
a high entrepreneurial orientation prioritize high-performance design, take these times in
stride and reshape the competitive landscape by concentrating on high-performance
design. Technological change, described as radical or incremental innovations, is a
critical component of the operations strategy for these entrepreneurial enterprises in
creating new markets and developing new goods and processes; this brings us to the
study of innovation as it makes businesses take the lead in the market. For businesses to
improve their performance, including sales, process, and fulfillment (achievement of the
goal), first, it needs to be an innovator; where the business should introduce new products
in the market as technology change or sell existing products but in an innovative
approach; proactive, where the business should always mind its competition and standing
in the market and adapts to technological advancements, and lastly, the business should
be risk-taker, where the business will mind the risks through projections and forecasts.
The diagram for entrepreneurial orientation theory is shown below on figure 1.1
Figure 1.1 Entrepreneurial Orientation Theory by Miller (1983)
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Innovativeness
Innovativeness is a company's ability to pursue new concepts and creative
processes that could lead to developing a new product, market, or technological
advancement (Farsi et al., 2013). Innovation is essential to an organization's success;
managers must promote entrepreneurship as a significant orientation, as creativity and
innovation are seen as critical factors in improving financial performance (Al Mamun et
al., 2017). Innovativeness is associated with the kinds of goods and services in the market
introduced by the company (Al-Mamary, 2020).
Riskiness
Riskiness, or risk-taking, is the propensity to engage in audacious behaviors like
forging ahead into uncharted waters and investing a significant amount of resources in
projects with a hazy future (Bedi et.al, 2012). In an alternative definition, risk-taking is
the willingness to devote a huge quantity of resources to projects that have a high failure
rate (Eggers et.al, 2013). When it comes to financial performance, risk-taking is the
commitment of organizations to large-budgeted projects that, in the event of failure,
could endanger the firm’s future (Kurtulmus & Warner, 2015).
Proactiveness
Proactiveness is defined as acting in advance of future requirements, issues, or
changes by relating to market prospects and seizing initiatives, a business can lead the
market (Al Mamun et.al, 2017). Proactiveness is described as a company's propensity to
foresee, comprehend, and respond to foreseeable wants that will start in the market,
leaving behind the current competition and creating a beneficial first-mover advantage
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among rivals (Anyu, 2015). Proactiveness must recognize and adapt to the quickly
shifting needs of its customers and the tactics of its rivals (Cho & Lee, 2020). According
to Dai et al. (2014), being proactive means being willing to take risks, such as launching
new goods or services before rivals and acting now to meet future demands for the
creation, modification, and shaping of the environment. For businesses to improve
financial performance, in general, it needs to be proactive through its willingness to take
risks
Marketing Mix (4 P’s)
The marketing mix comprises four key elements: Product, Price, Place, and
Promotion. E. Jerome McCarthy conceptualized it in 1960. McCarthy made this concept
to help marketers develop plans to market their products effectively. The purpose of this
concept was stated in his first published book entitled, “Basic Marketing: A Managerial
Approach”, wherein it is noted that the 4Ps were to create the right product in the right
place with the proper promotion at a suitable price. The marketing mix 4P’s are essential
in forming a strategic marketing plan (Twin, 2022.) According to O'Dwyer (2022), one
benefit of a marketing strategy is sales growth, as the marketing strategies help the
business not only with attracting target customers but also to be known in the market to
generate more sales to increase its profitability. A study by Abdullah Saif (2015) states
that marketing strategies such as marketing mix significantly influence business
performance like sales and financial performance. The diagram for the Marketing Mix is
shown in figure 1.2 below.
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Figure 1.2 Marketing Mix 4P’s by E. Jerome McCarthy (1960)
Product
The product can be goods or services. The business must understand and know its
products to create a marketing strategy from its usage to its quality. The product will be
the basis for where it should be marketed, how the business will promote it, and the
efficient pricing (Twin, 2022.) Aside from that, in producing products, the enterprise
must consider its target market's wants and needs. Knowing its customer's wants and
needs will help the business generate and increase revenue (Galkin, 2019.)
Price
The price is the amount the customer is willing to pay in exchange for goods or
services. The price will be based on the product of the business. There are a lot of
different pricing strategies depending on the products and industry of a company (Twin,
2022.) The business must generate a pricing strategy that best fits its goods or services.
The industry should also ensure that the price of its products is efficient enough to
generate profit since it is the basis of its revenue and profit margin (Galkin, 2019.)
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Place
The place is where the product will be available; it can be a store, shop, or even
online. A business needs to find a suitable place to market its product or services to boost
its sales. In place is where you will promote and sell your product; studying and planning
where you will place your business is significant in marketing strategies (Twin, 2022.)
An enterprise can boost and maintain sales by having the right place. Proper positioning
of the market, such as the right place, would increase market share, revenues, and profits
(Leunendonk, 2019.)
Promotion
Promotion is a way of advertising and marketing a product or service to attract
more customers (Twin, 2022.)There are a lot of ways to promote products and services. It
can be advertising, sales promotion, personal selling, and public relations (Phawa, 2022.)
Through the use of promotion, a business can boost its sales, which can also increase
profit (Leunendonk, 2019.)
Goal-Setting Theory
The independent variable budgeting was anchored on the Goal setting theory by
Locke and Latham, developed in 1960. According to this theory, higher-level goals lead
to a higher performance level than manageable and abstract goals (Locke & Latham,
2006). The Goal-Setting Theory was designed by conducting a study within industries
and was based on around 400 laboratory and field studies in industries and organizations
for over 25 years. The Goal-Setting Theory is shown in the figure below.
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Figure 1.3 Goal-Setting Theory Model by Locke and Latham (1960)
In goal-setting theory, four mechanisms intermediate the connection between
goals and performance. First, setting goals allows an individual to focus on goal-related
actions rather than irrelevant activities. Second, appropriate goals can motivate one to
utilize existing abilities. Third, goals can boost the persistence or self-efficacy that one
needs in order to achieve goals. Lastly, goals may inspire individuals to explore new and
relevant knowledge.
In business, one way to set financial goals is through budgeting. A budget is a
process of formulating financial plans for the organization in a specified period (Ngumi
& Njogo, 2017). According to Borwick (2022), reaching goals and accomplishing ideals
are primary objectives in financial planning, and budgets are essential in financial
goal-setting. Several studies have also used goal-setting theory in connection to
budgeting. The study by Le & Nguyen (2020) applied goal-setting theory to study the
impact of budgetary goal characteristics on the financial performance of SMEs in
Vietnam and found that managers who implied clearer and attainable goals have better
financial performance. Another study by Pimpong & Laryea (2016) applied goal-setting
theory to determine the impact of budgeting on financial performance in non-bank
14
financial institutions in Ghana and found that these two variables have a significant
relationship. This study supports that proper budgeting practices allow firms to have
increased financial performance regarding net profit, shareholder investments, market
growth, and sales growth. In applying the Goal-Setting Theory in the micro-enterprises'
budget practices, having clear and defined goals is deemed necessary to achieve optimum
performance and to understand how goals motivate and direct the businesses towards
making goal-relevant actions.
Financial Ratio Analysis
The dependent variable perceived financial performance was anchored on the
theory of financial ratios developed in 1937 by Benjamin Graham, also known as the
Father of Fundamental Analysis (Varsity, 2015). This theory formed the concept of using
financial ratios to interpret data from financial statements, enabling users to understand a
company's financial standing and allow comparison of its current and previous financial
performance. The ratios under this theory are categorized into four groups, namely
liquidity, leverage, profitability, and valuation. However, in this study, we will utilize
only liquidity, leverage, and profitability since valuation may not be applicable to
micro-enterprises.
Liquidity
Liquidity indicates a company's ability to pay its short-term obligations. A higher
value of liquidity signifies a greater capacity to meet its debt. Liquidity also refers to how
quickly a business can convert its assets into cash (Hussain, 2022). This means that
businesses that are highly liquid also have cash readily available.
15
Leverage
Leverage, also known as solvency, determines a company's ability to support its
daily operations. One way to analyze a company’s leverage is by determining the
percentage of how many assets have been bought through debt or through equity. A
business that has high leverage means that the company has more debt than its equity,
which would also indicate a greater financial risk for the business (Hayes, 2022).
Profitability
Profitability refers to how well a company generates profits. A company's
profitability is essential in understanding financial statements because it is vital in making
significant business decisions, such as expanding the business and paying shareholders.
An indicator of profitability is through calculating the gross profit margin ratio by
subtracting the cost of goods sold (Bloomenthal, 2021). A high gross profit margin ratio
indicates that the company is producing profits successfully higher than its costs
(Maverick, 2021). Moreover, businesses may also measure profitability by calculating the
return on assets or the efficiency in utilizing assets to generate greater sales (Hargrave,
2022). The summary of the Theoretical framework is shown in Table 1.1 below.
Table 1.1 Summary of Theoretical Framework
Variable
Theory
Budgeting
Goal Setting Theory
Marketing Strategies
Marketing Mix (4P’s)
Entrepreneurial Orientation
Entrepreneurial Orientation Theory
Perceived Financial Performance
Theory of Financial Ratios
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Conceptual Framework
In this study, the independent variables were Entrepreneurial Orientation,
Marketing Strategy, and Budgeting. On the other hand, the dependent variable was
Perceived Financial Performance. The conceptual framework in this study is shown
below in figure 1.4.
Figure 1.4 Research Paradigm
The first independent variable is entrepreneurial orientation, anchored in the
Theory of Danny Miller in 1983. Entrepreneurial orientation focuses on three factors:
Innovative, Risk-Taking, and Proactiveness. Innovativeness was described by Farsi et al.
(2013) as a business' capability to create innovations to develop specific products or
services in line with the market. In the micro-enterprise context, innovativeness can be
observed in how the business develops and introduces its product to the market. It is also
how the entrepreneur continues to alter and improve its products to grab customer
attention and distinguish itself from other goods and services. On the other hand,
risk-taking or riskiness, as explained by Eggers et al. (2013), is the business's willingness
to take risks with possible high failure rates. It is how the industry manages to make bold
decisions for businesses despite the uncertainties and risks. In micro-enterprises, it is
essential to have the willingness to take risks because this is one way for the business to
17
explore new advancements and changes that may lead to growth opportunities. Lastly,
proactiveness, according to Al Mamun et al. (2017), is how the business leads to future
opportunities and changes. Proactiveness in the micro sector can be observed based on
their willingness to anticipate future possibilities and their adaptability to change.
Adapting to change will help the business maintain in the market and improve sales and
profit (McCauley, 2022.)
The second independent variable is the marketing strategies which was anchored
on the concept of Marketing Mix 4P's of E. Jerome McCarthy in 1960. The marketing
mix includes the business's Product, Price, Place, and Promotion. Products are the goods
and services that a business sells to gain profit (Twin, 2022). This may also refer to the
quality of the products and services offered. In micro-enterprises, products must be
appropriate to the target market and aligned with the customers' needs and want to attain
business success and profitability (Galkin, 2019). Next is the price, which refers to the
amount the customers are willing to pay (Twin, 2022). In micro-enterprises, it is vital to
impose prices that would allow the business to gain revenue. Businesses must have a
substantial markup or a value added to their prices above their costs. With the right
pricing strategy, the business would also have the right price for its products or services
and would be able to improve its profitability (Galkin, 2019). Moreover, the place is
where the business sells and offers its products and services. According to Leunendonk
(2019), proper positioning of your business, such as right placing your store, would help
the business gain and increase its profits. In the micro-enterprise context, choosing the
right place is crucial for the business to meet its target sales. Business owners and
managers must pick the right location where the business would be established and must
18
consider various factors that may affect business profitability, such as competition,
environmental risks, accessibility, and many others. Micro-enterprises must strategically
choose a place to reach their target market and position themselves advantageously
among their competitors. Lastly, promotion is how the business advertises its products
and services to gain an audience and reach its target customers. In micro-enterprises,
promotion is usually in the form of printed marketing materials such as tarpaulins, flyers,
and prominent signages. Promotion may also take the form of the business's promos and
discounts to gain and attract customers. According to O'Dwyer (2022), the marketing
strategy helps the business' sales grow by allowing the business to produce marketable
products or services at a suitable price and be placed in a good market with excellent
promotion. Additionally, Saif (2015) adds that the marketing mix significantly influences
the business's sales and financial performance. Therefore, marketing strategies can be a
presumed factor in the perceived financial performance of micro-enterprises in Davao
City.
The third independent variable is budgeting, anchored in the Theory of Goal-Setting
by Locke and Latham in 1960. Budgeting is a way of setting financial goals. In
micro-enterprises, budgeting may not always be in formal writing. Budgeting can be
observed in the simplest form of setting aside money for daily, weekly, and monthly
expenses, listing costs, saving money for emergencies and maintenance, and keeping
track of payments for debts and obligations. As Borwick (2022) mentioned, the main
goals of micro-enterprises' financial planning include achieving goals and ideals, and
setting financial goals requires creating budgets. Moreover, having defined and specific
goals set by a business is crucial in applying the goal-setting Theory to attain optimum
19
performance and comprehend how goals inspire and guide firms toward taking
goal-relevant actions. According to the study of Isaboke et al. (2016), in every business, a
budget is a crucial management tool; for an enterprise to accomplish organizational goals,
it acts as a tool for managing the utilization of limited financial resources, establishing
performance goals for the unit in terms of costs, revenues, and production, and giving
business owners attainable performance goals. Therefore budgeting can be a determining
factor in the perceived financial performance of micro-enterprises in Davao City.
Lastly, the dependent variable of this study is perceived financial performance,
which is anchored in the Theory of Financial Ratios by Benjamin Graham in 1937. Under
this Theory, there are four financial ratios categories: liquidity, leverage, profitability, and
valuation. In this study, only liquidity, leverage, and profitability will be utilized since
valuation may not apply to micro-enterprises. According to Hayes (2022), liquidity
indicates a business's capability to pay short-term liabilities. Micro-enterprises with high
liquidity can easily convert their assets to cash, allowing them to have money readily
available. On the other hand, leverage describes how much of the business is funded
through debt. In the context of micro-enterprises, businesses that have high leverage
mean that business has more debt than its equity, while low leverage can show how the
business can sustain its operations on its own. Assessing the business' leverage is
essential in making investment decisions such as buying new equipment, upgrading
stalls, and opening new branches, especially in micro-enterprises, which usually have
insufficient capital and mainly utilize borrowed funds. Lastly, profitability, also known as
solvency, is one of the vital aspects in assessing the financial performance of a business.
Profitability determines the wellness of a business when it comes to generating a profit.
20
micro-enterprises with higher profitability indicate a business' capability to utilize its
assets well. On the other hand, profitability also shows that the business has appropriate
pricing and sufficient revenue after deducting its costs.
Statement of the Problem
This study was conducted to determine if entrepreneurial orientation, marketing
strategy, and budgeting could influence the perceived financial performance of
micro-enterprises in district 1, Davao City.
1.
2.
What is the profile of Micro-Enterprises in Davao City in terms of:
1.1.
Business Age; and
1.2.
Business Size?
What is the level of Entrepreneurial Orientation of the Micro-Enterprises in
District 1, Davao City?
3.
What is the level of Marketing Strategy of the Micro-Enterprises in District 1,
Davao City?
4.
What is the level of Budgeting of the Micro-Enterprises in District 1, Davao City?
5.
What is the level of Perceived Financial Performance of the Micro-Enterprises in
District 1, Davao City?
6.
Do the following variables: Entrepreneurial Orientation, Marketing Strategy, and
Budgeting have a significant influence on the Perceived Financial Performance of
Micro-Enterprises in District 1, Davao City?
21
Null Hypothesis
The following are the null hypotheses of this study that were tested at a 0.05 level of
significance:
H01: Entrepreneurial Orientation does not significantly influence the perceived
financial performance of Micro-Enterprises in Davao City.
H02: Marketing Strategy does not significantly influence the perceived financial
performance of Micro-Enterprises in Davao City.
H03: Budgeting does not significantly influence the perceived financial
performance of Micro-Enterprises in Davao City.
Objectives of the Study
This study was conducted to know the influence of entrepreneurial orientation,
marketing strategy, and budgeting on the perceived financial performance of
micro-enterprises in district 1, Davao City. The following were the study’s objectives:
1. To determine the profile of Micro-Enterprises in Davao City in terms of:
1.1 Business Age; and
1.2 Business Size.
2. To determine the level of Entrepreneurial Orientation of the Micro-Enterprises in
District 1, Davao City.
22
3. To determine the level of Marketing Strategy of the Micro-Enterprises in District
1, Davao City.
4. To determine the level of Budgeting of the Micro-Enterprises in District 1, Davao
City.
5. To
determine
the
level of Perceived Financial Performance of
the
Micro-Enterprises in District 1, Davao City.
6. To analyze if the following variables: Entrepreneurial Orientation, Marketing
Strategy, and Budgeting, have a significant influence on the Perceived Financial
Performance of Micro-Enterprises in District 1, Davao City.
Significance of the Study
This study would be beneficial to the following:
Managers and Owners of Micro-Enterprises
This study could benefit the managers and owners of micro-enterprises in Davao
City by providing them with vital knowledge on the influence of entrepreneurial
orientation, marketing strategy, and budgeting on achieving optimal financial
performance. It would help them discover marketing strategy, good entrepreneurial
orientation, and budgeting that would help them achieve good financial performance.
Moreover, having an accurate budget plan gives confidence in decision-making,
especially in the financial aspect. It would enhance the business's overall performance.
23
Management Accountants
This study could benefit management accountants by providing them with
evidence on the influence of entrepreneurial orientation and budgeting and the efficiency
of marketing strategy concerning micro-enterprises, which may also contribute to the
field of management accounting. It would help management accountants prepare better
budgeting plans and reports by examining the different factors affecting the budget
process. This would aid the business strategy and decision-making for the business's
growth and profitability.
Future Business Venturers
This study could benefit future business venturers or aspiring business owners and
entrepreneurs who aim to establish their businesses by providing them with knowledge
and background on how vital entrepreneurial orientation, marketing strategy, and
budgeting is in setting and achieving financial goals. They would be able to discover
strategies to market the product and acquire good entrepreneurial orientation and
budgeting that are used by businesses that work best for them. It would ensure the
feasibility of their business both in the short-term and the long term. It would also help
establish financial stability in their first period of operations.
Academe
This study could benefit the academe as well as the students and teachers by
discovering the importance of entrepreneurial orientation, marketing strategy, and
budgeting in the financial performance of businesses. The professors might use this as a
24
reference for their future lessons regarding improving the financial performance of
entities. Students could also use this as a reference as they learn about how these
predictors have become an important factor in improving business performance.
Future Researchers
This study might be useful to future researchers because it would serve as a basis
for their own research. They would be able to gain insight and knowledge of the
influence of entrepreneurial orientation, marketing strategy, and budgeting with regard to
the business's financial performance. Future researchers might use this study to open up a
new perspective that would generate a different result.
Scope and Limitation
This study was mainly focused on the perception of the micro-enterprises from
the first district of Davao City on the influence of entrepreneurial orientation, marketing
strategy, and budgeting on their financial performance. Specifically, previously
mentioned variables, entrepreneurial orientation, marketing strategy, budgeting, and
financial performance, were measured and assessed. The researchers used the associated
determinants described in the conceptual framework to measure the primary variables.
Furthermore, this study was conducted within the first district of Davao City. The
participants in this study were the registered micro-enterprises registered with the Davao
City Business Bureau. The criteria used by the Davao City Business Bureau in
categorizing businesses was also adapted. According to the Bureau, micro-enterprises
were classified as those with a capitalization ranging from Php 1 - Php 499,999. In order
25
to gather data from these respondents, a face-to-face survey was conducted. Chapter 3 of
this study covered thorough details about the aforementioned data collection procedure.
Definition of Terms
For a better understanding of the research variables, the technical and operational
definitions for the key terminologies mainly used in this study was presented below:
●
Budgeting. It is the process of creating a plan on how to spend the money and
how to allocate the available resources.
●
Business Age - It refers to how long the business has been operating, from the
completion and approval of the requirements set by the Department of Trade and
Industries up to the business's current situation.
●
Micro-Enterprises - Businesses that have a capitalization ranging from Php 1.00
- Php 499,999.00.
● District 1 - A legislative district of Davao City composed of Poblacion and
Talomo Districts and is considered the city’s center of commerce.
● Entrepreneurial orientation. It refers to the procedures, behaviors, and methods
of decision-making used by businesses that act entrepreneurially.
● Marketing Strategy. It refers to the plan created by the business to promote its
product and meet its desired goals. It includes everything, from deciding who will
be the target audience to selecting the channels to communicate with them.
●
Perceived Financial Performance - It refers to how the business is viewed based
on its economic condition by its customers, stakeholders, investors, tax
authorities, and society.
26
CHAPTER 2
REVIEW OF RELATED LITERATURE
Entrepreneurial Orientation
Entrepreneurial Orientation (EO) puts forth a conceptual framework and outlook for
entrepreneurship represented in the organization's current business practices and culture
Farsi et al. (2013). According to the study of Arshad et al. (2014), entrepreneurial
orientation refers to how the business enters a new market. Entrepreneurial orientation
also pertains to the firm's strategic posture as a whole, as it distorts the intentions and
attitudes of key individuals within the firm from the firm's overall proclivity toward
entrepreneurship (Wales et al., 2013). In 1983, Danny Miller proposed that businesses
with innovativeness, proactiveness, and risk-taking propensity can seek and seize new
opportunities, develop novel values, and establish themselves as market leaders (Cho &
Lee, 2018).
According to the study of Rohana et al. (2018), innovativeness is the most crucial part
of entrepreneurial orientation among the three dimensions. Innovativeness is the capacity
of the business for new idea generation and innovative problem-solving that can lead to
the development of products, markets, or technological advancements. Innovativeness
also refers to being creative. Without creativity, there will also be no presence of
innovativeness, as creativity will result in the innovation of services, goods, markets,
procedures, or technology. Entrepreneurs' creativity and innovation are crucial in
enhancing financial performance, which indicates that managers must support
entrepreneurship as a fundamental orientation (Al Mamun et al., 2017). Businesses
27
known for introducing innovations must significantly adjust their business practices by
entering new markets, unknown markets, or by launching new services and products
employing new technology and significantly enhancing the overall effectiveness of the
business (Nieto et al., 2013).
The second dimension is proactiveness; it anticipates future wants, challenges, or
changes and drives the market by referring to market prospects and utilizing initiatives
(Al Mamun et al., 2017). A proactive business looks for opportunities in the future,
introduces new goods or services before the competition, and takes action in anticipation
of demand to create, alter, and influence the environment (Bedi & Vij, 2014). The degree
to which a business is entrepreneurially proactive frequently determines how well it will
survive weather market shifts (Anyu, 2015). Proactiveness means being willing to take
risks, such as launching new goods or services before rivals and acting now to meet
future demands for creating, modifying, and shaping the environment (Bolton et al.,
2012).
The third dimension is risk-taking. According to Putnins and Sauka (2019), In
improving the business's financial performance, it must be willing to take risks to get new
market opportunities in the dynamic environment. Risk-taking means choosing a course
of action for which there is no certainty about an event's likelihood (Duell et al., 2018). A
business's risk-taking propensity depends on how likely it is to reap the benefits of a
proposed situation's success before putting itself at risk for its adverse outcomes.
Alternative scenarios offer less favorable rewards and less severe adverse outcomes than
the proposed scenario (Danso et al., 2016). Risk-taking in the context of financial success
28
refers to an organization's commitment to expensive projects that, in the event of failure,
could jeopardize the company's future (Kurtulmus & Warner, 2015).
Marketing Strategy
According to Twin (2022), marketing describes a business's actions to encourage
selling or purchasing a good or service. Selling, advertising, and delivering goods to
customers or other firms are all included in marketing. Marketing refers to ideas about
markets, trade products, transactions, needs, wants, and demands. Individuals and groups
create, give, and trade valuable goods without restriction with other parties (Abbas et al.,
2018). Through market research, analysis, and consideration of a company's ideal clients'
interests, Jaiswal's study about market research accomplished it by luring them in with
messaging that would be instructive and beneficial to the target market. As a result, firms
could convert more leads into consumers (Jaiswal, 2022).
A marketing strategy is a long-term, progressive approach and a comprehensive
plan for any firm or organization, aiming to obtain a sustained competitive advantage
through understanding customers' needs and wants (Farkash, 2022). A marketing strategy
covers the four Ps of marketing — product, pricing, place, and promotion — in-depth
(Barone, 2022). It became a massive challenge to entrepreneurs since trends and
customers' needs and wants constantly change (Endelman, 2018). As a result, businesses
would require a solid marketing plan with clearly defined targets and objectives (Farkash,
2022).
In order to improve SME effectiveness and investment growth, marketing is a
crucial tool. Properly defining the target markets for goods and services, changing the
29
distribution system, and other techniques are all made possible by the skillful formulation
of marketing strategies (Seilan, 2020). Moreover, in the study of Lin (2019), most
micro-enterprises still employ a passive strategy. They rely solely on price competition,
which prevents them from turning a profit and building a long-term business, especially
when
trying
to
meet customers' expectations. The literature suggests
that
micro-enterprises may increase value and actual profits if they consider how to develop
and implement suitable marketing strategies, develop positive consumer experience
procedures, and build positive brand experiences based on customers' value propositions.
The first component of the 4Ps is product which refers to the item or service
offered to customers to satisfy their needs (Kenton, 2022). In a product or service that a
business provides, it must establish a competitive advantage by selecting the market
segments that place a high value on the benefits (Stagno, 2016). According to Murdayani
et al.(2021), whichever product is purchased is affected by various factors, including
price, location, advertising, and product quality. Further, as mentioned by Murdayani et
al. (2021), consumers look for a variety of factors in a product, including (1)
Quality/quality; (2) Appearance and selection of goods; (3) Model/style; (4) Brand; (5)
Packaging; (6) Size; (7) Type; (8) Warranties; and (9) the Services. In addition, the
products or services provided by microbusinesses are typically marketed locally
(Rahman, 2017).
The second component is price. Price is very crucial in businesses; that is why
enterprises utilize different pricing strategies. Businesses commonly use three (3) pricing
strategies (Stanisz, 2021): cost-based, market-based, and value-based. Cost-based pricing
increases the cost of a product by a markup above its production costs (Dias, 2021). In
30
contrast, market-based pricing considers competitors (Stansz, 2020). This strategy
determines the price using the most current market rates for comparable or identical
goods. On the other hand, value-based pricing is based on the customer's perception of
the product (Bloomanthal, 2022). It is often called the most difficult one to implement
(Stanisz, 2021).
Further, promotion, the third component, refers to communicating the product to
the target market. The main objectives of promotion are building awareness, creating
interest, providing information, stimulating demand, and differentiating products
(Luenendonk, 2019). Advertising, sales promotion, personal selling, and online
marketing are just a few examples of promotion (Gawande, 2020). Lastly, a place means
a method through which goods and services are transported from the supplier or maker to
the customer can be referred to as the location. Distribution routes, warehousing
facilities, modes of transportation, locations, selections, convergence, logistics, and
inventory control management are among the components of the place that make up the
marketing mix in which the product make accessible (Singh, 2012), as cited in the study
by Suidan & Badi (2018). The activities that go into getting the product or service to the
customer are included in the distribution channels. These avenues assist the business in
marketing, selling, and distributing its products to end users, including retailers, physical
distribution companies, marketing services organizations, and financial intermediaries
(Kotler & Armstrong, 2012), as cited in the study by Suidan & Badi, (2018). Moreover,
according to Acutt (2020), as cited in the study by Galili (2021), a company should be
aware of its target market and conduct a comprehensive analysis of its business location.
It is the specific product placement within its shop (if relevant), methods of distribution,
31
and the precise manner in which it presents services and products to the consumer and
end user. Also, this positioning draws customers inside the store and down aisles of
merchandise before they finally get these essentials. They must make their way back past
rows that feature advertisements and promotional displays that tempt the buyer to add
another item to their cart.
According to the study conducted by Saif (2015), marketing mix impacts sales,
customers, and the financial performance of firms. The findings demonstrated that a
company's performance increased directly to how actively it adapted and innovated its
product. The pricing significantly impacts the company's overall performance, while the
promotion favors sales. Lastly, distribution also has a favorable effect on sales and
profitability. Furthermore, the study conducted in Isabela, Philippines, by Cammayo &
Perez (2021) emphasizes the direct relationship between marketing strategies and the
firm's financial performance. Some businesses still opt for traditional marketing due to
the need for more skills in implementing modern technology advertising, which
significantly impacts their financial performance.
In addition, the study by Almase (2017) discovered that the MSMEs' financial
performance is "poor," with a 55 percent overall rating. They have a low rate of return
and a low survival rate. It also was found that the financial performance of MSMEs has a
significant and direct association with contemporary marketing methods, consistent with
the study of Cammayo & Perez (2021). MSMEs continue to entice customers
conventionally and have a low adoption rate of contemporary marketing tactics, as
discovered in the context of marketing strategies. Further, the result showed that the
marketing strategy with the most significant general weighted mean was "availability of a
32
product." In contrast, the strategy with the lowest general weighted mean was "sales
promotion" and "advertising." Young business owners concur that marketing methods are
heavily relied upon to make every business venture successful.
Budgeting
Budget is derived from the Latin word "bulga," which means leather bag used to
carry supplies. This describes not just the bag itself but its contents (Badem, 2016). It
originated in England. Nowadays, it is extensively used in business; however, in 1760, it
was first used by the government. Each fiscal year's national budget was proposed to
Parliament by the Chancellor of the Exchequer. The goal was to limit the king's ability to
impose onerous taxes and rein in government spending. The Reform Act of 1837 made
the budget enforceable (Marciano, 2021).
According to Shim and Siegel (2012), a budget is a strategic planning tool
businesses use to achieve organizational goals and objectives. It concerns the overall
operation of the business for a designated period. Additionally, it serves as a sign of
where the business is going and a set of assumptions based on the current environmental
factors, the company's standing, and past estimates. Since it is based on assumptions, it is
a precautionary measure for what will happen in the future. Budgeting is a way of making
solutions before the problem even occurs. It is expressed in pesos, dollars, and the
number of people or hours. A budget is concerned with identifying available resources
and allocating them.
Most budgets are prepared annually. Annual preparation of budgets allows
companies to manage their finances better because it provides more detailed and specific
33
data (Kenton, 2020). Since long-term goals are extensive, they must be broken down into
short-term plans. After a year, they can evaluate what went well and where they went
wrong by comparing the actual result and the budgeted estimates. This way, they can
make the necessary adjustments, and the budgets will be up-to-date. When budgets are
used effectively, it will result in efficient and productive management. A well-organized
budgeting procedure will save resources, cut down on labor hours, and avoid conflict.
The budget should be coordinated, integrated, organized, methodical, clear, and thorough
to achieve the best results (Shim & Siegel, 2012). There is no budget fit for all. A budget
would depend on the nature of the business, goals, needs, and the company's financial
position.
Moreover, there are different ways of budgeting for a business. According to
Beers (2022), to sustain daily operations, have an income, and expand the business, the
following steps are suggested to achieve a better business budget. The first is to assess
what industry the business belongs to since different industries have different procedures
and practices when it comes to budgeting. The second is to create a timeline and a draft
for budgeting. This is to allocate and assign the resources accordingly. Third, the business
must have extra funds or resources in case of changes in the operations and when
circumstances need to be funded. Fourth is to cut costs in some areas of the business in
times of tight budgets. The business must learn and assess the expenses and capital, on
how and what process needed to be done to cut costs and provide some allocations to
short-term obligations. Fifth, to monitor and regularly review its budget. Using a budget
planning calendar is a way of monitoring whether the budget and capital plan are met.
Lastly, businesses must not hesitate to look for other suppliers and compare where the
34
business can save more money so that the business can allocate the saved money for
other expenditures. Beers (2022) summarizes that creating and implementing a budget is
easy, and business owners must allocate resources and forecast capital and future
expenditures.
Furthermore, in a survey by Roddy (2021), 335 small business owners and
managers participated. The survey found that among the participants, 50% of small
business owners did not have a documented budget in 2020, while micro businesses are
unlikely to have a budget. It shows that budgeting for them is unnecessary, while
according to some experts, budgeting is an effective practice for businesses. Aside from
that, 35% of small businesses have a budget plan in 2020 that exceeds their expenditures
from their budget. This shows that with their budget plan, only a few strictly follow it.
Moreover, 54% of small businesses with an official and formal budget plan in 2021
expect their profit to increase as the COVID-19 pandemic affects decrease. Among these,
54% of small businesses show the importance of budgeting in business.
Lastly, a study by Kibor and Maina (2019) was conducted in Eldoret Town, Uasin
Gishu County, Kenya. The study was about the relationship between cash budgeting and
the financial performance of Micro and Small Enterprises. The result of the study shows
that with 381 respondents from micro and small enterprises, there is a positive and
significant relationship between cash budgeting and financial performance. Aside from
that, it also indicates that budgeting must be applied in the daily operation of MSEs. The
result of this study was also supported by the following study by Mulani et al., (2015) and
Akande et al., (2014.)
35
Perceived Financial Performance
Financial performance refers to the extent to which financial goals are met
(Verma, 2020). According to Megawati et al. (2020), MSMEs focus on their financial
performance to grow, evolve, and become part of the economy's cornerstone. Adongo &
Jagongo (2013) state that financial stability is significant for firms and organizations to
function efficiently and fully utilize their capabilities in service delivery. Additionally,
Kenton (2022) pointed out that several financial performance indicators are utilized to
quantify a business' economic health. Analyzing working capital shows how a business
can provide funds to finance day-to-day operations. On the other hand, gross profit
margins show a company's profitability after deducting its production costs after sales. In
contrast, net profit margin depicts the business' ability to generate earnings after
subtracting business expenses. Other financial performance indicators mentioned by
Kenton that are essential to a company are debt-to-equity ratio, operating cash flow,
current ratio, quick ratio, inventory turnover, and return on equity.
Moreover, Hartill (2021) also states that various measures for a company's
financial performance can be classified as liquidity, solvency, efficiency, leverage, and
profitability. In the theory of Financial Ratios by Benjamin Graham, three crucial
financial performance indicators were adopted in this study, namely: liquidity, leverage,
and profitability. According to Elangkumaran & Karthika (2013), liquidity can be
depicted through a firm's capacity to pay its short-term liabilities. Liquidity is highly
essential in ensuring efficient business processes, especially when it comes to daily
operations. Liquidity can be distinguished in a business through its ability to pay
short-term obligations and the existence of cash readily available. On the other hand,
36
Fauchs (2021) states that high financial leverage can be risky for a business as it indicates
its tendency to default on its loans. On the contrary, a low leverage ratio is ideal since this
shows that the business has minimal risk due to lesser debts, and potential shareholders
may find the firm worth investing in. Furthermore, profitability relates to a firm's ability
to generate sales and profit. According to Bloomenthal (2021), identifying the gross
profit margin is one way of knowing if a business is profitable. This can be done by
deducting production costs from the generated sales amount. Firms with high gross profit
margins indicate that they are successful in producing profits. Another method of
measuring profitability is through ROA or return on assets, which measures the
efficiency in utilizing its resources to generate higher sales (Hargrave, 2022).
In a study by Ntakobajira (2013), one of the factors identified to affect financial
performance is entrepreneurial skills. According to this study, micro and small enterprises
in Nairobi County, Kenya, have low entrepreneurial skills, resulting in underperformance.
The researchers in this study suggest that appropriate entrepreneurial skills are essential
in any business as they determine the quality of the decision made and substantially affect
a business's financial standing. On the other hand, the study by Kamunge, Njeru, &
Tirimba (2014) also found that one of the factors affecting the financial performance of
micro and small enterprises in Kenya was the availability of management experience.
According to the study, managerial skills significantly affect businesses, thus stressing the
need for training to enable business owners and managers to make better business
decisions. This study concluded that entrepreneurial skills are essential for internal
business stakeholders to recognize and utilize business opportunities more effectively.
The study by Abdissa & Fitwi (2016) also shares the same findings in their research, as
37
they have found that one of the factors affecting financial performance is the management
"know-how" and efficient experience. According to the study, the managers in several
areas of South West Ethiopia did not have sufficient managerial and entrepreneurial
skills, leading to unsuccessful business operations. Additionally, the researchers also
pointed out that the lack of managerial know-how can pose considerable constraints to
the growth of a business. Moreover, the study by Abera (2012) on the micro and small
enterprises in Addis Ababa pointed out the absence of persistence and courage in taking
responsibility for failed business decisions and the lack of initiative in assessing company
strengths and weaknesses as one of the entrepreneurial factors affecting financial
performance.
Several studies also found marketing strategies to be one of the predictors of
financial performance. In the study by Cammayo & Perez (2021), MSMEs have poor
financial performance because they have difficulty adopting modern marketing strategies.
According to the same source, MSMEs in Isabela, Philippines, also had a low rate of
survival and rate of return. Thus, the researchers concluded that one of the factors to be
considered that can affect financial performance is marketing strategies. According to
Kuznecovs & Tambovcevato (2016), giving the company a competitive edge will
significantly improve the financial health of a business. The study also cited that a
successful marketing strategy increases shareholder value by developing valuable brand
equity, raising customer satisfaction, adding value to research and development activities,
and establishing product equity. Furthermore, in the study of Terblanche N., et al. (2013),
it was emphasized by the researchers that the financial success of a business will depend
on the ability on how good the marketing strategy is. In a related study by Baek H. et al.
38
(2014), promotional strategies like advertising and promotion could make a customer
more likely to purchase. That would mean the more customers purchase, the more money
is made. Therefore, goods and services revenue could significantly impact how well a
company performs.
Another factor affecting financial performance is budgeting. According to the
study by Fortuna (2021), businesses that adopt good budgeting practices have a higher
profitability level. The research studied SMEs from the four-commercial centers in
Isabela Province, Philippines. The study concluded that good budgeting practices are
relative to the active participation of management in the budgeting process, the link
between budget formulation and strategic plans, rationality in allocating resources,
budget development and adaptability to change, and streamlined budget procedures.
Furthermore, the study utilized the type of businesses these SMEs are classified, such as
servicing, manufacturing, and merchandising, and found that an exact budgeting process
is practiced throughout, which means that the type of business does not affect the
budgeting practices used. Furthermore, the study conducted by Mbogo et al. (2021)
entitled Effects of Budgeting Practices on Financial Performance of Manufacturing Small
and Medium Enterprises in Nairobi County, Kenya. According to the study, the result
shows that the following variables such as planning for Cash flows (BP), Controlling
Cash flows (BC), Resources Allocation (BRA), Activity Coordination (AC), and
Monitoring Financial Position (MFP) have all been implemented to a great extent mainly
as part of Budgeting practices. The study concluded a significant positive relationship
between budgeting practices and manufacturing SMEs' financial performance in Nairobi
City.
39
Another study by Mulani et al., (2015) was conducted to determine the impact of
the independent variable: the formal budgeting process, on the dependent variable: the
firm's performance with the control variables: and the firm size and ownership. The result
of the study indicates that small and medium enterprises working with unclear goals face
higher uncertainty concerning goal achievement. In contrast, clear goals reduce
uncertainties in the budgeting process, which, in turn, will improve the performance of
enterprises. Also, the result shows that as the size of the firms increased, their profit
growth rate also increased. The reason is that firms in their initial years are smaller in
size, and their focus is more on sales growth than profit growth; with due time, the focus
shifts to profit growth as their size increases.
Synthesis
Many research studies found entrepreneurial orientation as one of the factors
affecting a business's financial performance. Although the following studies use different
aspects of entrepreneurial orientation, it has the same results and findings. On the other
hand, research studies show that businesses need better financial performance due to a
lack of and poor marketing strategies. The following studies mentioned in the related
literature have the same findings and results. Despite that, some studies used marketing
strategies as a variable in the research, and some used specific factors and components of
marketing strategies, such as promotional strategies.
Moreover, according to other research studies, budgeting is also a factor that
affects the financial performance of a business. The following research studies share
similar results and findings that a business that has good budgeting improves and
40
positively impacts the financial performance of a business as it helps the growth of its
profitability. Additionally, a study also mentioned that despite the classifications of a
business, it does not affect the budgeting of a business. As long as it has good budgeting,
it will improve and positively impact financial performance.
41
CHAPTER 3
METHODOLOGY
Research Design
This study is a quantitative research that utilized a combination of descriptive and
correlational research design. McCombes (2020) emphasized that descriptive research
design precisely and methodically describes a population and phenomenon wherein it can
be answered by What, Where, When, and How questions. While correlational research
design, according to Bhandari (2021), determines the relationship between two or more
variables. In this study, the researchers gathered the demographic data of the chosen
micro-enterprises of District 1 in Davao City. It described the business profile of
micro-enterprises, such as their business age and size. It also described whether the
independent variables significantly influenced the dependent variable. Additionally, this
study utilized this correlational research to assess entrepreneurial orientation, marketing
strategy, and budgeting as factors of the perceived financial performance of
micro-enterprises of District 1 in Davao City.
Research Locale
This study was conducted in the First Congressional District of Davao City. It
measures 10,054 hectares and has fifty-four barangays. The first district is composed of
two administrative districts; Talomo District and Poblacion District. Talomo District has
fourteen barangays and is known to have tourist spots. Poblacion District has forty
barangays and various businesses (National Economic Development Authority, 2022).
Since this study focused on the entrepreneurial orientation, marketing strategies, and
42
budgeting of micro-enterprises in regard to their financial performance, the first
congressional district served as the best place to conduct the study given that the district
is urbanized and continuously growing and developed with the businesses around the
area.
Respondents
The research respondents in this study are managers or business owners of
micro-enterprises in Davao City. In each chosen business, there was one respondent. The
selected respondents were given consent on whether they were willing or not to
participate in the study. The authorized or top managers were chosen in terms of selection
for the managers. While if there was more than one owner of the business, the researcher
selected one available owner.
Sampling Frame
The registered micro-enterprises within Davao City's first district served as the
study's sampling frame. The number of registered micro-enterprises derived from Davao
City Business Bureau's Business Permit and Licensing System was considered in this
study. In acquiring the information needed, the researchers requested from the Davao
City Business Bureau the total population of registered micro-enterprises in the first
district in Davao City as of October 7, 2022. The table below exhibits the total number of
registered businesses for micro-enterprises.
Table 3.1 Number of registered Micro-Enterprises in the First District of Davao City
Category
Total number of registered businesses
Micro
14,370
Source: Davao City Business Bureau
43
Sample Design and Size
The study utilized cluster sampling as its sample design. In cluster sampling, the
proponents divided the two administrative districts in district 1, namely Poblacion and
Talomo, into clusters. Poblacion consists of four clusters: cluster 1 comprises barangay
1-10, cluster 2 is from barangay 11-20, cluster 3 comprises barangay 21-30, and cluster 4
is from barangay 31-40. On the other hand, the Talomo district comprised Bago, Baliok,
Bucana, Catalunan, Dumoy, Langub, Maa, Magtuod, Matina, and Talomo proper, a total
of 10 clusters. The proponents randomly selected 3 clusters per administrative district.
The chosen clusters for Poblacion were clusters 1, 3, and 4. On the other hand, Bucana,
Maa, and Matina were the chosen clusters in the Talomo district. The study's sample size
was computed using the Taro Yamane Formula, a mathematical equation for sample size
calculation formulated by the statistician Taro Yamane in 1967 to determine the sample
size from a given population. Davao city’s first district has a total of 14,370 registered
micro-enterprises. Through the sample size calculator, the survey will employ an 8%
margin of error with a 95% confidence level. With a 95% confidence level, the
percentage of respondents who selected "yes" for one of the questions (1 in 20) would be
different from the appropriate answer than the margin of error. Figure 3.1 below shows
the computation using the Taro Yamane Formula.
𝑛=
𝑛=
𝑁
2
1 + 𝑁𝑒
14,370
1 + (14,370 𝑥 0.08)
≈ 155
where:
𝑛 = 𝑠𝑎𝑚𝑝𝑙𝑒 𝑠𝑖𝑧𝑒
𝑁 = 𝑝𝑜𝑝𝑢𝑙𝑎𝑡𝑖𝑜𝑛 𝑠𝑖𝑧𝑒 (14, 370)
𝑒 = 𝑚𝑎𝑟𝑔𝑖𝑛 𝑜𝑓 𝑒𝑟𝑟𝑜𝑟 (0. 08)
Figure 3.1 Taro Yamane Formula
44
In addition, the survey utilized a 20% response rate distribution, resulting in a
sample size of 186 respondents for this study. Figure 3.2 below shows the sample size
computation after employing the 20% response rate.
𝑠𝑎𝑚𝑝𝑙𝑒 𝑠𝑖𝑧𝑒 = 155 + (155 𝑥 20%) = 186 respondents
Figure 3.2 Sample Size Computation
Moreover, the sample size was divided equally among the clusters selected to
ensure a fair distribution of the survey respondents. Table 3.2 below shows the target
number of respondents per cluster.
Table 3.2 Target number of respondents per cluster
Administrative
districts
Poblacion
administrative
district
Talomo
administrative
district
Clusters
Sample Size per cluster
Cluster 1 (Brgy. 1-10)
31
Cluster 3 (Brgy. 21-30)
31
Cluster 4 (Brgy. 31-40)
31
Bucana
31
Maa
31
Matina
31
Total number of respondents (sample size)
186
Research Instrument
In order to gather the quantitative data needed for this study, a hybrid survey
questionnaire was used and administered to the respondents. According to Te et al.,
(2019), a hybrid survey questionnaire combines questions from standardized and
45
custom-written surveys. A standardized survey questionnaire, on the other hand, uses
questions that are taken directly from an existing study. On the other hand, a
self-developed survey questionnaire consists of questions created by the researchers
themselves and needs to be evaluated by a group of experts.
Using this model, a set of standardized questions was adopted, particularly on
three of the independent variables: a) entrepreneurial orientation and b) marketing
strategy c.) budgeting. However, the researchers changed the adopted questions better to
reflect the topic and parameters of the study. In contrast, the survey questionnaire's
questions for the self-developed section were created particularly to capture the study's
research goals.
Accordingly, there are a total of five questions allotted for each determinant of the
independent variable. For the entrepreneurial orientation, questions relating to how the
enterprise identifies opportunities, create tangible and intangible innovations, and acquire
entrepreneurial skills. For marketing strategy, questions relating to the plan on achieving
the objectives of the firm and meeting the needs of the customer. For budgeting,
questions about how the enterprise allocates its available resources. Further, five
questions were also allotted for the determinant of the dependent variable. In the
perceived financial performance, questions relating to how the company performs given
the level of entrepreneurial orientation, marketing strategy, and budgeting they have.
Furthermore, the quantitative data gathered in this study were interpreted using
the Likert scale. The Likert scale is used to measure survey participants' opinions,
attitudes, and behaviors in terms of frequency, agreement, and satisfaction (Bhandari,
46
2020). A similar scale lets the researchers learn what respondents believed about the
particular factors that affected the independent and dependent variables in this study. The
researchers' degree of agreement was as follows: from highest to lowest, (4) strongly
disagree, (3) disagree, (2) agree, (1) strongly disagree.
Additionally, the survey questionnaire used in this study was validated by the
three panelists to measure the reliability and accuracy of the questions. As presented in
Table 3.3 below, the survey questionnaire was rated “Very Good” by the first validator,
while validators 2 and 3 rated the questionnaire as “Good”. Overall, the survey
questionnaire had an average score of 3.85, indicating that the questions were rated
“Good” and were ready to be disseminated.
Table 3.3 Survey Questionnaire Validation Result
Validators
Averages scores based on
criteria presented
Interpretation
1
4
Very Good
2
3.71
Good
3
3.86
Good
Overall Average
3.85
Good
To measure the internal consistency and reliability of the questions used, the
survey questionnaire was tested using the Cronbach Alpha. According to Frost (2019), a
Cronbach Alpha of at least 0.70 is considered to be acceptable. Based on Table 3.4 below,
shows the Cronbach Alpha results on both independent and dependent variables. The
47
results show that the survey questionnaire was reliable to be used as the survey
questionnaire of this study.
Table 3.4 Cronbach Alpha Results of the Survey Questionnaire
Variable
Components
Number of Items
Cronbach Alpha
Reliability Level
Entrepreneurial
Orientation,
Marketing Strategy,
and Budgeting
15
0.702
Acceptable
Perceived Financial
Performance
5
0.742
Acceptable
Table 3.5 Interpretation table for Entrepreneurial Orientation
Scale
Range of
Means
Responses
Descriptive
Level
Verbal Interpretation
4
3.26 - 4.00
Strongly
Agree
Very High
Managers/owners of the business
have a propensity to fully engage in
innovativeness, proactiveness, and
risk-taking decisions.
3
2.51-3.25
Agree
High
Managers/owners of the business
have a propensity to moderately
engage in innovativeness,
proactiveness, and risk-taking
decisions.
2
1.76 –2.50
Disagree
Low
Managers/owners of the business do
not tend to engage in innovativeness,
proactiveness, and risk-taking
decisions.
1
1.00 –1.75
Strongly
Disagree
Very Low
Managers/owners of the business do
not have the propensity to fully
engage in innovativeness,
proactiveness, and risk-taking
decisions.
48
Table 3.6 Interpretation table for Marketing Strategy
Scale
Range of
Means
Responses
Descriptive
Level
Verbal Interpretation
4
3.26 - 4.00
Strongly
Agree
Very High
Managers/owners of the business
employ a marketing strategy fully
aligned with the 4Ps of the marketing
mix.
3
2.51-3.25
Agree
High
Managers/owners of the business
employ a marketing strategy aligned
with the 4Ps of the marketing mix.
2
1.76 –2.50
Disagree
Low
Managers/owners of the business
employ a marketing strategy but not
aligned with the 4Ps of the marketing
mix.
1
1.00 –1.75
Strongly
Disagree
Very Low
Managers/owners of the business do
not employ any marketing strategy.
Table 3.7 Interpretation table for Budgeting
Scale
Range of
Means
Responses
Descriptive
Level
Verbal Interpretation
4
3.26 - 4.00
Strongly
Agree
Very High
Managers/owners of the business
fully utilize budgeting practices to
allocate resources efficiently.
3
2.51-3.25
Agree
High
Managers/owners of the business
moderately
utilize
budgeting
practices to allocate resources
efficiently.
2
1.76 –2.50
Disagree
Low
Managers/owners of the business
poorly utilize budgeting practices in
allocating resources.
1
1.00 –1.75
Strongly
Disagree
Very Low
Managers/owners of the business do
not utilize any budgeting practices.
49
Table 3.8 Interpretation table for Perceived Financial Performance
Scale
Range of
Means
Responses
Descriptive
Level
Verbal Interpretation
4
3.26 - 4.00
Strongly
Agree
Very High
Managers/owners of the firm believe
that the business has strong financial
health in terms of liquidity,
profitability, and leverage.
3
2.51-3.25
Agree
High
Managers/owners of the firm believe
that the business has good financial
health in terms of liquidity,
profitability, and leverage.
2
1.76 –2.50
Disagree
Low
Managers/owners of the firm believe
that the business has low financial
health in terms of liquidity,
profitability, and leverage.
1
1.00 –1.75
Strongly
Disagree
Very Low
Managers/owners of the firm believe
that the business has poor financial
health in terms of liquidity,
profitability, and leverage.
Data Collection Procedure
The following were the procedures used in collecting the data needed for the
conduct of the study:
Pre-Data Collection
1. Determine the total population of the Micro-Enterprises. The researchers emailed
the Davao City Business Bureau to determine the total number of registered
micro-enterprises in District 1. A document was given showing the total
population of micro-enterprises in District 1.
50
2. Identifying the sample size. The researchers identified the sample size as well as
the number of micro-enterprises that will be participating in the data collection
through the use of the Taro Yamane formula.
3. Clustering of Micro-Enterprises in District 1. District 1 is composed of two
administrative districts, namely Talomo and Poblacion. The researchers divided
the two administrative districts into clusters. Then, the researchers randomly
selected 3 clusters per administrative district.
4. Formulation and validation of the survey questionnaire. A hybrid questionnaire
was utilized in the survey that was conducted. The researchers formulated the
questionnaire and provided a translation both in Bisaya and Tagalog to help
respondents in answering the survey questionnaire. It was then validated and
tested for reliability by validators.
Actual Data Collection
1. Location of the Business. Six clusters were randomly chosen, three from
Poblacion and the other three from Talomo. The researchers were divided into
three pairs, and each pair was assigned to one cluster per administrative district.
2. Respondents. The respondents of the survey were the owners and managers of the
business. The researchers ensured that the businesses were registered in the Davao
Business Bureau, within the clusters selected, and were qualified as
micro-enterprise.
3. Orientation and Consent. The respondents were informed about the study's
objectives and were asked for their consent and voluntary participation. An
51
informed consent form was provided. Also, the researchers assured the
respondents that the data collected would be confidential.
4. Conduct the Survey. A printed survey questionnaire was given to the respondents.
The researchers answered any queries regarding the questionnaire. Consequently,
the survey questionnaires were collected and checked if all the questions had been
answered.
Post-Data Collection
1. Data collection and tabulation. The data collected was encoded in a Microsoft
Excel file and imported to the SPSS application for analysis.
2. Interpretation and Results. The data was analyzed and interpreted through
frequency distribution, descriptive analysis, and multiple regression analysis.
52
Statistical Treatment
In this study, the researchers utilized the following statistical treatment to address
the problem statement. The types of variables, statistical tools, and analysis required are
shown in Table 3.9 below.
Table 3.9 Statistical Treatment
Statement of the Problem
Type of
Variable
Analysis
Required
Statistical
Tool
What is the profile of Micro-Enterprises
in Davao City in terms of business age
and size?
Categorical
Descriptive
Frequency
Distribution
What is the level of Entrepreneurial
Orientation, Marketing Strategy, and
Budgeting of the Micro-Enterprises in
District 1, Davao City?
Numerical
Descriptive
Mean and
Standard
Deviation
What is the level of Perceived Financial
Performance of Micro-Enterprises in
Davao City?
Numerical
Descriptive
Mean and
Standard
Deviation
Does Entrepreneurial Orientation,
Marketing Strategy, and Budgeting have
a significant influence on the Perceived
Financial Performance of
Micro-Enterprises in Davao City?
Numerical
Correlational
Multiple
Regression
Analysis
A. Frequency Distribution
The respondents' demographic profiles were analyzed, interpreted, and presented
using frequency and percentage tables to answer the first question. Since data regarding
demographic background were nominal, they could only be subjected to frequency
distributions. According to Turney (2022), a frequency distribution is the arrangement of
unstructured data in a table using classes and frequencies.
53
B. Mean and Standard Deviation
The researchers analyzed, computed, and presented each variable's mean and standard
deviation to determine the answers for questions two, three, four, and five of the study.
The mean of the interval data collected was used to know the level of entrepreneurial
orientation, marketing strategy, and budgeting of micro-enterprises in Davao City and to
know the level of perceived financial performance of micro-enterprises in Davao City.
The standard deviation was also presented to know how each value deviates from the
mean (Bhandari, 2022).
C. Multiple Regression Analysis
To answer the last question of the study, the researchers performed the Multiple
Regression Analysis (MRA). This tool was selected so that researchers can evaluate the
strength of the relationship between an outcome (the dependent variable) and several
predictor variables, as well as the significance of each predictor to the relationship using
multiple regression analysis, frequently with the effect of other predictors statistically
eliminated (Uyanik & Guler, 2013).
54
Ethical Considerations
To protect the participants and the data of this study, the following ethical
standards were highly observed and considered:
Informed Consent
1. In the distribution of the survey questionnaires, the researchers gave a consent
form that informed the participants about the research study and asked permission
to participate.
2. The consent form was given by the researchers to ensure that they are willing to
participate and would give truthful and accurate responses. The letter also
contained information about the research study, such as its objectives.
Voluntary Participation
1. The researchers respected the respondents who did not sign the consent form and
excluded them from the study.
2. The researchers ensured that the respondents’ decision to participate in the study
was completely voluntary.
Confidentiality
1. The researchers ensured that the information given by the participants was kept
confidential and was used for research study purposes only.
2. The business and respondent’s name will not appear in any report or publication
of the research.
55
Validity of the Research
1. The survey questionnaires were validated by the panelists and were scored based
on the criteria presented in the survey questionnaire validation form.
2. The survey questionnaire was tested using the Cronbach Alpha to measure the
internal consistency and reliability of the questions.
Results and Interpretation
1. The researchers made sure that the data collected will be used and presented
appropriately.
2. The researchers avoid misinterpretation of the result from data and would not alter
the results.
56
CHAPTER 4
FINDINGS AND IMPLICATIONS
Profile of Micro-Enterprises
The profile of the micro-enterprises in terms of their business age and business
size capital from District 1, Davao City. The results are presented in Tables 4.1 and 4.2.
Table 4.1 Business Profile-Business Age
Business Age
Frequency
Percentage
Below 1 to 2 years
34
18.30 %
3 to 5 years
57
30.60 %
6 years and above
95
51.10 %
186
100%
Total
Table 4.1 shows the micro-enterprises' frequency distribution regarding their
business age. It shows that 18.30% (n=34) of micro-enterprises have a business age of
below 1 to 2 years, which indicates that they are in a startup or introduction stage. At the
same time, 30.60% (n=57) of micro-enterprises have 3 to 5 years of business age, which
indicates that they are in a maturity stage. Finally, 51.10% (n=95) of micro-enterprises
are 6 years and above of business age, meaning they are in a maturity stage. All in all, a
total of 186 micro-enterprises. The result shows that most micro-enterprises are 6 years
and above of business age. In contrast, a business age below 1 to 2 years has the least
percentage of 18.30%.
57
Table 4.2 Business Profile- Business Size Capital
Business Capital
Frequency
Percentage
Below P100,000
71
38.20%
P100,000 to less than 200,000
56
30.10%
P200,000 to less than 300,000
30
16.10%
P300,000 to less than 500,000
26
14.00%
Did not disclose
3
1.60%
186
100%
Total
The
micro-enterprises'
frequency
distribution
regarding
their
business
capitalization is presented in Table 4.2. It was shown that 38.20% (n=71) of
micro-enterprises have below P100,000 starting capital. While 30.10% (n=56) of
micro-enterprises have a starting capital of P100,000 to less than P200,000. At the same
time, 16.10% (n=30) of micro-enterprises have a starting capital of P200,000 to less than
P300,000. Moreover, 14.00% (n=26) of micro-enterprises have P300,000 to less than
P500,000 starting capital. Lastly, only 1.60% (n=3) of micro-enterprises did not disclose
their starting capital. All in all, a total of 186 micro-enterprises. The result showed that
most micro-enterprises have a starting capital of less than P100,000.
Level of Entrepreneurial Orientation of the Micro-enterprises in District 1, Davao
City
The section presented the level of entrepreneurial orientation of the micro-enterprises
in Davao City. The result is presented in Table 4.3.
58
Table 4.3 Level of Entrepreneurial Orientation of the Micro-enterprises in District
1, Davao City
Statement
Mean
SD
Descriptive
Level
1. The business employs new technology to make
its services and distribution of goods convenient.
3.41
0.92
Very High
2. The business recognizes the significance of
creativeness for strategic planning.
3.61
0.78
Very High
3. The business ensures it is ahead of its
competitors through readiness.
3.24
0.93
High
4. The business is willing to take risks in order to
get new market opportunities in these changing
times.
3.78
0.64
Very High
5. The business is cautious in its handling of
money and in taking new opportunities in the
market.
3.30
0.94
Very High
3.47
0.84
Very High
Overall Age
Table 4.3 shows an overall average mean of 3.468; the overall descriptive level is
very high as entrepreneurial orientation is present in the everyday practice of their
business operations. Statement four has the highest mean of 3.78, implying that most
respondents are willing to take risks to get new opportunities in these changing times.
The level of entrepreneurial orientation of the micro-enterprises in district 1 of Davao
City in terms of their willingness to take risks in order to get new market opportunities in
these changing times was very high; this means that Managers/owners of the business
have a propensity to fully engage in proactive decisions. Moreover, statement two has the
second highest mean of 3.61, implying that the respondents recognize the significance of
creativity in strategic planning. Businesses' creativity and innovation are crucial in
enhancing financial performance, so managers must support entrepreneurship as a
59
fundamental orientation (Al Mamun et al., 2017). The level of entrepreneurial orientation
of the micro-enterprises in district 1 of Davao City with regard to recognition of
creativeness for strategic planning is very high; thus, Managers/owners of the business
have a propensity to fully engage in innovative decisions. Most respondents always
employ and adapt to new technology to make their business operations convenient, as
statement one has a mean of 3.41. The level of entrepreneurial orientation of the
micro-enterprises in district 1 of Davao City concerning employing new technology to
make its services and distribution of goods convenient is very high; this means that
Managers/ Owners of the business have a propensity to fully engage in innovative
decisions.
Moreover, statement five has a mean of 3.30; this implies that the respondents are
careful in handling their resources and taking new market opportunities. In the study of
Danso et al. (2016), a business's risk-taking propensity depends on how likely they
believe it will be to reap the benefits of a proposed situation's success before putting itself
at risk for its adverse outcomes; one example is the businesses' handling of its resources,
where a business makes sure it has nothing to lose in taking new opportunities in the
market. The level of Entrepreneurial Orientation of the micro-enterprises in District 1 of
Davao City regarding its handling of money and taking new opportunities in the market is
very high; as this only means that Managers/owners of the business have a propensity to
fully engage in risk-taking decisions. Lastly, the third statement has a mean of 3.24,
implying that for a business to be entrepreneurially oriented, it should be competitive and
includes ensuring that the business is ahead of its competitors. Most respondents agreed
with the statement, but not the majority of them want to be that much of a proactive
60
entrepreneur, they only want to gain profit and thrive without looking at their rivals in the
market. The level of Entrepreneurial Orientation of the micro-enterprises in District 1 of
Davao City concerning its competitiveness in the market is High; this implies that
Managers/owners of the business have a propensity to moderately engage in proactive
decisions.
Level of Marketing Strategy of the Micro-Enterprises in District 1, Davao City
The section presented the level of marketing strategies of the micro-enterprises in
Davao City. The result is presented in table 4.4.
Table 4.4 Level of Marketing Strategy of the Micro-Enterprises in District 1, Davao
City
Statement
Mean
SD
Descriptive level
1. The products and services of the business are
aligned with their target customers’ needs and
wants.
3.85
0.38
Very High
2. The business priced its products reasonably
enough to earn and pay its expenses.
3.78
0.41
Very High
3. The business offers discounts and promos to
their customers as a way of promoting the product.
3.27
0.92
Very High
4. The business utilizes advertising whether
printed or digital. (ex. tarpaulins, flyers, word of
mouth, social media etc.)
3.24
0.9
High
5. The business location is accessible to its target
customers.
3.72
0.68
Very High
3.57
0.66
Very High
Overall Average
Table 4.4 has an overall average of 3.57, which shows that the micro-enterprises
in district 1 have a very high level of marketing strategy in employing their businesses.
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Based on the results above, managers and owners of the business employ a marketing
strategy fully aligned with the 4Ps of the marketing mix; product, price, place and
promotion. Statement one has the highest mean with 3.85, which implies that businesses
align their products and services according to their customers' needs and wants. For
instance, micro-enterprises that are located near schools should consider the needs of
their primary target customers, which are students, teachers, and faculty members. This is
why most businesses outside schools are printing services and food stalls. Further, with
the second highest mean of 3.78, statement two indicates that businesses set their product
prices competitively enough to generate revenue and cover their costs. Understanding
customer needs and wants, and effective pricing will assist the business in generating and
increasing income (Galkin, 2019).
Statement five is the third highest, which showed a mean of 3.72, interpreted as
very high, wherein respondents are confident that their business locations are accessible
to their target customers. The business's earnings increase if it is strategically positioned,
such as by establishing the store in the ideal location (Leunendonk 2019). Moreover, a
study by Acutt (2020), as cited in the study by Galili (2021), states that businesses should
conduct thorough research on their business location and be knowledgeable of their target
market.
In addition, micro-enterprises in Davao City also provide discounts and
promotions to their customers to advertise their products. This is evident in statement
three, with a mean of 3.27 which implies a very high level of marketing strategy.
Wholesale, buy one take one, free delivery, coupons, and vouchers are common sales
discounts and promotions employed by micro-enterprises to encourage consumers to buy
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their products. Lastly, the lowest mean of 3.24 in statement four signifies that
micro-enterprises have a high level of using both print and digital advertising. Although it
has the lowest mean among the five statements, it still indicates a high level. This showed
that most businesses utilize print and digital media such as tarpaulins, flyers, posters,
websites, social media, and emails. However, businesses can improve their advertising
strategies through research and using other approaches that work better for them.
Level of Budgeting of the Micro-Enterprises in District 1, Davao City
The section presented the level of budgeting of the micro-enterprise in Davao
City. The result is presented in table 4.5.
Table 4.5 Level of Budgeting of the Micro-Enterprises in District 1, Davao City
Statement
Mean
SD
Description
1. Budgeting is used by the business in making
financial decisions.
3.83
0.41
Very High
2. The business sets and prepares a plan to budget
its resources.
3.73
0.58
Very High
3. The business monitors its expenses
daily/weekly/monthly.
3.63
0.76
Very High
4. The business monitors its income
daily/weekly/monthly.
3.89
0.33
Very High
5. The budgeting is significant for the business
especially in finance and in daily operations.
3.82
0.49
Very High
3.78
0.29
Very High
Overall Average
Table 4.5
shows
the overall average of 3.78, which indicates that
micro-enterprises of district 1 in Davao City have a very high level of budgeting. Based
on the table shown above, statement four has the highest mean of 3.89 which indicates
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that micro-enterprises in district 1, Davao City have a very high level of budgeting when
it comes to monitoring its income daily/weekly/monthly. The result shows that
micro-enterprises in district 1, Davao City monitor their budget through their income.
They list and record their income in order to budget their resources. According to Beers
(2022), monitoring the financials, such as in budget, is a way of having a better business
budget to sustain daily operations. Statement four is followed by statement one which has
the second highest mean of 3.83 which indicates that micro-enterprises have a very high
level of budgeting when it comes to financial decision making. Micro-enterprises tend to
base their financial decisions through their budgeting. According to Shim and Siegel
(2012), budgeting is a precautionary measure for what will happen in the future.
Moreover, statement five which has the mean of 3.82 indicates a very high level
of budgeting when it comes to its importance to micro-enterprises in district 1, Davao
City. For micro-enterprises, budgeting is an important aspect to their business especially
to their daily operations and to their financials. A study by Kibor and Maina (2019)
indicates that businesses must apply budgeting in their daily operation which their study
shows the result that cash budgeting and financial performance has a significant positive
relationship. While statement two has a mean of 3.73, micro-enterprises have a very high
level of budgeting when it comes to setting and planning a budget to allocate resources.
According to Kenton (2020), annual preparation of budgets allows companies to manage
their finances better because it provides more detailed and specific data. Through
budgeting, they can evaluate what went well and where they went wrong by comparing
the actual result and the budgeted estimates. Lastly, statement three has the lowest mean
of 3.63 which indicates that micro-enterprises have a very high level of budgeting when it
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comes to monitoring their expenses daily/weekly/monthly. Same with statement four,
micro-enterprises monitor their budgeting with their expenses, they list and record their
expenses to monitor and allocate their resources accordingly.
Level of Perceived Financial Performance of the Micro-Enterprises in District 1,
Davao City
The section presented the level of perceived financial performance of the
micro-enterprise in Davao City. The result is presented in table 4.6.
Table 4.6 Level of Perceived Financial Performance of the Micro-Enterprises in
District 1, Davao City
Statement
Mean
SD
Descriptive Level
1. The business is able to pay its short-term
obligations with its current assets.
3.48
0.69
Very High
2. The business has cash readily available.
3.61
0.62
Very High
3. The business is funded through its own
capital.
2.91
0.66
High
4. There is adequate profit after deducting
production costs from the generated revenue.
3.55
1.20
Very High
5. The business uses its equipment productively
to generate more sales.
3.57
0.76
Very High
Overall Average
3.42
0.65
Very High
Table 4.6 above shows the overall weighted average mean for the perceived
financial performance, 3.42, which indicates that the micro-enterprises in the first district
of Davao city have a very high level of perceived financial performance. As shown in the
table above, statement two has the highest mean, 3.61, which shows that the respondents
perceive their business to have cash readily available and indicates a very high level of
liquidity. According to Elangkumaran & Karthika (2013), the presence of cash readily
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available in the enterprise is one of the signs a business has good liquidity. Businesses
may always have cash on hand ready for emergencies or miscellaneous expenses such as
unexpected repairs of equipment, petty cash, and others. Having cash readily available
also means that the business can easily convert its assets into cash, such as its inventories
for merchandising businesses, indicating a good inventory turnover. Statement five has
the second highest mean, 3.57, which shows that the micro-enterprises are productive in
using their equipment to generate more sales. These equipment can be machines they use
for productions such as ovens, stoves, trucks, computers, manufacturing machines, and
others. Businesses need to produce goods efficiently to meet their target sales for the day,
week, or month.
Furthermore, statement four has the third highest mean, 3.55, indicating adequate
profit after deducting production costs from the generated revenue. This means that most
micro-enterprises employ proper pricing and consider the costs of their products when
setting prices. Having adequate profit after deducting costs is a good indicator of
profitability and shows that businesses generate sufficient revenue from the prices they
have set. On the other hand, statement one gained a mean of 3.48 which shows that most
micro-enterprises can pay their short-term obligations using their current assets, which is
a vital indicator of liquidity. Short-term obligations in a business may include monthly
rent and utility expenses, and based on the survey conducted, the respondents strongly
agreed they could meet these obligations. High liquidity for a business is vital because
this suggests they have a lesser chance of going bankrupt since they can pay their current
liabilities without having to issue loans or go through debt. Lastly, statement three had a
mean of 2.91, which shows that the respondents have a high level of perceived financial
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performance regarding leverage. Based on the survey, the respondents agreed their
business was funded through capital instead of debt, which is an indicator of lower
leverage. According to Fauchs (2021), low leverage indicates that a business is funded
more through equity rather than debt. This shows that these businesses are stable due to
lesser risks from loans of their revenue streams.
Significant Factors that Influence the Perceived Financial Performance of
Micro-enterprises in District 1, Davao City
The three independent variables (entrepreneurial orientation, marketing strategy,
and budgeting) were tested for their ability to explain and predict the dependent variable
(perceived financial performance) using multiple regression analysis. Prior to assessing
the various models' capacity for prediction and explanation, the Stepwise Model was used
to conduct the Normality Test, Collinearity Test, Homoscedasticity Test, and Standard
Residual. The MRA findings were subsequently examined and presented. Entrepreneurial
orientation, however, was determined to be not a significant factor. As a result, it is not
taken into account when interpreting the findings.
Several assumptions must be met by the data gathered before the Stepwise MRA
can be implemented. The regression model's assumption checks are summarized in Table
4.7 below, along with the determination of whether or not the assumptions were met. to
The complete results of the Stepwise MRA is shown in appendix D.
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Table 4.7 Assumption Checks for Regression Model
Assumptions
Criterion
Results
Remarks
p >0.05
0.000
Assumption
is not met
Marketing Strategy
<5
1.076
Assumption
is met
Budgeting
<5
1.076
Assumption
is met
Normality (Kolmogorov-Smirmov/Shapiro-Wilk)
Collinearity (VIF for each IV)
Homoscedasticity
No
triangular/ No pattern Assumption
diamond observed
is met
pattern
Standard Residual
All cases
-3<std
are within
Residual
No Outliers
acceptable
<3
range
*See Appendix D of the figure of Homoscedasticity results
On the test of normality, the Kolmogorov-Smirmov and the Shapiro-Wilk Tests
are conducted on the standardized residuals. To assess if the data are normally
distributed, the p-value for both tests must be greater than 0.05, indicating that the null
hypothesis that the observed variables are normally distributed is not rejected (Ghasenu
&
Zahediasl, 2012). Results
show
that the p-values are both 0.000 for
Kolmogorov-Smirmov and Sharpio-Wilk, respectively. Since the p-values are less than
0.05, the observed variables are not normally distributed.
On Collinearity, each independent variable's Variance Inflation Factor (VIF),
which indicates the absence of collinearity among the independent variables, must be less
than 5.0 among independent variables. It is a requirement in order to prevent overlapping
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explanations for different variables (Glen, 2020). Results show that the VIF of marketing
strategy, and budgeting are both 1.076. With these results, collinearity is absent among
the independent variables.
The standardized predicted value and the standardized residual of the regression
analysis are projected to the X- and Y-axes of a scatter plot, respectively, on the
Homoscedasticity test to look for a triangular or diamond-shaped pattern. Because the
dependent connection explains the dependent variable's volatility, homoscedasticity is
preferred because it prevents the concentration of independent values in a small range
(Glen, 2021). The graph (see appendix D) does not show any triangular or diamond
pattern. Additionally, the standard residual have no outliers because all cases are within
an acceptable range such as minimum, maximum, mean, and standard deviation are 2.480, 1,907, 0.000, and 0.995, respectively. With these results, marketing strategy, and
budgeting are part of the regression model. The detected deviations can be subjected to
MRA because the assumptions are met. Table 4.8 below summarizes the MRA results
and displays the regression coefficients.
Influence of Entrepreneurial Orientation, Marketing Strategy, and budgeting
towards Perceived Financial Performance.
The Influence of Entrepreneurial Orientation, Marketing Strategy, and budgeting towards
Perceived Financial Performance is shown in Table 4.8 below:
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Table 4.8 Regression Coefficients
Variables in the Model
Unstandardized
Coefficient
Standardized
Coefficient
t
Sig.
2.255
0.025
B
Std. Error
B
Constant
0.909
0.403
Marketing Strategies
0.350
0.084
0.288
2.154
0.000
Budgeting
0.334
0.095
0.245
3.524
0.001
R =0.425 R² = 0.181 Adjusted R² = 0.172 F = 20.155 Sig = 0.000
* at 0.05 level of significance
The ANOVA results show an F-value of 20.155 and an overall p-value of .001. In
ANOVA; the F-value is employed to establish if the differences in means between groups
are more significant than the differences within each group's individual values (Feldman
K., 2018). This result implies a significant statistical difference between the means of the
groups for the F-value is high and indicates that the variation between groups is more
significant than the variation within groups. In addition, it also implies that the
independent variables (Marketing Strategy and Budgeting) significantly influenced
Perceived Financial Performance.
For this model, the adjusted coefficient of determination or R2 is 0.181, which
means that 18.1% of the variation in the dependent variable's variance was accounted for
by the independent variables, taking into consideration the number of independent
variables and sample size. When a term does not significantly enhance the fitness of the
model, the R-squared value decreases, as stated by Frost (2022). However, the Normal
Plot of the Regression Model indicates that the goodness of fit remains relatively
unaffected despite the decrease in the R-squared value (see appendix D for the result).
Independent variables that explained the dependent variable’s variances are: marketing
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strategy (with a beta coefficient of 0.337, t-value of 3.863, and p-value of 0.000), and
budgeting (with a beta coefficient of 0.321, t-value of 3.291, and p-value of 0.001)
explain the 18.1% of the variances of Perceived Financial Performance.
Now, the factors that have a significant impact on Perceived Financial
Performance have been identified, it is possible to create an estimation model. The MRA
equation, which is presented below, can be used for this purpose.
𝑌 = 𝑏
0
+ 𝑏
1
𝑋
1
+ 𝑏 2𝑋
2
+ 𝑒
Where:
Y= Perceived Financial Performance
𝑏0= Beta Constant
𝑏1= Beta Coefficient of Marketing Strategy
𝑏2= Beta Coefficient of Budgeting
𝑋1= Mean of Marketing Strategy
𝑋2= Mean of Budgeting
E= Error Term
Therefore, the multiple regression model in terms of perceived financial
performance was:
Perceived Financial Performance = 0.909 + .350 (Marketing Strategy)
+ 0.334 (Budgeting)
The multiple regression model uses the slope (b) to indicate how the means of the
dependent variable (Y) change for every unit shift in the independent variable (X), while
controlling for other independent variables. As such, the results show that a one-unit rise
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in marketing strategy corresponds to a 0.350 increase in perceived financial performance,
and a one-unit increase in budgeting corresponds to a 0.334 increase in perceived
financial performance.
The research used multiple regression analysis (MRA) to investigate how
independent variables, such as entrepreneurial orientation, marketing strategy, and
budgeting, can clarify and predict the dependent variable, perceived financial
performance. Before analyzing the effectiveness of different models in prediction and
explanation, various tests were performed. Initially, the enter method was employed,
followed by the stepwise method to ascertain which variables were insignificant and
should be removed. Subsequently, the researchers conducted Normality Tests,
Collinearity tests, and Homoscedasticity tests. Additionally, the stepwise method was
chosen since it yielded a higher r-square value than the first method. Based on the
findings, it was observed that entrepreneurial orientation was not a significant factor and
was therefore excluded from the interpretation of the results.
Furthermore, the findings indicate that out of the three hypotheses presented, only
H01, which states that entrepreneurial orientation does not significantly impact the
perceived financial performance of micro-enterprises in Davao City, was accepted.
Implication to Theories
The study has anchored its foundation to the following theories: Entrepreneurial
Orientation Theory, the 4Ps of Marketing, Goal-Setting theory, and Financial Ratio
Analysis. This study suggests that the Entrepreneurial Orientation theory by Danny
Miller (1983), is in a way, impact the financial performance of micro-enterprises in
district 1, Davao City, by being proactive where the business should adapt to new
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technologies to make operations convenient, and some businesses do make sure that the
business’ standing is ahead of its competitors based on the result. In the study of Cho &
Lee, (2020), in order for the enterprise to be advantageous financially in the market, the
enterprise must adapt to the quickly shifting needs of their customers and the tactics of
their rivals. The second entrepreneurial orientation of Danny Miller is the Innovativeness,
where most of the micro-enterprises of district 1, Davao City, recognize the significance
of creativeness for strategic planning; according to the study of Al Mamun et al., (2017),
innovation is significant to the enterprise’s success as innovativeness is seen as a critical
factor to improve financial performance. The third entrepreneurial orientation is riskiness
or risk-taking, where most of the micro-enterprises of district 1, Davao City, are willing
to take a risk to get new opportunities in the market in these times, and are cautious in
handling its resources. According to the study of Kurtulmus & Warner (2015), in order to
improve financial performance, an enterprise should be a risk-taker but should also
consider being careful in its resources so that it won’t endanger the enterprise’s future.
The second theory is the 4Ps of Marketing by E. Jerome McCarthy (1960). This study
suggests that Product, Place, Price, and Promotion affects the perceived financial
performance of micro-enterprises in district 1, Davao City. Micro-enterprises in district 1,
Davao City agree that their products and services of the business are aligned with their
target customers’ needs and wants; most of the micro-enterprises in district 1, Davao City
agreed based on the results that they do consider their product first before its price and
location. In the study of Murdayani et al. (2021), it was mentioned that the product is the
one consumers look at first; it could be the quality, appearance, model, packaging, size,
and type. The second P is price; The micro-enterprises in district 1, Davao City, surveyed
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mostly agreed that the price should be reasonable where it’s enough to cover the costs
and expenses, and it is not too high. In the study of Galkin (2019), an enterprise should
price its products efficiently and fairly enough to generate profit and cover its expenses.
The third P is the place; most of the micro-enterprises in district 1, Davao City, agreed
that the place should be accessible and easy to locate for their target customers. In the
study of Twin (2022), an enterprise should be located in a suitable place to market its
product or services to boost its sales; In a place where the entrepreneurs can promote and
sell the product; studying and planning where the business should be located is
significant in marketing strategies. The fourth and last P is promotion. Promotion is a
way of advertising your products to the target customers, letting them know the features
of the product and how it can help their needs. One way of promoting the product is
through offering discounts and promos. According to the study by Phawa (2022), there
are a lot of ways to promote the product to increase sales, it can be advertising, sales
promotion, personal selling, and public relations.
The third theory is the Goal-setting theory by Locke & Latham (1960); this study
suggests that the budgeting of the micro-enterprise in district 1, Davao City affects their
financial performance based on the results by setting goals, which includes budget
planning and monitoring for financial decisions. The micro-enterprises in district 1,
Davao City, mostly agreed that the budget income and expenses should be monitored and
planned regularly for their day-to-day financial decisions. In the study of Shim & Siegel
(2012), the budget should be coordinated, integrated, organized, methodical, clear, and
thorough to achieve the best results.
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The fourth theory is the Financial Ratio Analysis theory by Benjamin Graham (1937),
the impact financial ratio analysis theory helped the researchers identify their perceived
financial performance as a business in terms of liquidity, and leverage. Through this
theory, the study suggests that the micro-enterprises in district 1, Davao City surveyed
mostly agreed that they are able to pay their short-term obligations with their current
assets, has cash readily available, has adequate profit, and use their equipment
productively to generate more sales; Not entirely all respondents agreed that the business
was funded through its own capital. According to the study of Kenton (2022), several
financial performance indicators are utilized to quantify a business' economic health;
Through analyzing working capital, it shows how a business can provide funds to finance
day-to-day operations. On the other hand, gross profit margins show a company's
profitability after deducting its production costs after sales.
Implication to Practice
This study suggests that micro-enterprise businesses in district 1, Davao City,
should focus on two factors that significantly influence the perceived financial
performance: the marketing strategy and budgeting. The results also determine which
areas the micro-enterprises could improve and exercise within their business operations,
such as the products and services. It should align with the customers' needs and wants
and the impact of planning and monitoring the budgets of a business.
Moreover, the study calls for an initiative in business-related professions, such as
accountants, business managers, marketing, and entrepreneur, to sharpen the marketing
and budgeting skills that emphasize the quality of financial performance. In the study of
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Terblanche et al. (2013), it was emphasized by the researchers that the economic success
of a business will depend on the ability on how good the marketing strategy. Also,
micro-enterprise owners can gain insight into their Financial performance by practicing
marketing strategies and implementing budgeting in their business operations. This study
has also highlighted the importance of budgeting when preparing and monitoring budgets
in business. Additionally, marketing strategies are essential to business operations, with
4P's Marketing mix strategies, particularly helpful. A marketing strategy results show that
it focuses on particular target market segments and clarifies what product characteristics
are required to satisfy customer needs successfully. This helps to ensure that your
micro-enterprise services, products, and messaging are tailored to meet the needs of those
target markets. It helps the business to identify and capitalize on any competitive
advantages. Also, It lets the business owners anticipate, apply, and improve their business
operations through shared ideas about the finances in budgeting and financial
performance. Lastly, management accountants should practice the techniques, accounting
tools, and information through internal operations of micro enterprises to improve their
sustainability. By equipping micro enterprises with the right skills and knowledge, the
management accountant helps them achieve long-term success and growth. With that,
accountants should provide the necessary training and support to ensure these businesses
thrive in today's competitive market.
Implication to Research
There has been an accelerated growth of micro-enterprises in the city, with 14,370
registered businesses (Davao City Business Bureau). With this rapid growth of
micro-enterprises, there is a lack of data in the Philippines, even in local (Davao City),
76
that discusses the influence of entrepreneurial orientation, marketing strategy, and
budgeting on the perceived financial performance of micro-enterprises. Additionally,
there is existing data in the country that only discusses business types such as servicing,
merchandising, and manufacturing as one of its business profile determinants. The
researchers found it essential to conduct this study to address the lack of empirical data
by providing insights and evidence into how entrepreneurial orientation, marketing
strategy,
and
budgeting
related to
the perceived financial performance of
micro-enterprises in the first district of Davao City. Targeting district 1 in Davao City for
the study was also reasonable due to its highly urbanized and rapidly developing nature.
Davao City is also considered the center of trade and commerce in Mindanao, making it
worthy of being studied.
Additionally, the researchers intended to gather and merge proof that illustrates
the present situation of micro-enterprises in Davao City, specifically in terms of
marketing strategy and budgeting. The outcomes of this investigation could serve as a
basis for future studies and investigations conducted by the authorities and businesses in
Davao City and the whole Philippines. The entrepreneurs may also use the research's
findings to evaluate the necessary actions needed to enhance the implementation of
business practices, like marketing strategy and budgeting, across the country.
Furthermore, the information produced by this research can be utilized by entrepreneurs
and potential business ventures to identify areas in which they can enhance their business
strategies and skills. Moreover, the results of this study can serve as a foundation or
launching point for future research, recognizing that this research has constraints due to
limited funding and previous studies. Future researchers can adopt this study's theoretical
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and conceptual framework to explore further and gather information regarding the
variables used. The information and data produced by this study can serve as a point of
reference for other similar studies. The topic discussed in this research is timely and
relevant because of the deficiencies that the micro-enterprises had in terms of managerial
and entrepreneurial abilities, access to technology, funding for research and development,
low product efficiency, limited access to finance and information, and encountered
difficulties in the business environment, such as high production costs. The facts and data
gathered in this study can be helpful to the governing bodies to improve the current state
and the businesses for product development. Finally, future researchers can benefit from
this study as a reference for further studies.
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CHAPTER 5
SUMMARY, CONCLUSIONS, AND RECOMMENDATIONS
Summary
The study was conducted to determine the level of entrepreneurial orientation,
marketing strategy, and budgeting of micro-enterprises in district 1, Davao City, and
assess its significant influence on their perceived financial performance. This study was
anchored on four theories: Entrepreneurial Orientation Theory, Marketing Mix (4P’s),
Goal-Setting Theory, and Theory of Financial Ratio Analysis. The following theories
were used to comprehend whether entrepreneurial orientation, marketing strategy, and
budgeting are relevant to the micro-enterprises in district 1, Davao City. In the conceptual
framework, the independent variables utilized in the study were entrepreneurial
orientation, marketing strategy, and budgeting. In contrast, its dependent variable
includes the perceived financial performance of micro-enterprises in the first district of
Davao City.
Moreover, the study used quantitative research that utilized a combination of
descriptive and correlational research design. The research respondents in this study were
the managers and business owners of micro-enterprises in Davao City. For every business
surveyed, there was one respondent. For the sampling frame, the population of registered
micro-enterprises derived from Davao City Business Bureau's Business Permit and
Licensing System was considered. Cluster sampling was used, and a sample size of 186
respondents was computed using the Taro Yamane Formula. The survey was conducted
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face-to-face. The researchers went to each micro enterprise's location, and the
respondents' answers were collected through a printed survey questionnaire.
From the data collected, the results showed that the micro-enterprises in district 1
have a very high level of entrepreneurial orientation. This indicates that managers and
owners of the business have a very high propensity to fully engage in innovativeness,
proactiveness, and risk-taking decisions. On the other hand, micro-enterprises also have a
very high level of marketing, which implies that managers and owners of the business
employ a marketing strategy fully aligned with the 4Ps of the marketing mix. The results
also showed a very high level of budgeting, indicating that they fully utilize budgeting
practices and allocate resources efficiently. Lastly, micro-enterprises in district 1 showed
a very high level of perceived financial performance. This implied that the managers and
owners of the firms believe that the business has strong financial health in terms of
liquidity, profitability, and leverage.
Furthermore, the independent variables (entrepreneurial orientation, marketing
strategy, and budgeting) were tested for their capacity to explain and predict the
dependent variable (perceived financial performance) using Multiple Regression Analysis
(MRA). The findings showed that entrepreneurial orientation does not significantly affect
the dependent variable perceived financial performance. To summarize, the study found
that marketing strategy and budgeting significantly affected 18.1% of the perceived
financial performance of micro-enterprises in district 1, Davao City.
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Conclusion
The researchers concluded, based on the survey results, as follows:
1. The business profiles of micro-enterprises are from District 1 in Davao City, and
the majority ranged from 6 years and above of business age. Also, most of them
have a starting capital of less than P100,000.
2. The micro-enterprises in District 1, Davao City, have a very high level regarding
their entrepreneurial orientation, marketing strategy, budgeting and also,
perceived financial performance.
3. The following factors used in this study were; entrepreneurial orientation,
marketing strategy, and budgeting. Among these factors, only marketing strategy
and budgeting have significant factors in the perceived financial performance of
micro-enterprises.
4. There were three null hypotheses in this study, among the three, only Hypothesis
1 was accepted. Hypothesis 1 stated that entrepreneurial orientation does not
significantly influence the perceived financial performance of micro-enterprises in
district 1, Davao City.
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Recommendation
The researchers would like to extend the following recommendations:
Managers and Owners of Micro Enterprises. The research found that both
marketing strategy and budgeting were significant in the companies’ perceived financial
performance. Therefore, the researchers recommend that managers and owners should
keep using marketing strategies in their daily operations. They should also do thorough
research such as online surveys, customer observation, interviews, or suggestion boxes on
what their customers’ needs and wants are as well as their preferences. The type of
survey and interview questions would depend on the nature and type of business.
Moreover, the results showed the significant influence of advertising on the
business’ financial performance. The researchers recommend that managers and owners
strengthen their social media presence through the creation of Facebook, Instagram, and
TikTok accounts. According to Reno (2022), social media is an effective way to reach
new customers. During the third quarter of 2022, internet users in the Philippines used
various devices to access the internet for an average of 9.14 hours. Meanwhile, 3.43
hours a day on social media were spent on average (Statista Research Department, 2023).
Consumers habitually log on to it daily, and engagement on these platforms keeps on
increasing. Consumers like and share posts, and they leave comments, feedback, or
reviews that open for instant interaction. Therefore, managers and owners should make
sure that their contents are creative, engaging, and up-to-date in order to reach a greater
audience.
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On the other hand, managers and owners should continue to incorporate
budgeting in their business, for it will help the company plan and adequately allocate its
resources, thus increasing its financial performance. The results showed that in creating
budget plans, it is important to monitor daily, weekly, and monthly income and expenses.
To better monitor income and expenses, the researchers recommend that managers and
owners should utilize Microsoft Excel. Microsoft Excel is simple and easy to use for
micro-enterprises. It organizes data, can perform calculations, and it can create
visualizations of data with charts for analysis. This tool will help the business stay on
track and be helpful in the decision-making process.
Management Accountants. The findings of this study showed that budgeting
greatly influences the perceived financial performance of the business. Therefore,
management accountants should monitor daily, weekly, and monthly income and
expenses. In monitoring the business’ income and expenses, the researchers would
recommend that they should record daily transactions, check them at the end of the
week, and have a bi-monthly meeting to present reports and updates. Furthermore, to
prepare accurate budget plans, management accountants should continue to compare
actual results and the budgeted estimates to evaluate what worked and what did not. This
is to prevent the business from spending on things that did not actually benefit the
business operations. Budgeting would be a good planning strategy for management
accountants of the business to make sound financial decisions.
Future Business Venturers. Marketing strategy and budgeting are essential
factors in the perceived financial performance of a business. The result of this study helps
future business venturers understand how significant the 4P’s of marketing and budgeting
83
are in entering the business world. Through this study, future business ventures will learn
everything about the four considerations in marketing strategy; product, price, place, and
promotion. Future business venturers will learn how to select market segments (Stagno,
2016), and target customer study as the quality of the product, model, brand, packaging,
size, and type is a very important consideration in looking at the product to position in the
market. The pricing strategies: are cost-based, market-based, and value-based; Cost-based
is increasing the cost by markup above the production cost (Dias, 2021); market-based
pricing, which is considering or looking at its competition through competitor analysis;
value-based pricing is based on the customer's perception of the product, the perception
can be gathered via survey or interview. Future business venturers will also learn about
promotion and place, where promotion is about communicating the product to the target
market via advertising, sales promotion, personal selling, and online marketing. Place is
the last strategy of the 4Ps of marketing; this is the consideration of future business
venturers where goods and services are transported from the supplier or maker to the
customer can be referred to as the location. Lastly, budgeting helps businesses track their
income and expenses, using it as a basis for financial decisions. Moreover, in front of the
study results and through this paper, future business venturers will be aware of what to
consider, maintain, and improve soon as they start their business.
Academe.
The
Ateneo
de
Davao
University
Community
recognizes
entrepreneurial orientation, Marketing strategy, and Budgeting as important aspects of the
business as this school offers business courses. For the AdDU SBG Department,
especially to the Accountancy and Management Accounting Department, this study can
be used to teach students how marketing strategies: product, price, promotion, and place
84
as they carry the teachings as soon as they enter the business world. The results and
references for budgeting in this study can also be used for students to be taught that
budgeting assesses the business’s current condition and operation. Lastly, teachers can
also benefit from this paper as not only students do have plans to enter the business
world; considering the results of this study, they may use it as soon as they start their own
business.
Future Researchers. There are other factors aside from the ones discussed in this
study that could influence the perceived financial performance of micro-enterprises.
Financial performance is an essential matter of discussion not only in the Philippines but
also on the global aspect, primarily because different countries engage in businesses that
fit for the customer’s needs. This study focused on a particular district, so it is in the best
interests of future researchers to conduct a similar study in other places, not only in the
Philippines but also in other districts in Davao City. The perceived financial performance
of SMEs should also be studied. The study approached perceived financial from an
entrepreneurial, marketing, and finance standpoint; thus, future researchers should be
inclined to dig further into other factors that affect or influence MSME micro-enterprises’
perceived financial performance, such as inflation and other economic factors.
85
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100
APPENDIX A
SURVEY QUESTIONNAIRE
INFORMED CONSENT FORM
Research Title: Entrepreneurial Orientation, Marketing Strategy, And Budgeting As
Predictors Of Perceived Financial Performance Among Micro-Enterprises In District 1,
Davao City.
Researchers’ names: Baclaan, Andrie John B., Cancino, Kate R., Geralde, Eloisa Marie
S., Mutia, Fritzel S., Rafallo, Kate Diane P., Sasoy, Maynard Rico S.
You are invited to participate in this research study conducted by Fourth-year BS
Management Accounting students from Ateneo de Davao University, in partial fulfillment
of our subject ACRES 3255 Accounting Research and Methods. Please read the
information below and ask questions about the study before deciding to participate.
If you decide to participate, you will be asked to sign this form.
Purpose of the study: The purpose of this study is to discover whether entrepreneurial
orientation, marketing strategy, and budgeting have a significant influence on the perceived
financial performance of micro enterprises in district 1, Davao city.
Confidentiality: The researchers will secure all information collected with utmost
confidentiality and data will be used for research study purposes only. The business and
respondent’s name will not appear in any report or publication of the research.
Voluntary Participation: Your decision to participate in this study is completely
voluntary.
If you have any questions about the research study in general or your role in this study,
please email us at emsgeralde@addu.edu.ph.
Informed Consent Statement
I ____________, am aware of the terms and conditions and I voluntarily agree to
participate in answering the survey questionnaire of this research study.
Respondent’s Printed Name and Signature
Date Signed
101
102
103
APPENDIX B
SURVEY QUESTION REFERENCES
VARIABLE
QUESTIONS
AUTHOR
Entrepreneurial
Orientation
The business
employs new
technology to
make its services
and distribution
of goods
convenient.
Rohana, N., Zarina, S., & Abidin, Z. (2018,
August). Exploring Micro Enterprises’
Business Performance Through Entrepreneurial
Orientation, Knowledge Sharing And Innovation.
https://www.researchgate.net/publication/33757114
3_EXPLORING_MICRO_ENTERPRISES%27_B
USINESS_PERFORMANCE_THROUGH_ENTR
EPRENEURIAL_ORIENTATION_KNOWLEDG
E_SHARING_AND_INNOVATION
The business
recognizes the
significance of
creativeness for
strategic
planning.
Rohana, N., Zarina, S., & Abidin, Z. (2018,
August). Exploring Micro Enterprises’
Business Performance Through Entrepreneurial
Orientation, Knowledge Sharing And Innovation.
https://www.researchgate.net/publication/33757114
3_EXPLORING_MICRO_ENTERPRISES%27_B
USINESS_PERFORMANCE_THROUGH_ENTR
EPRENEURIAL_ORIENTATION_KNOWLEDG
E_SHARING_AND_INNOVATION
The business
ensures it is
ahead of its
competitors
through
readiness.
Bedi, H., & Vij, S. (2014, April 18). Relationship
between Entrepreneurial Orientation and Business
Performance: A Review of Literature.
https://www.researchgate.net/publication/25569803
7_Relationship_between_Entrepreneurial_Orientati
on_and_Business_Performance_A_Review_of_Lit
erature.
The business is
willing to take
risks in order to
get new market
opportunities in
these changing
times.
Putnins, T. J., & Sauka, A. (2019, June). Why
Does Entrepreneurial Orientation Affect Company
Performance?.
https://www.researchgate.net/publication/3337314
51_Why_Does_Entrepreneurial_Orientation_Affe
ct_Company_Performance.
104
The business is
cautious in its
handling of
money and in
taking new
opportunities in
the market.
Marketing
Strategy
The
products
and services of
the business are
aligned
with
their
target
customers’
needs and wants.
The
business
priced
its
products
reasonably
enough to earn
and pay its
expenses.
The
business
offers discounts
and promos to
their customers
as a way of
promoting the
product.
The
business
utilizes
advertising
whether printed
Kurtulmuş,
B., & Warner, B. (2015).
Entrepreneurial Orientation and Perceived
Financial Performance. Does the Environment
Always Moderate EO Performance Relation.
https://core.ac.uk/download/pdf/82748041.pdf
Abdullah Saif, N. M. (2015). How does marketing
strategy influence firm performance?
implementation of marketing strategy for firm
success. International Journal Of Innovation And
Economic Development, 1(3), 7–15.
https://doi.org/10.18775/ijied.1849-7551-7020.201
5.13.2001
Stansz. (2020, March 10). Cost Based Pricing &
Market Based Pricing | Pricing Examples.
Revenue Management Labs.
https://revenueml.com/2020/03/a-guide-to-pricing3-key-pricing-strategies-including-examples
Murdayani , Nurbaiti, B., & Soehardi , S.
(2021). The effect of the marketing mix of
MSME products on sales volume during the
covid-19 pandemic. Journal of Strategic
and
Global Studies, 4(1).
https://doi.org/10.7454/jsgs.v4i2.1043
Cammayo, E., &amp; Perez, E. (2021,
April 28).
View of correlation between marketing
strategies
105
or digital. (ex.
tarpaulins,
flyers, word of
mouth,
social
media etc.)
and financial performance of Micro Small
Medium Enterprises in Isabela, Philippines.
Retrieved December 6, 2022, from
https://turcomat.org/index.php/turkbilmat/ar
ticle/
view/5147/4308
The
business
location
is Suidan, K. & Badi, A. (2018). The Impact of
accessible to its Marketing Mix on the Competitive Advantage of
target customers. the SME Sector in the Al Buraimi Governorate in
Oman.
https://journals.sagepub.com/doi/10.1177/2158244
018800838
Budgeting
Budgeting is
used by the
business in
making financial
decisions.
Shim J., Siegel J. (2012). Budgeting Basics and
Beyond. 4th Edition.
https://books.google.com.ph/books?id=FsioDgAA
QBAJ&printsec=frontcover&dq=budgeting&hl=en
&sa=X&redir_esc=y#v=onepage&q=budgeting&f
=false
The business
sets and prepares
a plan to budget
its resources.
Kenton, W. (2022). Financial Performance:
Definition, How it Works, and Example.
https://www.investopedia.com/terms/f/financialperf
ormance.asp#:~:text=our%20editorial%20policies,What%20Is%20Financial%20Performance%3F,he
alth%20over%20a%20given%20period.
The business
monitors its
expenses
daily/weekly/mo
nthly
Beers. (2022, May 21). 6 Steps to a Better Business
Budget. Investopedia.
https://www.investopedia.com/articles/pf/08/smallbusiness-budget.asp
The business
monitors its
income
daily/weekly/mo
nthly
106
Perceived
Financial
Performance
The budgeting is
significant for
the business
especially in
finance.
Kibor & Mania (2019, October 10). Effects of
Cash Budgeting on Financial Performance of
Micro And Small Enterprises at Eldoret town in
Uasin Gishu County, Kesha.
https://ijecm.co.uk/wp-content/uploads/2019/10/71
010.pdf
The business is
able to pay its
short-term
obligations with
its current assets.
Hussain, A. (2022). What is liquidity? It's how
easily you can sell an asset for cash — here's when
and why it matters to your finances. Business
Insider.
https://www.businessinsider.com/personal-finance/
what-is-liquidity
The business has Hussain, A. (2022). What is liquidity? It's how
cash readily
easily you can sell an asset for cash — here's when
available.
and why it matters to your finances. Business
Insider.
https://www.businessinsider.com/personal-finance/
what-is-liquidity
Mbogo, M., Olando, C., & Macharia, J. (2021).
Effect Of Budgeting Practices
On Financial Performance Of Manufacturing
Small And Medium Enterprises In Nairobi County,
Kenya. Journal Of Language, Technology &
Entrepreneurship In Africa, Volume 12.
https://www.ajol.info/index.php/jolte/article/view/2
10678
The business is
funded through
its own capital.
Hayes, A. (2020). Leverage Ratio: What It Is,
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Investopedia.
https://www.investopedia.com/terms/l/leveragerati
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There is
adequate profit
after deducting
production costs
Abongo, S. (2017). The Effect of Budgeting
Process on the Financial Performance of Top 100
Small and Medium Firms in Kenya. Retrieved
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107
from the
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e=1
Bloomenthal, A. (2021). Gross Profit Margin (GP):
Formula for How to Calculate and What GP Tells
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Investopedia.
https://www.investopedia.com/terms/g/gross_profit
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Maverick, J. (2021). The Difference Between
Gross Profit Margin and Net Profit Margin.
https://www.investopedia.com/ask/answers/021215
/what-difference-between-gross-profit-margin-andnet-profit-margin.asp
The business
uses its
equipment
productively to
generate more
sales.
Mulani, J., Chi, C., & Yang,. J. (2015). Effects of
the budgetary process on SME’s performance: An
Exploratory study based on Selected SME’s in
India. Research Journal of Finance and
Accounting. ISSN 2222-2847 (Online) Vol.6,
No.14, 2015.
https://core.ac.uk/download/pdf/234630913.pdf
Bloomenthal, A. (2021). Gross Profit Margin (GP):
Formula for How to Calculate and What GP Tells
You.
Investopedia.
https://www.investopedia.com/terms/g/gross_profit
_margin.asp
Maverick, J. (2021). The Difference Between
Gross Profit Margin and Net Profit Margin.
https://www.investopedia.com/ask/answers/021215
/what-difference-between-gross-profit-margin-andnet-profit-margin.asp
108
APPENDIX C
SURVEY VALIDATION FORM
109
110
111
112
113
114
APPENDIX D
STATISTICAL DATA ANALYSIS RESULTS
115
116
’
117
118
119
120
121
APPENDIX E
RELIABILITY TEST RESULTS
122
123
124
APPENDIX F
TOTAL NUMBER OF REGISTERED MICRO ENTERPRISES
125
APPENDIX G
CURRICULUM VITAE
Name: Andrie John B. Baclaan
Email: ajbaclaan@gmail.com
Address: Upper Madapo Hills Bankerohan Davao City
Gender: Male
Civil Status: Single
Birthdate: December 03, 1999
Religion: Apostolic
Citizenship: Filipino
EDUCATIONAL ATTAINMENT
2008 – 2013
2013– 2016
2016-2019
2019-Present
Elementary
St. Augustine International School
123 Gen. Malvar St. Davao City
Junior High School
AMA Basic Education
123 Gen. Malvar St. Davao City
Senior High School
Ateneo de Davao University
E. Jacinto St. Davao City
Bachelor of Science in Management Accounting
Ateneo de Davao University
E. Jacinto St. Davao City
126
Name: Kate R. Cancino
Email: kate.riveracancino@gmail.com
Address: 53 Osmena St. SIR Phase II, Davao City
Gender: Female
Civil Status: Single
Birthdate: March 24, 2001
Religion: Roman Catholic
Citizenship: Filipino
EDUCATIONAL ATTAINMENT
2008 - 2013
Primary
Teodoro Palma Gil Elementary School
E. Quirino Avenue, Davao City
2013 - 2017
Secondary
Davao City National High School
F Torres St., Davao City
2017 - 2019
Senior High School
Ateneo de Davao University
E. Jacinto St., Davao City
2019 - Present
Bachelor of Science in Management Accounting
Ateneo de Davao University
E. Jacinto St., Davao City
127
Name: Eloisa Marie S. Geralde
Email: emsgeralde@addu.edu.ph
Address: Brgy 21-C. Davao City
Gender: Female
Civil Status: Single
Birthdate: May 14, 2001
Religion: Roman Catholic
Citizenship: Filipino
EDUCATIONAL ATTAINMENT
2008 – 2019
Primary to Senior High School
Holy Child College of Davao
E. Jacinto St. Davao City
2019 – Present
Bachelor of Science in Management Accounting
Ateneo de Davao University
E. Jacinto St. Davao City
128
Name: Fritzel S. Mutia
Email: fsmutia@addu.edu.ph
Address: Buhangin, Davao City
Gender: Female
Civil Status: Single
Birthdate: February 23, 2000
Religion: Pentecostal
Citizenship: Filipino
EDUCATIONAL ATTAINMENT
2007 – 2013
Primary School
Buhangin Central Elementary School Sped Center
Buhangin, Davao City
2013-2017
Junior High School
Bernardo D. Carpio National High School
Buhangin, Davao City
2017-2019
Senior High School – Accountancy, Business and Management Strand
Ateneo de Davao University
Jacinto St., Davao City
2019 – Present
College – BS Management Accounting
Ateneo de Davao University
Jacinto St., Davao City
129
Name: Kate Diane P. Rafallo
Email: kdprafallo@addu.edu.ph
Address: Roseville Subd., Lanang, Davao City
Gender: Female
Civil Status: Single
Birthdate: June 06, 2001
Religion: Roman Catholic
Citizenship: Filipino
EDUCATIONAL ATTAINMENT
2008 - 2013
Primary
F. Bangoy Central Elementary School
Km. 9, Sasa, Davao City
2013 - 2017
Secondary
Holy Cross College of Sasa
KM. 9, Sasa, Davao City
2017 - 2019
Senior High School
Ateneo de Davao University
E. Jacinto St., Davao City
2019 - Present
Bachelor of Science in Management Accounting
Ateneo de Davao University
E. Jacinto St., Davao City
130
Name: Maynard Rico M. Sasoy
Email: mrmsasoy@addu.edu.ph
Address:Bayside View village, Cagangohan, Panabo City
Gender: Male
Civil Status: Single
Birthdate: April 24, 2001
Religion: Protestant/ Non-catholic christian
Citizenship: Filipino
EDUCATIONAL ATTAINMENT
2010 - 2013
Primary
Francisco Adlaon Learning Institute
Ybañez compound, Sto. Niño, Panabo City
2013 - 2017
Secondary
Panabo Faith Mission Academy
Tadeco road, New Visayas, Panabo City
2017 - 2019
Senior High School
Ateneo de Davao University
E. Jacinto St., Davao City
2019 - Present
Bachelor of Science in Management Accounting
Ateneo de Davao University
E. Jacinto St., Davao City