1

Financial Management among Sari-Sari Store Owners in Toril, Davao City

An Undergraduate Thesis
Presented to the Faculty of the
College of Accounting Education

Submitted By:

Arcon, Cris Louie S.

Montante, Reginald T.

14 - 092

ABSTRACT

In the Philippines, existence of sari-sari stores can be seen anywhere. Along with that,
issues are also prevalent. When a company experience losses, they can no longer
cope to it and end up to termination of its existence because of its poor financial
management. This paper aims to determine the level of financial management among
sari sari store owners in Toril, Davao City. Data was gathered from 100 Sari-Sari
store owners by the use of survey questionnaire. Their level of awareness for
Financial Management were analyzed by the use of mean, profile of the respondents
were measured by frequency and null hypothesis was tested by the use of F-test. The
result of this study revealed that in terms of sex, financing and operating show that
male or female have significant difference on financial management. In terms of the
age, financing, operating and investing show no significant difference. Lastly, in
terms of educational attainment, it shows that the three variables agreed that there is
a significant difference. As a whole, the researcher found out that there is significant
difference between the level of Financial Management and the respondents profile.
Keywords: Financial management, t-test, sari sari store owners, Toril, Davao City,
Philippines

CHAPTER 1
INTRODUCTION
Rationale of the Study
Small and Medium Enterprises are very popular and can be a great factor in an
economy especially in a developing nation (Ramakrishnan, 2013). Different
literatures concerning on small firms financial management have a great number and
studied by different researchers and are complex in nature. A study made by Naida
and Chand (2010) focused mainly on the several problems that would affect the
survival and existence of business but forget to include the factors affecting the
financial management and broad on its nature. Gomez (2010) emphasized the lack of
training of sari sari stores and the size of it to compete with other kinds of
established business. While a study by Wilkie (2010) said that most stores have
insufficient fund due to lack of investment and conscious price entrepreneur would
like to buy goods at historical cost for them to gain at the same time. For this research
paper, we would like to concentrate to a retail business specifically called sari sari
store and the level of financial management applied by store owner of it, to improve
the knowledge about financial management of small enterprise and if financial
management sari sari store owners in Toril, Davao City conform with the financial
management of different places.
Objective of the Study
This study will determine the level of Financial Management of Sari-Sari
Store owners in Toril, Davao City.
Specifically, this study will seek to achieve the following objectives:

1. To determine the profile of Sari-Sari Store owners in terms of:

1.1 Sex
1.2 Age
1.3 Educational Attainment
2. To determine the level of Financial Management in terms of:
2.1 Investing
2.2 Financing
2.3 Operating
3. To determine the significant difference between the level of Financial
Management and the respondents profile
Research Hypothesis

There is no significant difference between the level of financial management

and the respondents profile.

Significance of the Study

The study of Financial Management on Sari-Sari Stores in Toril, Davao City
can be relevant to the business management. This study can be helpful in different
kinds of business specifically small enterprises. In addition, this study will be
beneficial to the following:
Store Owners. The result of the study will be primarily beneficial to them which
would help store owners in their decision making as they manage their business.
Future Entrepreneurs. The result of the study will encourage future entrepreneurs
having a small budget to engage to business and can have an idea on how to start their
own business.
Lending Company. The result of the study will widen their knowledge in terms of
small enterprises in acquiring of funds.

Customers. The result of the study will make the business effective and eventually
the customers will be served accordingly and satisfactorily.
The Researchers. The result of the study will give knowledge to them as the
researchers would want to have their own business and on how to make an effective
financial management.
Other Researcher. The result of the study will help other researcher on their future
studies as reference.
Definition of terms
Sari-sari store refer to microenterprise with no employee and having a starting
capital asset of PhP 3,000 or less.
Financial Management it is an application of management skills and knowledge
being applied by the owners in governing their business in terms of investing,
financing and operating.
Toril, Davao City it is a place in the Philippines, Mindanao area specially located in
Davao City District 3 where the study was conducted.
Profile personal identification of respondents that may affect the financial
management applied corresponding to sex, age and educational background.

CHAPTER 2
REVIEW OF RELATED LITERATURE

Related Literatures
This section features different studies regarding the effect of owners profile
specially age, gender and educational background in financial management, level of
financial management and the difference of owners profile towards the level of
financial management. The definition of financial management and some problems
encountered of it is first discussed. The owners profile specially age, gender and
educational background that may affect financial management is thoroughly
reviewed. Next, the level of financial management of sari-sari store owners. Lastly,
the difference of sari sari store owners profile towards the level of financial
management.
Financial Management. Meredith (2003) said that financial management is
one of the areas of management which play the fundamental role to the fulfillment of
any small business. In addition, Peel, Pope and Wilson (2001), financial management
and profitability can also be called as liquidity and profitability. Amin (2010)
acknowledged that there are troubles being faced by Indian retailers that hold back
their success. Industry in India faced lack of power supply, lack of credit management
and corruption.
Small businesses like retail store really aid a nation on its escalation. The size
doesnt matter because it allows flexibility and more rapidly decision - making
because of its distinctiveness of innovation, drive and competence (Kropp, Lindsay &
Shoham, 2006).
Owning a small business has an advantages and disadvantages. Advantages
like one cant fire you; one decides your work schedule, gain thorough understanding
and opportunities about business. Disadvantages like money and savings
consumption, demanding duties and unlikable experience losing capital (Collins,

2013). If a small enterprise be unsuccessful, the major causes is lack of planning,

unacceptable financing and poor management. When starting a small business, there
are only two possibilities, achievement or failure. Because of its size, mismanagement
will certainly result its own death and it cannot learn from its own mistakes
(Longenecker, Moore and Palich, 2006).
Age. Generally, traditional family business that can be considered failed still
being sustained by middle and old-aged retailers. Their purpose is not for earnings
anymore but to carry on their family legacy (Watson and Everett, 1999).
The typical life of a small business is 5 years. A finding says that 90% of the
failed businesses are less than 10 years. An age of a business certainly associated to
failure (Peterson and Shulman, 1983).
The research in the Organization for Economic Co-operation Development
(2012) who found out that because of limited work experience, young people face
more problems than older men believing that they have stronger attachment to the
world of business.
Gender. Gender is another demographic issue which could influence credit
management practices along with micro-enterprises. Halkias (2008) postulated that in
relation to entrepreneurial connection and business possession, there is still an
important and methodical gap between genders. Evans and Winston (2008) made a
similar claim to that of Halkias (2008). In their study on loan delinquency among
small business owners in Ghana, they initiate that single college educated women
managed their credit more practically than both men in general and married women.
In 2003, about 1,121,687 or 36.8 percent of total employment women
participated in labor force and 30.3 percent of it are women entrepreneurs (Arias,

2007). Richardson (2004) compared women to men in Africa. Gender doesnt matter
but women have inferior access to their own resources, timely busy and less access to
formal education and skills training. Opportunities to women are much lower than
men and they faced harder access to support. Kibera (1997), presented in his previous
studies that women run at least 70% of business enterprise.
Educational Background. According to Chong (2010), managing credit
practices is affected by the education achieved of the respondent which concludes that
if you have high level of attained education, you have superior credit management.
Osman (2005) of Malaysia found out that retailers typically dont have a
proper education so they end up in an established family-type business. A study in
India discovered that more retailers are undergraduate (Selvakumar & Muthumoni,
2011).
According to Kauffman Foundation (2009) in his previous study, he found out
that there is similar characteristic between businessman and college students for that
reason, owners reaching college level are likely to have an entrepreneurial viewpoint.
Devol (2013) were right that better educated workers have more abilities in
improving production.
Investing. Based on Cooley and Pullens research (2001), businesses should
have a cash management program to spend appropriately the resources it has and to
properly assign it to the operation. Investing properly the cash like savings accounts,
certificates of deposit, treasury bills, repurchase agreements, commercial papers,
shares, bonds and other investments to avoid cash surplus and make the most of its
asset.
Small businesses must invest their resources as it should be because they are at
risk to bankruptcy and should generate positive cash flows (Wellalage and Locke,

2010). Small businesses should invest further on quality they are giving to customer
because customer contentment will be a great advantage in their operation (Foreman
Peck, 2005).
According to Zeitun, Tian and Keen (2007), it is important that a manager or
an owner of a business should be knowledgeable enough of managing cash in
business operation to have a positive result. The investments function measures a
business effort, like acquiring fixed assets that can be used in the business (Brealey,
2006).
Operating. Retailers have the influence to find its own supplier. Retail and
suppliers should build a good connection because they both concerned channeling of
goods (Pearson, 2013). In a study made in India, the outcome shows that greater part
of retailers with 86.50% procure raw materials from open market. Retailers should be
convenient and prepare plans like proper store atmosphere, product variety and
procurement and suitable placement of products within the retail store. (Selvakumar
& Muthumoni,2011).
According to Pamaos (2014), sari-sari stores get their supplies from
bagsakan or middlemen who get their supplies from the supplier in bulk with
normal and bulk discount. For Selvakumar and Muthumoni (2011), to participate with
competitors, retailers should be exclusive and appropriate to customers needs. The
basic retailing approach is giving the uppermost quality to the customer; it will
perfectly lead the retailer to success.
Reyes (2012) mentioned that small business owners should be familiar with
how to manage the outflow of their inventories, how much to accumulate and goods
should be bought on time. Further, Nielsen (2012) implied that sari-sari store owners

10

should innovate because of fast development of convenience store, a stiff competition

is present. Sari-sari stores should manage with the fast varying taste of the customers.
In India, small enterprises have a unique advantages like it focus more on somewhat
small market and facilitate an effective usage of resources of capital and skills which
might remain unutilized. (Shah and Khedkar, 2006) According to Richardson (2004),
in Zambia, people would rather decide to function in an informal basis because its
easier to trade outside the formal frameworks for registration, taxation and regulation.
For Ramakrishnan (2013), most of the small enterprises function weak because it
lacks proper computation of total expenses, total revenue, profit etc., for they do not
keep an organized record.
Financing. In acquiring source of funds for small business, it is a steady
difficulty to them most of the time. This might be due to the small approval rate of the
banks. Besides, defaults of the good companies is due to the borrowers who use the
funds for personal benefits at expense of the company which caused the banks now to
be more vigilant in reviewing loans to lessen defaults. In Central Bank of Malaysia,
they introduced a micro-finance illustration which is suited for small business in the
state of Malaysia that constitutes 80% of the business. (Aris, 2007) The scheme of Rm
500 to Rm 50,000 with no collateral desired. However, proper credit management is
innate for solvency and continued existence of microenterprises. (Aris, 2007) It will
develop credit worthiness which improves future financing accessibility. (Asselbergh,
2002)
The major source of capital for their enterprise is borrowing or even own
savings in Micro-enterprises in Malaysia. (Ganbold, 2008) Malaysian microenterprises contended that the trouble faced in obtaining financing included
inadequate financial track record and insufficient documents to support loan

11

applications. (Aris, 2007) Small enterprise is a profitable market and it can be develop
more by unlocking its potentials. Nations are now lending to this kind of enterprise
(International Finance Corporation, 2010).
In Australia, government and industry give attention to small businesses as a
new avenue because of its great potential in the industry (Coulton, 2007). Capital
start-up doesnt matter because in Malaysia small and medium enterprise is
considered as the backbone of the industry because of its continual contribution to the
expansion of their economy (Aris, 2007). Financing a business, an owner should have
a good standing in which it is their source to cover the funds needed (Miculeac,
2013).
Theoretical Framework
Okoye and Ezugwu (2009) studied that profile such as age, gender and
educational background of the owner of an enterprise have an implication on their
management. With exposure to fundamental practices of management, it imparts
positively on the performance of the business. Based on their study, they found out
that sexual characteristics do not influence the level of skills but educational
accomplishment do. Their learning will be the theoretical foundation to verify the
level of financial management among sari-sari store owners in Toril, Davao City.

Conceptual Framework
Owners Profile

Age
Sex
Educational
Attainment

Level of Financial
Management

Investing
Financing
Operating

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Figure 1: Conceptual Framework showing the variables of the study

This framework would merely elaborate the study of level of financial
management among sari-sari stores in Toril, Davao City. The x variables of this study
are the sari-sari store owners profiles which comprise the age, gender and educational
background.
The level of financial management may vary depending on the age of the sarisari store owners. Its like age which will help determine how experienced they were
as an owner and how they apply financial management to their store.
Male and female have different perception about a business and they both
have their weaknesses and strengths when making a decision. In the level of financial
management, gender will be a great factor to the magnitude of application.
Lastly will be the educational attainment. School learning will enhance the
knowledge on how to properly apply the financial management. Educational
attainment especially when an owner is a professional has great factor.
Level of financial management in terms of investing, financing and operating
should be measured. These terms will be the basis on how to properly apply financial
management. Investing will measure how an owner will use its asset to grow much
faster in a proper venture and exercising the most potential effort of an asset.
Financing will measure how to acquire own resources and the risks of it. Operating
will measure the productivity of the business.
CHAPTER 3
METHODS

13

This section presents methods and process in terms of research design,

research respondents, research instrument, data gathering procedures and the
statistical tool. The researcher also identified the profile of the respondents and the
period that the study was conducted. All the steps are explained based on interview
and observation in the conduct of data gathering.
Research Design
This study used the descriptive survey method in designing the research as
most appropriate. According to Yuen, Schidmt and Terao (2013), descriptive study
uses techniques which involve comparison groups to produce a sample and provide
specific and clear information regarding the study. This is to obtain information
concerning the status of the phenomena and to describe with the condition of the
situation. Descriptive studies evaluate the resemblance and distinction among
phenomena to find out if certain factors or situation tend to accompany certain
dealings, circumstances or processes.
Research Respondents
The respondents were 100 sari-sari store owners residing in Toril, Davao City.
As the respondents, they were chosen basically by the availability and nearest to the
proponents. Researchers aimed to know the level of financial management among
sari-sari store owners in Toril, Davao City.
Research Instruments
This study used questionnaire as the prime source of information in gathering
data to meet the specific objectives by listing query which was duly validated and
presented for reliability. The draft of the questionnaire was constructed by the
researcher and the revisions were adapted.

14

These lists of questions were distributed to owners which were filled by their
corresponding answers in the questions. There were questions asked first with their
personal information, saving capability, to budget their sources, payment of debts and
income generation.

Data Interpretation

Range of Means Description

4.21 5.0

Very High

Interpretation
SariSari store owner has excellent

practice and
knowledgeable

of

financial

management
3.40 4.20

High

SariSari store owner has very good

practice
and

knowledge

of

financial

management
2.61 3.40

Moderate

SariSari store owner has adequate

practice
and

knowledge

of

financial

management
1.81 2.60

Low

SariSari

store

owner

has

barely

adequate
practice and knowledge of financial
management

15

1.00 1.80

Very Low

SariSari

store

owner

has

little

adequate
practice and knowledge of financial
management

Data Gathering Procedure

The procedure was systematically arranged in acquiring information from the
respondents. The following are the facilitated steps followed by the researchers in
gathering of data:
1. The researcher asked permission to every store owners to conduct study through
visiting the location and by showing the letter of approval or for inquiry which will be
done from the period of February, 2014.
2. The researcher conducted an initial interview with the owner of the sari-sari stores on
the same day. The discussion would be about the basic information about the business
and about customers information.
3. After the initial conversation, the researcher will start to distribute the questionnaire to
the respondents with corresponding specification that is relevant to the conduct of
research. The owner explained to the researcher their flow of every transactions and
the information gathered served as the additional data for the study.
4. The researcher browsed the internet for input information that is significant and will
support the study. The data gathered are related on the financial management. In
achieving the objective of this study, the researcher will use library technique through
research by the use of books, journals, and prior thesis samples in gathering data as a
source of information and the related studies of financial management on sari-sari
stores.
Statistical Tool

16

This study employed statistical treatment such as Frequency and Percentage,

Mean, F-test and Descriptive Analysis. These tools were used to identify whether to
accept or reject the null hypothesis. The following tools were used in this study:
Frequency and Percentage. This tool was used in the study to get the
summarized number of the same group of respondents from the total respondents. In
this study, it was used to determine the profile in terms of age, sex and the educational
attainment of the respondents. Percentage was used to identify its portion in 100
percent.
Mean. This was used to determine the level of Awareness of Financial
Management. This is to identify the average of the response of the respondents
according to the indicators such as always, sometimes, half, seldom and never.
F-test. This was used to determine the level of financial management in a
business. This is to identify if there is significant difference between the level of
financial management in terms of investing, financing and operating to the profile
such as age, gender and educational attainment of the owner.

17

CHAPTER 4
RESULTS AND DISCUSSION
This chapter shows the results of the survey conducted by the researcher and
its following discussions. A summary of the demographic characteristics (Gender, Age
and Educational Attainment) of the respondents are reported in the first parts. Then
the second part shows level of awareness of financial management of the sari sari
store owners in terms of investing, financing and operating. Lastly, it shows the
correlation between the sari sari store owners profile and their level of awareness of
financial management.
TABLE 1
Descriptive Variable
Gender
Male
Female
TOTAL
Age
19-25
26-32
33-39
40-46
47-53
54-60
61-67
68-74
TOTAL
Educational Attainment
Elementary Level
Elementary Graduate
High School Level
High School Graduate
College Level
College Graduate

Respondents Profile
Frequency (f)

Percentage (%)

10
90
100

10%
90%
100%

7
12
12
23
16
19
9
2
100

7%
12%
12%
23%
16%
19%
9%
2%
100%

6
3
12
24
29
25

6%
3%
12%
24%
29%
25%

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Vocational
TOTAL
100%

1%
100

Out of one hundred respondents, majority (90%) were female sari sari store
owners. Females having 90% dominated the total owners surveyed and only 10%
were males. This figure really shows women are more active in engaging to sari-sari
store business. This conforms to what Kibera, (1997) presented in his previous studies
that women run at least 70% of business enterprise. And it is also supported by Arias,
(2007) by her statement that about 1,121,687 or 36.8 percent of total employment
women participated in workforce and 30.3 percent of it is women entrepreneurs,
surely women are active in business.

But it contrasted to Richardson, (2004)

compared women to men in Africa. Gender doesnt matter but women have has lower
access to their own resources, timely busy and less access to formal education and
skills training. Opportunities to women are much lower than men and they faced
harder access to support.
Ages from 40 46 are the most active in engaging to sari sari store business
while the ages from 68 74 are the least active. This shows that most Filipinos are
active to engage into sari sari store business at this stage. In support to the research
in the Organization for Economic Co-operation Development (2012) who found out
that because of limited work experience, young people face more problems than older
men believing that they have stronger attachment to the world of business. It
contrasted to the study of Watson and Everett, (1999) that mostly traditional family
business that can be considered failed still being continued by middle and old-aged
retailers. Their objective is not for profit anymore but to continue their family legacy.

19

More than a quarter (29%) of the respondents surveyed were College level,
telling that most of entrepreneurs engaged in sari sari store business have the basic
education and unfinished college education needed to run their business. College
levels are now more active in sari sari store business. According to (Kauffman
Foundation, 2009) in his previous study, he found out that there is similar
characteristic between businessman and college students for that reason, owners
reaching college level are likely to have an entrepreneurial viewpoint. A study in India
revealed that more retailers are undergraduate (Selvakumar & Muthumoni, 2011). It
conforms to the result that mostly college level or undergraduate engages in sari sari
store business. A study made by Osman (2005) of Malaysia said retailers usually dont
have a formal education so they end up in a traditional family-type business, also
supported the result.
Table 2 shows that sari sari store owners of Toril, Davao City were aware on how
they are running the sari sari store business. They are not just engaging their capital
for nothing. According to Pourghajan and Zabih (2013), managing financial resources
plays important role on building profitable organization.
TABLE 2
Level of Awareness of Financial Management of Sari Sari Store Owners

Financial Management Variables

Mean

Descriptive Level

Investing

3.78

High

Financing

4.32

Very High

Operating

3.82

High

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Grand Mean

3.97

High

Investing has a mean score of 3.78 with a description of high. An implication

of this finding is that sarisari store owners have very good practice and knowledge of
financial management in terms of investing. Financing has a mean score of 4.32 with
a description of very high. An inference of this result is that sarisari store owners
have excellent practice and knowledge of financial management in terms of financing.
Operating has a mean score of 3.82 with a description of high. An inference of this
finding is that sarisari store owners have very good practice and knowledge of
financial management in terms of operating. Based on results, the overall financial
management among sari-sari store owners in Toril, Davao City has an overall mean of
3.97. According to Zeitun, Tian and Keen (2007), it is important that a manager or an
owner of a business should be knowledgeable enough of managing cash in business
operation to have a positive result. Success of operating the business depends on the
good performance and how an owner handles cash for day to day operation. The
investments function measures a business effort, like acquiring fixed assets that can
be used in the business (Brealey, 2006). Financing a business, an owner should have a
good standing in which it is their source to cover the funds needed (Miculeac, 2013).

21

TABLE 3
Significant Difference between the Level of Financial Management and the
Respondents Profile
Level of Financial
Profile

Sex

t-value

P-Value

Interpretation

Investing

1.228

0.222

Not Significant

Financing

1.993

0.049

Significant

Operating

5.932

0.017

Significant

Management

F-Value
Age

Educational
Attainment

Investing

0.499

0.833

Not Significant

Financing

1.085

0.379

Not Significant

Operating

0.665

0.701

Not Significant

Investing

0.856

0.035

Significant

Financing

0.922

0.01

Significant

Operating

0.957

0.003

Significant

In terms of gender, there is no significant difference between investing and sex

of the respondents which signifies that whether male or female, it has no difference
between them. For financing and operating for the sex of respondents, there is
significant difference between them. Gender really matters and there will be a great
difference between male and female. This result was agreed earlier where gender roles
on SMEs performance has developed considerably over 15 years (Carter, 2001). And

22

it conforms to what Kibera, (1997) presented that women run at least 70% of all
informal SMEs worldwide.
In terms of age, investing, financing and operating have no significant
difference. Even an owner came from different kind of ages; it doesnt matter because
it will not matter when engaging to sari-sari store business. Researches in the OECD
(2012) were right about young people face more problems because of limited work
experience than older people having already an attachment to the business world.
In terms of educational attainment, the three variables came with the same
result which is significant difference. It tells us that educational attainment really
matter and having a degree or being a professional can have a bigger edge between
the others who didnt finished their education. Indeed Devol (2013) were right that
better educated workers have more abilities in improving production, it confirmed
the importance of educational attainment.

CHAPTER 5

23

FINDINGS, CONCLUSION AND RECOMMENDATION

This chapter presents the rundown of the research done, the conclusions drawn
and the recommendations made as an outgrowth of this study.
Summary Findings
1.

Based on the profile of Sari sari store owners, it showed that female sari

sari store owners dominate or have greater number compared to the male one. Sari
sari store owners were mostly run by owners aging from 40 46 which are middleage people. Based on the data gathered, sari sari store owners in Toril, Davao City
are mostly college level.
2.

Sari Sari store owners in terms of investing and operating showed high level

of financial management which means, sari sari store owners in Toril, Davao City
has very good practice and knowledge of financial management. While in financing, it
resulted in a very high which means sarisari store owners have excellent practice and
knowledge of financial management.
3.

Significant difference was established between respondents educational

attainment and in gender in terms of financing and operating with the sari-sari store
owners financial management. In contrast, there is no significant difference
established on the other variables under study. It implies that regardless of
respondents age, their financial management is the same.
Conclusion
Based on the finding stated, the following general and relevant conclusions
were drawn. Its showed that most of the respondents were female and accordingly,
engaged to business of sari sari store since naturally women are devoted, more
careful and thrifty. This explanation will be supported according to Kibera (1997),
that women run at least 70% of business enterprise. Ages 40 to 46 were found as most

24

owners of the business. This simply elaborate that aside from having another source
of income, this age would think of saving for their future and to be insured for having
an easy-made business for them to be productive for pecuniary interest. Due to the
difficulty of having a job, college level individual would acquire this kind of business.
According to Kauffman Foundation (2009) study, students after reaching college level
are likely to have an entrepreneurial viewpoint. The researcher findings revealed that
there is no significant difference of financial management among sari-sari store
owners in Toril, Davao City in terms of age and in gender in terms of its investing.
The significant differences established were between respondents educational
attainment and in gender in terms of its operating and financing. Further research
which is related in the study can improve and dig deeper in the other possible ways
regarding financial management of sari sari store owners that can contribute more in
guiding everyone who wants to engage in sari sari store business or retail trading
effectively.
Recommendation
Based

on

the

findings

and

conclusions

presented,

the

following

recommendations are given:

That the financial management among sari-sari store owners in Toril, Davao

City should be maintained and improved for future purpose.

Future entrepreneurs should attend various trainings and programs organized
by government or other bodies; this will help them polish more their financial
management and decisions. Kautilya (2011), an Indian philosopher, royal
adviser, and professor of economics and political science very rightly
underlined the importance of education as he highlighted the fact that
education enriches people's understanding of themselves and said that
education is an investment in human capital, and it can have a great impact on
a nation's growth and development.

25

For the lending company, this will be the basis for them to have an open arms

relation to lend for the starting capital to sari-sari store owners.

Customer should build more close relation and trust with them as it goes to
show that sari-sari stores in Toril, Davao City have high financial
management. This would result to greater income for owners and hike to

economic abundance as a whole.

These enumerated guidelines/policies with regard to financial management
may be of help to those who are currently sari-sari store owners in Toril,

Davao City and to the researchers who plan to put up a business.

Future researchers may conduct research to verify the soundness of the
findings of this study.