Cavite State University - CCAT Campus - Library

An Undergraduate Thesis (BSBM) -- Cavite State University-CCAT Campus, 2014.

Includes bibliographical references and appendices.

BROWN, KENT M., DOMINGUEZ, MARIZ SARAH C., AND ESTACION, JANINE S., The Role of Informal Moneylenders to the Sari-sari Stores in Rosario Cavite. Undergraduate Thesis. Bachelor of Science in Business Management Major in Marketing. Cavite State University, Rosario, Cavite. April 2014. Adviser. Ms. Elizabeth Rodriguez.

The study was conducted from June 2013 to January 2014 to determine the role of informal moneylenders to the sari-sari stores in Rosario Cavite. Specifically it aimed to: 1. identify the number of sari-sari stores in the study area and determine the socio- economic profile of the store owners. 2. identify the common terms and condition that sari-sari storeowners avail from informal moneylenders. 3. determine the participants' assessment on the benefit they acquired from informal moneylenders. 4, recommend a better solution for the sari-sari stores problem when it comes to access in financing.

Survey interview through questionnaire was conducted to the whole population of sari-sari stores in the study area. The survey was designed to gather the socio-economic profile and assessment of the participants. Data gathered were collected and analyzed by the researchers with the help of a statistician. Data were compared with each other using ranking and percentage as well as weighted mean.

There were 393 sari-sari stores that operate in the study area, 167 of this population are borrowing from informal moneylenders.

There is a dominant number of female entrepreneurs who are engaged in sari-sari store operation and ages 50 to 67 years old. Many participants are married and were able to finish high school. Most of the participants has an average family size of 3 to 5 members and mostly earns P10, 000 or less. Many of the participants operate for two years or less and have an initial capital of less than P5, 000.

Based on the assessment of the participants on the reasons of borrowing from the informal money lenders, findings revealed that most of them are resource constrained and has a limited access to financing. The assessment also revealed that most of the participants borrow from informal moneylenders due to business related reasons, such as initial capital, additional capital, and to pay other debts.

The frequency of borrowing from the moneylenders is usually every 2 months, and with an average amount of P5, 000 or less. Most of the participants believe that informal moneylenders were able to help them in financing the needs of their businesses. Participants strongly agree that informal moneylenders are beneficial to them.

The results revealed that the role of informal moneylenders is beneficial to the sari-sari stores. Such benefits are loan were released at reasonable time, informal money lenders are friendly and accommodating, no documentations required, no repayment interest, and easy payment terms. Informal moneylenders usually provide short-term finance of small loans which is preferably fit to low-income groups such as sari-sari stores, who cannot acquire large loans and do not choose long commitment.

Informal moneylenders provide loans to borrowers when requested, expeditiously and in a flexible manner; thus making finance available immediately, when it is needed and no official requirements. Informal moneylenders play a useful role in providing credit loans to sari-sari stores in Rosario, Cavite.

In English text.