Credit Decisions of Selected Public Market Retailers in San Pablo Shopping Mall

Date

5-2015

Degree

Bachelor of Science in Agribusiness Management

College

College of Economics and Management (CEM)

Adviser/Committee Chair

Normito R. Zapata, Jr.

Request Access

For non-UP researchers, requests for access to this material may be directed to the CEM Library at cemlibrary.uplb@up.edu.ph or to the UKDR administrator at uscs-mainlib.uplb@up.edu.ph

Abstract

The objective of this study is to assess the effect of credit decisions on the business operations of public market enterprises in San Pablo City, Laguna. It specifically aims to; 1) discuss the general profile of public market retailers in San Pablo Shopping Mall; 2) identify and describe the credit decisions and activities faced by the public market retailers; 3) discuss and analyze the factors affecting credit decisions; 4) discuss and analyze how credit decisions affect the four business functions of the public market retailers; 5) identify and discuss the financing related problems faced by the public market retailers as well as provide recommendations to the identified problems.

The study used a descriptive research design. Primary data was gathered through personal interviews with retailers in the shopping mall, guided by a questionnaire. Secondary data such as methods of data analysis and background of the shopping mall were obtained from UPLB Main Library, CEM Library, CARD MRI Library, City Planning and Development Office of the Municipal Office of San Pablo City, the administration office of San Pablo Shopping Mall and the Internet. The study made use of both qualitative and quantitative methods of data analysis. Quantitative analysis was done in comparing different characteristics, activities and business experiences of the retailers. Qualitative analysis was used in assessing the implication of credit decisions and activities to the retailers’ enterprises. Probit analysis was also employed to determine the existence of relationships between selected retailer characteristics and credit decisions.

The study sample was composed of 79 retailers engaged in handling different kinds of commodities like dry goods, seafood/fish, rice/sari-sari, fruits/vegetables and services. Purposive sampling was used in determining the respondents

The results show that majority of the retailers rely solely on their retailing businesses as their source of income. The primary reasons for behind their engaging in the retailing business are to earn income for their daily needs and to provide for their families. Majority of the respondents were female and married. All retailers had received a form of schooling with every retailer receiving elementary education at the very least.

The Probit analysis revealed that the need for credit decreases as the level of age, educational attainment and years of experience increase.

Retailers had a variety of choices in terms of borrowing money - informal lenders, banks, lending investors, micro finance institutions, relatives and friends among others. They also had different considerations in choosing a particular credit source. Accessibility, low interest rates and fewer requirements were cited as considerations to name a few. It was found that, informal lenders were the usual main source of credit with micro finance institutions not far from behind. The choice between formal and informal sources was also analyzed using Probit analysis. Results showed that as a retailer aged and gained experience, the more likely it was for the retailer to borrow from formal sources.

To address this issue of retailers not receiving favorable loan arrangements the researcher recommended that the retailers borrow and follow strict repayment schemes, be made to understand effective interest rates and join a microfinance institution.

Language

English

LC Subject

Retail trade-Finance, Credit--Management, Market surveys

Location

UPLB College of Economics and Management (CEM)

Call Number

LG 993 2019 M17 D47

Notes

Viewing access to electronic resources is restricted solely to UP Gmail accounts. Any access and share requests from external organizations and personal email accounts will be promptly declined.

Document Type

Thesis

Link to Full Text

Share

COinS