Role and Impact of Credit on Public Market Retailers in Calauan, Laguna

Date

4-2011

Degree

Bachelor of Science in Agribusiness Management

College

College of Economics and Management (CEM)

Adviser/Committee Chair

Jimmy B. Williams

Committee Member

Normito R. Zapata, Jr., Jewel Joanna S. Cabardo, Nanette A. Aquino, Reynaldo L. Tan

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Abstract

Credit has played a vital role in the retailers’ business operations. Informal and formal lenders have been contributing to the continuity of their business.

This study aimed to present the role and impact of credit on public market retailers in Calauan, Laguna. Specifically, it aimed to (a) describe the characteristic and basic operations of public market retailers in Calauan, Laguna, (b) determine the characteristics and usage of credit among the market retailers in the locality, (c) determine the effective cost of credit to the market retailers, (d) present the factors affecting the retailers’ choice of a particular credit source, and (e) recommend ways to improve the credit facilitation to the retailers in the locality. The study was conducted from October 2010 to March 2011.

This study is one of the two researches conducted with individual respective areas. These areas are Calauan and Biñan Laguna. It also adopted similar methodology and framework analysis. It can be considered as an extension of the previous studies regarding microfinancing which the findings will serve as information based on credit and finance.

Primary data were obtained through personal interviews using a guide questionnaire conducted at the public market of Calauan, Laguna. A total of thirty (30) respondents were interviewed. A non-probability sampling was used through dividing the population into segments/ strata depending on the commodities they handle. Secondary data were obtained from the municipal planning development coordinator, public administrator’s office, libraries and internet.

The study revealed that most of the respondents/ retailers were adults, women and had a secondary level of education. Most of the retailers/ respondents depend merely on their retailing business as the major source of their income.

The problems encountered by the retailers include bad debts from customers, low sales.

The retailers’ most preferred source of loan was moneylenders which constituted about sixty percent (60%), followed by banks with twenty three point thirty three percent (23.33%) and followed by relatives with sixteen point sixty seven percent (16.67%).

The major source of funds of the retailers was credit which has helped in sustaining the business operations. The retailers also used borrowed money not just for capital investments but for children’s tuition fee, electric and water bills, and hospitalization.

To be able to improve the business operations and credit situation of the retailers, the following are hereby recommended: (a) Keep an organized business record of loan payments (b) Join a microfinance institution (c) Planning in Business Operation (d) Formation of market association.

Language

English

LC Subject

Credit, Retail trade surveys

Location

UPLB College of Economics and Management (CEM)

Call Number

LG 993 2011 M17 D35

Notes

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Document Type

Thesis

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