Status, Problems and Prospects of Water Hyacinth Handicrafts Produced in Laguna

Date

4-2010

Degree

Bachelor of Science in Agribusiness Management

College

College of Economics and Management (CEM)

Adviser/Committee Chair

Nanette C. Abelilla-Aquino

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

This study focus on the status, problems and prospects of the Water Hyacinth handicrafts produced in Laguna. It specifically aimed to: (1) present n overview of the water hyacinth handicraft businesses in the area; (2) describe and analyze the practices in the four business function of the businesses; (3) identify the problems encountered by the water hyacinth enterprises; (4) identify investment opportunities and/or developments in the industry for entrepreneurs and government and/or non-government organizations respectively; and (5)formulate recommendations to address the identified problems, issues, and prospects to promote the development, competitiveness and sustainability of Water Hyacinth handicrafts business in Laguna A complete enumeration of nine producers-respondents of water hyacinth handicrafts was done. The list was verified from the different the municipal offices. The nine producers were interviewed using specially-designed survey questionnaires. Descriptive research design was used to illustrate and describe the profile and various aspects of water hyacinth handicraft enterprises in Laguna. A market survey was also conducted to asses the familiarity and perceptions of the market towards water hyacinth handicrafts. It was found out that eight out of nine producers were sole proprietorships, where all were in the business for just a year. One enterprise was registered as a cooperation. most of the Water Hyacinth handicrafts producers in Laguna were Sole proprietorship. Most of the producers relied on local government unit when they started the business. However after inception, they used their personal resources to continue their business. Producers were mostly registered to female. They were the ones who usually manage the business. The study also found all of the producers in Laguna were married and were at the age of 46 to 55. 100% percent of the manufacturers belonged to the upper educational level, which was high school graduate up to college or some vocational courses. On the other hand, the most frequent reasons in engaging in Water Hyacinth handicraft business were due to the training support from the government and the encouragement by their respective LGU. Along With this, they see the business as profitable. The water hyacinth handicrafts business in Laguna as assessed by the researcher could be considered in its growth stage since it’s in a period of rapid market acceptance and substantial profit improvement. However, to further sustain the operation, the business should first address some pressing problems. The water hyacinth handicrafts business were beset with problems in production, finance and marketing. The decrease in treated Water Hyacinth stalks in the business during typhoon Ondoy has directly affected the production of Water Hyacinth handicrafts. Lack of equipment and dependence on manual operation in the production are another problems encountered by the producers. Moreover, lack of financial resources and sources of capital are also being encountered by manufacturers. Marketing of products rely only on referrals and sign boards. Their marketing strategies were not enough to allow them to tap the export market. Comparative analysis on cost estimates on producing a bag made from Water Hyacinth, Pandan and Abaca showed that producing a Water Hyacinth bag was the most profitable due to the high selling price of Water Hyacinth bag and low production cost incurred. The powers of the customers tend to be the most significant factor in the structure of competition. Any change in consumer habits dictates product, price, product line, quality and style. The discriminating tastes of consumers as well as their sensitivity to prices are prime factors affecting the manufacturer’s profitability.

The business is also characterized by the high threat of entry of new firms because of low capitalization. It was identified that the bargaining power of the buyers (tourists, and balikbayans, class A and B) is low. They were not price sensitive and were willing to pay high due to the uniqueness of design and high quality of such handicrafts. While the bargaining power of institutional buyer is high because they often buy in bulks and ask for discounts. The intensity of competition among the producers in Laguna is said to be low because they are only few, however the competition within the handicraft industry and its substitutes seemed to be intense nationally and globally. Bargaining power of supplier was low because the raw materials used are widely and abundantly available. Recommendations for the producers include product development by attending training and seminars organized by the local government or other related agencies, and upgrading the production capacity through acquisition of equipment, market penetration by joining trade fairs within the region, educating the market, market niching, establishing a link with the government and non- government agencies related to the industry like DTI and PCHI for promotion and marketing; organizing of One Town One Product (OTOP) concept. On the other hand, recommendations for agencies and institutions related to the industry are as follows: establishment of rapport with producers in the Water Hyacinth handicraft business; support through designing marketing and finance programs intended for them; organizing a technical committee that will help the industry through consultations, information dissemination and assistance.

Language

English

LC Subject

Handicraft--Philippines

Location

UPLB College of Economics and Management (CEM)

Call Number

LG 993 2010 M17 A24

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