Assessment of the business assistance needs of fish, meat and chicken retailers in Cabuyao, Laguna.

Date

10-2009

Degree

Bachelor of Science in Agribusiness Management

College

College of Economics and Management (CEM)

Adviser/Committee Chair

Nanette Abelilla-Aquino

Abstract

Fish, meat, and chicken retailing in Cabuyao, Laguna is one of the livelihood activities that helps its townspeople generate income. The study aimed to present the profile of these fish, meat, and chicken retailers, identify and assess the current programs and services being provided by Laguna and Cabuyao local government for fish, meat, and chicken retailers, identify the retailers’ business assistance needs and finally, recommend what specific business assistance need/s a business incubator can provide. This research also looked not only into the internal factors affecting the retailing businesses but on the external factors as well. By looking both at the internal and external factors, problems were identified. Also, to thoroughly examine the the external condition of the industry, an analysis of the food retailing industry in the Philippines with some focus on the Cabuyao food retailing industry was done. The government of Cabuyao has its own efforts into helping not only the fish, meat, and chicken retailers but the business/entrepreneurial sector as a whole. With this, they offer various programs and services through the Municipal Cooperative and Livelihood Development Office (MCLDO). This supporting arm of the government is responsible for uplifting the status of livelihood and cooperatives in Cabuyao. In doing this, they put forward seminars, trade fairs, loan programs through Municipal Livelihood Loan Program (MLLP) to name a few. Really committed into boosting the business sector, the Cabuyao government recently came up with another support wing through the Cabuyao Investment and Development Authority (CIDA).CIDA proposed three major implementations in the form of Cabuyao Enterprise Park (CEP), Cabuyao Business Park (CBP), and CIDA Business Incubator (CIDA BI). To identify the gap between the supply and demand of business assistances in Cabuyao for the fish, meat, and chicken retailers, the current programs, services, and business assistances that are currently being provided by the government through various institutions and the Cabuyao local government itself were first identified. After which, 72% of the total number of the fish meat, and chicken retailers in Cabuyao were interviewed to identify what other business assistances do they need. Out of the 66 registered fish, meat, and chicken retailers in Cabuyao, Laguna, there were 48 retailers who were interviewed for this research. This is inclusive of the 7 retailers who are not registered as of January 2009. Out of these retailers, 16 were fish retailers, 17 were meat retailers, and 15 were chicken retailers. All of these retailers, based from the data gathering, are micro-businesses in scale. The study revealed that all retailers were sole proprietorship in nature and retailing is a family business. Also, majority of the

3 retailers were married females. The most recurring internal problems of these retailers were the lack of capital, problems in collecting receivables, and problem regarding payables. On the other hand, the most frequent external problems were with respect to establishing good and lasting relationship with suppliers, competitors, illegal vendors and location in terms of sanitation. Meanwhile, there were 24 retailers who refused to be interviewed. A mini case of a relatively progressive retailer was done to determine key success variables that can make a retailer successful. Personal Entrepreneurial Competencies test was also done to assess what traits are lacking and are dominant in the fish, meat, and chicken retailers, and for the whole of these retailers. It was found out that for the fish and meat retailers, all traits were in moderation while for the chicken retailers, opportunity seeking is weak but goal setting is strong. As a whole, the fish, meat, and chicken retailers have all of these traits on a moderate level. External and internal audits were also done through a listing of the internal strengths and weaknesses and the external opportunities and threats. Internal strengths were location in terms of high customer traffic, low overhead costs, good relationship with suppliers at present, competitive pricing scheme, loyal customers, and long years of existence. The internal weaknesses were poor sanitary conditions, insufficient funds, poor collection of receivables, lack of awareness in government programs and services, and poor record keeping of financial transactions. External opportunities, meanwhile, include the existence of government support services, existence of formal lenders and other sources of funds, the existence of Cabuyao Market Vendors’ Multi-Purpose Cooperative (CAMAVEMCO), demand for the fish, meat, and chicken are generally stable, and the opportunity of tapping the institutional buyers. For the threats, the economic factors such as peso devaluation and price increases is one, while other threats are stiff competition, diseases attacking the fishery sector, livestock and poultry industries, and the illegal vendors that proliferate elsewhere. The supply chain for the fish, meat, and chicken products in Cabuyao was also examined to assess whether the municipality is sustainable in this industry. To address the issues and problems facing the retailers, recommendations on the kind of business assistance that these retailers need were specifically identified. Most of these programs include seminars and lectures for financial management, basic accounting and bookkeeping, entrepreneurial activities and entrepreneurial traits-enhancing seminars, strict implementation of laws, rules, and regulations, and establishment of organizations and cooperatives. All of these should be backed-up with intense information dissemination and motivation on the fish, meat, and chicken retailers. It has been concluded that the local government of Cabuyao can assist the fish, meat, and chicken retailers in their municipality through hosting and implementing the above-

4 mentioned activities. As for the business incubation program, though it may not be applicable by this period in time, it can be a good idea in the future. The recommendations done were separated for those retailers who are on the micro-scale and for those retailers who have the potential to be a participant of the business incubation program. Among the recommended moves for the local government of Cabuyao for the micro-scaled retailers are revisions for the current loan program so as to satisfy the requirement by the retailers. Another is the renovation of the infrastructure of the traditional markets in Cabuyao to attract more shoppers to come in. Also, modifications on the regulations and policies governing the public markets to benefit the legal retailers are also recommended. Finally, recommendations for those retailers with potential are seminars for adding value added for their products can help these retailers generate business ideas as opposed to sticking with the conventional and traditional way of selling their products. Also, the retailers can put up a restaurant or a related business venture with the help of a business incubation program to take advantage of the opportunity of Cabuyao in becoming the food center of CALABARZON. Additional services that can be done by an incubation program include financial assistance and providing modernized and organized spaces for retailers.

Language

English

LC Subject

Business enterprises, retail trade

Location

UPLB College of Economics and Management (CEM)

Call Number

LG 993 2009 A124 A23

Document Type

Thesis

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