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CHAPTER I

THE PROBLEM AND

ITS BACKGROUND

Introduction:

Rural electrification is an important process to provide access to modern energy, especially to the poor people in developing countries. Rural electrification programs focus on providing development assistance through the supply of electricity services to stimulate economic productivity and enhance the quality of life in rural areas (Bose, Uddin, & Mondal, 2013).

Electricity is one of those discoveries that have changed the daily life of people in the planet. Electricity is the key component to modern technology and without its presence most of the things that we use every day can never be fulfilled. Whether it’s during the day and night electricity keeps our lives in order, it affects our businesses, makes our lives much easier.

According to (Ranada, 2015) there are still 4,954 sitios across the country that do not have electricity. Many of these are in far-flung areas that can only be powered by renewable energy. Luzon has 1,471 unenergized sitios, the Visayas has 1,855, while Mindanao has 1,628. This current state is still an improvement from how things were in 2011 when 32,441 sitios were without power.

In the Philippines, there are few studies about the benefits that can be derived from having electricity in the rural areas, its advantages and even its unfavourable effect that are not specifically focused on its impact to microbusiness. Therefore, it is crucial to conduct a study to understand its effect on the creation of microbusiness in the rural areas on the Philippines.

The researchers conducted the study at barangay Ara, Benito Soliven, Isabela for the reason that the micro-business is emerge to the electricity.

Statement of the Problem

The emergence of electricity refers to the condition in which every

citizen or resident has the ability to survive their lives but when

electricity exists, they become more progressive unlike before. The

electricity affects all the micro-businesses in the community, the

vendors and the costumers or the residents in the community have a

connection and their business grow by the help of the electricity.

What effects do the access to electricity services have in facilitating

and supporting the establishment, growth, expansion of microbusiness

in Ara, Benito Soliven, Isabela.

The proposed study shall also focus to the following questions:

1) What is the profile of the respondents according to:

Age

Sex

Number of family members

Organization involvement

Educational Attainment

2) What are the experiences of the respondents upon acquiring electricity in the barangay?

3) To what extent of improvement did the respondents

experience upon acquiring electricity in the barangay?

4) What microbusiness emerged upon acquiring electricity

in the barangay?

5) How did rural electrification improve the lives of the

respondents?

Conceptual Framework:

The growth, expansion and closure of microbusiness in Ara, Benito Soliven, Isabela are greatly affected by the electricity services. Its availability and reliability paved the way in utilizing electrical appliances, lighting and machineries needed in the operation on microbusiness and increases the quality and efficiency of the products and services including the number of customers.

This proposed study is concerned with the impact of emergence in the electricity to the microbusiness at Ara, Benito Soliven, Isabela. The reason for studying the linkages between the impact of electricity services and microbusiness in the barrio is to make an analysis that will reveals its importance in achieving sustainable

development as it creates employment for those who cannot find work in order formal sectors and for those who are engaged in both agriculture and microbusiness ti raise additional income. Do the increasing numbers of microbusiness in the area can be considered as the effect of having electricity services? Does the establishment of microbusiness make the informal sector to grow very fast? The factor affecting the success and failure if microbusiness is not well-known.

Research Paradigm In order to realize the research objectives, the different steps

shall be taken as shown in the structure below.

Figure1.1. The figure shows the input, process and output on the impacts of

electricity to microbusiness at Ara, Benito Soliven, Isabela.

RURAL

ELECTRIFICATION

MICRO

BUSINESS

MICRO

ENTERPRISE

RURAL

DEVELOPMENT

Significance of the Study

The concerns regarding the changes that happened in the number and the phase of microbusiness and micro enterprise at Ara, Benito Soliven, Isabela is the theoretical contribution of this study and generating good information which explains the growth, expansion and even closure of microbusiness in the area which is also applicable to other places for as long as the nature is in consonance with the area of study.

This study will provide to the vendors that’s affected to the changes of the way they live before. The big changes to their income by selling their products.

The Barangay Captain who gives opportunity to those people that who need a lot of support and encouragement.

This study will provide pieces of evidence that will help the vendors that has a microbusinesses and micro enterprises in expanding and developing their businesses.

The result of this proposed study can be used by the government to encourage more residents to create more business and income generating activities and upgrade them by utilizing electricity services productively.

Scope and Delimitation

This study focused in determining the impact on the emergence of electricity to the micro-business of the residents of barangay Ara, Benito Soliven, Isabela.

The Data-gathering instrument was administered at Brgy. Ara, Benito Soliven.

This study is limited to the identification of the impact of the micro-business vendor to community development by using of electricity

Definition of Terms For a clearer understanding of the proposed study, the following terms are

hereby operationally defined.

Department of Energy - A government agency that formulate policies relative to energy. It implements comprehensive plan regarding the supply consumption of energy of all sites of the Philippines including the far-flung Barangays of Benito Soliven, Isabela.

Entrepreneurs - Residents of barangay Ara, Benito Soliven, Isabela who own a particular business or microbusiness of any goods and services to offer within or outside the locale.

Electricity - A form of energy that is carried through wires and is used to operate machines, lights, etc.

Livelihood - Refers to the primary source of income or wage received by the working people of the barangay in many ways, owning microbusiness, working at microbusiness, and managing a small enterprise within the locale of Ara, Benito Soliven, Isabela.

Micro business - Refers to the small business with various purpose and good s or services to produce and offer within the barangay such as sari- sari stores and mini gasoline station.

Rural Development - Refers to the economic development and progress of Ara, Benito Soliven, Isabela with the occurrence of microbusiness through rural electrification.

Rural Electrification - Refers to the process of acquiring electricity at Ara, Benito Soliven, Isabela.

Sitio - Refers to a certain rural part of barangay Ara, Benito Soliven, Isabela.

CHAPTER 2

REVIEW OF RELATED LITERATURE AND RELATED

STUDIES

(This chapter presents the literature on international and internal electrification and the impact of such project to microbusinesses and

microenterprises in the rural areas).

RELATED LITERATURE Rural electrification arrangements have not so far provided universal

access and have been no affordable for most poor people. In rural areas the

main source of income is in agriculture. Rural housing needs electricity for

lighting, watering etc. just like a normal house in the town or city.

Electricity has big impact on rural areas such as we mentioned for farming

activities, housing and providing services that can help them upgrade their

status so that they are not left behind to the normal house in a town. When

a community has access to electricity, it has access to more economic

opportunities. New businesses can be established existing companies can

grow and jobs can be created, business from restaurants to shops can

operate with longer opening hours (Businesselectricityprices.org.uk).

Expanded Rural Electrification Rural electrification has always been on top of the Government’s

policy over the past decades. Government strongly believes that provision of electric services will yield more opportunities for improved quality of life, greater access to basic services and better infrastructure for rural development. Rural electrification therefore, is greatly directed towards socio-economic growth of the marginalized sectors, the fisher folks and farmers living in remote, far-flung, and un-electrified barangays of the country.

Historical Performance and Program Management

In support of the Government’s efforts to alleviate poverty, DOE launched a massive and focused action to increase and accelerate access to electricity services by the country’s un-electrified communities.

In 2000 the ABEP was renamed the “O’Ilaw Program.” Under the

O’Ilaw Program, the IPPs were encouraged to participate as part of

their corporate social responsibility. Under the O’ Ilaw and IPP

Partnership, the Adopt-a-Barangay Scheme and Advance Financing

Scheme were adopted. During this period, three IPPs participated,

namely, PNOC-EDC, Mirant Philippines and Kepco Ilijan

Corporation. The program also led to the creation of the Foundation

for Rural Electrification and Economic Development (FREED) as

mechanism to mobilize private fund for rural electrification. FREED

was composed of Nestle Philippines, Pilipinas Shell Petroleum

Corporation, First Private Power Corporation, CEO’s Inc, Credit

Suisse and Smart Communications.

The Expanded Rural Electrification To further strengthen and integrate efforts on rural electrification

by both the Government and the private sector, and to further assist

the DOE develop innovative and sustained policies and strategies

consistent with the power sector reforms embodied in the Electric

Power Industry Reform Act of 2001 or “EPIRA,” the Expanded Rural

Electrification Program (ER Program) was established and an ER

Program Team was created in April 2003. Unlike its predecessors,

which focused was on barangay electrification; the ER Program

involves the electrification of sitios and households.

President Benigno S. Aquino III has given priority to the SitioElectrification and Barangay Line Enhancement Programs in compliance to his administration’s social contract with the Filipino people (2011)

The economic pillars of the Aquino Administration are job creation and investment generation to improve the lives of the Filipinos, especially the poor. Along this line, Energy Secretary and NEA Board Chair Jose Rene D. Almendras has interceded to the President for the approval of funds for the two Programs. The President has approved the necessary funds for the programs, on a yearly basis of at least P2 billion. This fund can be increased based on status of the program such as pace of completion, promptness to compliance of project requirements and breadth of impact.

Foreign Studies“Sandeep is one of TARA Urja’s 120 customers who have

capitalized on the availability of reliable power to initiate

or enhance enterprises”

Through the Rocketfeller foundation’s Smart Power For

Rural Development (SPRD) initiative and Smart Power

India, we are providing technical and financial support to

sux ESCOs including TARA URJA to build mini grids and

further develop small business. As Smart Power For Rural

Development’s work continues we’re encouraged bu this

continued investment by ESCOs and the entrepreneurial

spirit of the villagers.

Related Studies The Impact of Rural Electrification on Enterprises,

enterprises switching from traditional forms of lighting such as candles and kerosene lamps to electric light obtains a better lighting service - as measured in lumen hours consumed - at a lower price per unit. In addition, electric lighting is more convenient and less risky in terms of negative health effects from indoor air pollution and fire accidents than conventional alternatives. Access to electricity will affect market production and the demand and supply for labor and may lead to a change in the nature of enterprises that can operate in these rural areas (Cook, 2012).

CHAPTER 3

METHODS AND PROCEDURES

(In this chapter presents the research methods, research locale, selection and description of respondents, data instrument, data gatherings, and data analysis employed to the investigation).

RESEARCH METHOD Descriptive method is the most appropriate

method used in the study because the researchers wanted to determine and describe the impacts of emergence of electricity to the microbusiness of the residents at barangay Ara, Benito Soliven, Isabela.

The researchers also used basic research methods: (1) unstructured interview with the main questions to be asked to the respondents. (2) informal – conversations having a relaxed conversation of the respondents and the interviewer, and (3) the participant’s observation which the researchers did while the interview goes on.

RESEARCH DESIGNThe researchers used phenomenological study the purpose

of this study is to understand an experience from the participants “point of view” (Leedy and Ormrod, 2001, p. 157). The focus is on the participant’s perceptions of the event or situation and the study tries to answer the question of the experience (Creswell, 1998) points out that the essence of this study is the research for “the central underlying meaning of the experience and emphasize the intentionality of consciousness where experiences contain both the outward appearance and inward consciousness based on the memory, image, and meaning”.

RESEARCH LOCALE

Benito Soliven is the 4th class municipality in the province of Isabela, and according to 2015 census, it has a population of 29,624 people and consisting of twenty – nine barangay. Ara is one of twenty – nine barangays and it is not well known barangay because it is far from civilization and away from the center of the municipality. This is the area that can be found the camp of some soldiers of Isabela.

SELECTION AND DESCRIPTION OF THE RESPONDENTS

The ideal key informants of this study were the owners of micro-business and micro-enterprises within the barangay.

The researchers identified the respondents through qualitative observation. Qualitative observations are those in which the researchers took field notes on the behavior and activities of the micro-business owners at Ara, Benito Soliven(Cresswell, 2009).

SAMPLING Sampling is the process by which a relatively small

number of individuals or measures of individuals, objects or events is chosen and analyzed in order to find out something about the entire population from which is was chosen. Sapling procedures provides generalizations o the basis of relatively small preparations of the population.

The researchers decided to use the Qouta Sampling. Qouta Sampling is done when the sample has the same proportion of individuals as the entire populations with respect to know characteristics, trait or focused phenomenon and or the selection of the target respondents.

The target of the respondents is 5-10 respondents to be interviewed in order to understand and interpret a participant’s perception on the meaning of an event and to have strong foundation to this research study.

DATA GATHERING INSTRUMENT Since the study is a qualitative research, the researchers

used interviews and observations as methodology in data gathering, the key instruments are the researchers themselves.

The researchers employed rigid observations to identified micro- business and micro-enterprises, and to the owners of micro-business and micro-enterprises at Ara, Benito Soliven, Isabela. Furthermore, in an interview, the researchers themselves will draft questionnaires and interview guide based on economic ideas of emerging of electricity and its implications to the lives of micro-business owners and residents within the area.

DATA GATHERING PROCEDURES(Step-by-step process in the data gathering)

The researchers shall formulate some questionnaires that are require to used as a

guide in gathering the data.

The researchers also used participants observation aside from note-taking and rigid

observation It requires that the researcher become a participant in the culture

orcontext being observed and also

the researcher needs to become accepted as a natural part of the culture in order to a

ssure that the observations are of the

natural phenomenon.

Using different devices in gathering of oral data. Camera and cellular phones are

the primary materials that needed for documentation to the business, informants,

and interviewer.

DATA ANALYSIS

Data analysis means to organize, provide structure

and elicit meaning. Analysis of qualitative data is an

active and interactive process (Polit et al 2001:383).

Data analysis commenced after conducting the first

interview

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