thesis - results and discussion.docx
TRANSCRIPT
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RESULTS AND DISCUSSION
Locale of the Study
The study was conducted on twelve areas in Cavite mainly General Emilio
Aguinaldo (Bailen), Alfonso, General Trias, Imus, Indang, Naic, ilang, !ende",
Tagaytay, #asmari$as, Tan"a and %osario& These areas were chosen 'ecause it rovides
the resondents needed to comlete the study& rimary data were collected from the total
enumerated owners, managers and *nowledgea'le ersonnel for the information needed
for the demand for agricultural raw materials of small+scale home+'ased food industries&
Socio-demographic characteristics of small-scale home-ased food i!dustries
"e!der + This section discusses the socio+demograhic characteristics of small+
scale home+'ased food industries& urveyed resondents were dominated 'y - females
with ./ ercent and the remaining 0/ ercent are 12 males from the total enumerated
resondents&
Age - The age of the surveyed resondents covered a wide range from -/ to .2
years old& Twenty three ercent ranged from -/ to 03 years old, thirty ercent of the
resondents ranged from 0. to 41, thirty+five ercent fell in the age 'rac*et of 4- to 3.,
and 1- ercent from the total resondents ranged from 32 to .2 years of age& This imlies
that small+scale home+'ased food owners can oerate 'usiness at early age&
Ci#il status - !a5ority of .2 ercent was married, followed 'y 1- ercent single,
2 ercent of widowed and - ercent of coha'itating& This indicates that a wide range of
small+scale home+'ased food owners are married&
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Occupatio! - In terms of the tye of wor*s that the resondents are engaged in,
3- ercent of the interviewed resondents were entrereneurs, 12 ercent were vendors, .
ercent were agents, . ercent were emloyees and the other . ercent were rofessionals
that include a teacher, a dentist, and managers& This shows that most of the small+scale
home+'ased owners are engaged in their 'usiness only& 6owever, few of them still
manage to have other rofessions aside from their own 'usinesses&
Numer of depe!de!ts - The num'er of deendents ranged from 1 to 4 was 34
ercent, twelve ercent ranged from 3 to 7, two ercent ranged from 1/ to 1, deendents
that range from -/ to - were 0 ercent, and 12 ercent of the deendents ranged from
-4 to 0/& This result e8lains that most of the small+scale home+'ased owners suort
their own and e8tended families& !oreover, some of our resondents were 'eing
suorted 'y their si'lings or other family mem'ers&
"ross mo!thly I!come - urveyed resondents with gross monthly income that
ranged from h ,/// to h 0,/// were .2 ercent, eight ercent ranged from h
04,/// to h 3.,/// of their gross monthly income, another 2 ercent ranged from h
32,/// to h 1/1,/// of their monthly income, - ercent ranged from h 1/-,/// to
h 104,///, the other - ercent ranged from h 103,/// to h 137,/// and the last -
ercent ranged from h 1./,/// to h -/, /// of their monthly income& This imlies
that small+scale home+'ased food owners tend to have an average gross income of h
,/// to h 0,/// monthly&
Educatio!al Attai!me!t - !a5ority of the surveyed resondents with 0 ercent
finished college degree, followed 'y high school graduates who accounted 1. ercent,
college levels which accounted 10 ercent of the surveyed resondents, 1- ercent for the
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high school levels, 2 ercent for the vocational graduates and . ercent for the
elementary level& This roves that most of the information given 'y small+scale home+
'ased owners is relia'le&
Ta'le 1& ocio+#emograhic rofile 9f mall+cale 6ome+Based :ood 9wners
Se$ %re&ue!cy 'erce!tage
:emale - ./
!ale 12 0/
Age
-/+03 1 -0
0.+41 12 0/
4-+3. -1 04
32+2 . 1-
Ci#il Status
ingle . 1-
!arried . .2
;idowed 4 2
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Continued&&& Ta'le 1&
"ross (o!thly I!come %re&ue!cy 'erce!tage
h ,/// + h 0,/// . .2
h 04,/// + h 3.,/// 4 2
h 32,/// + h 1/1,/// 4 2
h 1/-,/// + h 104,/// 1 -
h 103,/// + h 137,/// 1 -
h 1./,/// + h -/, /// 1 -
Educatio!al Attai!me!t
Elementary
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Continued&&& Ta'le -&
+ears i! Operatio! %re&ue!cy 'erce!tage
1 + 7 - ./
1/ + 1. 10 --
12 + -3 .
-. + 04 / /
03 + / /
4+ 41 1 -
Numer of Employees
1 + 0 7 2-
+ 3 3 1/
. + 7 4 2
,ori!g Capital of )usi!ess
4// + 1//, /// 4. 74
1/1,/// + -//, /// 1 -
-/1, /// + 0//, /// 1 -
0/1, /// + //, /// / /
/1, /// + 4//,/// 1 -
I!itial Capital of )usi!ess
0// + 4//,/// 42 7.
4/1,/// + 1,///,/// / /1,//1,/// + 1,4/1, /// 1 -
1,4/1, /// + -,///, /// 1 -
Sources of I!itial Capital %re&ue!cy Ra!
ersonal>:amily avings 3 1
:ormal
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Registratio! of the usi!ess . mall+scale home+'ased food industries are in
some way re?uired to register their 'usinesses in local level artly in the 'arangay area
to ensure that the ?uality of their roducts are safe to consume and to 'e urchased&
Thirty five ercent were registered in the three main 'usiness registration agencies which
includes municiality, #eartment of Trade and Industry (#TI) and Bureau of Internal
%evenue (BI%), -2 ercent were registered in 'oth municiality and #eartment of Trade
and Industry (#TI)& eventeen ercent were registered in #eartment of Trade and
Industry only while 10 ercent were registered in the municiality and a total of seven
ercent were registered in 'oth municiality and Bureau of Internal %evenue&
+ears i! operatio! . The years in oeration ranged from one to 41 years&
eventy ercent were oerating for one to nine years& Twenty two ercent already e8isted
from 1/ to 1. years whereas seven ercent were functioning for 12 to -3 years and the
remaining two ercent were oerating for 4 to 41 years& This indicates that most of the
small+scale home+'ased food industries in Cavite were oerating for a short eriod of
time&
Numer of employees . The num'er of emloyees considered as small+scale
home+'ased food industries was limited u to ten wor*ers& The ranged of the num'er of
emloyees was from one to nine emloyees& Eighty two ercent has a num'er of 1 to 0
emloyees, whereas ten ercent has to 3 emloyees and a total of eight ercent has . to
7 emloyees&
mall+scale industries generate emloyment for a lot of eole& Numerous
num'ers of unemloyed eole found emloyment in small+scale industries&
(9gechu*wu, -/11)&
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!a5ority of the small+scale home+'ased food industries are roducing and
mar*eting their roducts at the same time& They act as 'oth the wor*er and the manager
of their 'usinesses&
,ori!g Capital of usi!ess . The wor*ing caital of small+scale home+'ased
food industries ranged from 4// u until 4//,/// for every roduction& Ninety five
ercent of the wor*ing caital ranged from 4// to 1//,///& Two ercent for 1/1,/// to
-//,/// another two ercent for -/1,/// until 0//,/// and the remaining two ercent
was for /1,/// to 4/1,///&
It e8lains that mainly small+scale home+'ased food industries tend to have a
wor*ing caital not e8ceeding one hundred thousand and not 'elow five hundred esos&
I!itial Capital of usi!ess . The initial caital of small+scale home+'ased food
industries ranged from 0// to -,///,/// since they started their 'usiness& Ninety seven
ercent e8tents from 0// to 4//,///& Two ercent each fall from the range of 1,//1,///
to 1,4//,/// and 1,4/1,/// to -,///,///& This signifies that ma5ority of small+scale home
'ased food industries tend to oen u their 'usiness with an initial caital not less than
0// and not e8ceeding to 4//,///&
Sources of Capital . mall+scale home+'ased food industries have different
sources of initial caital in order to start their oeration& ersonal>:amily savings were
the highest in ran* to 'e followed 'y formal lending institutions& The least were friends
and relatives, 'usiness income, and informal money lenders& This e8lains that most of
small+scale home+'ased food industries are sourcing their initial caital to from their own
finances&
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Nature of )usi!ess . %an*ed first in the nature of 'usiness was native delicacies
(uto, 'i'ing*a, suman, *alamay, 'ico, etche+etche, *utsinta)& Ne8t to that is eanut
'utter followed 'y taho and to*wa then 'ananachis>'anancue>turon& After that was
'u*ayo>'ali*utsa>coco5am& The least were atsara, 'agoong and atis, ginger tea>turmeric,
tamarind candies, 'rewed coffee, cassava owder, malunggay roducts, oyster
mushroom, tu'o and *aong vinegar (Ta'le 0)&
Ta'le 0& Nature of Business of mall+cale 6ome+Based :ood Industries
Nature of )usi!ess %re&ue!cy Ra!
Native #elicacies 17 1
eanut Butter 2 -
Taho and To*wa 2 0
Ta'lea 4
BananaChis>Bananacue>Turon 4
Bu*ayo and Bali*utsa>Coco @am 4
Atsara 0 3
Bagoong and atis - .
Ginger Tea>Turmeric - .
Tamarind Candies - .
Brewed Coffee 1 2
Cassava owder 1 2
!alunggay roducts 1 2
9yster !ushroom 1 2
Tu'o 1 2
aong =inegar 1 2
Agricultural Ra/ (aterials Used . Coconut with hus* has the highest demand
to 'e used as agricultural raw material& It is merely used in roducing native delicacies&
After that was eanuts used in ma*ing eanut 'utter and other candies, then cassava used
in ma*ing flour and native delicacies followed 'y soya 'eans used for manufacturing
taho and tofu& 'e was ne8t in line for roducing u'e 5ams& Banana leaves was the
middle in ran* used as wra for native delicacies& Ne8t to it was cacao used to ma*e
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chocolates and ta'leas, followed 'y 'anana used in forming 'anana chis, turon and
'anana cue& The slightest in ran* were *aong vinegar used in atsara and vinegar alone&
After that was aaya used for atsara ma*ing& Alamang, dilis and galunggong are *inds
of fishes which were used to roduce fish sauce and 'agoong& Ginger was the main
ingredient in ma*ing turmeric>ginger tea& Tamarind was used in roducing
samaloc>tamarind candies& Coffee 'ean was used in manufacturing 'rewed coffee
owder, while malunggay was used for ma*ing fla*es and malunggay owder&
u'se?uently was mushroom and sugar cane used for roducing tu'o 5uice (Ta'le )&
Ta'le &
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different ?ualities to choose from wherein rices may vary& aong vinegar was sourced
in Indang as it is grown and roduced there& Alamang, dilis and galunggong which were
used to roduce fish sauce and 'agoong are ac?uired in the lower coast areas of Cavite
mainly in %osario and Tan"a& Brewed coffee roduced 'y one of the resondents sourced
his agricultural raw material within his area of roduction D articularly in Tagaytay since
this area was rich in coffee&
6owever, eanut which was ran*ed second to the highest was sourced in
#ivisoria& ome of small+scale home+'ased roducers ac?uire it in #asmari$as
secifically in adiwa Area since it was *nown as the main retailer of roducts that can
also 'e found in #ivisoria& :or some small+scale home+'ased roducers, they refer to
ac?uire it in adiwa Area given that it will cause them less amount of time and atience
when 'uying& Nevertheless, some small+scale home+'ased roducers would still rather
source it from #ivisoria as it will give them the e8ected ?uality they are loo*ing for
when 'uying& !ost small+scale home+'ased roducers with roducts dealing with tofu,
are sourcing the soya 'eans in #ivisoria& :or ta'lea manufacturers who uses cacao as the
main agricultural raw material D they rocure it also in #ivisoria& :or the resondent who
roduces oyster mushroom, the seeds were sourced in Bureau of lant Industry& Tamarind
was also sourced in #ivisoria& ugarcane was o'tained in Batangas 'ecause 0/ tons is the
fi8ed demand for roduction in every month and there are no sources of sugarcane
rovincially&
Sources of Agricultural Ra/ (aterials . i8ty eight ercent of the small+scale
home+'ased food industries was sourcing their agricultural raw materials within the
rovince while the remaining 0- ercent of the total resondents was ac?uiring their
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agricultural raw materials outside the rovince& mall+scale home+'ased food roducers
tend to source their agricultural raw materials inside the rovince 'ecause many of them
urchase only small ?uantity& 6owever, most resondents who were sourcing outside the
rovince urchase large amount of agricultural raw materials& Also, large volumes were
roduced deending on where and how they mar*et their roducts (Ta'le 4)&
Ta'le 4& ources 9f Agricultural %aw !aterials 9f mall+cale 6ome+Based :ood
Industries
Sources of Agricultural Ra/ (aterials I!side Outside
General Emilio Aguinaldo (Bailen) 1
Alfonso 1
General Trias 1 1
Imus 0 1
Indang 7 -
ilang 0 1
Naic 1
!ende" 3 1
Tagaytay .
#asmari$as 4
Tan"a 0 0
%osario - 1
%re&ue!cy 01 12 'erce!tage 345 675
The certai! reaso!s /hy small-scale home-ased food i!dustries prefer to ac&uire
i!side the pro#i!ce /ere8
(a) Near the area of productio! D agricultural raw materials tend to 'e always
availa'le when the roducer has its own sulier + articularly the farmers& They
often cultivate and suly their raw materials to small+scale home+'ased
roducers which they *now demands for their cros& According to Boehl5ea and
Brring' (-/11) the agricultural sector is increasingly 'ecoming a source of raw
materials for industries or sectors&
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'ulic maret was the main source of agricultural raw materials in each
municiality 'ecause it gives enough ?uantity, choice of ?uality and suliers
*nown as Fsu*i when 'uying&
(') Affordale9 less effort a!d less operati!g e$pe!ses D agricultural raw materials
which were 'ought 'y small+scale home+'ased roducers were more li*ely to 'e
afforda'le since they can urchase it on their range target rice less effort and
less oerating e8ense given that it will not 'e time consuming and no additional
fees (trac*ing) will 'e added&
It was said to 'e afforda'le for those who ac?uire inside secially those who
have their own suliers since they can 'uy it at a very low cost and sometimes,
agricultural raw materials needed were sulied at home& This has 'een roven 'y
iercy (172-) that many of our small manufacturers do not have roerly defined
criteria for aointing their roduct distri'utors& They rely mainly on trust created
through relationshis 'etween the owners of the comanies and the distri'utors&
(c) Ca#ite is the o!ly source of ra/ materials /ith good &uality D there are
agricultural raw materials that can 'e grown and can only 'e found in Cavite
which osses good ?uality and aearance&
Indang roduces *aong vinegar that was rimarily used 'y small+scale
home+'ased food industries for their roduct& everal roducts are now
discovered and studied using *aong vinegar&
=arious ta'lea manufacturers had 'een sourcing their raw materials in
Cavite 'efore, 'ut as time goes 'y, they o'served that the ?uality and ?uantity of
agricultural raw materials they once need was not a'le to meet their demand since
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they roduced large amount 'y now& 6owever, if there would 'e any inside source
that will 'e a'le to meet their taste references, they are more willing to source it
inside the rovince&
The certai! reaso!s /hy small-scale home-ased food i!dustries prefer to ac&uire
outside the pro#i!ce /ere8
(a) Affordale D for small+scale home+'ased food industries which are ac?uiring tons
of agricultural raw materials in every roduction, it is more afforda'le for them to
urchase outside the rovince since they need a large amount of raw materials for
their roduction& Thus, the ?uality and ?uantity of roducts they need can 'e
rovided secially 'y #ivisoria !ar*et& 6owever, they find it afforda'le since
they get it from direct suliers and not from retailers&
(') There are !o sources of agricultural ra/ materials used i!side the pro#i!ce D
mall+scale home+'ased food industries secifically those who used agricultural
raw materials that are not roduced in Cavite are sourcing from outside the
rovince given that they do not have any other otions&
The agricultural raw materials that are not sourced inside the rovince are
eanuts, soya 'eans, cacao, tamarind, mushroom and sugarcane&
(c) :uality of products D for small+scale home+'ased food roducers who are after
the ?uality of roducts they ac?uire D they source outside the rovince since they
want to use a high+?uality for the roducts they are roducing& Imorted roducts
that are sulied in #ivisoria are one of the main concerns they consider for the
roduction of their roduct&
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#ivisoria ac?uires new, fresh and imorted roducts every day& :or the
roducers of tofu, they favour to source here since they consider the amount of
mil* they need to get if the soya 'eans are fresh&
,here do you maret your products;
The locale and eole on where the roducts roduced are e8lained in
this section& mall+scale home+'ased food industries were mar*eting their roduct
directly to the consumer>direct selling which was first in ran* for some reason
roducer directly mar*ets the roduct to the consumer regardless of how large the
consumtion may 'e& Trading the roducts with the usual clients 'y means of
giving them desira'le result of the roducts consume (Estrella,-//0)& #irect
selling was followed 'y the retailers& Ne8t to it were the secified laces on where
the roducts are sulied articularly in Ba"aar and Trade :air, Catering services,
%estaurants, asalu'ong Centers, Groceries, !alls and some were e8orting and
sulying it to other countries& This e8lains the idea of 9gechu*wu (-/11) a'out
small+scale which is to hel 'ring a'out new goods and services and suly the
needs of large industries, which have to rely on the small+scale oerators for
'usiness success&
Ne8t to it was u'lic mar*et, followed 'y hotels and suermar*et and the least
was government agencies& (Ta'le 3)&
According to in* (-//1) Concetually a home+'ased 'usiness can 'e
defined as any 'usiness entity engaged in selling roducts or services into the
mar*et oerated 'y a self+emloyed erson&
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ome of the small+scale home+'ased food roducers who were selling
their roducts in the Ba"aar>Trade :air are also associated to 9ne Town 9ne
roduct ro5ect of government& Through this rogram of our government, local
chief e8ecutives of each city and municiality ta*e the lead in identifying,
develoing and romoting a secific roduct or service, which has a cometitive
advantage (u'ia, -/1-)&
Ta'le 3& ;here mall+cale 6ome+Based :ood Industries !ar*et Their roducts
%re&ue!cy 'erce!tage
#irectly to the consumer>direct selling 2 1
%etailers 0/ -
9thers 14 0u'lic !ar*et 1
6otels 4
uermar*ets 4Government agencies 0 3
'rofitaility of Small-Scale *ome-)ased %ood I!dustries
'rofitaility Ratios
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Tagaytay 4-H
Indang 4-H
!ende" 7H
General Trias 7H
%osario -H
Naic 07H
ilang 02H
Imus 0H
O#er-all A#erage ?75
"ross 'rofit (argi! ="'(>revenue in the 'usiness from each municiality, there was a gross
rofit of 7 centavos& After that was municiality of %osario with an average of -
ercent which e8lains that for every eso sales>revenue in the 'usiness, there was a
gross rofit of - centavos& !uniciality of Naic had an average of 07 ercent G!
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which shows that for every eso sales>revenue in the 'usiness, there was a gross rofit of
07 centavos& econd to the least municiality was municiality of ilang with 02 ercent
G!& This imlies that for every eso sales>revenue in the 'usiness, there was a gross
rofit of 02 centavos& revenue in
the 'usiness, there was a gross rofit of 0 centavos (Ta'le .)&
The gross rofit margin measures the rofit a 'usiness formulates from its cost of
goods sold& #escri'ed as a financial metric which is used to assess a firms financial
health 'y revealing the roortion of money left over from revenues after accounting for
the cost of goods sold (Investoedia)
Ta'le 2& Average rofita'ility ratios in terms of oerating rofit margin of small+scalehome+'ased food industries in Cavite
'RO%ITA)ILIT+ RATIO
LOCALE O% T*E STUD+ Operati!g 'rofit (argi! =O'(>
GEA (Bailen) 01H#asmari$as -7H
!ende" -3HTagaytay -3HAlfonso -H
Indang -H
Imus --HTan"a -/H
ilang 3H
%osario 4H
General Trias +14H Naic +0-H
O#er-all A#erage 7@5
Operati!g 'rofit (argi! =O'(>< The municiality with the highest average
9! was General Emilio Aguinaldo (Bailen) which has 01 ercent which shows that for
every eso worth of sales>revenue, there was a rofit 01 centavos& Ne8t to General Emilio
Aguinaldo (Bailen) was the city of #asmari$as which had an average of -7 ercent 9!&
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This e8lains that small+scale home+'ased food 'usinesses generated -7 centavos for
every eso worth of sales>revenue& It was followed 'y municiality of !ende" and city of
Tagaytay with the same average of -3 ercent 9! which imlies that for that for every
eso worth of sales>revenue, there was a rofit -3 centavos& !unicialities of Alfonso
and Indang also had similar averages which was - ercent 9! which shows that that
for every eso worth of sales>revenue, there was a rofit - centavos& City of Imus had an
average of -- ercent 9! which verifies that small+scale home+'ased food industries
ma*e -7 centavos rofit for every eso worth of sales>revenue& :ollowed 'y municiality
of Tan"a with an average 9! of -/ ercent which indicates that for every eso worth of
sales>revenue, there was a rofit -/ centavos& u'se?uently, municiality of ilang had
an average of 3 ercent 9! which e8lains that for every eso worth of sales>revenue,
there was a rofit 3 centavos& The last municiality with a least ositive 9! was
%osario with an average 4 ercent& This roves that small+scale home+'ased food
industries still can rofit even if it has 4 centavos for every eso worth of sales>revenue&
Two of the lowest 9! were municialties of General Trias and Naic with an average of
negative fifteen ercent and negative thirty+two ercent which imlies that for every eso
worth of sales>revenue, there was a loss of 14 centavos and 01 centavos& The average
9! of the small+scale home+'ased food industries was -/ ercent (Ta'le 2)&
The oerating rofit margin verifies how successful management has 'een at
generating income from oerating the 'usiness& It involves utili"ing strategic lans on
how money must 'e sent wisely&
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Ta'le 7& Average rofita'ility ratios in terms of net rofit margin of small+scale home+
'ased food industries in Cavite
'RO%ITA)ILIT+ RATIO
LOCALE O% T*E STUD+ Net 'rofit (argi! =N'(>
GEA (Bailen) 0/H
#asmari$as -.H!ende" -4HIndang --H
Tagaytay 17H
Tan"a 14Hilang 1H
Imus 10H
Alfonso H%osario H
General Trias +13H
Naic +0-H
O#er-all A#erage 135
Net profit margi! . The average N! of small+scale home+'ased food
industries was 13 ercent& The municiality with the highest N! was General Emilio
Aguinaldo (Bailen) which was 0/ ercent which imlies that for every eso
sales>revenue, there was a rofit of 0/ centavos& :ollowed 'y municiality of #asmari$as
with -. ercent N! which indicates that for every eso sales>revenue, there was a rofit
of -. centavos& !uniciality of !ende" had -4 ercent N! which e8lains that for
every eso sales>revenue, there was a rofit of -4 centavos& u'se?uently, municiality of
Indang followed which had -- ercent N!& This shows that for every eso
sales>revenue, there was a rofit of -- centavos& City of Tagaytay had 17 ercent N!
which e8lains that there was a rofit of 17 centavos for every eso sales>revenue&
!uniciality of Tan"a had an average of 14 ercent N! which verifies that for each
eso sales>revenue, there was a rofit of 14 centavos& After municiality of Tan"a was
municiality of ilang which had 1 ercent N! which indicates that small+scale home+
'ased for industries ma*es 1 centavos rofit for every eso sales>revenue& City of Imus
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is not far from what municiality of ilang had& Imus had an average of 10 ercent N!
which shows that for every eso sales>revenue, there was a rofit of 10centavos& The
lowest municialities which had an average of 'oth ercent N! were municialities
of Alfonso and %osario& This imlies that small+scale home+'ased food industries still
have centavo rofit in each municiality for every eso sales>revenue& The least N!
of all the municialities was General Trias with an average of negative 13 ercent which
e8lains that for every eso sales>revenue, there was a loss of 13 centavos (Ta'le 7)&
In *nowing the net rofit margin, it can 'e a good way of comaring 'usinesses in
the same industry, since such industries are generally su'5ect
to similar 'usiness conditions& 6owever, the net rofit margins are also a good way to
comare 'usinesses in different industries in order to gauge which industries are
relatively more rofita'le (investowords&com)&
Ta'le 1/& Average rofita'ility ratios in terms of return on oerating e8enses of small+
scale home+'ased food industries in Cavite
'RO%ITA)ILIT+ RATIO
LOCALE O% T*E STUD+ Retur! o! Operati!g E$pe!ses =ROE>!ende" 03/&27H&
Tan"a -/&/0H&
Alfonso 17&/0H&
Tagaytay 1-.&32H&
#asmari$as 1-/&1H&
Indang 1/4&7H&
General Trias 7.&2H&
GEA (Bailen) 20&27H&
ilang .2&/.H&
%osario 34&37H&
Imus 43&42H&
Naic +4H
O#er-all A#erage 105
http://www.investorwords.com/10993/same.htmlhttp://www.investorwords.com/10993/same.htmlhttp://www.investorwords.com/13901/subject_to.htmlhttp://www.investorwords.com/13901/subject_to.htmlhttp://www.investorwords.com/623/business.htmlhttp://www.investorwords.com/6456/condition.htmlhttp://www.investorwords.com/6456/condition.htmlhttp://www.investorwords.com/2447/industry.htmlhttp://www.investorwords.com/7194/profitable.htmlhttp://www.investorwords.com/13901/subject_to.htmlhttp://www.investorwords.com/13901/subject_to.htmlhttp://www.investorwords.com/623/business.htmlhttp://www.investorwords.com/6456/condition.htmlhttp://www.investorwords.com/2447/industry.htmlhttp://www.investorwords.com/7194/profitable.htmlhttp://www.investorwords.com/10993/same.html
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Retur! o! operati!g e$pe!ses =ROE> . The municiality which had the
ma8imum %9E which was 03/&27 ercent was the municiality of !ende"& This
indicates that small+scale home+'ased food industries generate income of three hundred
si8ty esos and eighty nine centavos for every h 1// oerating e8ense in the 'usiness&
:ollowed 'y municiality of Tan"a with -/&/0 ercent %9E which shows that for every
h 1// oerating e8ense in the 'usiness, there was a rofit of two hundred four esos
and three centavos& Ne8t to it was municiality of Alfonso with an average of 17&/0
ercent %9E which e8lains that for every h 1// oerating e8ense, there was a rofit
of one hundred ninety four and 0 centavos& It was followed 'y the city of Tagaytay with
1-.&32 ercent %9E& This verifies that small+scale home+'ased food industries ma*es one
hundred twenty seven and si8ty eight centavos income for every h 1// oerating
e8ense& City of #asmari$as had an average of 1-/&1/ ercent %9E& This e8lains that
for every h 1// oerating e8ense in the 'usiness, there was a rofit of one hundred
twenty esos and ten centavos& !uniciality of had an average of 1/4&7 ercent %9E
which ertains that for every h 1// oerating e8ense in the 'usiness, there was a
rofit of one hundred five esos and 7 centavos& u'se?uently, municiality of General
Trias had an average of 7.&2 ercent %9E& This verifies that for every h 1//
oerating e8ense in the 'usiness, there was a rofit of ninety seven esos and eighty
four centavos& To 'e followed 'y municiality of General Emilio Aguinaldo with of 20&27
ercent %9E which descri'es those small+scale home+'ased food industries generated
income of eighty three esos and eighty nine centavos for every h 1// oerating
e8ense in the 'usiness& After that, municiality of ilang had an average of .2&/.
ercent %9E& This verifies that for every h1// oerating e8ense in the 'usiness, there
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was a rofit of seventy eight and . centavos& The municiality of %osario had an average
of 34&37 ercent %9E which shows that there was a rofit of si8ty five esos and si8ty
nine centavos for every h1// oerating e8ense in the 'usiness& Ne8t to it was City of
Imus which had 43&42 ercent& It imlies that for every h1// oerating e8ense in the
'usiness, there was a rofit of fifty si8 esos and fifty eight centavos& The least %9E of
all the areas in the study was municiality of Naic with an average of negative 4H& This
indicates that there was a loss of fourty five esos in every h1// oerating e8ense in
the 'usiness& The average %9E of small+scale home+'ased food industries was 1.
ercent which imlies that for every h 1// oerating e8ense in the 'usiness, there was
a rofit of one hundred forty+seven esos (Ta'le 1/)&
%eturn on 9erating E8enses measures as what will 'e the cost to
oerate a 'usiness in comarison to the income that the 'usiness 'rings in
(investoedia&com)& !uniciality of !ende" has the highest amount of rofit among the
twelve selected areas in Cavite which shows that small+scale home+'ased roducers in
this municiality is very rofita'le&
Ta'le 11& Common ro'lems of mall+cale 6ome+Based Industries
%re&ue!cy Ra!
#elayed ayment 9f Customers 17 1
mall Num'er 9f Customers 12 -
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customers, limited mar*et, then lac* of suly of agricultural raw materials, delayed
suly of agricultural raw materials& Ne8t to that was insufficient sace for roduction
followed 'y lac* of suort from the government and the least was none>lac* of
emloyees& :urthermore, there are other ro'lems secified 'y small+scale home+'ased
roducers listed in the ta'le a'ove (Ta'le 11)& This merely entails that most of the small+
scale home+'ased food industries in Cavite were having a hard time to generate income
since most of the consumers are ac?uiring credit from them through the roducts they
roduce&