Perspective of SME’s: Assessing the Profound Impact of Big Establishments on Small and Medium Enterprises (SME’s) at Poblacion, Mandaon, Masbate
DOI:
https://doi.org/10.11594/ijmaber.06.02.30Keywords:
SME’s, Big establishment, Monthly sales, Revenue, Customer, PricingAbstract
The operation of SMEs produces a large share of employ-ment and income generation, and they are essential in distrib-uting commodities for consumption. The municipality of Man-daon becomes more and more progressive, and the increasing number of big establishments has been described as a threat to the SME's day-to-day activities. Therefore, this study empha-sized SMEs rather than big establishments. To address this problem, researchers evaluated the profound impact of big es-tablishments on small and medium enterprises (SMEs) in Ba-rangay Poblacion, Mandaon, Masbate. The data from the aforementioned situation and problem were gathered through a survey utilizing a self-made Likert-scale questionnaire, which was then evaluated by reliability testing using SPSS statistics. The reliability statistics indicate that the high Cronbach's alpha value of.987 suggests very strong internal consistency among the items in the scale. It was distributed to 50 respondents, who are small and medium enterprises (SMEs) that were chosen through a purposive sampling design. The findings of the study show that the existence of big establishments has an adverse impact on the operation of small and medium enterprises (SMEs). Based on the analysis of the data, the monthly sales, revenue, and pricing of SMEs were affected. In addition, the customers were highly affected by the opening of the big estab-lishment, and the results were analyzed through weighted mean and multivariate analysis. As a result, the researchers will recommend a comprehensive capacity building activity entitled GROW-ME: Generating Revenue Opportunities for Well-Managed Enterprises. it is an innovative extension activity, of-fering training program, workshop and mentorship opportunity to implement various development strategies. This initiative is designed to enhance the skills and capabilities of SME owners and employees. Minimizing the influence of big establishments on SME’s can be crucial for fostering a competitive and diverse business environment.
Downloads
References
Akhtar, N. N., & Shahid, S. “Impact of Super-markets on Small Traders and Neighbor-hood Stores in Karachi, Pakistan”. https://arts.pdn.ac.lk/econ/piers2019/Proceedings2015/Impact%20o f%20Supermarkets%20on%20Small%20Traders%20and%20Neighborhood %20Stores%20in%20Karac hi%20Pakistan.pdf, Date retrieved: March 26, 2023
Atham, H. (2011), “The impact of supermar-kets on small retailers in Indian Suburb” https://www.researchgate.net/publication/25 9033936_IMPACT_OF_SUPERMARKETS_ON_SMALL_RETAILERS_IN_IN DI-AN_SUBURB, Date retrieved: March 23, 2023
Babu, J.M. (2018) “Strategic Rivalry Theory” Core Principles of International Market-ing. Washington State University. Re-trieved from: https://opentext.wsu.edu/cpim/chapter/2-1-international-trade/#:~:text=Global%20Strategic%20Rival-ry%20Theory&text=Their%20theory%20focused%20on%20MNCs,they%20must%20develop%20competitive%20advantages. Date retrieved: May 3, 2023
Basu, C. (2023), “Negative Consequences with the Growth of a Big Business”: https://smallbusiness.chron.com, Date retrieved: September 4, 2022
Bhandari, P. (2022) “What is Quantitative re-search design” https://www.scribbr.com/author/pritha/page/7/#:~:text=Published %20on%20June%2012%2C%202020,generalize%20results%20to%2 0wider%20populations, Date re-trieved, November 29, 2022
Borraz F., Dubra J., Ferre’s D., Zipitria L., (2013), “Supermarket entry and the survival of small stores” https://link.springer.com/article/10.1007/s11151-013- 9379-7, Date retrieved September 4,2022
Cambridge Dictionary (n.d.). “Entry”, https://dictionary.cambridge.org/us/dictionary/english/entry, Date re-trieved: December 3, 2022
Cantuba, M. G., Carbo, M. M., Jumauary, L. & Paclibar, A.M. (2015). “The Impact of Mall Establishments to Micro- Busi-ness Enterprises in Selected Barangays in the City of Cabuyao Laguna: Basis for Business Continuity”. Undergraduate the-sis, College of Business Administration and Accountancy. https://www.scribd.com/document/368650893/Impact-of- Mall-Establishments-to-Sme-s, Date retrieved: March 8, 2022
Cant, M. C., Wiid, J., & Sephapo, C. M. (2016). “Key factors influencing pricing strate-gies for small business enterprises (SMEs): Are they Important?”. Journal of Applied Business Research (JABR), 32(6), 1737-1750. https://clutejournals.com/index.php/JABR/article/view/982 0, Date retrieved: March 25, 2023
Carlson R., (2020) “Pricing” https://www.thebalancemoney.com/what-is-pricing- 393477 Date retrieved: May 21, 2023
De Villa, J.D., De Villa, K.I., Banaera, D.U. & Agaran, R.R. (2022). “Effects of Wal-termart Supermarket on Small Retail Business”. International Journal of Aca-deme and Industry Research, Volume 3 Issue 4, pp. 107-128. DOI: https://doi.org/10.53378/352937, Date retrieved: March 26, 2023
Francisco J.P. et. al (2019)” Obstacles of Phil-ippine SMEs' Participation in Global Valu-Chaihttps://pidswebs.pids.gov.ph/CDN/PUBLICATIONS/pidsrp1905.pd, Date re-trieved: March 19,2023
Gartenstein, D. (2019), “Pricing” https://smallbusiness.chron.com/four-types- pricing-objectives-3 3873.html , Date retrieved December 5, 2022
Gordon, S. & Williams P. (2022), “Porters 5 Forces Explained and How to Use the Model” https://www.investopedia.com/terms/p/porter.asp, Date retrieved Novem-ber 23,2022
Hamilton, E.(2020),“Sales Volume” https://www.sciencetimes.com/articles/25924/20200603/factors- affect-ing-sales-performance.htm , Date re-trieved December 5, 2022
Hamil, A., and Priyadharshini, E. (2014). “Im-pact of supermarkets on unorganized re-tail. IMPACT: International Journal of Re-search in Business Management”, 2(7),37-56. http://www.impactjournals.us/index.php/download/archives/2 -78- 1405663742- 5. %20ManageIMPACT%20OF%20SUPERMARKETS%20ON%20UNOR GAN-ISED%20RETAIL-Priyadharshini.pdf, Date retrieved March 17, 2023
Liberto D., (2022). “Small and Medium Enter-prises” https://www.investopedia.com/terms/s/smallandmidsizeenterprises.asp Date retrieved: May 21, 2023
Ligthelm, A. A. (2008) “The impact of shopping mall development on small town-ship retailers”. South African Journal of Economic and Management Scienc-es, 11(1),37-53.http://www.scielo.org.za/scielo.php?script=sci_arttext&pid=S2222- 34362008000100003, Date retrieved: March 26, 2023
LIUPost, (2022). “Rivalry Among Competitors”. https://liu.cwp.libguides.com/5forces, Date retrieved: November 21, 2022
Marketing Dictionary (n.d.)
Mathews, N. M. (2018) "Impact of Shopping Malls on Small Retail Outlets: A Study in Kollam City, Kerala". International Jour-nal of Research and Analytical Reviews, 5. http://ijrar.com/upload_issue/ijrar_issue_1478.pdf, Date retrieved: March 19, 2023
Mazumdar M. (2022) “Importance of ethical consideration”. https://www.projectguru.in/importance-ethical-considerations- re-search/, Date retrieved November 29,2022
Marketing Dictionary (n.d.) https://coschedule.com/marketing-termsdefini-tions/customer#:~:text=Any%20individual%20who%20pays%20for,Marketing%20Dictionary Date retrieved: December 3, 2022
Nikolopoulou K. (2022) “What is purposive sampling”. https://www.scribbr.com/methodology/purposive-sampling/ Date retrieved: No-vember 30, 2022
Oxford Learner’s Dictionaries “ Impact” https://www.oxfordlearnersdictionaries.com/us/definition/english/impact1#:~:text=%2F%CB%88%C9%AAmp%C3%A6kt%2F,%2F%CB%88%C9%AAmp%C3%A6kt%2F,something%20has%20on%20somebody%2Fsomething Date retrieved: December 3, 2022
Porter, M.E. (2008)” The five competitive forc-es that shape strategy” www.mindtools.com, Date retrieved: April, 21 2023.
Principle of Marketing (2016) , “Impact of Competitor in Pricing” https://courses.lumenlearning.com/suny-marketing- spring2016/chapter/reading-competitor-impact-on-pricing/, Date re-trieved: March 23, 2023
Reverso Dictionary (n.d.), “What is big estab-lishment” https://dictionary.reverso.net/english-cobuild/a+large+establishment , Date retrieved: December 3, 2022
Ross, N. (2021) “Sales” https://www.investopedia.com/ask/answers/122214/what-difference- between-revenue-and-sales.asp Date retrieved: May 21, 2023
Shanmuganandavadivel, J (2016), “The impact of mega-shopping malls on the small re-tail business in Coimbatore City” https://www.researchgate.net/publication/346895035_A_STUDY_ON_ THEIM-PACT_OF_MEGA_SHOPPING_MALLS_ON_SMALL_RETAIL_BUSIN ESS_SECT OR , Date retrieved October 6,2022
Schiffman & Kanuk (1997) “Consumer Behav-ior Theory” https://repository.up.ac.za/bitstream/handle/2263/29162/02chapter2.pdf ?sequence=3 Date retrieved: May 10, 2023
The World Bank (n.d.), “Small and Medium Enterprises (SMEs) Finance”: https://www.worldbank.org/en/topic/smefinance , Date retrieved December 27,2022
Voxco, (2021), “What is Descriptive research design” https://www.voxco.com/blog/descriptive-research-design/ , Date retrieved No-vember 29,2022
Verma,P.(2023), ”Small and Medium Enter-prise (SME) – Definition, Characteristics, & Examples” https://www.feedough.com/small-and- medium-enterprises-sme, Date retrieved: December 27, 2023
Yoshino, N., & Taghizadeh-Hesary, F. (2016). Major Challenges Facing Small and Medi-um-sized Enterprises in Asia and Solu-tions for Mitigating Them. In Asian De-velopment Bank Institute, ADBI Working Paper Series (No. 564). Asian Develop-ment Bank Institute. https://www.adb.org/sites/default/files/publication/182532/adbi-wp564.pdf
Vorecol.com. (n.d.). How can small businesses effectively compete with larger corpora-tions for market share? https://vorecol.com/blogs/blog-how-can-small-businesses-effectively-compete-with-larger-corporations-for-market-share-123180
Zainudin, M. F., Adam, S., & Fuzi, N. M. (2021). The Impact of Customer Buying Behavior towards Small and Medium Enterprises (SMEs) PERCEPTION DURING PANDEM-IC (COVID-19) IN JOHOR. Advanced Inter-national Journal of Business Entrepre-neurship and SMEs, 3(9), 01–07. https://doi.org/10.35631/aijbes.39001
Downloads
Published
Issue
Section
License
Authors who publish with this journal agree to the following terms:
Authors retain copyright and grant the journal right of first publication with the work simultaneously licensed under a Creative Commons Attribution License that allows others to share the work with an acknowledgement of the work's authorship and initial publication in this journal.
Authors are able to enter into separate, additional contractual arrangements for the non-exclusive distribution of the journal's published version of the work (e.g., post it to an institutional repository or publish it in a book), with an acknowledgement of its initial publication in this journal.
Authors are permitted and encouraged to post their work online (e.g., in institutional repositories or on their website) prior to and during the submission process, as it can lead to productive exchanges, as well as earlier and greater citation of published work (See the Effect of Open Access).
