Student Research

College of Business, Economics, Accountancy and Management

Impact of Cryptocurrency to Selected Small Businesses in Lipa City

(Proposed Research Title)

Brief Background of the Proposed Study

a. Topic relevance

E-Commerce is the current trend in sales and marketing practiced by small businesses in the in
the city of Lipa wherein crypto-currency is the most popular medium of exchange used in the
transaction. In fact, some of these business establishments almost prefer this payment instrument
than real cash because there arise some great effect to the firms’ sales volume and profit, interest
rate, and wealth status.
Crypto-currency is a digital currency or asset that relies on encryption technology to transfer value
over the Internet. Crypto-currencies like MonSpace Dollar or MSD operate independently of a
banking system and can be used in many countries as a store or exchange of value like cash.
The most common use of cryptocurrency is buying and selling goods and services online.

b. Major significance
Crypto-currencies store value just like any other currency and also have stated exchange rates
for most of the existing legal tender in the world. However, almost all types of crypto-currencies
also have a fixed supply, making them similar to a precious metal like gold or platinum.

Crypto-currency represents a new way for small businesses to accept customer payments and
even pay vendors or suppliers. The result of this study will provide small and medium enterprises
comprehensible information pertaining to cryptocurrency and its impact to the financial
performance of the company.

The findings of this study will be useful to Philippine lawmakers as the result can be use as
guidelines in the drafting of bills relative to the monetary policy on cryptocurrency in the future.

The study can be very useful as source of reference for future researchers.

c. General theoretical foundation

Albeit undersized, small businesses play a significant role in the Philippine Economy. Aside from
job creation and paying taxes, small business tried to compete with their bigger counterpart in
whatever business formula they can think of to survive their commercial objectives. Small
business establishment usually do not pair enough with giant business because they do not lack
the capital requirements but because they could not afford the business restructuring plan of their
bigger counterpart because of their small size and simple management structures. Like the SMEs,
the lack of proper financial management is oftentimes the dilemma encountered by these small
businesses. If the remedial measure is the use of latest trend in financial management such as
the use of MSD cryptocurrency be applied; the chance for these small businesses to compete for
a bigger market share will help them sustain their existence and can pursue a long-lasting
economic growth and development.

De La Salle Lipa
J.P. Laurel Highway, Mataas na Lupa, Lipa Batangas
 Student Research
College of Business, Economics, Accountancy and Management

a. Conceptual Framework
INDEPENDENT VARIABLES DEPENDENT VARIABLES

Payment Scheme Impact of Cryptocurrency to

Sales Volume Selected Small Businesses in
Profits and Losses Lipa City
Wealth Status

d. Study subject

This research sought to find out how the small businesses conduct the practices of their business
with the aid of MSD cryptocurrency account. To accomplish the project, the researchers will
conduct an orientation of the project, organize structure and monitor the operations for a specific
period of time. At a designated period, assessment will be made to find out the effect of
cryptocurrency to the selected small businesses located in Lipa City, Batangas.

Proposed Research Problems and Objectives

1.3 Purpose of the study

To determine the implication of the crypto-currency MSD on the financial performances of small
businesses in Lipa City

1.4 Objectives of the study

The following are the objectives of this research regarding small business in Lipa City.

i. To assess the effect of MSD crypto-currency on the sales volume of small business in
Lipa City.

ii. To find out how MSD crypto-currency contributes to the profit and loss statements of
small business in Lipa City.

iii. To examine the effect of MSD crypto-currency to the wealth status of small business
in Lipa City.

1.5. Research Questions

De La Salle Lipa
J.P. Laurel Highway, Mataas na Lupa, Lipa Batangas
 Student Research
College of Business, Economics, Accountancy and Management

The following are the research questions this study will seek to answer.

i. What is the effect of MSD crypto-currency on the sales volume of small business in
Lipa City?

ii. What is the contribution of MSD crypto-currency towards the profit and loss statements
of small business in Lipa City?

iii. How does MSD crypto-currency affect the wealth status of small business in Lipa City?

De La Salle Lipa
J.P. Laurel Highway, Mataas na Lupa, Lipa Batangas
 Student Research
College of Business, Economics, Accountancy and Management

Effect of Financial Management Practices on the Financial Performance of Selected

Small and Medium Enterprises (SMEs) in Rosario, Batangas
(Proposed Research Title)

Brief Background of the Proposed Study

b. Topic relevance
Financial management is an important element of the management of any business. This study
will determine the effect of financial management practices on financial performance of small and
medium enterprises in Rosario, Batangas.

c. Major significance
Many researches have shown that the combined effect of financial management practices
working capital management, investment decision, and financial decision have a moderate
positive relationship between financial management practices and financial performance.

This research is significant to the owners of SMEs in Rosario, Batangas, policy makers in the
government of Philippines and financial management researchers. The owners of SMEs in
Rosario, Batangas and elsewhere will get information concerning how best to finance their
businesses to improve the financial performance of their businesses.

This is an input that can be used to come up with methods of improving the financial efficiency
and profitability of the SMEs.

Policy makers will use the information obtained from this research for their policy formulation
concerning financial management of SMEs. The research highlighted the relationship between
the financial management and financial performance of SMEs. This relationship indicated the
importance of financial management as a contributor to financial performance of SMEs.

Research concerning the contribution of financial management on financial performance of SMEs

in Rosario, Batangas is rare, if available at all. This research provides a scholarly contribution to
the effect of financial management in SMEs with focus on Rosario, Batangas. Future researchers
will, therefore, use the findings of this study to further arguments and future research projects that
will find this research relevant.

d. General theoretical foundation

The study will show that considered individually, there is a positive relationship between working
capital management; investment decisions; financial decisions and financial performance.

De La Salle Lipa
J.P. Laurel Highway, Mataas na Lupa, Lipa Batangas
 Student Research
College of Business, Economics, Accountancy and Management

e. Conceptual Framework
INDEPENDENT VARIABLES DEPENDENT VARIABLES

Working Capital management Financial Performance of

Selected Small and Medium
Investment decisions Enterprises (SMEs) in Rosario,
Batangas
Financing decisions

f. Study subject
First this research will not cover all the SMEs in the Philippines in their varied nature. It will only
focus on SMEs in Rosario, Batangas. The study will limit itself to finding out the effects of working
capital management, investment and financing on financial performance of the SMEs in Rosario,
Batangas.

The study will use descriptive research design utilizing qualitative data captured using a self-
administered questionnaire. Three variables namely Working Capital Management, Investment
decisions and financing decisions will be used to measure financial performance.

g. Proposed Research Problems and Objectives

The Small and Medium Enterprises (SMEs) play an important role in the Philippine Economy.
This sub-sector contributed to the creation of new jobs. Despite their significance, most SMEs fail
within the first few years of operation because of their small size, thus simple management
mistakes lead to the collapse of SMEs. Lack of proper financial management is one of the issues
that easily lead to the bankruptcies of SMEs despite improved access to financing. If interventions
regarding how these SMEs conduct financial management is not addressed, their slump will not
only threaten job creation and entrepreneurship, but will impede economic growth and
development. This research will seek to find out how the SMEs conduct their financial
management and how the practices affect their financial performance. This enabled provision of
recommendations on remedial measures. To achieve this, the researchers will conduct a survey
focusing on SMEs located in Rosario, Batangas.

1.3 Purpose of the study

To establish the effect of financial management practices on the financial performance of small
and medium enterprises (SMEs) in Rosario, Batangas

1.4 Objectives of the study

The following are the objectives of this research regarding Small and Medium Enterprises in
Rosario, Batangas.

iv. To assess the effect of working capital management on the financial performance of
Small and Medium Enterprises in Rosario, Batangas.

De La Salle Lipa
J.P. Laurel Highway, Mataas na Lupa, Lipa Batangas
 Student Research
College of Business, Economics, Accountancy and Management

v. To find out how investment decisions contributes to financial performance of Small

and Medium Enterprises in Rosario, Batangas.

vi. To examine the effect of financing decisions on the financial performance of Small and
Medium Enterprises in Rosario, Batangas.

1.5. Research Questions

The following are the research questions this study will seek to answer.

iv. What is the effect of working capital management on the financial performance of
Small and Medium Enterprises in Rosario, Batangas?

v. What is the contribution of investment decisions towards the financial performance of

Small and Medium Enterprises in Rosario, Batangas?

vi. iii. How does financing decisions affect the financial performance of Small and Medium
Enterprises in Rosario, Batangas?

De La Salle Lipa
J.P. Laurel Highway, Mataas na Lupa, Lipa Batangas
 Student Research
College of Business, Economics, Accountancy and Management

Implication of MonSpace Dollar (MSD) crypto-currency Exchanger Account (CCEA) to the

Financial Performance of Selected Microfinance companies
in Lipa City

Brief Background of the Proposed Study

a. Topic relevance

Earlier all the monetary transactions were enabled through central banks (directly or indirectly).
Now, with the evolution of crypto-currency such as MSD, the scenario has changed. The power
that was vested in the governments and central banks is shifting to the masses. This revolutionary
change in transaction handling has the power to change the economic structure. To bring security
and enable scrutiny, central banks and financial institutions maintain a record of all the
transactions undertaken by the people. Now with digital currencies, this economic power can be
challenged by people. This has led to the creation of a new autonomous body which can facilitate
transactions as now being practice by SMEs through microfinance companies. Most microfinance
companies just died down because of insufficient funds. With cryptocurrency, this is out of the
question. This is being conducted to find out the effect of the installation of a Crypto-Currency
Exchanger Account (CCEA) to the business operations of the selected microfinance companies
particularly to their financial performance.

b. Major significance

Originating initially in 2009, they began to gain massive popularity only now. The demand for
crypto-currencies like MSD cryptocurrency generates an increase in their exchange value. In
comparison with bank payments, payments in crypto-currencies significantly benefit regarding
commission rates. This is because the system is loyal, decentralized and supported exclusively
by its participants. There is no need to pay interest to the bank and payment services. In general,
it can be noted that the technology of crypto-currency in its idealized version has significant
advantages over the traditional banking system and other types of digital money. Ultimately if
adopted on a large scale crypto-currency can lead to the politicization of money.

c. General theoretical foundation

The real discovery in the world of electronic commerce or e-commerce has become crypto-
currencies. First of all, crypto-currencies are an independent monetary system. They are not tied
to the banking sector, but they also do not have real reinforcements, as is the case with
conventional money that is secured by gold. The whole system works exclusively on mutual trust
of users. Such decentralization is beneficial for users and business structures. As a result, each
user can choose in which currency to make payments or where to invest the capital.
Businessmen, stock exchanges, and trading platforms are also actively working to provide users

De La Salle Lipa
J.P. Laurel Highway, Mataas na Lupa, Lipa Batangas
 Student Research
College of Business, Economics, Accountancy and Management

with unhindered access to the range of crypto-currencies, to facilitate exchange and so on.
Crypto-currencies have led to the emergence of new markets. Currencies like MSD, Bitcoin and
Ethereum have opened gates for a new kind of market which unlike present money market is
controlled by no one.

A microfinance institution is an organization that offers financial services to low income

populations. Almost all give loans to their members, and many offer insurance, deposit and other
services. The researcher assumed that if microfinance institutions adopt the popularity of crypto-
currency by creating crypto-currency exchangers (CCEA), the financial performance of the
microfinance companies will affected and so are the banks and other government institutions
offering financial services would be affected in many financial aspects.

d. Conceptual Framework

INDEPENDENT VARIABLES DEPENDENT VARIABLES

1. MSD Structure
2. A. Product Financial Sustainability of the
 Loans Microfinance Companies
 Insurance/
 Retirement Plan
B, Services
 Trading
 Investments
3. Financial performance:
 Capital management
 Investment decisions
 Financing decisions

e. Study subject

This study will analyze the impact of MSD crypto-currency exchanger account (CCEA) to the
financial performance of selected microfinance companies in the city of Lipa. The primary data
will be gathered from microfinance company management and employees while secondary data
will be gathered from the banks through interviews

Proposed Research Problems and Objectives

Specifically, it will seek answers to the following questions:

1. How can MSD crypto-currency exchanger account be described to the selected

microfinance companies?

De La Salle Lipa
J.P. Laurel Highway, Mataas na Lupa, Lipa Batangas
 Student Research
College of Business, Economics, Accountancy and Management

2. What is the effect of the MSD crypto-currency exchanger account to the products and
services of the selected microfinance companies?
3. What is the effect of the MSD account to the financial performance of the microfinance
company in terms of?
 Asset accumulation
 Liabilities remediation
 Capital build up
 Sales and Marketing

4. How does MSD account affect the financial performance of the banks?

Objectives of the study

The following are the objectives of this research regarding microfinance in Lipa City.

i. To assess the effect of MSD crypto-currency exchanger account be described to the

selected microfinance companies

ii. To find out how MSD crypto-currency exchanger account to the products and services of
the selected microfinance companies

iii. To examine the effect of MSD account to the financial performance of the microfinance
company in terms of:

 Asset accumulation
 Liabilities remediation
 Capital build up
 Sales and Marketing

iv. To analyze the effect of MSD account to the financial performance of banks.

De La Salle Lipa
J.P. Laurel Highway, Mataas na Lupa, Lipa Batangas