Chapter 3

RESEARCH DESIGN AND METHODOLOGY

This chapter presented how the researchers have gathered data, the research

method employed in the study, the data collection techniques that were used and the

target population, the sample size and sampling techniques as well as the data analysis

method that were used by the researchers to obtain the objectives of the study.

Research Design

The study made use of the descriptive-correlational research design as the study

was designed to investigate the connection between the money utilization and

profitability of micro-enterprises in Daet, Camarines Norte. Correlation study outlined an

current relationship between factors, according to Fraenkel and Wallen (1988). The

research took the quantitative approach as it was based on numerically measured factors

and analyzed using statistical processes. The descriptive technique fits in with this

research because the researchers were searching for answers to some problems about the

impact of money utilization on micro-enterprise profitability.

In this study, the descriptive method was applied in the analysis of the profile the

respondents, utilization of money for various business activities and the level of

profitability of the micro businesses in Daet. Meanwhile, the correlational method was

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applied in this research in the analysis of the significant relationship between money

utilization and the profitability of the micro businesses in Daet.

Sources of Data

The data in this study were gathered both from primary and secondary sources.

The primary sources of data were collected directly from the respondents by answering

the survey questionnaires provided by the researchers. These questionnaires were

distributed to registered micro business managers/owners for first-hand information for

processing towards answering the research questions, it was divided into three parts.

The first part answered the questions about the status of the business including;

the type of business, years of operation, number of employees, and their sources of

capital.

The second part consist of various ways of using money in the business. These

questions answered the level of spending of the business in different business activities

like investing, replenishment of inventories, payment of salaries, wages and taxes,

acquisitions, borrowings, and drawings.

The third part consist of the level of profitability of micro business including;

ROI, GPM, OPM, operating leverage, NPM, ROE, EBIT, and return on invested capital.

This was anchored on the 2nd part of the questionnaire on how the different business

activities or spending affect the profitability.

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 The last part of the questionnaire looks at the future off these micro businesses; it

seeks recommendations for the benefit of the respondents to improve their profitability

and attain sustainability of their business.

The secondary sources were obtained from review of literatures, books, eBooks,

journals, articles, other studies and educational sites that are relevant to the study, this

was founded in school library and internet.

Respondents of the Study

This study targeted all registered micro businesses in Daet, Camarines Norte

except professional services and financial institutions, which according to the Treasurer’s

Office of the Municipality of Daet totaling to 855.The researchers used Sample Size

Calculator in order to determine the target sample size needed in the study.

Sampling Technique

Stratified random sampling were used. A stratified random sampling is a method

of sampling that involves the division of a population into smaller sub-groups known as

strata. (Hayes, 2019) Stratified random sampling involves dividing the entire population

into homogenous groups called strata. The researchers obtained sample population from

different barangays in Daet, Camarines Norte that has registered micro businesses.

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Research Instruments

In order to gather the needed data, the researchers prepared a questionnaire which

was composed of four salient parts. The first part served to gather data about the profile

of the respondents. Meanwhile, the second part of the survey form collected information

about the practices of the respondents to utilize money for various business activities.

Finally, the third part of the instrument served to acquire information about the level of

profitability of the micro businesses in Daet.

Data Gathering Procedure

The researchers used survey in order to gather necessary information. Through

consultations and assistance that was given by the instructor, adviser and panels, the

questionnaire was finalized. The panels and adviser approved the survey questionnaire

that were used by the researchers and obtained consent to conduct survey.

The researchers went on treasurer’s office of LGU Daet to request a list of all

registered businesses in town. They sorted the list to get the specific micro businesses

that were used in the study. After sorting, the researchers got 855 micro businesses as

target respondents. The questionnaire was handed personally to the owners during vacant

hours or depending on the availability of the respondents so as not to interfere with the

business operation and were retrieved after answering the questionnaires.

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Statistical Treatment of Data

The researchers used the Pearson product of correlation, percentage method,

weighted mean and ranking to evaluate the answers that were tallied and qualified.

Pearson Moment of Correlation. The Pearson product correlation coefficient is a

measure of the strength of the linear relationship between two variables.

Percentage technique. The researcher utilized the percentage technique to get the

percentage from number of responses given by the respondents.

Weighted Mean. The weighted mean was used to determine the degree of agreement of

the respondents on each category under money utilization.

Ranking. The ranking of data was used to average the ranks.

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 Notes

Fraenkel, J.R & Wallen,N.E (1988). How to Design and Evaluate Research in
Education. McGraw-Hill, INC. New York.
Sample Size Calculator. Surveysystem.com/sscalc.htm.
Hayes A. (2019). Stratified Random Sampling. Retrieved from
https://www.investopedia.com/terms/stratified_random_sampling.asp

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