Economic analysis of bus transport business in Indang, Cavite / Agnes P. Manalo.

Thesis (BSBM - - Economics) Cavite State University.

Includes bibliographical references.

College of Economics, Management, and Development Studies (CEMDS)

MANALO, AGNES PEREY, "Economic Analysis of Bus Transport Business in Indang, Cavite", B.S. Thesis, Bachelor of Science in Business Management, major in Economics, Cavite State University, Indang, Cavite, April 1999. Adviser: Dr. Alice T. Valerio. The study was conducted from January to February 1999 at Indang, Cavite.

The study aimed to 1) identify the socio-economic characteristics of bus operators in Indang, Cavite; 2) describe the operation of bus services; 3) evaluate the profitability of bus transport business; and 4) identify the problems encountered by the bus operators and recommend possible solutions to these problems. The list of all bus companies and operators was obtained from the records of the municipality. Collection of data with the aid of prepared questionnaire was employed through personal interview to avoid misinterpretation of questions. Respondents' age ranged from 48 to 68 with an average of 56 years. All of the respondents were male and were high school and college graduates. The number of dependents of the bus operators ranged from one to five with an average of three dependents.

The respondents have been in the business for 15 years and they considered it as their only source of income. The most common form of business organization among the bus transport business was sole proprietorship with an average capital of P475,000. Most of them used their personal savings and acquired loans from banks to finance the business. The number of bus units ranged from 5 to 26 with an average of 16 units. Majority of the respondents acquired secondhand buses. These buses were categorized into small with seating capacity of 46, medium with seating capacity of 54 and large with seating. capacity of 60. Indang- Baclaran has major pick-up points with different passengers’ fares. These were Trece, Manggahan, Dasmariñas, Imus and Bacoor. The implementation of the Metropolitan Manila Development Authority (MMDA) - odd - even scheme affected the number of motor vehicles plying to their franchised route. The respondents had an average of 13 bus units in a day. On the mode of operation, the prospective bus operators must secure a franchise from the Land Transportation Office (LTO). The "ride-in" owners were obliged to pay P100 per day and the conductors and drivers were paid on commission basis.

The average monthly cost of bus transport business per bus amounted to P59,719.24. After deducting the expenses incurred from the average monthly gross income per bus of P91,000, the average monthly net income of P30,967.95 was obtained. The average return on investment and return on expenses of bus transport business were 6.52 percent and 51.86 percent, respectively. The common problems reported by the respondents were: high operating costs; stiff competition; hard-to-manage employees; limited financial resources; traffic and poor condition of roads.

Submitted to the University Library 06/08/1999 T-1958