Profitability or selected small and medium enterprises in Cavite /
Jesica S. Diloy.
- Indang, Cavite : Cavite State University- Main Campus, 2012
- xiii, 41 pages : illustrations ; 28 cm
Theses (Bachelor of Science in Business Management--Financial Management) Cavite State University.
Includes bibliographical references.
College of Economics, Management, and Development Studies. (CEMDS) College of Economics, Management, and Development Studies. (CEMDS)
DILOY, JESICA SIENA. Profitability of Selected Small and Medium Enterprises in Cavite. Undergraduate Thesis. Bachelor of Science in Business Management major in Financial Management, Cavite State University, Indang, Cavite. October 2012. Adviser: Prof. Myrachael S. Nolasco.
A study was conducted to determine the profitability of Small and Medium Enterprises (SMEs) in selected areas of Cavite. Specifically, the study aimed to determine the business profile of SMEs, determine the profitability of the SMEs, determine the relationship between profitability and selected business profile variables and determine the problems encountered by SMEs.
The study covered the towns of Dasmariņas, Bacoor, Imus, Silang and General Trias. A total of 100 respondents were used.
Data were analyzed using frequency count, percentage, range, mean and rank. In addition, cost and return analysis and financial statements were used to determine the net income of the SMEs. To determine the relationship between business profile variables and the level of profitability, Chi-square test was used.
The study revealed that most of the SMEs were managed in a sole proprietorship form of business ownership. The years of operation of SMEs ranged from one to 62 years. Most of the SMEs were operating from one to ten years. The SMEs had one to 56 employees and 91 percent of them operated one to eleven years.
Merchandising industry had the highest net income among the three industries. The average gross profit margin (GPM) was 52 percent. The average operating profit margin (OPM) was 23 percent. The average net profit margin (NPM) was 18 percent. The average return on operating expenses (ROE) was 8.44 percent.
The test of relationship between business profile and profitability indicate that there was a significant relationship between number of employees and GPM. Other variables were not significantly related to GPM. In terms of OPM, only the years of operation was found to be significantly related to it. All the business profile variables were not significantly related to NPM and ROE. High cost of operation was the main problem encountered by the respondents. Other problems encountered were lack of capital, limited market and delayed payment by customers.