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Default risk management practices of single proprietors in selected municipalities of Cavite / by Charmaine C. Rojas.

By:

Rojas, Charmaine C [author]

Contributor(s):

Corpuz, Estrellita D [adviser]

Material type: Text

TextLanguage: English Publication details: Indang, Cavite : Cavite State University- Main Campus, 2013.Description: xiii, 54 pages : illustrations ; 28 cmContent type:

text

Media type:

unmediated

Carrier type:

volume

Subject(s):

DDC classification:

658.155 R63 2013

Online resources:

Click here to view thesis abstract and table of contents

Production credits:

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

Abstract: ROJAS, CHARMAINE CAPALUNGAN. Default Risk Management Practices of Single Proprietors in Selected Municipalities of Cavite. Undergraduate Thesis. Bachelor of Science in Business Management, major in Financial Management. Cavite State University, Indang, Cavite. October 2013. Thesis Adviser: Prof. Estrellita D. Corpuz. This study was conducted to determine the default risk management practices of single proprietors in selected municipalities of Cavite. Specifically, this study aimed to describe the demographic characteristics and profile of businesses of single proprietors in selected municipalities of Cavite; determine the level of default of customers; determine the default risk management practices employed by single proprietors; determine the techniques/strategies employed by single proprietors to lessen default; determine the relationship between the default risk management practices employed by single proprietors and customer default; determine the relationship between techniques and strategies employed by single proprietors and the default of customers; and identify the problems or risks encountered by the participants in relation to customers’ credit. Results showed that the age of the participants ranged from 28-79 years with a mean age of 48 years. Majority of the participants were female (66%) and married (87%).Thirty-two percent of them reached college level. The participants operated their businesses from 1 to 50 years with a mean of eight years. The primary source of financing of the participants was their personal savings (81%). The initial capitalization of single proprietors ranged from P300 to P400,000. Most had below P50,000 initial capitalization (72%)\ while the estimated revolving capital had an average of P314,250. A large percentage of the participants were operating sari-sari stores (60%). More than half of single proprietors experienced medium default level ranging from 25.01%-50%. The participants had a high level of implementation of default risk management practices with a mean score of 3.27. The most commonly employed default risk management practices were: encouraging customers to pay on time; having good communication and relationship with customers; offering good customer service; imposing credit limits to restrict the business’ overall exposure; obtaining personal guarantees of someone who knew the customer where possible; and checking the credit status of the customer before making the sale. In the aspect of techniques/strategies employed by the participants to lessen default payment, issuance of follow up letters and reporting the creditor to barangay or proper authorities were “always implemented” by the participants. The Spearman rank correlation revealed that there is no significant relationship between the default risk management practices and the level of default. It also revealed that there is a significant relationship between the techniques or strategies employed by sole proprietors and the level of default. Non-payment of credits on time was identified as the problem or risk that was always encountered or highly experienced by the participants.

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Holdings ( 1 )
Title notes ( 5 )

Holdings
Item type	Current library	Collection	Call number	Materials specified	URL	Status	Notes	Date due	Barcode
Theses / Manuscripts	Ladislao N. Diwa Memorial Library Theses Section	Non-fiction	658.155 R63 2013 (Browse shelf(Opens below))		Link to resource	Room use only	T-5139		00008167

Thesis ( BS Business Management--Financial Management ) Cavite State University.

Includes bibliographical references.

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

ROJAS, CHARMAINE CAPALUNGAN. Default Risk Management Practices of Single Proprietors in Selected Municipalities of Cavite. Undergraduate Thesis. Bachelor of Science in Business Management, major in Financial Management. Cavite State University, Indang, Cavite. October 2013. Thesis Adviser: Prof. Estrellita D. Corpuz.

This study was conducted to determine the default risk management practices of single proprietors in selected municipalities of Cavite. Specifically, this study aimed to describe the demographic characteristics and profile of businesses of single proprietors in selected municipalities of Cavite; determine the level of default of customers; determine the default risk management practices employed by single proprietors; determine the techniques/strategies employed by single proprietors to lessen default; determine the relationship between the default risk management practices employed by single proprietors and customer default; determine the relationship between techniques and strategies employed by single proprietors and the default of customers; and identify the problems or risks encountered by the participants in relation to customers’ credit.

Results showed that the age of the participants ranged from 28-79 years with a mean age of 48 years. Majority of the participants were female (66%) and married (87%).Thirty-two percent of them reached college level. The participants operated their businesses from 1 to 50 years with a mean of eight years. The primary source of financing of the participants was their personal savings (81%). The initial capitalization of single proprietors ranged from P300 to P400,000. Most had below P50,000 initial capitalization (72%)\ while the estimated revolving capital had an average of P314,250. A large percentage of the participants were operating sari-sari stores (60%).

More than half of single proprietors experienced medium default level ranging from 25.01%-50%. The participants had a high level of implementation of default risk management practices with a mean score of 3.27. The most commonly employed default risk management practices were: encouraging customers to pay on time; having good communication and relationship with customers; offering good customer service; imposing credit limits to restrict the business’ overall exposure; obtaining personal guarantees of someone who knew the customer where possible; and checking the credit status of the customer before making the sale.

In the aspect of techniques/strategies employed by the participants to lessen default payment, issuance of follow up letters and reporting the creditor to barangay or proper authorities were “always implemented” by the participants.

The Spearman rank correlation revealed that there is no significant relationship between the default risk management practices and the level of default. It also revealed that there is a significant relationship between the techniques or strategies employed by sole proprietors and the level of default.

Non-payment of credits on time was identified as the problem or risk that was always encountered or highly experienced by the participants.

Submitted copy to the University Library. 07/31/2013 T-5139