Capital formation and risk management of service oriented entrepreneurs in selected municipalities of Cavite / by Kenneth Dwight M. Muñoz and James G. Nuestro.

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

Includes bibliographical references.

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

MUNOZ, KENNETH DWIGHT M. and NUESTRO, JAMES G. Capital Formation and Risk Management of Service-Oriented Entrepreneurs in Selected Municipalities of Cavite. Undergraduate Thesis. Bachelor of Science in Business Management. Cavite State University. April 2015. Thesis Adviser: Prof. Estrellita D. Corpuz.

The study was conducted from November 25 to December 22, 2014 in selected municipalities of Cavite, to determine the capital formation and risk management of service-oriented entrepreneurs. Specifically, the study aimed to: determine the demographic profile of service-oriented entrepreneurs in selected municipalities of Cavite; determine the perceived likelihood of risk occurrence in service-oriented business in selected municipalities of Cavite; determine the techniques used in identifying risk by service-oriented entrepreneurs; determine the acceptance level in risk management methods by service-oriented entrepreneurs; determine the capital formation of service- oriented entrepreneurs; determine the relationship between demographic profile and risk management of service-oriented entrepreneurs; determine the relationship between demographic profile and capital formation in terms of operating capital of service- oriented entrepreneurs; and determine the problems encountered in capital formation and risk management of service-oriented entrepreneurs in selected municipalities of Cavite. Descriptive and correlational designs were used as research design and non-probability purposive sampling technique was used as sampling technique in the study.

The participants of the study were 248 service-oriented entrepreneurs in seven municipalities of Cavite, namely: General Trias, Indang, Mendez, Silang, Tagaytay City, Tanza and Trece Martires City. Mean, frequency, range, percentage and rank were used to describe the data. Likert scale was used to determine the perceived likelihood of risk occurrence in the business and acceptance level in risk management methods. Chi-square, Pearson correlation coefficient, Point-biserial correlation coefficient and Spearman rank correlation coefficient were used as statistical tools in the study.

Almost equal number of male and female participants were surveyed, who had an average age of 38 years. Majority of them were married and most of them had college education. The average monthly income from the business of the participants was P21,209.68. Predominantly, participants had a salon business and majority of them had been operating for 1 to 5 years.

Participants expect low possibility of risk occurrence and the most commonly used in identifying risk is customer complaints. Risk avoidance is the most accepted risk management method by the participants. Most participants financed their initial capital through their personal savings. Majority of the participants had an initial capital of P100,000 and below and 54 percent had P100,001 to P250,000 of operating capital. Most participants used their initial capital for the building of the business and accumulated profit was used for improvement of equipment.

Of the demographic characteristics, only sex, civil status, and estimated monthly income were related to the capital formation in terms of operating capital.

Submitted copy to the University Library. 03/02/2016 T-5843