Dominican School Manila

1044 Lacson St, Brgy 479 -Z-47, Manila, 1008 Metro Manila

Efficiency of Accounting Practice in Small

Family Businesses Commented [D1]: Ayusin nyo format dapat uniform

A Research

Presented to the Faculty of the Senior High School Department

Presented by:

Janacek Blanche Odiver

Sashi May Linsangan

Jhemil Anne Ilao

Paul Chester Borja

Kyle Patrick Uy

12-St. Dominic
 Abstract

Purpose - This research investigates the introduction of accounting practices into

small family businesses, based on socio-emotional wealth theory.
Design/methodology/approach - A multiple-case study was conducted gathering data
through interviews and documents (proprietary and public). Findings - It was found that,
although owners control the implementation of accounting practices, others (including
family employees, non-family employees and external experts) at times propose practices.
The owner’s control can be relaxed, or even eliminated, as the result of proposals from
some family employees. However, the degree of influence of family employees is not
linked to the closeness of the family relationship, but rather to the owners’ perceived
competence of the family employee, indicating an interaction between competence and
experience on one side, and family ties on the other. Research limitations/implications –
First, the degree of influence family employees can exert might change over time. Second,
all firms studied were still managed by the founder. It is possible that small family
businesses that have undergone a succession process might incorporate accounting
practices differently. Practical implications - Organizations promoting the implementation
of managerial accounting practices should be aware that, in addition to the owner, some
family employees and external experts could influence business practices. Accountants
already providing accounting services to small family business are also a good source for
proposing managerial accounting practices Originality/value - This study contributes to
theory in four ways. First, it expands socio-emotional theory to include the perceived
competence of the family employee as a potential moderator in the decision-making
process. Second, it categorizes the actors who can influence managerial accounting
practices in small family businesses. Third, it further refines the role of these actors, based
on their degree of influence. Fourth, it proposes a model that describes the introduction of
managerial accounting practices in small family business.
 Acknowledgement

The completion of this feasibility study was made

possible through the encouragement and assistance of some
persons who have given their time and solicited advice to this
study. We thank Mr. Soliman and Ms. Suyat for Assistance, for
their patience and guidance, encouragement and for sharing
his expertise in writing this research study. We want to thank
our parents, who gave us life and guided us ever since we
were born, and for the financial and moral support; also to our
friends, who are always there for us too our classmates and
teachers who gave us inspiration and support to finish this
study. Above all, to OUR LORD JESUS CHRIST, for His abundant
graces and blessings showered unto the family of the
researchers.
 Table of contents

Title Page ……………………………………………………………………………… i

Abstract ………………………………………………………………………………. ii

Acknowledgement ………………………………………………………………………. iii

Table of Contents ………………………………………………………………………iv

CHAPTER
I. THE PROBLEM AND ITS BACKGROUND

Introduction ........................................................................................

Statement of the Problem ..................................................................

Significance of the Study ...................................................................

Scope and Limitation .........................................................................

Conceptual Framework .....................................................................

Definition of Terms……………………………………………………….

II. REVIEW OF RELATED LITERATURE REVIEW AND STUDIES

Local Literature .................................................................................

Foreign Literature ..............................................................................

Local Studies .....................................................................................

Foreign Studies ................................................................................

Synthesis ..........................................................................................
III. METHODOLOGY

Research Methodology......................................................................

Research Design ...............................................................................

Research Local .................................................................................

Population ........................................................................................

Research Methodsl ............................................................................

IV. PRESENTATION, INTERPRETATION AND ANALYSIS OF DATA

Result and Discussion of Data ..........................................................

Graphs .............................................................................

Analysis ...........................................................................

V. SUMMARY, RECOMMENDATION AND CONCLUSION

Summary ...........................................................................................

Conclusion .........................................................................................

Recommendation ..............................................................................
 Dominican School Manila
1044 Lacson St, Brgy 479 -Z-47, Manila, 1008 Metro Manila

Chapter 1 Commented [D2]: Elaborate further then introduce it in local

setting (Ipakita nyo gamiit references bakit niyo ito pag-aaralan)

Introduction

Starting a business often requires entrepreneurs to understand and complete a variety of

business functions. An important business function when starting a small business is accounting.
Although many entrepreneurs may be fearful of dredging through endless stacks of financial
documents, accounting often provides entrepreneurs with the clearest picture of their business’
success. Entrepreneurs must also keep copious amounts of records regarding the small business
startup for tax and legal purposes.

Statement of the Problem

1. Why does an owner of small family business needs knowledge about accounting?
2. How important is it to know your company or business’ health?
3. In starting a small business, do we need expert insights?
4. How to manage cash flow?

Significance of the Study

This study which is the Efficiency of Accounting Practice in Small Family Businesses is deemed
significant to the following entities:
Future Business Owner- This study will give ideas to the future owners about the importance of

knowing accounting before opening a small business because if they are not aware in their

planned business, it will not grow.

Future Researchers – This study can be a reference to other researchers who will be conducting

or develop this research.

Students – This research will provide them an essential insight about starting a business,

Scope and Limitation

The proposed study will only focus on the Efficiency of Accounting Practice in Small Family

Business. The advantage of knowing accounting and how it can help your business grow,

This research will be conducted gathering information, facts, and opinions through

interviews and documents.

Conceptual Framework

This study claims that accounting provides the small business owner with valuable

information about the state and health of their business. I would venture to say that

knowledge of accounting is more important for a small business person than it is for the

owner(s) of a large company. If nothing else, a knowledge of cash flow is crucial to

successfully running a small business. Cash flow is more than just knowing how much
 money you have available in the bank. Cash flow is more about identifying the sources of

cash so that you can maximize them and the uses of cash so you can minimize them.

Definition of Terms

1. Socio-emotional - Relating to an individual's emotions and relationship

to society.

2. Entrepreneurs - A person who organizes and operates a business or

businesses, taking on greater than normal financial risks in order to do
so.

3. Accounting - The action or process of keeping financial accounts.

4. Cash flow - The total amount of money being transferred into and out
of a business, especially as affecting liquidity.

5. Feasibility - The state or degree of being easily or conveniently done.

6. Copious - Abundant in supply or quantity.

7. Crucial - Decisive or critical, especially in the success or failure of

something.
 Dominican School Manila
1044 Lacson St, Brgy 479 -Z-47, Manila, 1008 Metro Manila

Chapter 2

Literature review

There is a substantial body of academic and grey literature on how family businesses may
differ from other SMEs. There are a number of consistent themes running through this, although it
is worth noting that much of the research is at the level of larger businesses, where family
ownership is rarer than at SME level, and it is easier to see differences in management styles etc.
There is also substantial heterogeneity in family businesses, at all sizes (Bammens et al., 2011)
which needs to be borne in mind. Nonetheless, the literature provides helpful suggestions for
avenues to pursue in this research. 2.1 The objectives of family businesses The objectives of family
businesses may be oriented more towards longer-term survival of the business, and retention in
the hands of the family, when compared with shorter-term, more profit-oriented objectives of non-
family businesses (Harris et al., 1994). This may lead to turnover growth and profitability being
smaller, and the business being less likely to take risks, to diversify its offering etc. The family
owners can be seen as the stewards or custodians of the business, which also implies a different
set of success criteria, rather than straightforward profitability. These criteria can include
providing opportunities for family members, both currently (for example, in the form of
employment (Kellermanns et al., 2008)) and in the future (e.g. passing the business on (Miller and
Le Breton-Miller, 2003)); running the business in such a manner as to reflect well on the family
owners; and social accomplishments (Miller and Le Breton-Miller, 2005; Berrone et al., 2012) and
preserving family cohesion wealth (Chrisman et al., 2003; Gomez-Mejia et al., 2007), with profits
the result of pursuing these objectives. In general, ‘socioemotional wealth’ (SEW) is seen as highly
important to family businesses, defined as ‘non-financial aspects of the firm that meet the family's
affective needs, such as identity, the ability to exercise family influence, and the perpetuation of
the family dynasty’ (Gómez-Mejía et al., 2007, p106). Family businesses will pursue goals which
may be non-economic, in order to increase or preserve socioemotional wealth (Gómez-Mejía et al.,
2010), in regard to which family owners are highly loss averse, leading them to reject
opportunities which may threaten it. A further implication of this is that if a business comes to be
seen more as a family business over time (e.g. when children show more interest in succession),
rather than being a family business by virtue of the ownership structure, the objectives and
strategies pursued by the founder may change. As Westhead and Howorth (2006) report,
businesses with tight family ownership and management structures were more likely to report
family-objectives as a high priority, while first generation businesses or those with a lower
proportion of family managers were less likely to report the same. 7 The preferences that come
about from the desire to preserve SEW often result in risk aversion and the pursuit of lower risk
strategies – for example, lower ratios of debt to equity (Kleiman et al., 1996; Gonzalez et al., 2013)
and to assets (Anderson and Reeb, 2003) and higher levels of liquidity (Allouche and Amman,
1997; Bigelli and Sánchez-Vidal, 2012), plus a tendency to scrutinise opportunities very carefully
and eschew diversification into new market areas, unless closely related to the existing line of
business (Anderson and Reeb, 2004). This strategy permits for a longer time horizon for planning
purposes, and for growth plans to come to fruition, facilitating longer term investment in the
business, rather than pursuit of short-term profits for dividends. For this reason, while family
businesses may appear to be growing more slowly than non-family ones, longer term that gap may
close, as the family business continues its slow, patient growth route. The security of senior
management positions which derive from their family status also facilitates longer term planning
and the build up of in depth knowledge and memory, as the Managing Director (MD) is less likely
to face redundancy for any short term failure to grow or generate profits (Miller and Le Breton-
Miller, 2005). Patel and Chrisman (2014) examine the idea of thresholds and aspirations, and how
they relate to the riskiness of strategies pursued. They argue that family business performance
below expectations risks the continuation of the business, prompting them to consider more risky
explorative Research & Development (R&D). By contrast, when performance is above
expectations, they rely more on R&D which is exploitative of their current products and processes;
this may increase the reliability of sales but also the risk to socioemotional wealth. These more
cautious attitudes lead to reluctance to seek outside funding – for example, from external equity
investors or even from debt finance, especially debt with a short term of repayment – compared
with non-family businesses. Family businesses are more likely to use retained earnings, because of
caution and a strong desire not to dilute family control via outside investment; as a result there
tends to be a high level of savings. However, the level of leverage tends to increase as the business
grows larger; the motivations of newly established businesses and those that remain small are
dominated by risk-aversion, but larger businesses require a higher level of debt due to their
motivation to retain control and finance larger growth opportunities (Gonzalez et al., 2013). There
is an ‘empathy gap’ between family objectives and the institutional conditions attached to equity
funding, meaning that the latter cannot understand the former, nor adapt their funding offering to
take greater account of family business finance (Poutziouris, 2001). The corollary of the
tendencies identified above are that family owners will try to ensure the survivability of the
business for the next generation, and in particular to build up the social capital of the business
(Gedajlovic and Carney, 2010), which leads to stronger relationships with trading partners
(Arregle et al., 2007), advisers (Gersick and Feliu, 2013) and employees and, indeed, within the
family itself. As Wilson et al. (2013) note, this ‘survivability capital’ can be seen as a combination of
human, social and financial capital, working in a way which distinguishes them from non-family
businesses. On the other hand, Wilson et al. (2013) also note that there are certain characteristics
of family businesses which may militate against survivability: (i) family conflicts; (ii) altruism
towards the wider family: e.g. nepotism in appointments leading to poor managerial choices
(Schulze etal., 2003a), linked to (iii) an unwillingness to deal appropriately with poor performers
(Gedajlovic etal., 2012) and employees; (iv) a smaller chance of taking risks and seizing high value
opportunities; (v) strong social capital leading to a reluctance or difficulty in changing strategies,
operations or trading partners (Zahra, 2010); and lower R&D expenditure (Villalonga and Amit,
2006). 8 Overall, Wilson et al. (2013) conclude that the literature on survivability of family
business versus non-family businesses is ambivalent, although their analysis of Companies House
and Insolvency Service data does point to a significantly lower failure rate. They also point to
endogeneity in the processes of family business survival i.e. the family may well sell the business if
it appears to be failing or underperforming in some way against their objectives – i.e. the sample
may be biased, as those family businesses most at risk of failure have been sold off. Examining the
validity of these arguments in a more specific scenario, some researchers have suggested that this
outlook and type of strategy lends family businesses greater resilience, in particular during a
downturn, not only because of the relatively high level of financial security, but also because
autonomy facilitates rapid and flexible decision-taking (Braun and Latham (2009); DeDee and
Vorhies (1998)) and the long tenure of senior family managers provides a high level of
accumulated knowledge (Westhead and Howorth, 2006). Chaston (2012) though, disagrees with
this view, with evidence from a study of small family-owned hotels, arguing that businesses
succeeded during the recession because of their flexibility, and there was little difference between
family and non-family businesses in this regard. He also argues that the wider contexts in which
the family business is located (country, size of business, sector etc.) are important mediating
factors in how familiness manifests in the business and its performance. It is also important to
bear in mind the generation of the business, with some evidence that strategic changes may well
occur when the second generation confronts existing business objectives and strategies, and
where a lack of change and generational tensions may have led to underperfomance when the
older generation remained in charge (Brunninge et al., 2007). 2.2 Management and governance
The negative side of the family business characteristics described so far is that risk aversion may
lead to lower levels of innovation, and stagnation within the business, as it simply chooses to ‘tick
over’ rather than use their relative freedom to pursue a more growth-oriented strategy (Gomez-
Mejia et al., 2007; Hiebl, 2012). A more nuanced view is put by Zellweger (2007) and Hiebl (2013),
who argue that family businesses are better-placed than non-family businesses to take riskier
strategies that will only pay off in the longer term, as they do not need to pursue short-term results
– which means that non-family businesses are more likely to make short-term risky investments.
Le Breton-Miller and Miller (2009) suggest that the more embedded family owners are in the
family, rather than the business, the more family-oriented their motivations will be, and vice versa.
This is likely to occur in situations where different branches of the family are involved (and/or
multiple generations) and where there is a lack of external perspectives (e.g. few externally
recruited managers, lack of experience of family members outside the business). Family
businesses may thus be slower and more reluctant to professionalise than nonfamily businesses,
particularly in terms of hiring external managers or seeking external advice and support (from
both business support organisations and nonexecutive directors), while the relative lack of
external shareholders results in less external pressure to challenge how the family runs the
business. 9 The degree of owner-management is indeed found to be much greater in UK family-
owned businesses than businesses not owned by families (Scholes et al., 2010) This may therefore
lead to family businesses being more poorly managed and less open to new ideas than non-family
businesses, risking slower growth and profitability. This may be exacerbated by in-family
succession, inevitably narrowing the pool from which management talent is drawn, and possibly
causing resentment and poorer performance (or departure) from other managers, who recognise a
limit to how far they can be promoted. In recent years, this view has been strongly associated with
analysis of the London School of Economics World Management Survey (see e.g. Bloom et al.,
2012), arguing that – across many countries, on average,– family businesses are the worst
managed type of business. This suggests that it would be worth distinguishing between family
owned and managed businesses, and those with family ownership but a non-family manager or
management team. However, there are also high levels of multiple directorships, with other
businesses among directors of family businesses (Scholes et al., 2010), suggesting that this may be
an alternative route to external engagement, worthy of investigation. Two specific elements of
management capacity are also worth noting. First, the most likely first appointment of a non-
family senior manager/director is to a post related to financial management, such as Finance
Director (FD) (Jeuschede, 1998), reiterating the importance of prudent financial management to
family businesses. Second, there is evidence of a lack of skills in Human Resources (HR), especially
use of best practice HR, when family businesses are compared with non-family businesses (Bacon
et al., 2013). In terms of governance, the interactions between family and business objectives, and
the family and the management team, become more complex as the business grows - partly
because there is only a finite number of family owners to act as managers, and not all will be
sufficiently skilled or motivated to perform effectively (Breton-Miller et al., 2004) (as well as the
possible interplay of family dynamics affecting performance). (Schulze et al., 2003b) Wilson et al.
(2013) investigate specific aspects of governance which may aid the longer term survival of family
businesses. In terms of board characteristics which contribute to survival, family businesses are
more likely than non-family businesses to (a) maintain longer term board stability; (b) have close
communication and collocation of directors; (c) have fewer outside directors (i.e. non-executive or
non-family) – possibly because of the importance of hands-on involvement during a time of crisis,
or because Non-Executive Directors (NEDs) are more likely to encourage riskier strategies but
unwilling to intervene in family disputes; (d) have higher levels of gender diversity; (e) have older
and more experienced directors. As such, family businesses tend to have boards with higher levels
of social and human capital than non-family businesses. 2.3 Relationship with staff Despite the lack
of HR training, family businesses may have better relationships between upper management and
employees, particularly in terms of job satisfaction, employee loyalty, staff turnover etc. The
Institute for Family Businesses identifies this as ‘people capital’ and their analysis of the
Workplace 10 Employment Relations Survey indicates that such measures do indeed appear to be
higher in family businesses than non-family (Bacon et al., 2013). This employee relationship is
argued to derive from the same attitudes which govern objectives more widely. Long term
sustainability requires retaining welltrained staff who buy in to the business, and feel a sense of
engagement or ‘ownership’, sharing the objectives (and successes) of the family – indeed, almost
as an extension of the family itself. This requires the family owners to recruit carefully, so the
employees fit in with the team and the ethos of the business, and treat the staff well to reinforce
these values (Miller and Le Breton-Miller, 2005). This may include, for example, and when
compared with non-family businesses, a greater commitment to training, a stronger tendency to
retain employees during a downturn, higher wages or long-term non-pecuniary benefits such as
health insurance, and a smaller salary gap between employees and owner-managers (Miller and Le
Breton-Miller, 2005). 2.4 Succession planning A key issue affecting family businesses is the
transfer of the business between generations of the family and the implications of this for the
business. There have been reasonably consistent findings that only about one-third of family
businesses successfully make the transition from first generation (i.e. the founder(s)) to second,
and only a third subsequently make the transition to the next generation (see for example,
Poutziouris, 2001; Wang et al., 2000; Ibrahim et al., 2001). The process of succession can be
thought to encompass three distinct stages (Stavrou and Swiercz, 1998): (i) pre-entry, where the
designated or potential successor(s) are prepared or ‘groomed’ to take over; (ii) entry, involving
the integration of the successor(s) into business operations; and, (iii) finally, promotion to a
management position. A well-developed succession plan is crucial (Sharma et al. (2001) and
Morris et al. (1997)), but this is a relatively rare occurrence (Sharma et al., 2000, 1996), and there
are psychological and emotional barriers which hinder inter-family discussion, and inter-
generational discussions in particular (Lansberg, 1988). Incumbents for instance, may often be
reluctant to step aside, creating a common barrier to succession (Sharma et al., 2000). To achieve
effective inter-generational succession, there must be a balance between ‘parenting’ (i.e. a
personal approach) and ‘mentoring’ (i.e. a more detached, business-focused approach Lansberg
(1997)), including both working within the business and formal management training from
outside providers. It is also worth noting that the larger the business is, the more likely they are to
have developed a succession plan, mainly because of the increased complexity, hierarchy and
formality which inevitably accompanies growth, while small businesses tend not to plan in such
detail, or indeed to plan at all (Sharma et al., 2003, 2000; Ward, 1988; Wang et al., 2004). This
applies in general to all businesses, not just family businesses, but in the latter the greater
complexity of succession planning and the intertwined motivations of the family may make it more
complex and urgent to plan in advance, if it is to increase the likelihood of a positive outcome. As
Morris (1997, p386) noted, ‘family business transitions do occur more smoothly when successors
are better prepared, when relationships 11 among family members are more affable, and when
family businesses engage in more planning for wealth-transfer purposes’. Distinction can also be
drawn between ownership transition (i.e. the next generation receives – or buys – equity in the
business) and management transition (i.e. the next generation takes over running the business),
which often occur together, although research tends to focus more on the latter (Nordqvist et al.,
2013). More recent work (e.g. DeTienne and Chirico, 2013) has emphasised more diverse
pathways of succession, looking through the prism of what exactly SEW means. For example, while
transferring the business itself might be seen as ideal, not doing so should not necessarily be seen
as a failure. For example, transferring the physical entity of the business itself may be less crucial
than the transfer of its core values (Salvato et al., 2010), such as entrepreneurial spirit, or of
creating opportunities in general for the next generation, which can be facilitated by the building
up of family (socio-economic) wealth through the business. As DeTienne and Chirico (2013) put it:
‘Our arguments lead us to conclude that family firms may simply redeploy resources into other
business activities after exit. A broader view of family firms is thus needed’. Another way of
framing succession is through the lens of entrepreneurship, i.e. succession as a process of
entrepreneurial exit and entry, investigating in particular how the next generation rethinks the
direction of the business, and how their different motivations and backgrounds to the previous
generations impact on the business (see Nordqvist et al. (2013) for a review of this strand of
literature)
 Dominican School Manila
1044 Lacson St, Brgy 479 -Z-47, Manila, 1008 Metro Manila

Chapter 3

Research Methodology

This section will focus on how the data gathered from the research will be arranged and

treated. It includes the presentation of the collected data, research design, the locality involve in the

study, sample and sampling techniques and tools used to gather data. Through this it will ensure the

credibility and reliability of the data collected by the researcher. Methodology plays a vital part on

a research because it shows the researchers approach on gathering their data and specifying

whether it is trustworthy or not.

Research Design

The study uses a combination of internet research and survey to conceptualize the research project.

A key principle is that our research which is Efficiency of Accounting Practice in Small Family

Business, like any other research study, requires careful planning design. However, given the

widespread perception, there is danger that researchers using the approach may be tempted to

implement poorly designed, rushed, inadequate studies. It is crucial for the trustworthiness,

reliability and validity of the data generated that researchers avoid taking this approach, and take

time to properly explore the existing available guidelines, and procedures as extensively as possible

before gathering data within the main phase of research design.

 Research Locale

The study will be conducted in Manila, Philippines. The respondents will be interviewed in

their houses or any comfortable place that the respondent will choose to. The researchers chose the

place of implementation because it will give the researchers the needed information from people

who started a small family business. The study will be conducted in the first semester of the

academic year 2018- 2019.

Population

The table shows the population of the study, where in the respondents are the

Owners, Employees and Customers (17 to 45 years) old around Manila City. The researchers

used the Slovins Formula to compute for the population.

 Sample and Sampling Technique

Respondents Population Percentage Sample

Owners 5 2.27 = 2 1.56 = 2

Employees 20 9.09 = 9 6.27 = 6

Customers 195 88.63 = 89 61.15 = 61

N= 220 100% 68.98 = 69

𝑵
=
𝟏+𝑵𝒆𝟐

𝟐𝟐𝟎 𝟐𝟐𝟎
= 𝟏+𝟐𝟐𝟎 (𝟎.𝟎𝟏) = 𝟑.𝟐
= 68.75 = 69

Research Methods

To understand the use of statistical or how a researcher conducts investigations, this study

used a series of quantitative methods to gather information on Efficiency of Accounting

Practice in Small Family Business. Statistics are merely a tool to help us answer research

questions. As such, an understanding of methodology will facilitate our understanding of

basic statistics.
Data Gathering Tools

There are several ways and method that could use in data gathering. The following tools

are used in gathering information for the study.

Observation

It is a procedure that involves direct spectating of what people actually do or what event

takes place. During the observation, detailed information was gathered in physical

information such as, the current status of numerous small family business that has

knowledge and expert insights.

Internet

The internet is a globally connected network system that uses TCP/IP to transmit data

via various types of media. The internet is a network of global exchanges – including private,

public, business, academic and government networks – connected by guided, wireless and

fiber-optic technologies. This helps us gather various information that are relevant to this

topic.

Survey Method

Survey method is a technique of gathering data by asking individuals some certain

questions about the study. The respondents are asked questions on their demographic

interest opinion. Surveys are effective to produce information on socio-economic

characteristics, attitudes, opinions, motives etc. by gather information.

Information Extraction Questionnaire

 The data for this research were collected using a survey questionnaire. The survey

was created using suitable questions modified from related research and individual

questions formed by the researcher. The survey was comprised of 8 questions, which were

related to the participant’s perception regarding importance of accounting in small family

business. In the questionnaire, the survey use Dichotomous questions that ask for a Yes or

No. After the professor validated the questionnaire, these were distributed to the people

around Manila City. The researchers assured confidentiality of their survey sheets since the

identities are not important. The researchers also understood that people’s consciousness

may also affect their honesty and effectiveness in answering the survey, and so, the

researchers gave people the option of being anonymous.

Survey Questionnaire (For Business Owners)

Question Yes % No %

What are the challenges you facing when managing a business?

a) Financial Management

b) Competencies and recruiting the

right talent

c) Maintaining reputation

Question Yes % No %
 How often do you Review profit margins?

a) Regulary
b) Weekly

c) Monthly

Question Yes % No %
How many hours would you spend in your own business?

a) 1 hour
b) 5-7 hours
c) Half-day
d) Whole Day

Question Yes % No %

Do you consider the following as a problem in managing a business?

a) Federal Income Taxes

b) Lack of supplies
c) Location

Question Yes % No %
What are the factors to be considered in order to meet the customers demand in a
business?
a) Reputation
 b) Affordability
c) Employees Attitude Towards to the
Customer

Question Yes % No %

Do you consider the following as the asset of a Business?

a) Uniqueness of the place

b) Having an alternative products
c) Giving discounts in service and
products

Survey Questionnaire (For Employees)

Question Yes % No %

1. Do you consider the following as a problem in your work place?

Works unapproved overtime

Frequently late for work

Maintaining reputation
 Question Yes % No %

2. How often do you file a leave?

Regularly
Weekly

Monthly

Question Yes % No %
3. How many hours do you spend in your workplace?

5-7 hours
Half-day
Whole Day

Question Yes % No %

4. Do you experience the following in your workplace?

d) Feel encouraged to come up with new

and better ways of doing things
e) Have the tools and resources to do my
job well.
f) The Company does an excellent job of
keeping employees informed about
matters affecting you.
 Question Yes % No %
Question Yes % No %
5. What are the factors to be considered in order to meet the customers
demand in a business?
6. Do you consider the following as the asset of a Business?
Reputation
d) Uniqueness of the place
Affordability
e) Having an alternative products
Employees Attitude Towards to the Customer
f) Giving discounts in service and
products

Survey Questionnaire (For Customers)

Question Yes % No %

Do you consider the following as a problem in a company?

Uncertainty about the future

Customer service

Maintaining reputation

Question
Do you consider Yes as benefits%in choosing/ going
the following aspects No in a place? %

Satisfaction

Health Benefits
Relaxing place

Question Yes % No %
Do you consider these factors in going/choosing a place to go?
Space of the Place
Ambiance of the Place

Uniqueness of the Place

Question Yes % No %
Question Yes % No %
What are the factors to be considered in order to meet the customers demand in a
business?
Do you consider the following as the asset of a Business?
Reputation
Uniqueness of the place
Affordability
Having an alternative products
Employees Attitude Towards to the Customer
Giving discounts in service and products
Library Research Method

Collecting information from libraries such as literatures and studies helped in providing

supporting ideas regarding the topic. The proponents held a research on the library of

Dominican School Manila for the related literatures and studies. On the said library, the

researchers found some books that contained information which were helpful and

connected to accounting and business. This information helped the proponents in

visualizing the concept and goal of the business.

Research Instrument

The survey questionnaire will be the main data gathering instrument used in this study

through the use of survey. Surveys are useful in describing the characteristics of a large

population. No other research method can provide this broad capability, which ensures a

more accurate sample to gather targeted results in which to draw conclusions and make

important decisions. The Liker survey was the selected questionnaire type as this enabled

the respondents to answer the survey easily. In addition, this research instrument allowed

the research to carry out the quantitative approach effectively with the use of statistics for

data interpretation.

Surveys are relatively inexpensive. Online surveys and mobile surveys, in particular,

have a very small cost per respondent. Even if incentives are given to respondents, the

cost per response is often far less than the cost of administering a paper survey or phone

survey, and the number of potential responses can be in the thousands. To compute for

the weighted mean, each value must be multiplied by its weight. Products should then be
added to obtain the total value. Surveys conducted anonymously provide an avenue for

more honest and unambiguous responses than other types of research methodologies,

especially if it is clearly stated that survey answers will remain completely confidential.

Statistical Tool

Statistical methods involved in carrying out a study include planning, designing,

collecting data, analysing, drawing meaningful interpretation and reporting of the research

findings. The statistical analysis gives meaning to the meaningless numbers, thereby

breathing life into a lifeless data. The results and inferences are precise only if proper

statistical tests are used. This article will try to acquaint the reader with the basic research

tools that are utilised while conducting various studies. The article covers a brief outline of

the variables, an understanding of quantitative and qualitative variables and the measures

of central tendency. An idea of the sample size estimation, power analysis and the statistical

errors is given. Finally, there is a summary of parametric and non-parametric tests used for

data analysis.

Statistical Analysis

Statistics is basically a science that involves data collection, data interpretation and

finally, data validation. Statistical data analysis is a procedure of performing various

statistical operations. It is a kind of quantitative research, which seeks to quantify the data,

and typically, applies some form of statistical analysis. Quantitative data basically involves

descriptive data, such as survey data and observational data.

 Dominican School Manila
1044 Lacson St, Brgy 479 -Z-47, Manila, 1008 Metro Manila

Chapter 4

Presentation, Analysis, and Interpretation of Data

Introduction

This chapter provided the gathered data and the researcher’s analysis and

interpretation of the results of the distributed survey questionnaires and

information extraction questionnaire that were presented to the respondents. The

data were presented in a clear and concise form; most of which uses graphs and

tables. This helps them to them to deeply understand the presentation analysis and

interpretation of data as it provides all the information needed about the topic.

Survey Questionnaire (For Business Owners)

 Question Yes % No %

What are the challenges you facing when managing a business?

Financial Management

Competencies and recruiting the right

talent

Maintaining reputation

Question Yes % No %

How often do you Review profit margins?

Regulary
Weekly

Monthly

Question Yes % No %
How many hours would you spend in your own business?

1 hour
5-7 hours
Whole Day

Question Yes % No %
 Do you consider the following as a problem in managing a business?

Federal Income Taxes

Lack of supplies
Location

Question Yes % No %
What are the factors to be considered in order to meet the customers demand in a
business?
Reputation
Affordability
Employees Attitude Towards to the Customer

Question Yes % No %

Do you consider the following as the asset of a Business?

Uniqueness of the place

Having an alternative products
Giving discounts in service and products
Survey Questionnaire (For Employees)

Question Yes % No %

Do you consider the following as a problem in your work place?

Works unapproved overtime

Frequently late for work

Maintaining reputation

Question Yes % No %

How often do you file a leave?

Regularly
Weekly

Monthly

Question Yes % No %
7. How many hours do you spend in your workplace?

5-7 hours
Half-day
Whole Day
 Question Yes % No %

8. Do you experience the following in your workplace?

g) Feel encouraged to come up with new

and better ways of doing things
h) Have the tools and resources to do my
job well.
i) The Company does an excellent job of
keeping employees informed about
matters affecting you.

Question Yes % No %
Question Yes % No %
9. What are the factors to be considered in order to meet the customers
demand in a business?
10. Do you consider the following as the asset of a Business?
Reputation
g) Uniqueness of the place
Affordability
h) Having an alternative products
Employees Attitude Towards to the Customer
i) Giving discounts in service and
products

Survey Questionnaire (For Customers)

Question Yes % No %

Do you consider the following as a problem in a company?

Customer service

Maintaining reputation

Question
Do you consider Yes as benefits%in choosing/ going
the following aspects No in a place? %

Satisfaction

Health Benefits

Relaxing place

Question Yes % No %
Do you consider these factors in going/choosing a place to go?
Space of the Place
Ambiance of the Place

Uniqueness of the Place

Question Yes % No %

What are the factors to be considered in order to meet the customers demand in a
business?
Reputation
Affordability

Employees Attitude Towards to the Customer

Brand name

Question Yes % No %

Do you consider the following as the asset of a Business?

Uniqueness of the place

Having an alternative products
Giving discounts in service and products
Brand awareness

INFORMATION EXTRACTION FOR OWNERS

Question Yes % No &

What are the challenges you facing when managing a business?
 a Financial
5 100% 0 0%
Management
b. Competencies and
recruiting the right 5 100% 0 0%
talent
a) Maintaining
reputation 5 100% 0 0%

Average 100% Average 0%

Table 1

Response
Table 1 shows the number of owners that answered yes or no. Out of 5 owners, stable
internet connection results 5 yes and 0 no, Employees attitude towards to the customer
results 5 yes and 0 no. This results helps the researcher in determining which factors to be
considered in order to meet the customers demand in a Internet Café in the business.

Financial Competencies Maintaining

Management and recruiting Reputation
the right talent

Figure 1

Graphical representation
The graph represents the total percentage of respondents. It shows that 100% of the total
population answered yes to considered. Financial Management, 100% to the Competencies
and recruiting the right talent, 100% to the Maintaining reputation while 0% of the total
population answered no. The respondent considers the following a challenge when
managing a business

Question Yes % No &

How often do you Review profit margins?
Regulary 4 80% 1 20%
Weekly 4 80% 1 20%
Monthly 4 80% 1 20%
Average 80% Average 20%

Table 2

Response
The table 2 shows the number of respondents that answered yes or no. Out of 5 owners,
Regularly results to 4 yes and 1 no, Weekly got 4 yes and 1 no and Monthly got 4 yes and 1
no. This result helps the researcher in determining which components needed to be
included in the proposed study.

Regularly Weekly Monthly

Figure 2
 Graphical representation

The graph represents the total percentage of respondents. It shows that 80% of the total
population answered yes to Regularly and 10% no. Weekly and Monthly also got 80% yes
and 20% no.

INFORMATION EXTRACTION FOR CUSTOMERS

Question Yes % No &

How many hours would you spend in your own business?

1 hour 5 100% 0 0%

5-7 hours 5 100% 0 0%

Whole Day 4 80% 1 20%

Average 93.33 % Average 6.66%

Table 3

Response
Table 3 shows that the Owners answer yes or no. Out of 5 owners, 5 answered yes in 1 hour
and 0 no. 5-7 hours results 5 yes and 0 no. and Whole day results to 4 yes and 1 no. This
results helps the researcher in determining which problem needed to be considered in
Internet café.
 1 hour 5-7 hours Whole Day

Figure 3

Graphical representation
The graph represents the total percentage of respondents. It shows that 100% of the total
population answered yes to 1 hour and 5-7 hours. And 80% of the respondents answered
yes to Whole Day and 20% no.

Question Yes % No &

Do you consider the following as a problem in managing a

business?
Federal Income
5 100% 0 0%
Taxes
Lack of supplies 5 100% 0 0%

Location 5 100% 0 0%

Average 100% Average 0%

Table 4

Response
Table 4 shows that the respondent answered yes or no. Out of 5 owners, Federal income
taxes results 5 yes and 0 no, Lack of supplies results 5 yes and 0 no and Location results 5
yes and 0 no to the Location. This results helps the researcher in determining which are the
problems in managing a business.

Federal Lack of Supplies Location

Income
Figure Taxes
4

Graphical
representation
The graph represents the total percentage of respondents. It shows that 100% of the total
population answered yes to Federal income tax, Lack of supplies and Location and 0% no.

Question Yes % No &

What are the factors to be considered in order to meet the customers

demand in a business?

a) Reputation 4 80% 1 20%

b) Affordability 4 80% 1 20%

c) Employees
Attitude 4 80% 1 20%
Towards to the
Customer
Average 80% Average 20%
 Table 5

Response
Table 5 shows the number of owners that answers yes or no. Out of 5 owners, Reputation
results to 4 yes and 1 no, Affordability results to 4 yes and 1 no and Employees Attitude
Towards to the Customer results to 4 yes and 1 no.

Reputation Affordability Employees

Attitude Towards
the Customer

Figure 5

Graphical representation
The graph represents the total percentage of respondents. It shows that 80% of the total
population answered yes Reputation, Affordability and Employees Attitude Towards the
Customer. And 0% answered no.

INFORMATION EXTRACTION FOR CUSTOMERS

Question Yes % No %

Do you consider the following as a problem in a company?

Customer service 64 100% 0 0%

Maintaining
64 100% 0 0%
reputation
 Average 100% Average 0%

Table 6

Response
Table 1 shows the number of owners that answered yes or no. Out of 64 customers,
Customer Service got 64 yes and 0 no. Maintaining reputation got 64 yes and 0 no. This
results helps the researcher in determining which factors to be considered in order to
meet the customers demand.

Customer Service Maintaining Reputation

Figure 1

Graphical Representation
The graph represents the total percentage of respondents. It shows that 100% of the total
population answered yes to Customer Service and Maintaining Reputation, while 0% of
the total population answered no.

Question Yes % No %

Do you consider the following aspects as benefits in choosing/

going to a place?
Satisfaction 63 98% 1 2%

Health Benefits
27 42% 37 57%

Relaxing place 64 100% 0 0%

Average 80% Average 20%

Table 7

Response
Table 2 shows the number of customers that answered yes or no. Out of 64 customers,
Satisfaction got 63 yes and 1 no. Health Benefits got 27 yes and 37 no, Relaxing Place got
64 yes and 0 no. The respondent considers the benefits in choosing/ going to a place.

Satisfaction Health Benefits Relaxing Place

Figure 2

Graphical representation
The graph represents the total percentage of respondents .It shows that 100% of the total
population answered yes to Satisfaction got 98% yes and 2% no. Health Benefits got 42%
yes and 57% no, Relaxing Place got 100% yes and 0% no.

Question Yes % No %

Do you consider these factors in going/choosing a place to go?

Space of the Place
60 93% 4 7%

Ambiance of the
52 81% 12 19%
Place

Uniqueness of the
55 86% 9 14%
Place

Average 77% Average 23%

Table 8
Response

Table 3 shows the number of owners that answered yes or no. Out of 64 customers, Space
of the place got 60 yes and 7 no, Ambiance of the place got 52 yes and 12 no, Uniqueness of
the place got 55 yes and 9 no.
 Space of Ambiance of Uniqueness of
the Place the Place the place

Figure 3

Graphical representation
The graph represents the total percentage of respondents, space of the place got 93% yes
and 7% no, ambiance of the place got 81% yes and 19% no, uniqueness of the place got 86%
yes and 14% no, The respondent considers on how often they visit the internet café.

Question Yes % No %

What are the factors to be considered in order to meet the

customers demand in a business?

Reputation 50 79% 14 21%

Affordability 56 87% 8 12%

Employees Attitude
Towards the 58 90% 11 10%
Customer

Brand name 44 68% 20 31%

Average 81% Average 19%

 Table 9

Response
Table 4 shows the number of customer that answered yes or no. Out of 64 customers,
Reputation got 50 yes and 14 no, Affordability got 56 yes and 8 no, Employees attitude
towards the customer got 58 yes and 11 no, Brand name got 44 yes and 20 no.

Reputation Affordability Employees Brand Name

Attitude
towards
the
customer
Figure 4

Graphical representation

The graph represents the total percentage of respondents, Reputation got 79% yes and
21% no, Affordabilitygot 87% yes and 12% no, Employees Attitude towads the customer
got 90% yes and 10% no. Brand name got 68% yes and 31% no,
 Question Yes % No %

Do you consider the following as the asset of a Business?

Uniqueness of the 64 100% 0 0%

place
Having an
alternative 64 100% 0 0%
products
Giving discounts in
service and 64 100% 0 0%
products
Brand awareness 63 99% 1 1%

Average 99% Average 1%

Table 10

Response
Table 5 shows the number of customer that answered yes or no. Out of 64 customers,
Uniqueness of the place results to 64 yes and 0 no. Having alternative products results to
64 yes and 0 no. Giving discounts in service and products results to 64 yes and 0 Brand
awareness results to 63 yes and 1 no.

Uniqueness Having an Giving Brand

of the place alternativ discounts in awareness
e products service and
products
 Figure 5

Graphical representation
The graph represents the total percentage of respondents, it shows that 100% of the
population answered yes to Uniqueness of the place, Having an alternative products,
Giving discounts in service and products and 0% no. Brand awareness got 99% yes and
1% no. The respondent considered the factors in Internet café.
 Dominican School Manila
1044 Lacson St, Brgy 479 -Z-47, Manila, 1008 Metro Manila

Chapter 5

SUMMARY, RECOMMENDATION AND CONCLUSION

Summary of Results of Survey Questionnaire

Conclusion of Result of Survey Questionnaire

In question number one, the general weighted mean of the customers is three point

thirty-nine (3.39) and three point six (3.6) for the Owners. This helps the researchers in

determining the owners’ challenges when managing a business. It helps the researchers in

determining the importance of Space of the place, Ambiance of the Place and the Uniqueness

of the place. In question number two, the general weighted mean of the customers is three

point twenty-eight (3.28) and three point one (3.1) for the Owners. This helps the

researchers in determining the importance of Stable Business, Affordability and the

Employees attitude for the owners and also to determine the Employees attitude, Discounts

of the Products and Fast Service for the customers. In question number three, the general

weighted mean of the customers is three point five (3.5) and three point zero (3.0) for the

Owners. This helps the researchers in determining the importance of the Price, Satisfaction

and the Uniqueness for the owners and also to determine the Satisfaction, Health Benefits

and the Relaxing Place for the customers. In question number four, the general weighted

mean of the customers is three point thirty (3.30) and three point three (3.3) for the Owners.
This helps the researchers in determining the importance of Uniqueness of the Place and

Giving Discounts to the Customers. In question number five, the general weighted mean of

the customers is three point three (3.3) and two point nine (2.9) for the Owners. This helps

the researchers in determining the importance of Helpful for the students and Easy access

to the owners and also to determine the importance of Cleanliness of the Product for the

Customers.

Recommendations

The advocates will recommend to the future researchers of the same field that they

must consider the factors in practicing accounting when starting a family business.

Furthermore, the proponents prefer to recommend observing the success of putting

up a small business.

And lastly, they recommend to further discuss the benefits of accounting especially

when putting up a small family business.

Janacek Blanche Odiver
Janacekblanxhe21@gmail.com
Nickname: Janacek
Birthday: December 21 2000
Nationality: Filipino
Religion: Roman Catholic
Civil Status: Single
Birthplace: Tondo Manila

Educational Background
Senior High School

 Dominican School Manila

hemil Anne Ilao
Ilaoanne19@gmail.com
Nickname: Jhemil
Birthday: December 19 2000
Nationality: Filipino
Religion: Roman Catholic
Civil Status: Single
Birthplace: Sampaloc Manila

Educational Background
Senior High School

 Dominican School Manila

Sashi May Linsangan
SashiMayLinsangan@gmail.com
Nickname: Sashi
Birthday: May 10 2001
Nationality: Filipino
Religion: Roman Catholic
Civil Status: Single
Birthplace: Sampaloc Manila

Educational Background
Senior High School

 Dominican School Manila

Paul Chester Borja
Paulchester234@yahoo.com
Nickname: Butch
Birthday: July 07 2001
Nationality: Filipino
Religion: Roman Catholic
Civil Status: Single
Birthplace: Sampaloc Manila

Educational Background
Senior High School

 Dominican School Manila