DETERMINANTS OF FINANCIAL LITERACY OF MICRO ENTREPRENEURS IN

DAVAO CITY
Author: William T. Sucuahi

Research Design
This study used a cross-sectional design and collected quantitative data through structured
interviews.

Participants
Total of 100 micro entrepreneurs in Davao City was randomly selected. These micro
entrepreneurs are owners of the small “sari-sari store” (makeshift, variety store), beauty salon, fish
vendors, eatery, and auto repair shop owners.

Research Instrument
The questionnaire employed in this study was designed using simple and unbiased terms
to facilitate respondents’ easy understanding of the questions presented to them, and thereafter be
able to provide accurate answers based on their own perceptions. Micro-enterprise performance
was measured by adopting six items from the study conducted by Muniady et al. (2015). Similarly,
Micro-enterprise sustainability was measured by adopting six items from Gualandris et al. (2014)
and Raymond et al. (2013). The level of micro-enterprise performance and sustainability was
measured using a 7-point Likert scale with; 1: strongly disagree, to 7: strongly agree. To measure
the micro-enterprise performance, this study focused on respondent’s assessment of their financial
performance compared

Data Analysis
The data were analyzed by using the Statistical Package for Social Science (SPSS) in an
easy to understand format, for interpretation and tabulation. Multiple regression analysis was
performed to establish the relationship between micro-enterprise performance and micro-
enterprise sustainability, with participation in development initiatives, among the low-income
households in Kelantan, Malaysia. Partial correlation analysis was conducted to determine the
relationship linked to controlling the effects of selected antecedents. Finally, this study used
multiple regression analysis to assess the effect of participation on performance and sustainability.
Typically, the presence of outliers ought to be high in such study genres due to the relatively higher
variation in the distribution. Hence, the model was tested for multivariate normality to discard
outliers. After that, the model was tested again to verity that the original findings and significances
were not significantly affected by the absence of multivariate normality.

References:
AlMamunand, A. Ibrahim, D.A (2018). Development Initiatives, Micro-Enterprise Performance
and Sustainability. International Journal of Financial Studies. Retrieved May 28, 2018 from
file:///C:/Users/User/Downloads/ijfs-06-00074.pdf
Sucuahi, W. (2013). DETERMINANT OF FINANCIAL LITERACY OF MICRO
ENTREPRENEURS IN DAVAO CITY. International Journal of Accounting Research. Retrieved
November 1, 2013 from https://www.longdom.org/open-access/determinants-of-financial-
literacy-of-micro-entrepreneurs-in-davao-city-IJAR-1-104.pdf