A STUDY ON BUDGETING OF START-UP SMALL

BUSINESS ENTERPRISES IN

NORZAGARAY

BULACAN

A Business Research Presented to the

Faculty of Bachelor of Accountancy Division

La Concepcion College, Inc.

In Partial Fulfillment of the Requirements for the Degree

Bachelor of Science in Accountancy

By

Duazo, Cathyrene P.

Legaspi, Tricia May D.

Prepotente, Joyce Anne R.

May 2024
 CHAPTER 1

THE PROBLEM AND ITS BACKGROUND

Introduction

In this year and generation Bulacan doesn’t consider the usual province anymore.

It is known slowly modernized. City like Norzagaray in Bulacan has many bloomed

enterprises nowadays. You can see in every corner different business-like Milk tea Shops,

Coffee Shops, Korean Restaurant and other famous Fast-Food Chain. All businesses start

small. Not all business is profitable already. Unfortunately, others fall into bankruptcy.

Without proper budgeting and planning and starting a business already is the main reason

why they go into bankruptcy. The researchers conducted this study for other aspiring

business owners to avoid having loss when starting a business. In this study they will

learn different aspects of budgeting and how to use capital efficiently.

Small businesses tend to fail due to several reasons that caused them to disappear

in the market. Tushar Gahlaut (2023) expressed small businesses tends to face more of

challenges such as trust and security issues but more over issues related to structured

modelling at the time of factory setup and workplace setup. Generally, start-up

businesses' faces common problems such as insufficient financial management, poor

planning strategy and choosing the right location.

 Budget is used as part of planning process in terms of setting goals, implementing

activities, and the expenditure that is likely to be incurred. To start a business, finance has

been considered as the soul of every business. Many businesses tend to fail due to poor

planning and budgeting. The aim of the study is to assess how budgeting significantly

helps these start up small business. A proper budgeting contributes a huge success in

operating small and businesses, and as for starting up business a good foundation makes

it stand out in a competitive market.

Examining the financial landscape is a vital component of starting and running a

small business. In the vibrant world of startups, effective budgeting can show the

difference between the success and failure. Understanding the variation of budgeting for

a startup small business requires attentive knowledge, good decision making and

financial analysis to forecast the budget for the upcoming plan. This study serves to

explore into the elaboration of budgeting for startup progress, researching best practices,

recurring mistakes, and new strategic methods to financing.

A Startup means a company on the first stages of operations. Companies

generally start with high costs and limited revenue, which is why they look for capital

from a variety of sources such as venture capitalists. Funding sources also include family

and friends, venture capitalists, crowdfunding and loans. Startups are riskier than

established businesses because they can fail, but they can also be incredibly special

places to work with amazing rewards, a strong emphasis on innovation, and excellent

learning opportunities. This study will assess how budgeting significantly helps these
start up small businesses, also is to know the relationship between the uses of budgets

with financial performance in startup business enterprises environment.

Theoretical Framework

Churchill and Lewis (1983) proposed a theory the five stages of small-business

growth to describe the relative significance of particular small business management

aspects across five stages of development. Churchill and Lewis believed that new formed

businesses experience common problems mainly budgeting during developmental stage.

Stage I - Stage II - Stage III - Stage IV Stage V -

Existence Survival Success - Take-off Resource

Figure 1: Five Stages of Small-Business Growth (Churchill and Lewis, 1983)

This theory is consisting of five stages, stage I (existence); stage II (survival);

stage III (success); stage IV (take-off); and stage V (resource maturity). Each stages plays

different roles as the development happens every step of stages. Therefore, business

owners have no chance to skip another step if he cannot be able to survive the first stages,

it became a basis for every small business to remain its reputation in the competitive

market. Churchill and Lewis’ five stages of small-business growth do not only revolve

around sufficient budgeting but a great test to determine how a business owner can deal

with different circumstances in order to achieve stability and profitability. Based on this

theory, whenever a small business grows and go through every stage of development it
established budget complexity along with increase of control in management. Businesses

who survived five stages proposed great emphasis on good leadership and maintain

sustainable growth with an exceptional business performance in a marketplace. In

addition, the importance of budgeting control and proper planning with good leadership

makes a business stand in a competitive market.

Statement of the Problem

The study seeks to determine the budgeting practices of startup small business

enterprises and to identify how these practices helps small and medium businesses to

optimize budget in order to sustain success. The researcher prepared questions that

sought for answers:

1. What is the demographic profile of respondents in terms of:

1.1 Age;

1.2 Gender;

1.3 Educational Attainment;

1.4 Asset size; and

1.5 Years of operating

2. How does a start-up business be described in terms of:

2.1 Capital;

2.2 Target market; and

2.3 Product

3. How does the budget of small business owner be described in terms of:
 3.1 Financial resources;

3.2 Setting goals/plans; and

3.3 Business strategy

4. Is there a significant impact of budgeting of start-up small businesses?

5. What are the recommendations advised to the start-up small businesses?

Objective of the Study

The main objective of this study is to determine budgeting practices of startup

small business enterprises and to identify how these practices helps small and medium

businesses to optimize budget in order to sustain success.

1. To identify the demographic profile of the respondents in terms of age, gender,

educational attainment, asset size and years of operating.

2. To describe the startup business in terms of capital, target market and product.

3. To know how does the budget described in terms of financial resources, setting

goals/plan and business strategy.

4. To determine if there is any significant impact of startup small business enterprises.

5. To know what is the best recommendation that can be apply to the impact of startup

small business enterprises.

Hypothesis

Ha: There is a significant study on budgeting of startup small business enterprises

in Norzagaray Bulacan.
 Ho: There is no significant study on budgeting of startup small business

enterprises in Norzagaray Bulacan.

Significance of the Study

Aspiring business owners. The findings of this research can guide those who

want to start a small business but has a limited capital. Using our research, they can

already have an idea on where to focus on the aspect of budgeting. That way they can

avoid loss and bankruptcy.

Management and Employees. This study will guide the employees on how they

can improve their service to avoid such losses. The management will know what areas in

their services they may improve by reading the study.

Entrepreneurs. Entrepreneurs who are aware of the research can have greater

confidence on managing their business as well as expanding what they’re offering

without thinking they may experience bankruptcy because they already have knowledge

about budgeting. This confidence contributes to a sense of trust and reliability in the

business.

Researchers. The study contributes to the existing body of knowledge on

budgeting start-up small businesses. Researchers can build upon the findings, exploring

related aspects and further refining the understanding of entrepreneur’s experiences in

this context.

Scope and Limitation of the Study

 This research study will focus on analyzing the budgeting practices used by newly

established businesses in Norzagaray, Bulacan. This comprises the technique used for

budget preparation, allocation of financial resources, and setting goals or plans. This

study is to evaluate how well budgeting strategy work in helping newly small businesses

in Norzagaray, Bulacan, to meet their financial targets.

This study will be limited only in newly business enterprises in Norzagaray,

Bulacan. Additionally, our target establishment has 1 to 2 years’ operating business. The

main purpose is to identify the budget preparation and common budgeting challenges of

startup businesses to present possible result in regards to this problem.

This study examines every characteristic of owner’s individual information that

has an impact on their budgeting and challenges that have been faces in their businesses

such as educational attainment, their gender, age and asset size. Also, the number of years

operating the business. This will be conducted in Norzagaray Bulacan on 2024-2025.

Each of the respondents are given same question to answer, and this study will focus only

in newly business enterprises in Norzagaray, Bulacan.

Definition of Terms

Budgeting – It refers to used budgeting as the process of creating, managing, and

adjusting a budget.

Business –It refers to the concept of "business" refers to the activity of producing,

buying, selling, or exchanging goods or services with the primary goal of earning a profit.
Competitive Market – It refers to a market structure in which numerous firms compete

against each other to offer goods or services to consumers.

Enterprises – It refers to business activities conducted by large organizations or

companies, often referred to simply as "enterprises."

Financial Landscape –It refers to the overall environment and conditions within which

financial activities take place.

Forecasting – It refers to the process of making predictions or estimates about future

events, trends, or outcomes based on past and present data, knowledge, and assumptions.

Funding – It refers to the financial resources provided to an individual, organization,

project, or initiative to support its operations, activities, or growth.

Start-up business –It refers to a newly established company or venture that is typically

in the early stages of development. These businesses are often characterized by

innovative ideas, rapid growth potential, and a high degree of uncertainty.

Venture Capitalist –It refers to an investor or investment firm that provides funding to

startup companies and small businesses with high growth potential in exchange for equity

ownership.
 CHAPTER 2

REVIEW OF RELATED LITERATURE

Foreign Literature

Among the advantages of youth in technology and innovation, young people are

sometimes argued to be cognitively sharper, less distracted by family or other

responsibilities, and more capable of transformative ideas this is in line with “Planck’s

Principle,” whereby younger people may be less beholden to existing paradigms of

thought and practice (Planck 1949; Dietrich and Srinivasan 2007; Weinberg 2006; Jones

2010; Azoulay, Fons-Rosen, and Graff Zivin 2019).

The 2020/2021 Global Entrepreneurship Monitor report confirms that

entrepreneurial activities and entrepreneurship education can “promote aspiration in life

and career as well as the outlook for future business sustainability for women”

worldwide. Unfortunately, new businesses and ventures are more likely to be created by

men than women (Global Entrepreneurship Monitor, 2020).

The existing gender equality in entrepreneurship in Thailand might lead to a more

similar type of behavior of both genders in starting und running a venture, resulting in

fewer gender differences than in other countries. However, the impact of knowing an

entrepreneur significantly enables entrepreneurs –both young businesses and established

entrepreneurs- to mitigate their fear of failure, as a result leading to higher innovativeness

for both genders, slightly stronger for male than for female entrepreneurs (Guelich,

2022).

When compared with their male counterparts, women entrepreneurs are in a less

competitive position to accessing national and international markets, resources and

support, and education and training. Most governments therefore promote

entrepreneurship education and training as strategies to mitigate and reduce equality

(Balestra, 2018).

Gender disparities among men and women in higher education and technical and

vocational education and training are not novel. Indeed, it is confirmed that gender

stereotypes, as well as socially constructed roles based on gender, can promote gender

disparities in education and training (Kollmayer et al., 2020).

According to (Wong et al., 2018) Conventional approaches to the study of SME

finance tend to focus on the changing financing options and preferences as small

businesses move through different stages. However, one of the limitations of such

approaches is that they do not explain how small businesses make decisions that lead to

their financial structures. This paper suggests that small business owners deliberately

choose how they manage their firms’ finance as a direct consequence of their personal

objectives for owning a business.

According to (Babajide et al., 2021) The study investigates how financial literacy

and financial capabilities influence small firms’ sustainability in Lagos and Ogun States,

Nigeria. It employs a survey research design to collect data from 300 small business

owners across the two States. Data collected were analyzed using Structural Equation
Modelling (SEM) technique. The study shows that environmental sustainability, financial

sustainability and social responsibility are significant determinants of small firms’

sustainability in Nigeria. Financial literacy and financial capabilities practice also have a

significant positive impact on firm sustainability. However, the use of savings product

shows a significant adverse effect on firms’ sustainability. The findings imply that

financial literacy knowledge and practice in small business operations enhance firms’

sustainability. The study recommends that small firms should incorporate sustainability

models into their business operations and improve their financial knowledge to maintain

sustainability. Small business owners should also invest their savings in an appropriate

investment product that suits their risk tolerance.

Local Literature

Startups are brand-new businesses. Typically, they receive funding from the

producers and provide a product that is either unavailable, limited in supply, or only

offered in subpar form. Since startups don't produce much money, expenses usually

outweigh profits in the early years of their existence. Therefore, loans from banks or

credit unions are frequently employed to get finance. Government-sponsored funding and

incubator support, which offers both financial assistance and mentorship, may be

available to startups. (Jimenez, 2020)

Micro-entrepreneurship can reduce poverty and creates employment

opportunities. Many micro-enterprises started every year but fail in their infancy due to a

lack of financial management knowledge. It aims to determine the respondents’ profiles,

business profiles, and the different areas of financial management practices. Micro-

enterprises highly practiced cash management and current liabilities management but

slightly practiced fixed asset management. Cash management and fixed asset

management significantly differ from all the other areas. Financial management practices

significantly differ in age, position, type, form, start, length, full-time employees,

beginning capital, asset, sales, profit, debt, and ending capital of the business. Studying

financial management practices contributes in developing proposed financial model

(Caclini, 2022).

A budget is an economic tool for realizing and facilitating the vision of an

organization. If a budget is to serve as a useful tool, then it is essential that all phases of

budgeting are appropriately linked and managed. This study made use of the three types

of research by methods: descriptive research to gather the profile of respondents (size and

type of business), budgeting practices (manager's participation, linking budget

development to strategy, rational allocation of resources, flexibility continuous budget,

and reduction of complexity and use of information technology) and level of profitability;

causal-comparative research to determine differences between variables; and

correlational research to determine the degree of relationship between variables and for

hypothesis testing (Fortuna, 2021).

According to Natasha Bautista, in a news article by Lopez (2019), "some founders

may seek mentorship from entrepreneurs who may not have had experience in the start-

up scene, and so they get traditional advice, which isn't always applicable to a start-up

seeking scale early on". The assumption of most entrepreneurs and investors in the
Philippines is that start-ups are the same as any other entrepreneur venture. This leads to

inefficient approaches when establishing their businesses and decreases the number of

investors within the country due to a negative confidence rate.

According to Grant (2019) that the factors involve in business start-up. A start-up

is a company that is in the first stage of its operations. These companies are often initially

bankrolled by their entrepreneurial founders as they attempt to capitalize on developing a

product or service for which they believe there is a demand.

Foreign Studies

According to Odysseas (2021) results show that there is a positive association

between the use of budgets for planning, resource allocation and performance evaluation

with financial performance. The CEO’s business educational background, as well as

CEO’s beliefs about planning, has a strong influence in the use of budgets in start-up

firms.

Budgets are defined as a detailed and quantitative plan that shows the information

about the company’s planned activities over a specific future time period; it could be over

a long-term period (two- to 10-year) or a short-term period (one- to two-years, monthly,

weekly or daily based). Budgets require management to forecast the expected sales, cash

inflows and outflows and costs and provide rational and quantitative data that facilitate

and support the decision making in the organizations (Zor et al., 2019).

According to (Armitage et al., 2020) the process by which operating budgets are

developed and how they are used for control, evaluation, and reward purposes in small-
and medium-sized enterprises (SMEs). SMEs (i.e., fewer than 500 employees) represent

the dominant organizational form in North America but surprisingly little research has

examined how these companies develop and use management controls. Our study focuses

on a key element of the management control system, operating budgets, because prior

research on SMEs indicates this as an important and commonly used control tool in such

companies. Prior research on budgeting practices, while extensive, has almost exclusively

examined larger companies. We conduct in-depth field interviews at 12 participating

SMEs to address four theory-based research questions intended to provide insights

regarding the development and use of budgets by SMEs. Our first question examines how

budgets are developed, top-down versus collaborative. Our second, third, and fourth

research questions examine, respectively, whether budgets are used tightly or loosely for

results control, performance evaluation, and reward purposes. As a first step in providing

a deeper understanding of budget development and use in SMEs, our results have

implications for practice, theory development, and management accounting education.

The resource-based view (RBV) provides a rich framework for analyzing the role

of a firm’s tangible and intangible resources in creating and sustaining competitive

advantage. As a result, it has been widely used to explain entrepreneurial firms’ strategic

choices that generate such an advantage. While researchers have established the

usefulness of the RBV, they have overlooked the fundamental question of how

entrepreneurial firms manage their resources to gain competitive advantage. This paper

examines this issue in the context of independently owned startups, which typically lack

resources, are constrained in their access to key resource providers, and have limited
experience in assembling and managing resources. Adopting a broader conceptualization

of startups’ resource management process, the paper identifies several questionable

assumptions in related RBV-based research. Further, recognizing the limits of RBV to

determine ex ante the nature and magnitude of entrepreneurs’ resourcefulness when

managing their resources, the paper suggests linkages between the RBV and several

entrepreneurship frameworks and outlines promising research questions (Zahra, 2021).

According to (Bergmann, 2020) Since the use of business analytics promises

automation of business processes and time savings, the budgeting process seems

predestined for the integration of analytical methods. Therefore, this study examines the

determinants of the use of business analytics in the budgeting process and its effect on

satisfaction with the budgeting process. Specifically, we focus on one technical

determinant (data infrastructure sophistication) and the importance of the two major

budgeting functions (the planning and the evaluation function), which could affect the

degree of dissemination of using analytical methods. Based on a survey among German

companies, we find, as predicted, that the sophistication of the data infrastructure is

positively associated with the use of business analytics in the budgeting process. Further,

the more a company emphasizes the planning function, the greater the extent to which

business analytics is used in the budgeting process. In contrast, we find no association

between the evaluation function and the use of business analytics in the budgeting

process. Finally, we find that the use of business analytics is positively associated with

satisfaction with the budgeting process. Thus, the use of business analytics can help to

overcome dissatisfaction with traditional budgeting systems. Overall, our findings

provide practitioners with valuable indications under which circumstances the use of

analytical methods appears reasonable.

Local Studies

Tobias (2020) defined MSME is considered as the backbone of the economy, a

small-scale industry with the capacity and capability to develop a strong foundation for

business appropriation and provides fierce competition in domestic and international

markets. Also, it contributes a lot to creating employment and generates income for new

entrepreneurship. The DTI (2019) reported that most enterprises are homed in the country

and are primarily associated with the population's size at economic activity. They also

related that Filipino enterprises expedite every working day. And, thousands of families

and individuals benefited from a regular paying job, increased income and spending, and

contributed back to the economy. However, the Philippines still need support in the

business process and operations to be more efficient. Also, the sector paved its way as it

grew buoyantly. MSMEs have lower productivity than large enterprises because of low

wages that affect the labor force. Small businesses encumbered conventions and red tape

to have rigid rules and corporate structures. As microenterprises operate and grow, they

need capital to inject the community to support other local businesses.

Levin (2019) stated that teens of today have incredible benefit over past

generations. More resources to build knowledge and skills are available than ever before.

If they have the courage and persistence to take the advantage it is not simple to start a
new business, but it will alter their life for the better. Teenage learn to think on their feet,

to overcome difficulties, to be creative.

According to Olazo (2022) the relationship between marketing capabilities and

marketing innovation towards sustainable competitive advantage of micro-small and

medium enterprises in the Philippines through mixed method approach. For quantitative

result, the study found that marketing competency significantly influenced marketing

innovation. The result shows that all SMEs have enough people in place who are capable

of implementing marketing innovation activities and use new technology like the use of

information technology. The paper also found that marketing innovation, significantly

predicted sustainable competitive advantage. MSMEs exhibit this innovation such as

product, price, place, and promotion can create a distinctive position in the market

towards sustainable competitive advantage. The paper also tested the mediation effect of

marketing innovation that influences the relationship between marketing competence and

sustainable competitive advantage. Most of the hypotheses posited were supported. For

qualitative data, it was revealed that these SMEs through their key informants and key

leaders are open to innovations thus, willing to learn by establishing networks with

customers and other managers/business owners to expand and improve their business.

The food business in Pampanga is highly competitive, and most of the SMEs are engaged

with it. In order to survive the saturated market, continuous improvement is important in

the identified areas for growth and innovation. Mixed method analysis supported

quantitative and qualitative findings. Hence, it indicated that marketing competency

significantly influences sustainable competitive advantage, which can be achieved

through marketing innovation. In this study, the researcher analyzed the influence

between marketing competence and marketing innovation to achieve a sustainable and

competitive market.

The findings revealed that most MSME owners started their businesses with

initial capitalization ranging from 50,001-100,000 or 30.14%. They operated for more

than a decade (n=68; 32.54%) with an average number of employees (n=1-10; 46.89%).

The level of operationalization of Negosyo Center of MSMEs has significant differences

in terms of initial capitalization and number of years in business with p-value of 0.000

whereas, the number of employees for business profile has a p-value of 0.127. The

respondents agreed to have a strong collaboration with the Local Government of Taguig

(LGU) and the Department of Trade and Industry (DTI) through establishing the

Negosyo Center in assisting MSMEs (Al-kassem, 2023).

According to (Maddawin, 2019) Delivering public goods and services requires

identifying the needs of constituents and designing policies and programs to address these

needs in the hopes of attaining development. These policy and program interventions

should get the appropriate budgetary allocations to be implemented and effect change.

That is, knowing what is needed helps identify the necessary interventions embodied in

plans which in turn effects change and development after it is successfully implemented

through budgets. This study looks at this mechanism of development for local

governments and maps out the current planning and budget framework. Corroborated

with evidence from a nationwide survey of municipalities, several areas of improvement

in the planning and budgeting process, such as stricter enforcement of the presence of
development plans and substantiating the prioritization of investment programs, are

identified. These areas have implications on local governments as well as on the

oversight government agencies. Finally, this study is timely now that the national

government is at the cusp of infusing local governments with a broader base for

intergovernmental fiscal transfers.

Synthesis

According to (Zivin, 2019) Among the advantages of youth in technology and

innovation, young people are sometimes argued to be cognitively sharper, less distracted

by family or other responsibilities, and more capable of transformative ideas this is in line

with “Planck’s Principle,” whereby younger people may be less beholden to existing

paradigms of thought and practice. This can connect to the study of Guelich in 2019, that

states the impact of knowing an entrepreneur significantly enables entrepreneurs –both

young businesses and established entrepreneurs- to mitigate their fear of failure, as a

result leading to higher innovativeness for both genders, slightly stronger for male than

for female entrepreneurs.

Based on the study of (Babajide et al., 2021) The study investigates how financial

literacy and financial capabilities influence small firms’ sustainability in Lagos and Ogun

States, Nigeria. It employs a survey research design to collect data from 300 small

business owners across the two States. Data collected were analyzed using Structural

Equation Modelling (SEM) technique. The study shows that environmental sustainability,

financial sustainability and social responsibility are significant determinants of small

firms’ sustainability in Nigeria. This can relate to the study of Wong et al., in 2018 that

conventional approaches to the study of SME finance tend to focus on the changing

financing options and preferences as small businesses move through different stages.

However, one of the limitations of such approaches is that they do not explain how small

businesses make decisions that lead to their financial structures.

Startups typically receives funding from the producers and provide a product that

is either unavailable, limited in supply, or only offered in subpar form. Since startups

don't produce much money, expenses usually outweigh profits in the early years of their

existence. Therefore, loans from banks or credit unions are frequently employed to get

finance. Government-sponsored funding and incubator support, which offers both

financial assistance and mentorship, may be available to startups. (Jimenez, 2020) This

can relate to the study of Caclini in 2022 which states many micro-enterprises started

every year but fail in their infancy due to a lack of financial management knowledge. It

aims to determine the respondents’ profiles, business profiles, and the different areas of

financial management practices. Micro-enterprises highly practiced cash management

and current liabilities management but slightly practiced fixed asset management. Cash

management and fixed asset management significantly differ from all the other areas.

Financial management practices significantly differ in age, position, type, form, start,

length, full-time employees, beginning capital, asset, sales, profit, debt, and ending

capital of the business. Studying financial management practices contributes in

developing proposed financial model.

Conceptual Framework

The researcher adopted IPO model usually known as the Input-Process-Output is

used in this study. The concept model as view in Figure 1. It shows what is the procedure

on how the budgeting strategy are mostly utilize in small business enterprises. Also, what

is the effect of their strategy on their newly business.

INPUT PROCESS OUTPUT

1. The demographic profile of
the startup small business Procedures:
enterprises in Norzagaray,
Bulacan, in terms of age,
 gender, educational
 Making of
SOP
attainment, asset size and
 years of operating.
 Questionnai
res
2. How does a startup
business be described in
terms of capital, target  Validation
market and product.

3. How does the budget of

small business owner be
described in terms of
financial resources, setting
goals/plan and business
strategy.

4. The significant impact on

budgeting of start-up small
businesses.

5. Recommendations
Figure 2. Conceptual Framework
 CHAPTER 3

METHODOLOGY

This chapter reveals the methods of research to be employed by the

researcher in conducting the study which includes the research design, respondents of the

study who the participants are and how they will be sampled using the sampling

technique, research instrument, and its development establishing its validity and

reliability, data gathering procedures that will be followed in carrying out this study, and

the appropriate statistical treatment of data.

Research Design

The researcher used quantitative-descriptive research design in collecting the data

from respondents. The design is preferred because it is concerned with answering

questions such as who, how, what, which, when and how much (Cooper and Schindler,

2003). A descriptive study is carefully designed to ensure complete description of the

situation, making sure that there is minimum bias in the collection of data and to reduce

errors in interpreting the data collected. The primary objective of quantitative descriptive

research is to describe and summarize the characteristics of a phenomenon or population.

It does not aim to establish cause-and-effect relationships or make predictions.

Population and Sample

 Population refers to the target population of group or set of individuals that is the

focus of the study. The small business owners of Norzagaray, Bulacan will be used as the

population of the overall study as this study mainly focuses on them. The researchers

select a sample of fifty (50) business owners to participate in this study.

When everyone in the population has an equal chance of being chosen is usually

called the probability sampling technique. It is thought to be the best way to ensure that

all sampling units are equally representative of their populations (Curtin et al., 2005;

Fowler, 2009). This study used probability sampling technique because probability

sampling offers an objective picture of the population so the results are of greater quality.

Therefore, with the use of the probability sampling it allows researchers to minimize the

potential bias upon selecting a sample as well as enabling them to forecast the findings.

Research Instrument

To gather the appropriate particular data needed, the researchers will take on

survey questionnaire that will be given in selected respondents. The type of questionnaire

that we will utilize is closed-ended questions which will be answered by our respondents.

The researchers adopted a closed- ended type of question that can limit their

answers to the alternatives given by the researchers. It will be divided into three parts;

each part of the question is from the statement of the problem from this study. Part I will

ask for the demographic profile of respondents. Part 2 is to describe the start- up business

through capital, target market and product and Part 3 is to determine how the budget of
small business described in terms of financial resources, setting goals/plans and business

strategy.

Part 1 will be answered according to the required data. While part 2 and part 3 of

the survey questionnaire will be weigh up using a Likert scale. Likert scales are often

used in visualization evaluations to produce quantitative estimates of subjective

attributes, such as ease of use or aesthetic appeal. However, the methods used to collect,

analyze, and visualize data collected with Likert scales are inconsistent among

evaluations in visualization papers. (South, 2020). As a result, the researcher will use a 5-

point scale, and five option that communicate to a direct weight of their point of view as

regards the statement should be given: strongly disagree (1), disagree (2), agree (3), and

strongly agree (4).

Figure 3. 5-Point Scale.

SCALE RANGE VERBAL

INTERPRETATION
4 3.25 – 4.00 Strongly Agree

3 2.50 – 3.24 Agree

2 1.75 - 2.49 Disagree

1 1.00 - 1.74 Strongly Disagree

Table 1 shows the range of scale and analysis, with 4 as the highest with an

analysis of Highly Affected, while a scale of 3 as Affected and scale of 2 as Moderately

affected, lastly the scale of 1 as the lowest or not affected.

Figure 4: Example of Response Format

Question Strongly Agree Agree Disagree Strongly Disagree

(4) (3) (2) (1)
1.

Data Collection

The researchers prepared a questionnaire for startup small business owners. It will

be a physical survey to personally meet its owners and staffs. Respondents will answer

the questionnaires and the researchers assured them that their answers would be treated

respectfully and with confidentiality. In order to know how to do budgeting efficiently,

the process involves asking some employees and owners of the chosen business

enterprises in Norzagaray Bulacan.

Statistical Method Used

The collected data were totaled, tabulated, and statistically processed in order to

be analyzed and interpreted from the use of survey questionnaires to get information from

the respondents. The results would be evaluated based on the problems presented by the

study. The researchers used the following formula in analyzing the collected data:

1. Percentage is used on the data that are presented in percentage form to show the actual

distribution of the respondents and their responses that is related to Statement of the
Problem Part 1 as it represents the profile of respondents, the asset size and years of

operating. The formula used in analyzing the collected data are the following:

Where: P = percentage (%)

f = frequency
n = number of respondents

2. Frequency distribution is used to simplify the data. After ranking all the data, the

collected data were be listed to indicate its frequency.

3. Weighted Mean. Weighted mean was used to calculate the measure of central

tendency, that was used to get the value of scores for the items using the Likert Scale

below:

SCALE RANGE VERBAL INTERPRETATION

4 3.25 – 4.00 Strongly Agree

3 2.50 – 3.24 Agree

2 1.75 -2.49 Disagree

1 1.00 – 1.74 Strongly Disagree

 TABLE OF CONTENTS

Page

Title Page.......................................................................................................

Table of Contents...........................................................................................

List of Figures................................................................................................

Bibliography..................................................................................................

CHAPTER I

THE PROBLEM AND ITS BACKGROUND

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

Theoretical Framework.................................................................

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

Objective of the Study.................................................................

Hypothesis....................................................................................

Significance of the study..............................................................

Scope and Limitations..................................................................

Definition of Terms......................................................................
CHAPTER II

REVIEW OF RELATED LITERATURE AND STUDIES

Related literature........................................................................

Related Studies...........................................................................

Synthesis....................................................................................

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

CHAPTER III

METHODOLOGY

Research Method and Research Design.....................................

Population and Sampling Technique.........................................

Research Instrument...................................................................

Data Gathering Collection.........................................................

Analysis and Statistical Method Use.........................................

LIST OF FIGURES

Page
Figure 1. Theory of Five Stages Growth......................................................

Figure 2. Conceptual Framework..................................................................

Figure 3. 5-Point Scale...................................................................................

Figure 4. Example of Response Format.........................................................

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 A STUDY ON BUDGETING OF START-UP SMALL BUSINESS

ENTERPRISES IN NORZAGARAY BULACAN

Survey Questionnaires

Part I. Demographic Profile

Age: 18-30 31-40 41-50

Gender: Male Female

Educational Attainment: College High School Elementary

Asset size: 10,000-15,000 15,000-20,000 20,000-30,000

Years of operating: 1-2 years 3-4 years

Instruction: Utilizing the below 5-point rating system. Please assign a grade to the
following questions. Put a checkmark in the box. Kindly respond truthfully to the inquiry.
Keep all questions answered.

Scale: 4- Strongly Agree 1- Strongly Disagree

3- Agree

2- Disagree

Part II. Evaluation of budgeting of start-up small business enterprises in terms of:

4 3 2 1
QUESTIONS (Strongly (Agree) (Disagree) (Strongly
 (Capital, Target Market, Product) Agree) Disagree)

1. Do you agree that financial capital

availability the most important
component of a small startup
entrepreneurial success?
2. How confident are you in your ability
to manage financial capital effectively
as a small business owner?
3. To what extent do you strongly agree
that adequate capital investment is
crucial for sustaining small business
growth and competitiveness?
4. Do you agree that securing sufficient
capital is vital for the success and
expansion of a small business?
5. To what extent do you strongly agree
that adequate capital investment is
essential for small businesses to
innovate and adapt to changing market
demands?
6. How well do you believe your current
marketing strategies align with your
target market's preferences and needs?
7. Do you agree that your business
marketing strategies are meticulously
tailored to meet the specific needs and
preferences of your target market?
8. For your small business to succeed, do
you agree that is it not essential to
comprehend and successfully target the
demands and preferences of your
target market segments?
9. Do you firmly believe that properly
positioning our goods and services in
the market requires a thorough
understanding of the tastes and
behavior of our target market?
10. Do you also think that our small
business's ability to continue growing
and remaining competitive depends on
our ability to continuously satisfy the
changing demands and expectations of
our target market?
11. How strongly do you agree that
product meets your needs and
preferences?
 12. Do you agree that providing high-
quality products is necessary to win
over customers and propel your small
business's growth?
13. Do you strongly agree that making
distinctive and noteworthy investments
in product development is essential to
prospering in the small business
environment?
14. Offering distinctive and valuable
products is necessary to have a
competitive edge and draw clients to
your small business.
15. It is vital to consistently provide
inventive products if one wants to
remain relevant and prosper in the
small business market.

Part III. Label the following in terms of:

QUESTIONS 4 3 2 1
(Financial Resources, Setting Goals/Plans, (Strongly (Agree) (Disagree) (Strongly
Business Strategy) Agree) Disagree)

1. How strongly do you agree that you

have enough financial resources to
cover your expenses comfortably?
2. Do you agree that you are effectively
managing your financial resources?

3. Financial resources must be available

in order for small enterprises to expand
and survive?
4. Is it true that small firms need
sufficient funding in order to take
advantage of development,
possibilities and successfully handle
obstacles?
5. For small firms to invest in expansion
and maintain their competitiveness in
the market, they must be able to secure
adequate financial resources.
6. Do you firmly believe that a small
business's growth and success can only
be guided by setting clear goals and
plans?
7. Creating clear objectives and plans is
essential for directing the course and
attaining success in a small firm.
8. Establishing strategic strategies and
attainable goals is essential to
promoting small business
sustainability and growth.
9. For your small business to expand and
go in the right path, creating a
thorough business plan with specific
goals and tactics is crucial.
10. It is essential for small businesses to
set clear, attainable goals in order to
track their progress and remain on
course for success.
11. Is it true that small firms need a well-
defined business strategy in order to
overcome obstacles and seize
opportunities?
12. Is creating and implementing a well-
defined business plan essential to a
small organization's sustained success
and expansion?
13. Small firms must have a clear, flexible
business plan in order to survive and
grow in fast-paced marketplaces.
14. Is it true that small enterprises need a
well-defined business strategy in order
to allocate resources efficiently and
accomplish their long-term goals?
15. Is it essential for small firms to
develop and implement a well-
thought-out business plan in order to
stand out from the competition and
experience steady growth?