1

COMPETITIVE ADVANTAGES AND FINANCIAL RESILIENCY OF STORE

OWNERS IN NEW MARKET LEMERY, BATANGAS

A Thesis
Presented to the Faculty of
College of Accountancy, Business, Economics and
International Hospitality Management
Batangas State University
Batangas City

In Partial Fulfillment
Of the Requirements for the Degree
Bachelor of Science in Business Administration
Major in Financial Management

By:
Armamento, JeminaAlliah M.
De Guzman, Jonna Lyn H.
Dela Luna, Felipe C.

December 2022
 APPROVAL SHEET

This thesis, titled COMPETITIVE ADVANTAGES AND FINANCIAL

RESILIENCY OF STORE OWNERS IN NEW MARKET LEMERY, BATANGAS
prepared and submitted by JeminaAlliah M. Armamento, Jonna Lyn H. De
Guzman, and Felipe C. Dela Luna in partial fulfillment of the requirements for the
degree Bachelor of Science in Business Administration Major in Financial
Management, has been examined and is recommended for acceptance for oral
examination.

AMOR A. ILAGAN, DBA

Adviser

Approved by the Committee on Oral Examination with a grade of ______

PANEL OF EXAMINERS

BENDALYN M. LANDICHO, PhD., AFBE

Chairperson, Panel of Examiners

EDRICK F. MORALES, MBA JEFFREY P. MARANAN, DBA

Member, Panel of Examiners Statistician/ Panel of Examiners

Accepted and approved in partial fulfillment of the requirements for the degree
Bachelor of Science in Business Administration Major in Financial Management.

_________________ BENDALYN M. LANDICHO, Ph.D., AFBE

Date Dean, CABEIHM

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 ACKNOWLEDGEMENT

The researchers would like to impart their deepest gratitude to all who in

one way or another contributed, supported and prayed for the realization of our

thesis.

To the dean of CABEIHM, Dr. Bendalyn A. Landicho,Ph.D., AFBE, for

providing challenge and opportunities to overcome the stringent requirement of

the degree;

To the adviser, Mrs. Amor A. Ilagan, DBA,for her considerate effort for

spending time editing our unrefined work and providing great feedback that

contributed to the completion of the study;

To the panelist, Dr.Jeffrey P. Maranan, DBA, and Mr.Edrick F. Morales,

MBA, who were present during the presentation for their valuable contribution

in the betterment of the study;

To the store owners of New Market Lemery, Batangas, for being

cooperative in answering our questionnaire, for the factual information that they

had given;

To our friends, for sharing their precious time support and advice for

making us believe that we can do the impossible and most of all, for being true

friend.

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To our parents, who have been very supportive and understanding in pursuing

this thesis, for encouraging us to do as well and for being us financial support

and;

Above all, we give glory to God for giving us knowledge, wisdom and

understanding. We acknowledge, hope and dependence on him alone;

Armamento

De Guzman

Dela Luna

iv
 TABLE OF CONTENTS

Page
TITLE PAGE .................................................................................................... i
APPROVAL SHEET ....................................................................................... ii
ACKNOWLEDGEMENT .................................................................................. iii
TABLE OF CONTENTS................................................................................... v
LIST OF TABLES .......................................................................................... vii
LIST OF FIGURES ......................................................................................... ix
ABSTRACT ..................................................................................................... x

I.THE PROBLEM
Introduction ...................................................................................................... 1
Background of the Study .................................................................................. 2
Statement of the Problem ................................................................................. 3
Theoretical Framework .................................................................................... 4
Conceptual Framework ................................................................................... 7
Hypothesis of the Study ................................................................................... 9
Scope and Limitations of the Study .................................................................. 9
Significance of the Study ................................................................................ 10
Definition of Terms ......................................................................................... 12
II. REVIEW OF LITERATURE
Conceptual Literature ..................................................................................... 15
Research Literature........................................................................................ 47
Synthesis........................................................................................................ 60
III. RESEARCH METHODOLOGY
Research Design............................................................................................ 62
Respondents of the Study ............................................................................. 62
Data Gathering Instrument ............................................................................. 63
Data Gathering Procedure ............................................................................. 65
Statistical Treatment of Data .......................................................................... 66
IV. PRESENTATION, ANALYSIS, AND INTERPRETATION

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 Distribution of Respondents as to Sex............................................................ 67
Distribution of Respondents as to Age ........................................................... 69
Distribution of Respondents as to Educational Attainment ............................. 70
Distribution of Respondents as to Average Daily Income ............................... 71
Assessment of the Respondents Financial Resiliency
in Economic Resources .......................................................................... 73
Assessment of the Respondents Financial Resiliency
in Financial Resources ................................................................. 76
Assessment of the Respondents Financial Resiliency in
Financial Knowledge and Behavior ......................................................... 79
Assessment of the Respondents Financial Resiliency in Social Capital ......... 82
Assessment of the Respondents Competitive Advantages
in Rivalry among Existing Competitors.................................................... 85
Assessment of the Respondents Competitive Advantages in
Threats of New Entrants ........................................................................ 88
Assessment of the Respondents Competitive Advantages in
Bargaining Power of Suppliers ................................................................ 89
Assessment of the Respondents Competitive Advantages in
Bargaining Power of Buyers ................................................................... 91
Assessment of the Respondents Competitive Advantages in
Threat of Substitute Products and Services ............................................ 94
Significant Relationship between
Competitive Advantages and Financial Resiliency ................................. 97
V. SUMMARY, FINDINGS, CONCLUSIONS, AND RECOMMENDATIONS
Summary ..................................................................................................... 103
Findings ....................................................................................................... 104
Conclusions ................................................................................................. 107
Recommendations ...................................................................................... 108

BIBLIOGRAPHY
APPENDICES
CURRICULUM VITAE

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 LIST OF TABLES

Table No. Title Page

1 Scoring and Interpretation 65

2 Distribution of Respondents as to Sex 67

3 Distribution of Respondents as to Age 69

4 Distribution of Respondents as to Educational

Attainment 70

5 Distribution of Respondents as to Average Daily

Income 71

6 Assessment of the Respondents Financial

Resiliency in Economic Resources 73

7 Assessment of the Respondents Financial

Resiliency in Financial Resources 76

8 Assessment of the Respondents Financial

Resiliency in Financial Knowledge and Behavior 79

9 Assessment of the Respondents Financial

Resiliency in Social Capital 82

10 Assessment of the Respondents Competitive

Advantages in Rivalry among Existing
Competitors 85

11 Assessment of the Respondents Competitive

Advantages in Threat of New Entrants 88

12 Assessment of the Respondents Competitive

Advantages in Bargaining Power of Suppliers 89

13 Assessment of the Respondents Competitive

Advantages in Bargaining Power of Buyers 91

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14 Assessment of the Respondents Competitive
Advantages in Threat of Substitute
Products and Services 94

15 Significant Relationship between Competitive

Advantages and Financial Resiliency 97

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 LIST OF FIGURES

Figure No. Title Page

1 Theoretical Framework of Financial Resiliency 5

2 Theoretical Framework of Competitive Advantages 6

3 Conceptual Paradigm 7

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 ABSTRACT

For many individuals, starting a business is a huge accomplishment, but

maintaining one is a greater risk. Regardless of how big or small a business is, it

faces a number of common obstacles. Ever since, store owners have faced

many problems as they are a vulnerable population who are neither protected

neither by government, NGOs, labor unions nor by any labor law. They are

deprived by laws made by the government in respect of the labor union. They are

also suffering because of the competition with other vendors since there are

fluctuation in market prices, insecure and irregular employment. Their incomes

are often minimal, and their sales fluctuate. Another reason for the decrease in

income of the store owners is that they are forced to pay 15 to 20 percent of their

daily income as bribes to local police. Moreover, store owners are usually

associated with encroachment of public spaces, causing traffic congestion,

inadequate hygiene, and poor waste disposal. Thus, this study aims to evaluate

the nature of business of some store owners in new markets in Lemery Batangas

and address some solutions to improve their competitive position for them to be

resilient. This study entails significant objectives to offer knowledge to the store

owners on how they can overcome the challenges they faced in the present and

hopefully in the future too. As the researchers are majoring in Financial

Management, they would also like to propose a study on how the store owners

could be resilient in terms of economic, financial, and social.

Moreover, the respondents of the study the store owners in New Market

Lemery, Batangas that needed to be assessed based on their personal

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perception and experience on how the competitive advantages and financial

resiliency can be assed. With that, researcher-made survey questionnaires were

formulated and distributed to one hundred thirty-six (136) respondents when it

was proven to be legitimate and credible in the store owners which were chosen

using random sampling. The data gathering was done through the use of survey

questionnaire, wherein frequency and percentage, weighted mean and

regression analysis were used for the statistical treatment of data Results show

intriguing findings regarding the study. It showed that there is indeed a high level

of financial resiliency in terms of economic resources (with a composite mean of

3.39) and financial knowledge and behavior, (a composite mean of 3.33), while

high levels of financial resources and social capital, having (a composite mean of

3.19 and 2.79). Furthermore, it showed that there is a relationship between

financial resiliency and competitive advantages.

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 Chapter I
THE PROBLEM

This chapter deals with the presentation of the problem. Specifically, this

presents an introduction, the background of the study, statement of the problem,

theoretical framework, conceptual framework, hypothesis of the study, scope and

limitations of the study, significance of the study, and definition of terms.

Introduction

For many individuals, starting a business is a huge accomplishment, but

maintaining one is a greater risk. Regardless of how big or small a business is, it faces

a number of common obstacles. These include things like sourcing of goods, creating a

brand, and growing a consumer base. In addition, an individual must have adequate

cash to pay bills whether it's for business or for personal life as it is also possible to

experience capital drain resulting from financial pressure. Therefore, to avoid this issue,

small business owners must either be well-capitalized or earn additional revenue to

supplement financial reserves when necessary.

Being financially capable is also possibly a great advantage when it comes to

starting a business. An entrepreneur could choose what idea to implement at their

business and consider it as the best starter pack. Being resilient also entails the ability

to adapt to challenges, to rebuild, and even emerge stronger and wiser because of the

experience. When faced with unanticipated stress, an entrepreneur that follows

resilience principles benefits in several ways

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In terms of small entrepreneurs like store owners, they are somehow benefited

just like other entrepreneurs. They have small capital, easy to set-up, and have a good

chance to succeed. It is also ideal for businesses that offer limited products. Having a

store in the market is also a worldwide phenomenon and the most visible element of the

informal economy. Millions of individuals earn their living by selling a wide range of

items and services on the street in cities and towns all over the world. Despite popular

perception that sari-sari stores will decline as economies improve and income rises, it is

on the rise in many locations. In addition, entrepreneurs prefer carts as it requires fewer

rental costs, and it is easy to transfer whenever a location is not good. Store owners

also have the advantage to capture a wider market since they are usually located along

the road and commercial centers. Furthermore, although store owners can be

competitive, it is still mandatory to maintain their advantages. They must never lose

their chance to develop their business, as the society is still changing. They must be

strategic to be resistant and most importantly resilient, financially wise or such.

Background of the Study

Ever since, store owners have faced many problems as they are a vulnerable

population who are neither protected neither by government, NGOs, labor unions nor by

any labor law. They are deprived by laws made by the government in respect of the

labor union. They are also suffering because of the competition with other vendors since

there are fluctuations in market prices, insecure and irregular employment. Their

incomes are often minimal, and their sales fluctuate. Another reason for the decrease in

income of the store owners is that they are forced to pay 15 to 20 percent of their daily

income as bribes to local police. Moreover, store owners are usually associated with
 3

encroachment of public spaces, causing traffic congestion, inadequate hygiene, and

poor waste disposal.

Regarding the competition experienced by the store owners, they are somehow

most likely competitive than other businesses. However, as the pandemic continues,

online shopping has become the trend and the new mode of purchasing. There are

around 1000s of online marketing enterprises selling cosmetics, clothes, shoes,

accessories, vitamin supplements, etc. literally the entire range of consumer items. The

trend is very clear, retail shop demand will fall and even shrink considering online

shopping is indeed having an adverse impact on the retail sector.

Therefore, this study is presented to evaluate the nature of business of some

store owners in new markets in Lemery Batangas and address some solutions to

improve their competitive position for them to be resilient. This study entails significant

objectives to offer knowledge to the store owners on how they can overcome the

challenges they faced in the present and hopefully in the future too. As the researchers

are majoring in Financial Management, they would also like to propose a study on how

the store owners could be resilient in terms of economic, financial, and social.

Statement of the Problem

This study would determine the initial knowledge of store owners regarding

investing and managing finances as well as their assumptions of being financial literate.

This study also seeks to answer the following questions:

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

1.1 Sex;
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1.2 Age;

1.3 Highest Educational Attainment; and

1.4 Average daily income?

2. How may the financial resiliency of the respondents be assessed in terms

of:

2.1 Economic resources;

2.2 Financial resources;

2.3 Financial knowledge and behavior; and

2.4 Social capital?

3. How may the competitive advantage of the respondents be assessed in

terms of:

3.1 Rivalry among existing competitors;

3.2 Threat of new entrants;

3.3 Bargaining power of suppliers;

3.4 Bargaining power of buyers; and

3.5 Threat of substitute products and services?

4. Is there a significant relationship between competitive advantages and

financial resiliency?

5. Based on the findings of the study, seminar may be proposed?

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Theoretical Framework

This theoretical framework directs research by deciding which variables to

assess and which statistical relationships to seek. This demonstrates the researcher's

goal of demonstrating the value of investment skills to store owners at the new market

in Lemery, Batangas. The first variable is financial resiliency. It is the ability to withstand

life events that impact one’s income and/or assets. According to Salignac, et.al. (2019),

economic resources, financial resources, financial knowledge and behavior, and social

capital are the dimensions of financial resiliency. An industry's vulnerabilities and

strengths can be ascertained using Porter's Five Forces, it is a model that identifies and

examines five competitive forces that affect every industry. The structure of an industry

is typically identified using the Five Forces analysis to develop company strategy.

FIGURE 1
Theoretical Framework
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The Five Forces model is frequently used to evaluate a company's corporate

strategy as well as its industry structure. With some qualifications, Porter identified five

immovable forces that affect every market and business in the globe. The

attractiveness, profitability, and level of rivalry in a market or industry are typically can

be assessed using the Five Forces model.

FIGURE 2
Theoretical Framework

According to Bruijil (2018) Porter’s five forces framework (rivalry existing competitors,

threat of new entrants, power of suppliers and buyers, substitute products and services)

is based on the perception that an organizational strategy should encounter the

opportunities and threats in the organization's external setting. A competitive strategy

should rest on an understanding of industry structures and the way they change.
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Conceptual Framework

This section of the study depicts the framework that represents the research

idea's structure. The study's goal is to look into and figure out the relationship between

competitive advantages and financial resiliency of the store owners in the new market in

Lemery, Batangas. The Input-Process-Output (IPO) Model was used as the study's

research paradigm. This paradigm will help you comprehend how this study has

progress.

INPUT PROCESS OUTPUT

What is the profile of the

respondents in terms of:

● Sex
● Age
● Educational Attainment
● Monthly / Annual Income

What are the viewpoints of the

respondents regarding:

● Economical
● Financial Proposed output for the
● Financial knowledge and competitive advantages
Constructing and
behavior and financial resiliency
structured questionnaire
● Social Capital of store owners in New
Analysis of data gathering
Market Lemery,
What are the viewpoints of the
Batangas
respondents regarding:

● Rivalry among existing

competitors

● Threat of new entrants

● Bargaining power of
suppliers

● Bargaining power of
buyers

● Threat of substitute
product and services

Figure 3
Conceptual Paradigm
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The study approach must be effectively planned in phases in order to

meet the study’s objectives. As shown in the diagram above, the conceptual

paradigm directs the study directions. The initial step is to find out and

understand important literature that will aid the study in obtaining relevant data,

context and ideas in respect to economical, financial, financial knowledge and

behavior, and social capital all of which are reflected in the input box. As a result,

sufficient and suitable knowledge about the certain study will be able to be

undertaken in this research.

The second phase entails gathering and collecting of data from the

respondents about their demographic profile, such as their sex, age, educational

attainment and monthly/annual income, as well as findings on the relationship

between economical, financial, financial knowledge and social capital, rivalry

among existing competitors, threat of new entrants, bargaining power of

suppliers, bargaining power of buyers, threat of substitute products and services

and determining whether there are significant differences in terms of their profile.

The data obtained by the respondents is then interpreted and analyzed by the

researchers. The study’s foundation is based on decoding, evaluating, and

comprehending the data gathered by the respondents in order to assess the

objective of the study.

The study’s output is a summary of findings, discussion, and conclusions

and suggestions, which include a List of Competitive Advantages and Financial

Resiliency of the store owners in the new market in Lemery, Batangas

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Hypothesis of the Study

The study tested the hypothesis given below:

There is no significant relationship between financial resiliency and

competitive advantages.

Scope and Limitations of the Study

This study is all about financial resiliency and competitive advantages to

know how the respondents may help their financial problems if it was affected by

the current issues like Covid-19, inflation, sickness and more. Also, this study

aims to help the respondents to know their competitive advantages in terms of

rivalry among existing competitors, threat of new entrants, bargaining power of

suppliers, bargaining power of buyers and threat of substitute products and

services to help them about financial skills like economical, financial, financial

knowledge and behavior and social capital as their competitive advantage to help

them to resolve their own financial problems. The researchers conducted this

study to help not only the respondents which are the store owners but also the

other people to have the knowledge on how they will help themselves on their

finances if they have their investment skills as their competitive advantage.

The respondents of this study are the store owners that sell different kinds

of goods in Lemery, Batangas to finance their everyday expenses and to prepare

for their future finances. To conduct this study, the researchers gathered different

information from the internet, previous thesis that has the same studies into this
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study and also from books that we may find in the different libraries. The

researchers also made a questionnaire to conduct a survey to the store owners

in the new market in Lemery, Batangas to support this study.

By doing this study, the researchers may have experienced unexpected

limitations to do this study. The respondents may decline to answer the

questionnaires because of lack of knowledge about financial resiliency. Also, the

researchers may be challenged to find respondents because of busy store

owners in Lemery, Batangas. This research began in the second semester of

academic year 2021-2022 and ended in the first semester of academic year

2022-2023.

Significance of the Study

The study’s significance is determined by the information sought, which

includes determining the level of their viewpoints in economical, financial,

financial knowledge and behavior and social capital, rivalry among existing

competitors, threat of new entrants, bargaining power of suppliers, bargaining

power of buyers, threat of substitute products and services and if there is a

significant difference in the utilization when financial skills were grasped by the

store owners in Lemery, Batangas.

The following will benefit from the findings of the study:

To the store owners in the new market in Lemery, Batangas, the result

of the research will serve as the basis to improve their performance and

efficiency by developing the list of competitive advantages as the contributor

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factor to their financial resiliency. This study also can assess their capability and

improve their knowledge and skills to make a creative contribution to society.

To the Financial Management Students, who might be interested in

doing research related to the competitive advantages of different vendors as a

contributor factor to their financial resiliency. This study serves as additional

information they can use for their future research. Therefore, it can provide

opportunities for the students who undergo the same research study.

To the College of Accountancy, Business, Economics and

International Hospitality Management, this study will be extremely beneficial to

fellow students who are taking the same course and will be performing research

in their higher year. This study will serve as a significant source of information in

doing research.

To the Batangas State University, this will be valuable for students,

professors, and other scholars who are working on comparable projects. It can

also be utilized as a source of information for future study and development.

To the Researchers, this study will give them an opportunity to apply the

theories gained, learned and conducted in this research to their field of expertise

after graduation as future Financial Managers and Practitioners. Furthermore,

this will guide other future researchers in pursuing study in the same field and

giving different concepts about research study.

To the Readers, Students and Future Researchers, this study will be

utilized for them in the future reference, as well as a guideline for their studies.
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Additionally, they can employ some of these theories and knowledge for their

advantages in doing research.

Definition of Terms

For a deeper understanding of the research study, the researchers used

and defined the following aspects conceptually and operationally.

Bargaining Power of Buyers. Thisrefers to the pressure consumers can

exert on businesses to get them to provide higher quality products, better

customer service, and lower prices. (Dan, 2020) In this study, Bargaining Power

of Buyers refers to how the store owners in Lemery, Batangas may have

consumers within an industry that has a high competition.

Bargaining Power of Suppliers. This refers to the pressure suppliers can

exert on businesses by raising prices, lowering quality, or reducing availability of

their products. (Dan, 2013) In this study, Bargaining Power of Suppliers refers to

how the store owners may have their suppliers to supply some goods for their

store to be able to sell it to their consumers.

Competitive Advantage. This refers to generating greater value for a firm

and its shareholders because of certain strengths or conditions (Twin, 2021). In

this study, Competitive Advantage refers to the advantages of the store owners

by having their financial skills.

Economical. This refers to a large set of interrelated production,

consumption, and exchange activities that aid in determining how scarce

resources are allocated (Kenton, 2021). In this study, Economics refers to how

the respondents are involved in different economic activities.

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Financial. This refers to activities associated with banking, leverage or

debt, credit, capital markets, money, and investments. Basically, finance

represents money management and the process of acquiring needed funds

(Kenton, 2021). In this study, Financial refers to how the financial may impact the

respondents’ financial skills.

Financial Knowledge and Behavior. This refers to a blend of skill,

behavior, awareness, attitude and knowledge of individuals that is required to

make sound financial decisions leading towards the achievement of financial

well-being (OECD, 2013). In this study, Financial Knowledge and Behavior refers

to how to control, manage and make good financial decisions for the

respondent’s finances.

Financial Resiliency. This refers to the ability to withstand life events that

impact one's income or assets. During these times, it is more important than ever

to know how to deal with and endure income changes (Kaufman, 2017). In this

study, Financial Resiliency refers to the respondents on how to deal with different

changes to their finances in terms of having unexpected kinds of events.

Rivalry Among Existing Competitors. This refers to the nature of

competition that firms will strive for advantage over their rivals. As such, rivalry is

typically the strongest of the five competitive forces in any given industry. It can

be defined as the competition that goes on between firms as they try to increase

their market share. (Park, 2019) In this study, Rivalry Among Existing

Competitors refers to their competitive advantage against other store owners in

Lemery, Batangas.
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Social Capital. This refers to a positive product of human interaction. The

positive outcome may be tangible or intangible and may include useful

information, innovative ideas, and future opportunities. (Kenton, 2021). In this

study, Social Capital refers to the future of the store owners in terms of their

ideas and opportunities in selling goods.

Threat of New Entrants. This refers to the threat new competitors pose to

existing competitors in an industry. Therefore, a profitable industry will attract

more competitors looking to achieve profits. If it is easy for these new entrants to

enter the market if entry barriers are low then this poses a threat to the firms

already competing in that market. (Dan, 2013) In this study, Threat of New

Entrants refers on how hard or easily can someone enters to the new market to

sell goods with other store owners in Lemery, Batangas

Threat of Substitute Products and Services. This refers to the

availability of a product that the consumer can purchase instead of the industry’s

product. A substitute product is a product from another industry that offers similar

benefits to the consumer as the product produced by the firms within the

industry. (Dan, 2013) In this study, Threat of Substitute Products and Services

refers to how the store owners may handle the switching of products of the

consumers.
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Chapter II
REVIEW OF LITERATURE

This chapter presents a review of the conceptual and research that has

significance and clear implications for the present study. The topics are

organized sequentially as obtained from books and other references. It also

comprises the synthesis as well as the reviewed research literature.

Conceptual Literature

Since the pandemic happened, store owners are among those that are

greatly affected. They do not have the luxury of work-from-home, their livelihood

was critically hit and a few of these store owners are still serving as the last link

in the supply chain, ensuring that staples such as vegetables and fruits are still

available, despite the fact that this puts them in the middle of the risk. However,

as reality knocks hard, it is clearly observed that these store owners are also

among those entrepreneurs that have the opportunity to thrive as they have

numerous advantages and they have the ability to keep pace with the other

competitors.

Competitive Advantage

According to Twin (2022), Competitive advantage refers to factors that

allow a company to produce goods or services better or more cheaply than its

rivals. These factors allow the productive entity to generate more sales or

superior margins compared to its market rivals. Competitive advantages are

attributed to a variety of factors including cost structure, branding, the quality of

product offerings, the distribution network, intellectual property, and customer

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service. Competitive advantages generate greater value for a firm and its

shareholders because of certain strengths or conditions. The more sustainable

the competitive advantage, the more difficult it is for competitors to neutralize the

advantage. The two main types of competitive advantages are comparative

advantage and differential advantage.

Meanwhile, Peterdy (2022) refers to competitive advantage to the ways

that a company can produce goods or deliver services better than its

competitors. It allows a company to achieve superior margins and generate value

for the company and its shareholders.

A competitive advantage is something that cannot be easily replicated and is

exclusive to a company or business. This value is created internally and is what

sets the business apart from its competition. A competitive advantage is what

sets a business apart from its competitors. It is essential in order for a business

to succeed, whether it’s by ensuring higher margins, attracting more customers,

or achieving greater brand loyalty among existing customers.

Higher margins, a better growth profile, and lower customer churn tend to

also be very popular among both investors and creditors making capital more

readily available (and cheaper) for firms that are able to maintain a strong

competitive advantage among their peers.

Furthermore, Amadeo (2022) states that Competitive advantage refers to

the factors or attributes that allow a given company to produce more affordable

or higher quality services or products than its competitors. Competitive

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advantage is what makes an entity's goods or services superior to all of a

customer's other choices. While the term is commonly used for businesses, the

strategies work for any organization, country, or individual in a competitive

environment. For instance, a retailer that offers the lowest prices around has a

competitive advantage over other retailers whose prices are higher. The low

prices can make that retailer's products more attractive than other, higher-priced

options. To create a competitive advantage, a business must provide a clear

benefit to its target market that's better than what the competition offers.

According to Goldberg (2022) Competitive advantage is a favorable

position sought by a business to be more profitable than its rivals. To gain and

maintain a competitive advantage, the business provides either more affordable

or higher quality services or products than its competitors. A business must first

demonstrate a greater comparative or differential value than its competitors and

then convey that information to its target market. While its target market is

customers, gaining a competitive advantage can favorably influence additional

stakeholders, such as employees, investors and supply chain partners.

Competitive advantage is an important attribute to understand for businesses

and their customers, as it defines what makes a business's goods or services

superior and brings value to investors.A business needs to understand the real

benefit of its product or service. It must offer something that customers need or

want and offer real or perceived value. Value is a subjective term, as some

consumers will pay more for a brand based on image or current trends. As such,

business owners need to stay updated on new trends and new technologies to
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maintain a competitive advantage. If businesses do not continuously evolve, their

competitive advantage may slip away.

Gordon (2022) states that Competitive advantage, as the name implies, is

an advantage that a company or market participant has over other competitor

market participants in a given function or industry. Plainly stated, it concerns the

ability of a company to better provide a value proposition to consumers than

competitors who provide the same or a similar value proposition. Markets are, by

nature, competitive. Sustained competition tends to erode any advantage that

one market participant has over others. This may happen because competitors

copy the advantaged competitor, or the competitors create their own unique

competitive advantage that outpaces others. So, competitive advantage is

generally limited in time. Managers seek to maintain, establish new, and increase

competitive advantage through strategic planning. This requires the manager to

constantly assess the company, the value proposition, the market, the

competitors, and the customer. The manager must develop new objectives, value

propositions, and methods.

Rivalry among Existing Competitors

Park (2019) states that rivalry among existing competitors is the nature of

competition that firms will strive for advantage over their rivals. As such, rivalry is

typically the strongest of the five competitive forces in any given industry. It can

be defined as the competition that goes on between firms as they try to increase

their market share. For example, this can be viewed as the competition that the
 19

cooperative faces when members look elsewhere to gin their cotton, sell their

products or purchase their supplies. Due to the nature of agricultural

commodities, this rivalry usually focuses on price competition, with firms

attempting to provide the lowest price possible for farm inputs and the highest

price possible for farm outputs.

According to Dan (2013), the intensity of rivalry among competitors in an

industry refers to the extent to which firms within an industry put pressure on one

another and limit each other’s profit potential. If rivalry is fierce, then competitors

are trying to steal profit and market share from one another. As a result, this

reduces profit potential for all firms within the industry. According to Porter’s 5

forces framework, the intensity of rivalry among firms is one of the main forces

that shape the competitive structure of an industry. Porter’s intensity of rivalry in

an industry affects the competitive environment and influences the ability of

existing firms to achieve profitability. For example, high intensity of rivalry means

competitors are aggressively targeting each other’s markets and aggressively

pricing products. This represents potential costs to all competitors within the

industry. High intensity of competitive rivalry can make an industry more

competitive and thus decrease profitpotential for the existing firms. In

comparison, low intensity of competitive rivalry makes an industry less

competitive. It also increases profit potential for the existing firms.

Meanwhile, Martin (2022) examines rivalry among existing competitors on

how intense the competition is in the marketplace. It considers the number of

 20

existing competitors and what each one can do. Rivalry competition is high when

there are just a few businesses selling a product or service, when the industry is

growing and when consumers can easily switch to a competitor’s offering for little

cost. When rivalry competition is high, advertising and price wars ensue, which

can hurt a business’s bottom line.

Bruin (2016) states that rivalry among existing competitors examines how

intense the current competition is in the marketplace, which is determined by the

number of existing competitors and what each competitor is capable of doing.

Rivalry is high when there are a lot of competitors that are roughly equal in size

and power, when the industry is growing slowly and when consumers can easily

switch to a competitor's offering for little cost. A good indicator of competitive

rivalry is the concentration ratio of an industry. The lower this ratio, the more

intense rivalry will probably be. When rivalry is high, competitors are likely to

actively engage in advertising and price wars, which can hurt a business’s

bottom line. In addition, rivalry will be more intense when barriers to exit are high,

forcing companies to remain in the industry even though profit margins are

declining. These barriers to exit can for example be long-term loan agreements

and high fixed costs.

Luenendonk (2019) states that the factor of competitive rivalry has a

significant impact on the competitive environment a company operates in

because the degree of competitiveness has a direct impact on the potential for

profit that a company can expect. A highly competitive market may end up being

detrimental to all companies involved, with lower profit margins and less ability to
 21

decide price points.A highly competitive market may act as a barrier to entry for

new companies considering joining the fray. Since the profit potential is not high,

there may be less incentive to invest in the market. On the other hand, low

competition may make the market attractive to potential new entrants.

Threat of New Entrants

According to Dan (2013), the threat of new entrants Porter created affects

the competitive environment for the existing competitors and influences the ability

of existing firms to achieve profitability. For example, a high threat of entry means

new competitors are likely to be attracted to the profits of the industry and can

enter the industry with ease. New competitors entering the marketplace can

either threaten or decrease the market share and profitability of existing

competitors and may result in changes to existing product quality or price levels.

An example of the threat of new entrants porter devised exists in the graphic

design industry: there are very low barriers to entry. As new competitors flood the

marketplace, have a plan to react before it impacts your business. Download the

External Analysis whitepaper to gain an advantage over competitors by

overcoming obstacles and preparing to react to external forces, such as it being

a buyer’s market. A high threat of new entrants can both make an industry more

competitive and decrease profit potential for existing competitors. On the other

hand, a low threat of entry makes an industry less competitive and increases

profit potential for the existing firms. New entrants are deterred by barriers to

entry.
 22

Baker (2022) refers to the threat of new entrants to how threatening a new

competitor might be to companies that already have a place in their respective

industries. That includes how easy it is for new companies to enter the industry in

the first place. If the threat is high for an industry, it likely means new competitors

show up frequently and gain traction without much difficulty. If the threat is low,

industries will likely see few new competitors. Even when new companies do

enter the market, they will find success harder to achieve. With the barriers to

entry in mind, you can move on to analyzing them to figure out how high or low

the threat of new entrants is for your industry. For example, if your industry has

low brand loyalty and few government regulations, the threat of new entrants will

likely be relatively low, and you may be able to carve out some market share.

This environment would lead to more chances for business growth. On the other

hand, if your industry requires significant capital investment and provides only

restricted access to suppliers, the threat of new entrants will be high.

New entrants in an industry bring new capacity and the desire to gain

market share. The seriousness of the threat depends on the barriers to enter a

certain industry. The higher these barriers to entry, the smaller the threat for

existing players. Examples of barriers to entry are the need for economies of

scale, high customer loyalty for existing brands, large capital requirements (e.g.

large investments in marketing or R&D), the need for cumulative experience,

government policies, and limited access to distribution channels. More barriers

can be found in the table below. (Bruin 2016)

 23

According to Scott (2022) A company's power is also affected by the force

of new entrants into its market. The less time and money it cost for a competitor

to enter a company's market and be an effective competitor, the more an

established company's position could be significantly weakened. An industry with

strong barriers to entry is ideal for existing companies within that industry since

the company would be able to charge higher prices and negotiate better terms.

This force considers how easy or difficult it is for competitors to join the

marketplace. The easier it is for a new competitor to gain entry, the greater the

risk is of an established business’s market share being depleted. Barriers to entry

include absolute cost advantages, access to inputs, economies of scale, and

strong brand identity.

Cabral (2022), states that the threat of new entrants is the possibility of

new, direct competitors to your business. As one of the five forces, the threat of

new entrants is a critical concern for many businesses, especially in fast-

changing industries. New entrants put pressure on current organizations within

an industry through their desire to gain market share. This in turn puts pressure

on prices, costs, and the rate of investment needed to sustain a business within

the industry. The threat of new entrants is particularly intense if they are

diversifying from another market as they can leverage existing expertise, cash

flow, and brand identity which puts a strain on existing companies’ profitability.

Barriers to entry restrict the threat of new entrants. If the barriers are high, the
 24

threat of new entrants is reduced, and conversely, if the barriers are low, the risk

of new companies venturing into a given market is high. Barriers to entry are

advantages that existing, established companies have over new entrants.

Bargaining Power of Suppliers

According to Luenendonk (2019), bargaining power of suppliers is an

important force within the five forces models. All industries need raw materials as

inputs to their process. This includes labor for some, and parts and components

for others. This is an essential function that requires strong buyer and seller

relationships. If there are fewer suppliers or if they have certain strengths and

knowledge, then they may wield significant power over the industry. When

suppliers have bargaining power, they can apply pressure on a company by

charging higher prices, adjusting the quality of the product or controlling

availability and delivery timelines. Within the five forces framework, there is an

understanding that when suppliers have this bargaining power, they can affect

the competitive environment and directly influence profitability for the company.

According to Dan (2013) the bargaining power of the supplier in an

industry affects the competitive environment for the buyer and influences the

buyer’s ability to achieve profitability. Strong suppliers can pressure buyers by

raising prices, lowering product quality, and reducing product availability. All of

these things represent costs to the buyer. Furthermore, a strong supplier can

make an industry more competitive and decrease profit potential for the buyer.

On the other hand, a weak supplier, one who is at the mercy of the buyer in
 25

terms of quality and price, makes an industry less competitive and increases

profit potential for the buyer.

According to Martin (2022) analyzes how much power a business’s

supplier has and how much control it has over the potential to raise its prices,

which, in turn, lowers a business’s profitability. It also assesses the number of

suppliers of raw materials and other resources that are available. The fewer

suppliers there are, the more power they have. Businesses are in a better

position when there are multiple suppliers. Learn more about finding suppliers

and B2B partners.

Park (2019) assesses that a business depends on certain suppliers that

provide labor, materials and other components. Competitive pressure from these

suppliers is strong when they can exercise sufficient bargaining power to

influence the terms and conditions of exchange in their favor. This pressure is

further strengthened when suppliers are concentrated. In agriculture, producers

typically are seen as having little bargaining power or leverage due to the number

of sellers in the open market. Likewise, cooperatives face this dilemma on a daily

basis. It is relatively easy for farmers to obtain what they need from several

different suppliers as well as market their products through several different

channels of distribution. Your suppliers have a weak bargaining power when

close substitutes for their goods or services are available, and it is neither costly

nor difficult to change suppliers. Suppliers also have less power over your pricing
 26

and terms of sale when your firm is a significant customer and the loss of your

business would have serious negative effects. Similarly, customers may be at the

mercy of a supplier if the supplier controls the market, enabling the supplier to

exert pricing power.

Bruin (2016) analyzes how much power and control a company’s supplier

(also known as the market of inputs) has over the potential to raise its prices or to

reduce the quality of purchased goods or services, which in turn would lower an

industry’s profitability potential. The concentration of suppliers and the availability

of substitute suppliers are important factors in determining supplier power. The

fewer there are, the more power they have. Businesses are in a better position

when there are a multitude of suppliers. Sources of supplier power also include

the switching costs of companies in the industry, the presence of available

substitutes, the strength of their distribution channels and the uniqueness or level

of differentiation in the product or service the supplier is delivering.

Bargaining Power of Buyers

Dan (2020) states that bargaining power of buyers refers to the pressure

consumers can exert on businesses to get them to provide higher quality

products, better customer service, and lower prices. When analyzing the

bargaining power of buyers, conduct the industry analysis from the perspective of

the seller. According to Porter’s 5 forces industry analysis framework, buyer

power is one of the forces that shape the competitive structure of an industry.

According to him Several factors determine Porter’s Five Forces buyer

 27

bargaining power. If buyers are more concentrated than sellers – if there are few

buyers and many sellers – then buyer power is high. Whereas, if switching costs

– the cost of switching from one seller’s product to another seller’s product – are

low, the bargain power of buyers is high. If buyers can easily backward integrate

– or begin to produce the seller’s product themselves – the bargain power of

customers is high. If the consumer is price sensitive and well-educated about the

product, then buyer power is high. Then if the customer purchases large volumes

of standardized products from the seller, buyer bargaining power is high. If

substitute products are available on the market, buyer power is high. And of

course, if the opposite is true for any of these factors, buyer bargaining power is

low. For example, low buyer concentration, high switching costs, no threat of

backward integration, less price sensitivity, uneducated consumers, consumers

that purchase specialized products, and the absence of substitute products all

indicate that buyer power is low.

According to Bruin (2016) The bargaining power of buyers is also

described as the market of outputs. This force analyzes to what extent the

customers are able to put the company under pressure, which also affects the

customer’s sensitivity to price changes. The customers have a lot of power when

there aren’t many of them and when the customers have many alternatives to

buy from. Moreover, it should be easy for them to switch from one company to

another. Buying power is low however when customers purchase products in

small amounts, act independently and when the seller’s product is very different
 28

from any of its competitors. The internet has allowed customers to become more

informed and therefore more empowered. Customers can easily compare prices

online, get information about a wide variety of products and get access to offers

from other companies instantly. Companies can take measures to reduce buyer

power by for example implementing loyalty programs or by differentiating their

products and services.

The power of buyers describes the effect that your customers have on the

profitability of your business. The transaction between the seller and the buyer

creates value for both parties. But if buyers (who may be distributors, consumers

or other manufacturers) have more economic power, your ability to capture a

high proportion of the value created will decrease, and you will earn lower profits.

Buyers have the most power when they are large and purchase much of your

output. If your business sells to a few large buyers, they will have significant

leverage to negotiate lower prices and other favorable terms because the threat

of losing an important buyer puts you in a weak position. Buyers also have power

if they can play suppliers against each other. In the automotive supply industry,

the large car manufacturers have significant power. There are only a few large

buyers and they buy in large quantities. But, when there are many smaller

buyers, you will have greater control because each buyer is a small portion of

your sales. You can reduce the bargaining power of your customers by

increasing their loyalty to your business through partnerships or loyalty programs,

selling directly to consumers or increasing the inherent or perceived value of a

 29

product by adding features of branding. In addition, if you can select the

customers who have little knowledge of the market and have less power, you can

enhance your profitability.

Meanwhile Luenendonk (2019), states that bargaining power of buyers will

be strong and powerful depending on characteristics of a market and its

conditions and the percentage of sales revenue they provide. When a strong

group of buyers is present in the market, it can significantly impact a company’s

product and selling decisions. The strongest power that buyers can exert is to

lower prices, which in turn impacts the profit potential. Buyers can also demand

higher quality of services or products, and increase competitiveness by forcing

different companies into price wars. All of these factors end up decreasing the

attractiveness of the industry by lowering its profitability.

According to Martin (2022), this force examines the power of the

consumer, and their effect on pricing and quality. Consumers have power when

they are fewer in number but there are plentiful sellers and it’s easy for

consumers to switch. Conversely, buying power is low when consumers

purchase products in small amounts and the seller’s product is very different from

that of its competitors. In her illustration, Under Armour’s customers include

wholesale customers and end-user customers. Wholesale customers, like Dick’s

Sporting Goods, hold a certain degree of bargaining leverage, as they could

substitute Under Armour’s products with those of Under Armour’s competitors to

 30

gain higher margins. The bargaining power of end-user customers is lower as

Under Armour enjoys strong brand recognition.

Threat of Substitute Products and Services

Dan (2013) defines the threat of substitute products and services as the

availability of a product that the consumer can purchase instead of the industry’s

product. A substitute product is a product from another industry that offers similar

benefits to the consumer as the product produced by the firms within the

industry. According to Porter’s 5 forces, the threat of substitutes shapes the

competitive structure of an industry. The threat of substitution in an industry

affects the competitive environment for the firms in that industry and influences

those firms’ ability to achieve profitability. The availability of a substitution threat

affects the profitability of an industry because consumers can choose to

purchase the substitute instead of the industry’s product. The availability of close

substitute products can make an industry more competitive and decrease profit

potential for the firms in the industry. On the other hand, the lack of close

substitute products makes an industry less competitive and increases profit

potential for the firms in the industry. A threat of substitutes for example is the

beverage industry due to a market with many competitors.

Texas (2019) states that threats of substitutes products and services are

products in other industries that can potentially affect the demand for your own

product (“product” should be interpreted to include services as appropriate). In

general, the more substitute products that are available to the customer, the
 31

more difficult it becomes for firms to raise their prices. The degree of difficulty will

depend on how easily one product is substituted for another in the mind of the

customer. Thus, the strength of competitive pressures from substitute products

depends on three factors: Whether (1) substitute products are attractively priced

and available; (2) buyers view the substitutes as comparable when analyzing

price, quality, performance and other attributes; and (3) buyers can easily switch

to substitutes. For example, cotton producers are in head-on competition with the

makers of polyester fibers. Competitive pressure from this cotton substitute will

increase as the price of polyester relative to cotton decreases, its characteristics

are improved to match the more desirable characteristics of cotton and the user’s

cost of switching from one product to the other is lowered. Unfortunately, in

agriculture, many products are viewed as commodities with little brand distinction

and low switching costs.

Cabral (2020) defines the threat of substitute products and services as

how other products might threaten your product. Even products and services in

adjacent industries can threaten your strategy if your customers can substitute

competing products for yours. It is the availability of other products that a

customer could purchase from outside an industry. The competitive structure of

an industry is threatened when there are substitute products available that offer a

reasonably close benefits match at a competitive price. In this case, price points

are limited by the prices at which substitutes are available, thereby limiting the

amount ofprofitability that can be generated within an industry.

 32

Garcia (2022,) states that the threat of substitute products and services is

a product from another industry that provides somewhat similar features and

benefits from another product produced by a business organization within

another industry or sector. This substitute product can also be in another product

category or sub-category. For a more technical definition, note that substitutes

use different selling points or technologies to address the same economic need.

Porter explained that the threat of substitutes occurs when a business

organization in a particular industry is compelled to compete with other industries

producing goods or services that can provide the same features and benefits or

address the same economic need.

Threat of substitutes is the potential that customers will replace your

product or service with something completely different outside your market The

threat of substitutes or substitution regards the ability of other (non-industry)

products or services to meet the wants or needs of your customer base. It also

concerns the ability and motivation of customers to figure out a way to fulfill the

need or want without your product or service. If this is possible, then it weakens

your business market power by placing limits on the prices of your product or

service. It is when customers can choose between a lot of substitute products or

services, businesses are price takers, i.e. buyers determine the prices, thereby

lessening the power of businesses. On the contrary, when a business follows a

 33

product differentiation strategy, it can determine the ability of buyers to switch to

the competition. (Spacey 2018)

Financial Resiliency

Reeves and Whitaker (2020) define financial resiliency as a company's

ability to absorb stress, recover vital functions, and prosper in changing

conditions.According to them, today's business world is getting more dynamic

and unpredictable, making resilience even more vital. This is due to a number of

long-term dynamics that are testing and stretching business systems, ranging

from accelerated technological evolution to increased global economic

interconnection to broader challenges like rising inequality, species depletion,

and climate change.

On the other hand, Bisnar (2020) states that building financial resilience

provides a competitive advantage to organizations. Instead of just surviving

through protective measures like the Luzon-wide enhanced community

quarantine, resilience can be championed as good economic sense. What is the

importance of business resilience? Customers value reliability. Firms may

promote resilience as a primary brand concept, and proving its use can help

retain consumers and attract new ones. A company's and its leadership team's

reputation are enhanced by their resiliency. Institutions wanting to expand their

product offerings and operational infrastructures rely on a stable foundation,

which allows resources to be focused on transformation rather than risk

mitigation. The ability to avoid or overcome the unexpected is important to

 34

resilience. Survival is the goal of sustainability. Thrive is the goal of resilience.

Cascio (2020)

According to Jacobsen et al. (2009) “Financial resilience and vulnerability

are two sides of the same coin." Understanding the vulnerabilities that emerge

from risk exposure and a lack of sufficient resources is the first step in building

financial resilience. Moore et al. (2019) states that unexpected shocks, such as a

family member's illness or death, a job loss, a natural disaster, crop failure, or

animal loss, can leave households unprepared to deal with adversity. In an ideal

world, households would tap into their savings, take out a loan, or rely on

insurance payouts or gifts from family and friends. Low savings rates and flaws in

the insurance and credit markets, on the other hand, are important reasons why

some segments struggle to build a buffer against these risks.

Meanwhile, Streeter (2021) defines the ability to resist unanticipated,

negative shocks to one's income or assets are referred to as financial resilience.

Emergency preparedness is a popular proxy for financial resilience. College

graduates, she claims, are more financially robust and capable of covering an

unforeseen price. Women are also less prepared than males to cover a medium-

sized unexpected expense.

Svetlova (2018) believes that Resilience demonstrates a better

understanding of the underlying economy's evolution and the necessity for the

financial system to respond and adapt while remaining shock-resistant. Financial

resilience refers to the system's ability to withstand shocks while still evolving and
 35

performing its societal tasks. According to Svetlova, looking at the trade-offs

between ambiguity and calculable risks/certainty, complexity and

transparency/simplicity, instability and stability might assist comprehend financial

resilience. Without focusing on just one isolated feature or at one level, resilience

can encompass certain fundamental challenges in finance and regulation.

Economic Resources

According to Chapel (2021) Economic resources are indeed the

components employed in the manufacture of goods or the provision of services.

In other terms, they are the ingredients that go into making products or assisting

you in providing services. Economic resources are the inputs we utilize to

produce and distribute goods and services. Human resources include labor and

management, while nonhuman resources include land, capital goods, financial

resources, and technology. The exact amount of each aspect of production

varies from product to product and service to service, but the goal is to make the

most efficient use of resources while maximizing output at the lowest feasible

cost. Misallocation or misuse of resources can lead to the failure of enterprises

and even entire economies.

On the other hand, Sultan (2020) states that Everything a firm uses to

produce goods and services for its consumers is referred to as economic

resources. Land, labor, capital, and entrepreneurial skill are the four main

economic resources, sometimes known as components of production. Land

 36

refers to any natural resource used in the manufacturing process, including what

is visible on the surface. Let's pretend there's a car manufacturing company in

Florida. The land includes both the physical building and the ground on which the

corporation is constructed. It's crucial to remember, though, that while the

building itself is considered land, the machinery and other items inside are not.

When someone is thinking about launching a business, they must think about

where it will be located. The entrepreneur's land should be carefully selected in

order for the firm to attract clients. The second economic resource is labor, which

refers to the work done by the people participating in the firm, both mentally and

physically. Because people have varied skill sets, motivation, and training, each

company's staff is unique. Employees are, of course, compensated for their

mental and physical efforts by receiving salaries or money. The following

economic resource is capital. The man-made materials that a company uses are

referred to as capital, or capital goods. Returning to the previous example, the

capital of a car manufacturing company could contain machinery, components

needed in car construction, and tools used by workers to put parts together. The

final economic resource is entrepreneurship, which is defined as an individual's

capacity to start a firm on their own.To succeed, an entrepreneur must be willing

to take a chance and integrate the other three components of production in the

way that he or she sees fit. Motivation, enthusiasm, innovation, and devotion are

characteristics of entrepreneurs. An individual has successfully accomplished

one of the four economic resources once he or she launches a business.

 37

Moreover, Nasrudin (2020) also states that Factors of production are also

known as economic resources. Human resources such as labor and

entrepreneurship, as well as non-human resources like land and capital, are

included. We may refer to them as inputs or resources in passing. We require

resources to survive. They are a requirement for founding and running a

company and They are the components that go into making goods and services.

The items and services supplied by the company can then satisfy our needs and

desires. Economists classify economic resources into four categories, according

to him: land, labor, capital, and entrepreneurship.

In addition, Nasrudin (2020) defines Economic resources are rare not just

due to their scarcity. It is not self-contained. You must compare it to other

concepts, such as needs and desires. Scarcity arises when resources are

insufficient to meet our limitless demands and desires. Economics is a discipline

that deals with scarcity in this context. It considers how to allocate finite

resources to meet inexhaustible human demands and desires. Alternative

economic alternatives emerge as a result of scarcity. Economists then develop

numerous theories on how to make these decisions in order to achieve the best

results. Finally, they attempt to explain and study the nature of economic agents'

choices, such as consumers and producers, using diverse theories and

methodologies. Our wants and demands are boundless, as Nasrudin remarked.

However, we have limited resources to meet them. Then scarcity develops. As a

result, the scarcity is due to a limited supply of something infinite. Scarcity, and
 38

thus economics, would not exist if our needs and wants were constrained.

Furthermore, economics connects wants and needs to available resources.

Scarcity forces people to make economic decisions about how to best use their

resources.

Smith (2018) states that Everything, including the trash from your lunch

this afternoon and the ideas you had while singing in the shower or daydreaming

at your computer, is an economic resource. If you can harvest or manufacture,

buy and sell, trade and build, pledge or gamble with it, it counts as an economic

resource. Natural resources and manufactured items used to be the only

business-related resources available. Water and fish, as well as timber and

minerals, as well as agricultural goods, are examples of natural resources.

Manufactured goods, on the other hand, are anything made from the same

natural resources. Economic resources, according to Smith, are made up of five

components: land, capital, labor, management, and knowledge.

Financial Resources

Bhattacharjee & Mogilner (2014), states that when people have greater

financial resources, they may not look for significance as a source of enjoyment

as much since they don't have to. People who have more financial resources

have more access to external sources of enjoyment. In fact, having more money

allows people to spend it on things like exotic travel and fine dining, which have

been shown in studies to increase happiness but not purpose in life. People with
 39

more financial resources do not need to rely on more internal sources of

happiness because they can enjoy these external sources of happiness.

On the other hand, Ruggiero and Cupertino (2018) assess that Having

sufficient resources, particularly financial resources, may be a precondition for

engaging in socially responsible conduct, however research into how the

relationship between CFP and CSR is operationalized is scarce. To address this

gap, they focus their study on the relationship between corporate financial

performance and CSR outcomes, or corporate social performance, with a

particular interest in the impact of innovation. Adoption of new procedures and

technology may be one method to resolve possible conflicts between

stakeholders' economic and social objectives. One of the most crucial

requirements for investing in CSR-innovation efforts could be the availability of

financial resources. In assessing the feasibility of any strategy, the direct or

indirect availability of enough financial resources is critical. Managers tend to

allocate resources to initiatives that are more profitable in the short term, rather

than CSR expenditures, which often yield financial benefits only over the medium

to long term.

According to Ociepa-Kubicka and Pachura (2017) lack of financial

resources has been identified as a factor that limits the level of eco-innovation in

European countries, as well as having an impact on the development of an

environmental strategy for SMEs and in sectors that are particularly vulnerable to
 40

the development of eco-innovation within the EU, such as manufacturing, due to

the higher risk associated with this type of investment.

Khamatkhanova (2018) states that financial resources of a company play

a critical role in the proper running of organizations and are a crucial factor in the

process of extended reproduction in the context of economic system

transformation. To remain competitive in the market, Russian businesses must

not only maintain financial stability and payment capability, but also effectively

manage the use and development of financial resources. Because financial

resources are the source of all other resources, their successful management is

one of the defining characteristics of an organization's ability to adapt to changing

market conditions. The ability to create financial resources through various

channels is one of the most critical determinants of an organization's operation

and development in the market economy. This ability to generate financial

resources is continually improving in response to the demands of production and

sales, the increasing complexity of economic ties, and other industrial

characteristics. To fully comprehend the meaning of financial resources, it is

required to gain a better understanding of the phrases "financial resources

generation" and "financial resources."

Ziegler (2020) assesses that in new and expanding businesses,

successfully managing financial resources is critical, so take the time to establish

and implement a financial strategy that will assure your company's success.
 41

Financial resources are frequently seen as the key issue restricting growth

potential in a growing organization. You can improve your financial base in one of

two ways: (1) gradually grow and allow profits to fuel additional expansion, or (2)

seek outside money (i.e., debt or equity funding). Both approaches will take time

and effort, and both will result in some rejections. Persistence is crucial in this

situation. You'll get through this procedure thanks to your determination and

readiness to change your ideas.

Financial Knowledge and Behavior

According to Daves (2018), an alternative theory of risk (risk) and return

(return): financial behavior is mentioned in the 13th edition of his book

(behavioral finance). In response to these findings, a group of researchers

merged psychology and finance to form a new subject known as behavioral

finance. He further explained that behavioral finance is a branch of finance that

studies investor behavior as a result of psychological factors. According to past

study, behavioral finance research leads to risk attitudes in studies (risk attitude).

Financial behavior, according to Halim &Dewi (2015), is a person's attitude and

conduct when it comes to managing their resources.

Moreover, Raiet al (2019) , The study of how psychology influences

individual financial behavior is known as financial behavior. Someone who has

solid financial habits is more likely to be more prudent in managing their financial

resources, such as investing and keeping track of costs. Financial behavior and

investing decisions are two separate but linked concepts. Behavioral finance is a
 42

branch of finance that studies how people act when making financial decisions.

This knowledge illustrates how a person's psychological state can influence their

financial decisions

With inappropriately overwhelming information, well-intentioned efforts by

schools, financial counselors, and commercial institutions to boost individuals'

objective financial knowledge may undermine their feelings of self-worth. It is not

always true that "the more the better" when it comes to financial knowledge.

Effective financial education must focus not only on imparting relevant

information and improving objective knowledge, but also on promoting higher

levels of subjective financial knowledge; when counseling and providing services,

financial advisors can be adaptive and sensitive to their clients' self-perception;

To prevent inadvertently lowering consumers' subjective financial knowledge,

business entities should change the method of financial education presentations

in accordance with their cognitive level. In order to assist people manage their

money wisely, both objective and subjective financial knowledge should be

considered. Hadar, Sood and Fox (2013)

Kyoung Tae et al. (2018) states that financial knowledge has been

connected to beneficial financial habits such as paying off credit cards on a

monthly basis, saving for retirement, making timely mortgage payments, keeping

credit card and mortgage loan fees low, having precautionary savings, and

seeking financial counsel. Furthermore, higher levels of objective financial

 43

knowledge have been linked to higher investment returns, long-term financial

habits like saving and investing, and a lower likelihood of accessing high-cost

alternative financial services like pawn shops and tax refund anticipation loans.

Although some studies have discovered a favorable link between perceived

financial knowledge and financial behavior, others have discovered an

overconfidence effect. Overconfidence in financial knowledge occurs when a

person's perceived financial knowledge exceeds his or her objective financial

knowledge, and higher levels of overconfidence in financial knowledge were

linked to a higher likelihood of using high-cost alternative financial services, even

when objective need for these services was controlled for.

The researchers looked into the link between university students' financial

behavior and their financial knowledge in five European countries. He discovered

that financial education enhances financial literacy among students, and that

students who took university finance classes were more knowledgeable than

those who learned about financial issues from social media. Ergun (2017)

Yahaya (2019) states that individuals who have taken a Financial

Management course have a greater level of financial knowledge than those who

have not. Financial attitudes influence financial behavior greatly, while financial

knowledge influences financial attitudes significantly. Financial knowledge, on the

other hand, has no meaningful impact on financial conduct.

 44

Potrich et al. (2016) suggests that the three components of financial

planning are financial knowledge, financial attitude, and financial behavior. They

created three financial literacy models and compared them for assessing

financial literacy among Brazilian students. Their best model showed that

students' financial attitudes and knowledge influenced their financial behavior.

Social Capital

According to Machalek and Martin (2015) social capital theory contends

that social ties are resources that can help people develop and accumulate

human capital. A stable family environment, for example, might encourage

scholastic achievement and the development of highly valued and rewarded

abilities and credentials. Social capital can be described as any element of a

social interaction that provides reproduction benefits in evolutionary terms.

Humans have evolved preferences for friendship in general and for signs that

signify higher amounts of social capital in particular. We can expect to see

gender inequalities that reflect the division of work in foraging cultures since

developed preferences for particular sorts of social relationships should have

been chosen in the EEA. Females, for example, are likely to cherish and get

emotional fulfillment from belonging to tiny social networks that consist of close

personal interactions built on strong social bonds. Women would benefit from

these types of partnerships because they would help them with foraging and

child care. Membership in bigger social networks built on weak links, such as

hunting groups, political alliances, and fighting parties, would be expected to

 45

benefit males more. Forms of social capital that impart resources and social

standing would be especially beneficial to men.

According to Lin, 2017 social capital is the best source created through

exchanges. This type of source is associated with various types of relationships,

such as interpersonal relationships and organizational networks. Initially, social

capital was used in research to refer to community relationships. The best

aggregate of resources gathered and created in daily relationships and

interactions between individuals and families has been proven to be social capital

(Aldrich & Meyer, 2015). The most important factor in the implementation of this

concept in social phenomena is the nature of existing social capital in the

structure of relationships between individuals. The theory of social capital

illustrates and clarifies social resources that can bring certain elements of a

social network together. Furthermore, social capital is a value-creating aggregate

source.

Besides that, according to Kwon and Adler (2014), social capital can not

only foster mutual understanding among individuals, but it can also compel them

to work together to achieve common goals. As a result, social capital is a

collection of interconnected resources for social and economic activities. Social

capital can bring together members of a social structure based on the

characteristics of individuals in the social network. Social capital can also help

higher-performing individuals participate in earning economic resources to

achieve their goals. According to researchers, social capital has three

dimensions. They are referred to as structural, relational, and cognitive. The

 46

pattern of general communication between individuals is represented by

structural capital. This dimension reflects users' position in the social system and

identifies users' ability to access resources. Meanwhile, a concept is defined as

social nodes, which indicate the degree of connection and availability of network

members with the friends' list. Social nodes in a social network reflect the

structure and quality of the relationship. The level of trust among members in

communication is described by relational capital. This factor reflects the nature of

the work and the quality of personal relationships with other members. The

cognitive dimension refers to the resources that promote individual-individual and

individual-system perception.

Young (2012) defines social capital as a subset of intellectual capital that

includes the importance placed on social connections. This is why employees

who have built significant levels of social capital through the communities and

groups with whom they interact are frequently the most difficult to replace in the

firm and have great value. Their worth stems from their capacity to effectively

network and participate in groups, allowing them to be recognized for their

contributions by using their social assets. The aggregate abilities obtained

through social networks are referred to as social capital. It is critical to recognize

social capital as a socially oriented organizational asset so that we can fully

utilize it. Finally, this is critical for the knowledge worker in today's technology

learning environment, where the ability to abuse connections already exists, with

issues of trust and shared values at its core. As part of external personal
 47

knowledge capital, awareness of social capital may lead to the exploitation of a

sort of innovation capital inside the environment.

Furthermore, Boyce (2022) refers to social capital to the friendships and

acquaintances that build linkages and bonds between people. Friendship groups,

or knowing a friend of a friend, can develop these bonds. They can also happen

as a result of everyday social interactions. Consider a train chat with the

individual seated next to you. To put it another way, social capital refers to the

social bonds we form throughout our lives. It may be knowing who to contact in

finance to have an invoice approved or finding the correct teacher to assist with

assignments. The ability to call on the proper person for assistance in a given

scenario is referred to as social capital. Capital is described as an asset that aids

in the improvement of production efficiency. As a result, social capital is

described as the social assets that aid in improving production efficiency. We can

use social capital to explain why some companies have better managerial

performance, more efficient supply chains, mergers and acquisitions, and greater

performance across the board.

Research Literature

The forgoing research studies were deemed relevant to this study and are

considered by the researchers. The following research studies are about financial

resiliency and competitive advantage.

 48

The study of Amoah-Mensah (2016), examines the strategies adopted by

street vendors or hawkers in Ghana in a bid to gain competitive advantage. The

study finds that street vendors use ten strategies, including networking, multiple

undifferentiated market strategy, the sale of convenient products, strategic exit

and return into business, regular changing of goods and services, exploitation of

flexible operating hours, cost-based pricing strategy, sales promotion, trade

credit, and location. A theoretical framework for street vendor competitive

strategies is constructed using these tactics.

Sam Liu and Fang (2016) assessed the entrepreneurship and achieving

competitive advantage of the night market vendors. The study aimed to Examine

the impact of various aspects of entrepreneurship on competitive advantage.

Entrepreneurial competitive aggressiveness, proactiveness, and competitive

advantage, as well as risk-taking for innovativeness, all have favorable effects,

according to the findings. Furthermore, the study provides strong evidence for

the mediating role of innovation and confirms that entrepreneurship has both a

direct and indirect impact on competitive advantage. The study discovered and

stressed the importance of many aspects of entrepreneurship in boosting

competitive advantage.

Entrepreneurship is a distinct feature, a fundamental kinetic energy

capable of influencing a wide range of strategic organizational behaviors, not

only improving organizational learning but also facilitating organizational

innovation. According to the findings, night market entrepreneurs must have

entrepreneurial zeal in order to have a competitive advantage in the

 49

marketplaces. Entrepreneurs manage and operate their businesses with a

business-oriented mindset, maintaining autonomy and self-discipline, valuing

business ethics and social responsibility, insisting on faith, and striving to achieve

their objectives. Vendor managers show active competitiveness and the future

macro, are unafraid to take business risks, and are so motivated to improve

products and services and gain relative competitive advantages. To demonstrate

entrepreneurship and gain a competitive advantage, night market managers

must investigate self-efficacy, exploitative learning, exploratory learning, and job

autonomy, as well as improve their own and their employees' creativity. To get a

competitive advantage, entrepreneurs must dare to push themselves.

In the study of Hu et al., (2019) business-to-business e-commerce

adoption has experienced rapid growth in recent times and has become one of

the fastest technology adoptions among small and medium-sized enterprises in

gaining and sustaining competitive advantage in Ghana. The resources available

to a company influence the level of B2B e-commerce adoption, which results in a

competitive advantage proportional to that level of adoption. For this study, 315

usable responses were received from owners and managers of small and

medium-sized manufacturing enterprises in Ghana via a questionnaire survey.

The study looks at how varying degrees of B2B e-commerce adoption effect

different categories of competitive advantage using structural equation modeling.

The major finding is that with increasing levels of B2B e-commerce adoption,

SMEs can obtain cost reductions that help them save money in their operational
 50

activities. The research's implications, limitations, and future research directions

are also highlighted.

Jatmiko (2021) assessed the strategies for MSMEs to achieve sustainable

competitive advantage in Kulonprogo Regency, Yogyakarta, Indonesia. The

study's main goal is to use the SWOT analysis approach to provide strategies for

developing micro, small, and medium-sized firms in order to achieve long-term

competitive advantage. Thus, the main problems investigated in this study are: a)

around 60-70% of MSMEs in Kulonprogo regency do not yet have access or

financing from banks; b) lack of knowledge of production technology; c) in

general, MSMEs business actors are still incorporated legal entities; d) MSMEs

do not have a good financial administration and management system; e)

coordination between MSMEs stakeholders has not been integrated; f) limited

facilities and infrastructure of MSMEs, primarily related to technological tools;

and g) limited access to raw materials so that MSMEs often get low-quality raw

materials. The research used a survey strategy that included questionnaires and

interviews. In Kulonprogo Regency, Yogyakarta, Indonesia, 39 MSMEs were

sampled using the Slovin tools sampling technique. The findings of this study

indicated that in order to create a lasting competitive advantage, Kulonprogo

MSMEs should focus on seven components of business management. The

seven aspects are: 1) business strategy; 2) human resources; 3) information

technology; 4) products; 5) promotion; 6) cooperation; and 7) corporate social

responsibility (CSR).
 51

Badenhorst-Weiss and Cilliers (2015) analyzed the competitive advantage

of independent small businesses in Soweto. Large retail chains with stores in

shopping malls are putting pressure on small companies in Soweto. Small

business entrepreneurs must discover and focus on their competitive advantage

over competitors in order to survive and expand. A detailed understanding of the

market environment, including consumers and competitors, is required to identify

sources of competitive advantage. Small business entrepreneurs can get a

competitive advantage by offering a unique value package that includes low

prices, product leadership, and close client relationships. The respondents in this

study differentiated themselves in terms of price, client interaction, shopping

hours, and personal attention. The differentiation value score was calculated

using their values for these areas. Product quality, best brands, and product

variety are all key parts of a small business's product value package, and were

thus factored into the product value score. The aim of the research was to look at

the long-term viability of formal independent small wholesale and retail firms in

Soweto by identifying their key sources of competitive advantage, market tactics,

and the value package they provide to compete in the market. In terms of price,

shopping hours, personal attention, close relationships, quality, brands, and

diversity, it was discovered that expanding and older (and hence sustainable)

small companies value their distinctive products. They have a competitive

advantage because of these unique value packages.

Qosasi et al., (2019) assessed the impact of information and

communication technology capability on the competitive advantage of small

 52

businesses in Jakarta, Indonesia. Through the entrepreneurial orientation and

organizational agility of Indonesian SMEs in the apparel retail industry, the

research establishes how information and communication technology (ICT)

capacity has no effect on competitive advantage. The research is based on

resources that cannot be directly converted into a competitive advantage for

businesses, but must instead go through an entrepreneurial process, and it

provides new insights into the use of ICT as a valuable corporate resource. The

study is based on a quantitative methodology with a population of garment

sellers from Jakarta's traditional markets. Random sampling was used to obtain

the sample.

The poll included 462 small enterprises from five conventional garment

areas that PD. Pasar Jaya manages. Structural Equation Modeling-Partial Least

Squares was used to analyze the data. The findings reveal that while ICT

capacity has no influence on competitive advantage, it does have an impact on

entrepreneurial orientation and organizational agility. Organizational agility and

entrepreneurial orientation both have a substantial impact on competitive

advantage, implying that ICT capability in small enterprises cannot be easily

translated into a competitive advantage. The study discovered that ICT

competence can help small enterprises gain a competitive advantage, but only

when it is combined with entrepreneurial mindset and organizational agility.

In the study Kraja and Osmani (2013) assessed the competitive

advantage and its impact in small and medium enterprises in Albania. Small and

medium businesses (SME) make up a significant part of the Albanian economy.

 53

The SME sector is the engine that propels a country's economy forward in terms

of job creation. The strengthening and enhancement of the private sector, in

which SMEs play a vital role, is linked to the country's development. SME growth

in services, agriculture, construction, and other areas has been regarded as a

growth engine and has aided the Albanian economy. The environment for

investment and employment will be created by sustained growth and increased

SME competitiveness. During the 23 years of market economy, the SME sector

has risen fast. The study's major goal is to highlight the growing significance of

SME sustainable competitive advantage.

The report provides some recommendations for SMEs looking to gain a

competitive advantage. In a larger sense, the study will serve as a source of

knowledge that will help SMEs gain a competitive advantage. As a result, it will

contribute to Albania's long-term growth and dynamic development, as well as

increased productivity and commercial competitiveness. On the one hand, it is

critical for SMEs to achieve, maintain, and enhance their competitive edge by

utilizing and insuring their resources. Small businesses, on the other hand, must

conduct external analysis to discover opportunities and risks, as well as internal

analysis to find unique skills. Managers of SMEs should examine the

environment in which their company is being established, installed, or extended.

In this approach, they must do a SWOT analysis in order to determine whether

things are going smoothly. They must decide whether or not to continue the

business based on this analysis. For businesses to succeed, they must have

strategic management and a competitive edge, develop a business plan, and

 54

understand how things will unfold, analyze and translate everything into reality.

SMEs are unable to preserve their competitive advantage for a variety of

reasons, including poor management, a lack of managerial education, and a lack

of initiative.

Peters, R.M. &Bridjlal, P. (2011), The relationship between levels of

education of entrepreneurs and their business success: A study of the province

of KwaZulu-Natal, South Africa Education is one of the most widely studied

entrepreneurial variables. We can presume that 'education' is related to

knowledge, skills, problem-solving ability, discipline, motivation and self-

confidence, all of which may influence and enable the entrepreneur to cope with

problems and thereby be more successful. In particular, entrepreneurs with

higher levels of education and experience are likely to be more efficient in

seeking, gathering and analyzing information about availability of opportunities

which lead to growth (Forbes, 2005). Their study assessment Six categories of

highest qualification were used to describe the educational characteristics:

secondary, senior secondary, diploma, graduate and postgraduate. The

respondents were asked to indicate the highest-level qualification achieved. The

results indicated that, at best, 37% of respondents had completed a college

degree, 10% were diploma, 3% had completed some postgraduate qualification,

24% had completed senior secondary school and 6% had completed secondary.

This paper explores the relationship between the level of education of the

business owner and the growth of the business.

 55

Hoan et al., (2021) analyzed the influence of competitive advantage on

financial performance of SMEs in Vietnam. One of the key purposes of small and

medium-sized businesses is to make money (SMEs). SMEs have implemented a

variety of profit-boosting strategies, including financial advantage strategies. The

question is how to assist SMEs in making more informed and effective decisions

in order to increase their competitive edge and financial performance. The

study's goal is to look at the impact of competitive advantage on financial

performance in Hanoi's small and medium-sized businesses (SMEs). To gather

data, a survey of 120 accountants, salespeople, and SMEs' boards of directors

was undertaken. We employed Cronbach's Alpha, EFA, and correlation analysis

to assess the link between competitive advantage and the dependent variable -

financial performance, using a quantity approach. The findings revealed a

positive association between competitive advantage and financial performance.

In terms of gender and the three sets of job descriptions indicated, there is no

statistically significant variation in the level of financial performance in SMEs in

Hanoi. This study's findings indicate various ideas for improving financial

performance, including increasing sales and profitability.

The findings are thought to be a good starting point for developing policies

to attract customers and help businesses grow sustainably. SMEs must minimize

production costs and offer comparable or lower prices than their competitors.

Furthermore, SMEs must employ current technology, consume less fuel, invest in

new and modern technologies, and operate highly automated lines. Furthermore,

SMEs must request that state authorities research and propose tax,
 56

environmental, and building laws, among other things, in order to minimize input

costs and, as a result, product costs and selling prices.

It is then, supported by Frydman and Camerer (2016), that within a family

context, financial matters also form a pillar to sustain sound family relationships.

Even with the family as its universe, personal and family finance naturally receive

influences from cognitive and neural processes. Financial decision making also

does not operate in a vacuum: individuals decide with people around them

influencing their decisions. The lived experiences of families on family finance

thus become ripe for family financial socialization research (Lacsina and

Opiniano, 2017) which may have to carry an inter-disciplinary character to

include perspectives from Psychology.

Gakobo and Wanyoike (2018) assessed the influence of strategies

adopted by shop business on competitive performance in Nakuru Town CBD.

The goal of the research was to find out what tactics shop owners employed to

achieve competitive performance. The study attempted to determine the impact

of product differentiation and supply chain management as shop business

strategies for achieving competitive hawker performance. Dynamic capability

theory and Porter's competitive advantage perspective drove the research. The

researcher used a descriptive cross-sectional survey to explain the correlations

between numerous factors in the study. Despite some qualitative attention, the

study's primary focus was quantitative. Miller and Brewer established a

mathematical approach for calculating sample size. The study's target audience
 57

included 260 shop owners in Nakuru's CBD who dealt with electronics, and the

sample included 72 stores.

The respondents' primary data was collected via a standardized

questionnaire. After collecting the data, it was cleaned to remove extreme

outliers and analyzed using descriptive and inferential statistics. The Statistical

Package for Social Sciences (SPSS) tool was used to accomplish this. Measures

of distribution, central trends, and variations were utilized in descriptive analysis,

while Pearson's correlation coefficient and multiple regression were used in

inferential analysis. The relationship between the various variables was

visualized using a linear regression model. The researcher found that there is a

link between product differentiation and shop performance against street vendors

based on the findings. The researcher went on to say that there is a link between

supply chain management and shop performance against street vendors in

Nakuru's central business district.

Furthermore, in the study of Impact of Entrepreneur’s Demographic

Characteristics and Personal Characteristics on Firm’s Performance Under the

Mediating Role of Entrepreneur Orientation of SulaimanSajilan et al., Lee, D. Y.,

& Tsang, E. W. (2001). The effects of entrepreneurial personality, background

and network activities on venture growth, the Journal of management studies,

stated that individuals up to the age of 24 do not feel to start their own business

as entrepreneurs. They argued that entrepreneurs get more opportunities with

increasing their ages, but their willingness to become an entrepreneur decrease

as they become old. Similarly, some of the studies have identified that mostly in
 58

developing countries the entrepreneurs are in 25-34 age groups at an early stage

and 35-44 age groups are of early stage entrepreneurs in the developed

countries (Bosma et al., 2007; Karadeniz &Özçam, 2009). According to them,

among 18-24 age groups, the rates of early entrepreneurial activities are

relatively low, but are at a peak amongst 25-34 age groups but then sharply

decline above the age of 44. Similarly, Levesque &Minniti (2006) highlighted that

at early age individuals start a business but decreases thereafter. Also, Reynolds

et al. (2000) found that most entrepreneurial active people were at about 25-44

age groups.

The study concluded that retailers in Nakuru Town should separate

themselves and their products from street vendors based on the findings. They

can accomplish this by making the buyer more aware of the purchasing process.

The report also advised shop owners to establish a low-cost supplier source

while still meeting quality standards. Further research on the capability,

dynamism and competitive advantage of SMEs in Nakuru Town, according to the

researcher, should be done. The researcher suggested that stores in Nakuru

Town distinguish themselves and their products from those sold by street sellers.

They can accomplish this by making the buyer more aware of the purchasing

process. They should use true qualitative differences in their products and

services as a competitive strategy. To achieve a competitive advantage, they

should also engage in promotional programs, marketing strategies, and stocking

new products. The researcher also advised shop owners to establish a low-cost

supplier source while still meeting quality standards. When selecting a supplier,
 59

retailers should think about how long it will take for the product to arrive. Also,

look for providers with the shortest lead times. This will give you an edge over

other street vendors.

Zainol and Al Mamun (2018) assessed the effect of entrepreneurial

competencies on competitive advantage and to investigate the effect of

competitive advantage on the performance of informal microenterprises owned

and managed by women micro-entrepreneurs in Kelantan, Malaysia. The study

employed a cross-sectional approach to gather quantitative data from 384

informal women micro-entrepreneurs in Kelantan, Malaysia, who operate in

"night marketplaces." The research enables the connected party to gain a better

grasp of entrepreneurial competency in terms of competitive advantages. It also

demonstrates how competitive advantages affect business performance.

As a result, women entrepreneurs must emphasize their competitive

advantage by focusing on entrepreneurial competences, which are projected to

boost enterprise performance among Malaysia's informal women

microenterprises. As a result, women entrepreneurs should identify their

competencies, particularly commitment, conceptual, organizing, and opportunity

recognition competencies, and focus on their competitive advantage, which is a

value-creating strategy that other potential competitors cannot implement and

duplicate at the same time. As a result, female entrepreneurs require a precious,

uncommon, and completely replicable business resource. Women entrepreneurs

should also be familiar with the knowledge and technologies that will provide

them a competitive advantage. The business knowledge strategy, which includes

 60

knowledge creation, i.e. tangible and intangible knowledge, experience, and skills

of the entrepreneur, provides the guidelines for developing intellectual capital,

and thus creates a competitive advantage in the business through exploration

and exploitation.

Based on the findings of this study, the Malaysian government and

socioeconomic development organizations should focus on developing industry-

specific platforms to help women informal micro-entrepreneurs gain

entrepreneurial skills at the local and national levels. This will enable micro

entrepreneurs to exchange their ideas, expertise, and experiences, which will

help to increase overall knowledge and capabilities. A common industry-specific

training and development program for women micro-entrepreneurs can provide a

supportive environment in which to develop competences and social capital,

leading to improved performance and overall socioeconomic growth in Malaysia.

Synthesis

The related literature cited in this study helps the researchers gain the

needed information in developing this study. All the secondary studies mentioned

are relevant to the present study in order to have a strong foundation for it.

The study of Amoah-Mensah, Sam Liu and Fang are similar to each

other. Both studies examined the strategies adopted by different vendors to have

a competitive advantage. The studies only differ about how the vendors will

develop their competitive advantage. Also, these two studies are related to the

current study which is about competitive advantages of the push cart vendors
 61

In the studies of Hu, Jatmiko, Kraja and Osmani,Hoan et al, Zainol and Al

Mamun are similar to each other. Their studies assessed the competitive

advantages of small and medium-sized enterprises. Their study also shows the

impact of having competitive advantages to improve their financial

advantage.Their studies are quite similar to the present study in terms of having

a competitive advantage of push cart vendors as contributory to their financial

resiliency

The study of Badenhorst-Weiss and Cilliers, Qosasi et al., and Gakob and

Wanyoike are quite similar to the current study in terms of using quantitative data

and conducting surveys to examine the impact of having a competitive

advantage in small businesses that the researchers may also apply in examining

the competitive advantage of the push cart vendors in Batangas City.

In conclusion, the competitive advantages of different vendors have been

studied by different researchers in recent years. There are some different ways

how the vendors achieved their competitive advantage especially as a contributor

to their financial resiliency. The studies listed are thought to be useful for the

current research.
 62

Chapter III
RESEARCH METHODOLOGY

This chapter presents the method and procedure used by the researchers

in obtaining the results. It also shows topics about research design, the

respondents of the study, data gathering instruments, data gathering procedures

and the statistical treatment of the data that will be used in the study. These help

the researchers in analyzing and interpreting the data accurately.

Research Design

To answer study-related issues, the researchers used a descriptive

method design. The researchers used this research design because it is a

valuable tool that aims to obtain information systematically describing the

phenomenon, situation and population of the competitive advantages and

financial resiliency of the store owners. According to Siedlecki (2020) descriptive

methods are methods that aim to create descriptions; meaning images, paintings

systematically, factually, and accurately about the data, properties and

relationships of the phenomena studied.

Respondents of the Study

In this study, the respondents of the researchers were the store owners in

New Market Lemery, Batangas. In this study, the store owners are being chosen

for the reason that they are in need to be assessed based on their personal

perception and experiences. The chosen store owners inLemery, Batangas

answer as the basis of the researcher what is the competitive advantage and

financial resiliency as they are the store owners and if there is a significant
 63

relationship between competitive advantages and financial resiliency. These are

the reasons which made the researchers decide that they are suitable to be the

primary respondents of the study.

Random sampling would be the technique utilized to disseminate the

questionnaire. The study's findings can be applied to the full population of the

study. With this, the researchers coordinated with the different store owners in

New market Lemery, in order to get the total number of the store owners to

completely finalize the number of respondents for the survey. With the total

number of 208 store owners and with the use of Raosoft Calculator, the

researcher determines the sample size that is possible to participate in the study.

With a 5% margin of error and a confidence level of 95%, the result came up with

a sample size of one hundred thirty-six (136) respondents who would participate

in answering the researcher-made questionnaires.

The respondents were selected because they were the store owners

needed to fulfill the study. It would be ideal in all methods of study to assess the

entire population, but in most cases, the population was simply too large to

include every individual. This was the reason why the researchers rely on

random sampling.

Data Gathering Instrument

The researchers' primary method of data collection is researcher-made

survey questionnaires. In order to collect knowledge, the researchers browse the

internet and read books as a guide to create a questionnaire for the study. The

questionnaire consists of four parts. The first part was the respondent’s profile
 64

including of their sex, age, highest educational attainment, and average daily

income which is used by the researchers to determine whether there is a

significant difference on the assessment of respondents when grouped according

to the profile of the Store Owners in Lemery, Batangas. The second part of the

questionnaire aims to assess the financial literacy among the respondents in

terms of economic resources, financial resources, financial knowledge and

behavior, social capital. Third part is about rivalry among existing competitors,

threat of new entrants, bargaining power of suppliers and threat of substitute

products and services which consists of ten (10) statements per variable.

This will serve as the basis of the researchers of what is the significant

difference in the financial resiliency of the respondents. The researchers used a

Likert scale of (4) Strongly Agree, (3) Agree, (2) Disagree and (1) Strongly

Disagree. A Likert scale is a type of rating scale that is used to measure people's

beliefs, attitudes, or behaviors. Likert scales are widely used in survey research

because they make it simple to operationalize personality characteristics or

perceptions, as defined by Bhandari (2020).

To calculate the scores, the vendors combined their answers to the items

in the questionnaire, each of which corresponded to a specific score and result.

The data is collected from store owners. Researchers collected only the data

needed to solve the problem at hand, as well as to serve as a guide for

assessing and carrying out the study findings. To avoid further clarifications and

confusions, the questionnaire is made appropriate, transparent, and simple for

the respondents.
 65

To check the material, the researchers presented it to a grammarian and a

statistician who are specialists in the field. The survey was distributed to the

respondents when it was proven to be legitimate and credible. Only a limited

number of questions were included in the study, all of which are pertinent to

resolving the gaps and issues at hand. Furthermore, the information received

from the respondents aided the researchers in evaluating and implementing the

research findings.

Table 1
Scoring and Interpretation
Response Scale Mean Score Descriptive Verbal
Interpretation
4 3.26 – 4.00 Strongly Agree Very High
3 2.51 – 3.25 Agree High
2 1.76 – 2.50 Disagree Low
1 1.00 – 1.75 Strongly Disagree Very Low

Data Gathering Procedure

Prior to gathering data, the researchers addressed a formal request

letter signed by the research professor. This permission letter is essential in

order for the researchers to develop bond and cooperation with the target

respondents while conducting the actual study. The researchers then personally

delivered the request letter to Lemery, Batangas to start the study. Then they

ask for the cooperation of those store owners to complete and answer he

questionnaire, In addition, after retrieving the survey questionnaire from the

respondents, the researchers tallied all of the responses in each question in

three (3) day. In this regard, the corresponding data is tabulated and has been
 66

given to the statistician for data treatment. Finally, all of the findings were clarified

and interpreted by the researchers in order to present the results of the survey

questionnaire that was conducted.

Statistical Treatment of Data

The researchers use the following statistical tools to achieve accurate

results and come up with dependable findings and conclusions. The following

tools needed to be done in this study are presented below.

Frequency and Percentage. This is used to assess the respondents'

demographic profile in terms of age, sex, highest educational attainment and

average daily income. After distributing the frequency, percentage was used to

evaluate and interpret the questionnaire item responses.

Mean. This is used to assess the significant difference in the financial resiliency

of the respondents when grouped according to their profile and as we believe

that certain data values contribute more to the final "average."

Regression Analysis. It is used to determine and analyze the financial resiliency

of the respondents according to economic resources, financial resources,

financial knowledge and behavior and social capital.

 67

Chapter IV
PRESENTATION, ANALYSIS AND INTERPRETATION OF DATA

This chapter presents the data of the study which were presented,

analyzed and interpreted by the researchers. The data were derived from the

answers on the questionnaires issued by the researchers to the respondents.

1. Profile of the Store Owners in terms of;

This section presents the profile of the respondents in terms of sex, age,

educational attainment, and average daily income.

Table 2
Distribution of Respondents as to Sex
Sex Frequency Percent

Female 48 35.3%

Male 88 64.7%

Total 136 100.00%

The table 2 shows that most of the respondents are male comprising 64.7

percent of the total population with the frequency of 88. While the female

respondents only covered 35.3 percent of the total population with the frequency

of 48.

Mostly, the store owners in New Market Lemery Batangas are male that is

capable enough of doing heavy things in the store. According to Wharton’s Ethan

Mollick, 2015 study significantly more men launch startups than women, but it’s

not because they are better at being entrepreneurs. Men are far more likely to
 68

make the basic attribution in mistake. They are considerably more inclined than

women to think that failure is someone else's responsibility while success is their

own doing. In this particular sense, women really make more accurate

assessments of risk. Men are mostly having the sense of making in the business

and capable enough of doing heavy works in the store.

Studies believed in more engagement of males in better ways in

entrepreneurship than females (Grilo&Thurik, 2005; Verheul et al., 2004).

Similarly, many other studies have described gender as an important predictor of

entrepreneurial behavior and intention and revealed that males have more

intentions towards entrepreneurship than females, Wilson et al., (2007). In

contrast, Washington PrNews(2018) revealed from his article that the majority

data collected from 20,000 small business owners shows that women owned

business are equally as successful as men owned business. They further

explained that, give the 20,000 survey respondents they suggests that expert

mentoring is a key ingredients in store owners success both men and women.

Based on the table 3 on the next page, the majority of the respondents are

under the age of above 34 years old. It reaches 75.7 percent of the entire

population with the frequency of 103. The age group to 26 - 34 follows it, with the

frequency of 28 and 20.6 percent of the overall population. On the other hand,

ages 18-26 years old are comprises of 3.7 percent of the total population with the

frequency of 5.
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Table 3
Distribution of Respondents as to Age

Age Frequency Percentage

18 – 26 years old 5 3.7

26 – 34 years old 28 20.6

Above 34 years old 103 75.7

Total 136 100

The results indicate that the majority of the respondents are the 34 years

old and above that includes mostly the adult’s store owners in the market. Mostly

these store owners are the people that knowledgeable enough in business and

only selling products and service in the market are their primary source of

income. However, ages 26-34 these age bracketis the middle age where owning

a store is new to them and particular they are bolder, and more tech savvy. Ages

18-26 got the lowest frequency because this age bracket is the young age and

mostly people at this age are going to school and got a high paying job on other

fields of career.

Meanwhile, in the study ofBosma et al., (2007); Karadeniz &Özçam,

(2009), mostly in developing countries the entrepreneurs are in 25-34 age groups

at an early stage and 35-44 age groups are of early-stage entrepreneurs in the

developed countries. According to them, among 18-24 age groups, the rates of

early entrepreneurial activities are relatively low, but are at a peak amongst 25-
 70

34 age groups but then sharply decline above the age of 44. Similarly, Levesque

&Minniti (2006) highlighted that at early age individuals start a business but

decreases thereafter.

Table 4
Distribution of Respondents as to Educational Attainment

Educational Frequency Percentage

Attainment
High School Graduate 20 14.7

High School 25 18.4

Undergraduate

College Graduate 65 47.8

College Undergraduate 26 19.1

Total 136 100.00

Meanwhile the results of table 4 consist of the educational attainments

that the store owners finish. High percentage was lifted on a college graduate

store owners with 47.8 percent and a frequency of 65 while, college

undergraduate was the second one with the frequency of 26 and 19.1 in

percentage. It follows by the high school undergraduate which has an 18.4

percent with the frequency of 25. High school graduate got the lowest frequency

of 20 with the percentage of 14.7. This indicates that majority of the respondents

which are the store owners in New Market Lemery, Batangas are college

graduate.
 71

According to the study of Peters, R.M. &Bridjlal, P. (2011), Six categories

of highest qualification were used to describe the educational characteristics:

secondary, senior secondary, diploma, graduate and postgraduate. The

respondents were asked to indicate the highest level qualification achieved. The

results indicated that, at best, 37% of respondents had completed a college

degree, 10% were diploma, 3% had completed some postgraduate qualification,

24% had completed senior secondary school and 6% had completed secondary.

Table 5
Distribution of Respondents as to Average Daily Income

Average Daily Income Frequency Percentage

Php 311 – 3,879 67 49.3

Php 3,879 – 5,000 36 26.5

Php 5,000 – 10,000 31 22.8

Php 10,000 and above 2 1.5

Total 136 100.00

However, according to the average daily income in terms of Php 311-

3,879, Php 3,879-5,000, Php 5,000-10,000, and Php 10,000 above, Php 311-

3,879 have a frequency of 67 with 49.3 percent which is the highest. Average

daily income of Php 3,879-5,000 got with a percentage of 26.5 percent or 36 in

frequency while Php 5,000-10,000 have 31 infrequency or 22.8 in percent. The

 72

average daily income that got the lowest is the Php 10,000 and above with the

frequency of 2 or 1.5 in percent.

The final result reveals that with the average daily income of Php 311-

3,879 have the most number of the respondents who response to the survey that

the researchers made. According to some store owners in New Market Lemery,

Batangas, their average daily income in selling of different goods is being

affected by the new normal situation because of the pandemic. Some of them is

trying hard to call out their loyal customers back again to them since there are so

many changes when they started again in the market. But some owners got the

taught that a lack of new strategy, communication, motivation, and inflation are

the main causes of subpar sales performance of the store in today’s situation.

People are aware much more in the inflation the we’ve experience, the prices of

the goods and services got so high that why customer tend to limit their ability to

buy more in the market and that’s why they struggling to have a high income

nowadays.

2. Assessment on Respondents Financial Resiliency

This section presents the results of how the store owners of Ne Market

Lemery, Batangas assess their financial resiliency in terms of Economic

Resources, Financial Resources, Financial Knowledge and Behavior and Social

Capital.
 73

Table 6
Assessment on Respondents Financial Resiliency in Economic Resources
A. Economic Resources Verbal
Weighted
Interpretatio
Mean
n
1. I have a sufficient fund that can sustain my
immediate expenses. 3.25 High

2. I have a 50,000 or below limit of debt that I

should take on. 3.37 Very High

3. I always make sure to pay o time my monthly

rental fee. 3.69 Very High

4. Setting up a direct deposit cash amount for

savings and emergency daily expenses. 3.35 Very High

5. My income expectations are based on my

ability to sell my products and services. 3.44 Very High

6. I am convinced that it is okay to have an

emergency fund just in case, there is need to 3.41 Very High
be funded urgently.

7. I know how to prevent insolvency and

bankruptcy. 3.21 High
Composite Mean 3.39 Very High

In general, as shown in table 6, the respondents have a very high financial

resilience as resulting in the assessment of respondents’ financial resiliency in

economic resources. It has a composite mean of 3.39 which is interpreted as

very high and states that almost all the respondents have maintained their

economic resources.

The researchers have therefore concluded that to have a resilient

business environment the vendors must maintain their economic resources. Also,

the researchers have found out that mostly of the respondents have been very

aware on how to manage their finances.

 74

Connected to what Bisnar (2020) have stated, building financial resilience

provides a competitive advantage to organizations. Instead of just surviving

through protective measures like the Luzon-wide enhanced community

quarantine, resilience can be championed as good economic sense. What is the

importance of business resilience? Customers value reliability. Firms may

promote resilience as a primary brand concept and proving its use can help

retain consumers and attract new ones. A company's and its leadership team's

reputation are enhanced by their resiliency. Institutions wanting to expand their

product offerings and operational infrastructures rely on a stable foundation,

which allows resources to be focused on transformation rather than risk

mitigation. The ability to avoid or overcome the unexpected is important to

resilience. Survival is the goal of sustainability. Thrive is the goal of resilience.

Cascio (2020)

Furthermore, out of seven statements, only one has a weighted mean of

3.69, which is the highest. It states that most of the respondents have secured

their budget and always maintained to pay their rent on time. It was followed by a

weighted mean of 3.44 which states that the income expectations of the

respondents are based on their ability to sell their products and services. Then,

followed by a weighted mean of 3.41 which states that the respondents are

convinced that it is okay to have an emergency fund in instance that there are

urgent incidents that need to be funded.

In addition, Streeter (2021) defines the ability to resist unanticipated,

negative shocks to one's income or assets are referred to as financial resilience.

 75

Emergency preparedness is a popular proxy for financial resilience. College

graduates, she claims, are more financially robust and capable of covering an

unforeseen price. Women are also less prepared than males to cover a medium-

sized unexpected expense.

On the other hand, the lowest weighted mean is 3.21 and is verbally

define as High.It was followed by a weighted mean of 3.25 which states that the

respondents have a sufficient fund to sustain their immediate expenses, and then

followed by 3.35 weighted mean which states that setting up a direct deposit

cash amount for savings and emergency daily expenses.

The researchers have also concluded that some of the respondents know

how to prevent insolvency and bankruptcy. Although this statement has resulted

to be the lowest, it still defined as high since the weighted mean have reached

the standards of being high and proved that there are multiple vendors that are

still aware of maintaining their finances in terms of mitigating insolvency and

bankruptcy.

According to Svetlova, Financial resilience refers to the system's ability to

withstand shocks while still evolving and performing its societal tasks. Looking at

the trade-offs between ambiguity and calculable risks/certainty, complexity and

transparency/simplicity, instability and stability might assist comprehend financial

resilience. Without focusing on just one isolated feature or at one level, resilience

can encompass certain fundamental challenges in finance and regulation.

 76

Table 7
Assessment on Respondents Financial Resiliency in Financial Sources
B. Financial Resources Verbal
Weighted
Interpretatio
Mean
n
1. I make sure to update my account from time to
time when I deposit my money. 3.27 Very High

3. I am aware of where I can borrow money and

pay it back later. 3.01 High

3. I choose bank’s wherein I can save, invest and

borrow money based on their credibility. 3.34 Very High

4. I have planned for any expected changes in my

living expenses. 3.16 High

5. I invest on insurance plan..

2.87 High

6. I secured my emergency fund sufficient for the

unexpected problems that I my encounter. 3.24 High

7. I’ll do manage the finances with the members of

the family. 3.47 Very High
Composite Mean 3.19 High

As shown in table 7, the composite mean is 3.19 and determined as

high. It states that the respondents have a high interpretation of financial

resiliency in terms of financial sources. Therefore, the researchers have come to

an end that most of the respondents are highly knowledgeable in managing their

financial sources and are feasible to maintain their business. These tables have

also showed that the respondents are capable to become financial literates since

they perform a high discipline in terms of sustaining their finances.

Khamatkhanova (2018), states that financial resources of a company

play a critical role in the proper running of organizations and are a crucial factor

in the process of extended reproduction in the context of economic system

 77

transformation. To remain competitive in the market, Russian businesses must

not only maintain financial stability and payment capability, but also effectively

manage the use and development of financial resources. Because financial

resources are the source of all other resources, their successful management is

one of the defining characteristics of an organization's ability to adapt to changing

market conditions. The ability to create financial resources through various

channels is one of the most critical determinants of an organization's operation

and development in the market economy. This ability to generate financial

resources is continually improving in response to the demands of production and

sales, the increasing complexity of economic ties, and other industrial

characteristics. To fully comprehend the meaning of financial resources, it is

required to gain a better understanding of the phrases "financial resources

generation" and "financial resources."

Meanwhile, the highest weighted mean is 3.47, and interpreted as very

high. This statement states that the respondents have been and are willing to

manage their finances with the members of their family. It is therefore connected

to common Filipino habitual traits, wherein family members should be taken care

and supported especially in terms making decisions in finances or in other

instances.

It is then, supported by Frydman and Camerer (2016), that within a

family context, financial matters also form a pillar to sustain sound family

relationships. Even with the family as its universe, personal and family finance

naturally receive influences from cognitive and neural processes. Financial

 78

decision making also does not operate in a vacuum: individuals decide with

people around them influencing their decisions. The lived experiences of families

on family finance thus become ripe for family financial socialization research

(Lacsina and Opiniano, 2017) which may have to carry an inter-disciplinary

character to include perspectives from Psychology.

The highest weighted mean was then followed by the second highest

weighted mean of 3.34 which states that the respondents choose banks wherein

they can save, invest, and borrow money based on their credibility. Then, come

after by a weighted mean of 3.27, which states that the respondents ensured that

they are updating their accounts from time to time whenever they are depositing

their money.

On the other hand, the lowest weighted mean is 3.01 wherein, the

respondents are aware of where they can borrow money and pay it back later. It

followed by the second lowest weighted mean of 3.16 which is interpreted as

high and states that the respondents have planned for any expected changes in

their living expenses.

Moreover, Rai et al (2019), states that the study of how psychology

influences individual financial behavior is known as financial behavior. Someone

who has solid financial habits is more likely to be more prudent in managing their

financial resources, such as investing and keeping track of costs.

Therefore, the researchers have conducted that most of the respondents

in this study are acquainted with some institutions wherein they could be
 79

benefited with. In addition, most of them have contemplated a plan in the

instances of changes in their living expenses. Especially, in the terms of the

pandemic and a sudden inflation, the researchers have found out that the

respondents are highly aware of the expected higher prices of necessities.

Table 8
Assessment on Respondents Financial Resiliency in Financial Knowledge
and behavior
C. Financial Knowledge and Behavior Verbal
Weighted
Interpretatio
Mean
n
1. I do a monthly personal budget.
3.57 Very High

2. Making sure well enough my responsibility of

using some financial products and services. 3.38 Very High

3. I set aside money for savings and emergency.

3.39 Very High

4. I plan my budget to achieve my financial

objectives. 3.38 Very High

5. I make an advance plan for future financial

problems. 3.25 High

6. Choosing a right financial products and services

that is best enough for my financial plans in the 3.23 High
future.

7. Checking the credibility and searching the

information about using some financial products 3.19 High
and services.
Composite Mean 3.33 Very High

In table 8, the composite mean has resulted to be very high and

calculated as 3.33. This table is intended to convey the financial resilience of the

respondents by their financial knowledge and behavior. Based in the result of this

assessment, the researchers have concluded that the respondents are

 80

immensely cultivated by the fact that they are well-informed by some behavioral

disciplines that could possibly nourish their business.

Moreover, Kyoung Tae et al. (2018) states that financial knowledge has

been connected to beneficial financial habits such as paying off credit cards on a

monthly basis, saving for retirement, making timely mortgage payments, keeping

credit card and mortgage loan fees low, having precautionary savings, and

seeking financial counsel.

Simultaneously, out of seven statements, the highest weighted mean is

3.57. This statement states that most of the respondents are budgeting their

monthly personal budgets. It was followed by a weighted mean of 3.39, which

says that the respondents are setting money aside for savings and emergency.

Coincidentally, this was followed by a weighted mean of 3.38, which interprets

two of the statements such as the respondents are ensuring that they were well

informed by their responsibility of using financial products and services, and they

were planning their budget to achieve their financial objectives.

Based on this result, the researchers have therefore concluded that the

respondents are well enough as they were aware of making accurate decisions

in terms of supervising their finances that can also possibly lead to achieve their

financial objectives.

Furthermore, also according toKyoung Tae et al. (2018), higher levels of

objective financial knowledge have been linked to higher investment returns,

long-term financial habits like saving and investing, and a lower likelihood of

accessing high-cost alternative financial services like pawn shops and tax refund
 81

anticipation loans. Although some studies have discovered a favorable link

between perceived financial knowledge and financial behavior, others have

discovered an overconfidence effect. Overconfidence in financial knowledge

occurs when a person's perceived financial knowledge exceeds his or her

objective financial knowledge, and higher levels of overconfidence in financial

knowledge were linked to a higher likelihood of using high-cost alternative

financial services, even when objective need for these services was controlled

for.

Meanwhile, the lowest weighted mean of 3.19 is interpreted as high. It

declares that the multiple respondents are checking the credibility and searching

the information about using some financial products and services. It was then

followed by lower weighted mean of 3.23, which states that the respondents are

choosing a right financial products and services that is best for their financial

plans in the future.

The researchers have then conducted that some of the respondents are

familiar with the financial products and services, and some are not. In

conclusion, the financial resilience of most of the respondents are based on their

financial behavior but not wholly based on the knowledge about financial

products and services.

Related to what have Yahaya (2019) stated, he states that individuals who

have taken a Financial Management course have a greater level of financial

knowledge than those who have not. Financial attitudes influence financial

behavior greatly, while financial knowledge influences financial attitudes

 82

significantly. Financial knowledge, on the other hand, has no meaningful impact

on financial conduct. However, although the respondents have not been declared

themselves as financial management students, it is still feasible that they are

financially resilient since they are practicing a proper financial discipline to

preserve their resources.

Table 9
Assessment on Respondents Financial Resiliency in Social Capital
D. Social Capital Verbal
Weighted
Interpretatio
Mean
n
1. I have relatives near my place.
3.19 High

2. When needed, my family offers enough social

support. 3.23 High

3. If I need social support, I can call one of my any

friends. 3.25 High

4. I have strong relationship with my neighbors.

3.11 High

5.My municipality will provide financial assistance if

I become ill or have my property damaged by a 2.79 High
storm or volcanic eruption.

6. I’m employed and working in my municipality or

barangay. 2.01 Low

7. I belong to 4ps, Tupad or any financial

assistance program. 2.02 Low
Composite Mean 2.79 High

As demonstrated in table 9 is the assessment of the respondents’ financial

resiliency in social capital. It has a composite mean of 2.79 and is declared as

high. Therefore, the researchers have come to an end that the respondents have

a high financial resiliency based on their social capital.

 83

Connected to the result of this assessment, the researchers have found

out that to maintain the business, it is necessary to begin with gaining social

capital. This resource could nourish the respondents as the business will be

benefited by it. It can also be a support as these social connections can possibly

lead into a positive business environment.

Furthermore, according to Lin, 2017 social capital is the best source

created through exchanges. This type of source is associated with various types

of relationships, such as interpersonal relationships and organizational networks.

Initially, social capital was used in research to refer to community relationships.

In this table, it is shown that the highest weighted mean is 3.25 which is

interpreted as high. This weighted mean states that if the respondents happen to

need a social support, they can call one of their friends, which is a positive thing

since every now and then, it is important to have this kind of support either from

many or that one friend. It was then followed by the second highest weighted

mean of 3.23 which states that a high number of respondents have a family that

can offer social support especially when needed and followed by weighted mean

of 3.19 which states that most of the respondents have relatives near in their

area.

In addition, according to Machalek and Martin (2015) social capital theory

contends that social ties are resources that can help people develop and

accumulate human capital. A stable family environment, for example, might

encourage scholastic achievement and the development of highly valued and

rewarded abilities and credentials. Social capital can be described as any

 84

element of a social interaction that provides reproduction benefits in evolutionary

terms. Humans have evolved preferences for friendship in general and for signs

that signify higher amounts of social capital. We can expect to see gender

inequalities that reflect the division of work in foraging cultures since developed

preferences for sorts of social relationships should have been chosen in the EEA.

On the other hand, the lowest weighted mean is 2.01 and was declared

as low. It states that most of the respondents are not employed at their

municipality or barangay. Followed by the second lowest weighted mean which is

2.02 and was also declared as low. It states that most of the respondents do not

belong to 4Ps, Tupad, or any financial assistance program. Therefore, the

researchers have conducted that most of the respondents are not part of any

government financial assistance program nor working at their designated

municipality and barangay.

3. Assessment on Respondents Competitive Advantages

This section presents the results of how the store owners of New Market

Lemery, Batangas assess their Competitive Advantages in terms of Rivalry

among existing competitors, Threat of new entrants, Bargaining power of

suppliers, Bargaining power of buyers, and Threat of substitute products and

service.

As shown in table 10 on the next page, respondents have highly

competitive advantages in rivalry among existing competitors. It has a composite

mean of 3.05, which is considered high and indicates that almost all respondents

were aware of their competitors.

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Table 10
Assessment on Respondents Competitive Advantages in Rivalry among
Existing Competitors
E. Rivalry among Existing Competitors Verbal
Weighted
Interpretatio
Mean
n
1. I conduct a competitive analysis from each
category to identify different competitors that can 2.42 Low
be my rival.

2. There are numerous competing stores in the

New Market Lemery. 3.36 Very High

3. Most of the store come up with the new and

innovative ways to serve customers. 2.82 High

4. As a new store owner enter the market the

eyeing growing demand increases the intensity of 3.47 Very High
competition.

5. My products are generic and mostly

differentiated. 2.85 High

6. My customers choose to buy repeatedly in my

store rather than others. 3.19 High

7. I give a lot of returns like discount for them to be

satisfied and not going to move with my 3.25 High
competitors.
Composite Mean 3.05 High

Based on these findings, the researchers have concluded that

competitive rivalry is a gauge of how intensely current enterprises compete with

one another. Competitive activities like price lowering, higher advertising costs,

or investing on service or product innovation and improvements can reduce

profits and foster competition.

In addition, Martin (2022) examines rivalry among existing competitors

on how intense the competition is in the marketplace. It considers the number of

existing competitors and what each one can do. Rivalry competition is high when
 86

there are just a few businesses selling a product or service, when the industry is

growing and when consumers can easily switch to a competitor’s offering for little

cost. When rivalry competition is high, advertising and price wars ensue, which

can hurt a business’s bottom line.

Furthermore, just one of the seven statements has the highest weighted

mean, at 3.47, which is the highest. It claims that most respondents noticed the

escalating demand that heightens the level of competition when they were just

getting started as store owners. Then it followed by a weighted mean of 3.36,

which indicates that there are numerous competing stores in the New Market

Lemery. Then, a weighted mean of 3.25 follows, indicating that respondents gave

many returns to clients in the form of discounts to maintain their satisfaction as

well as from transferring to other competitors.

At the same time, according to Dan (2013) The intensity of rivalry among

competitors in an industry refers to the extent to which firms within an industry

put pressure on one another and limit each other’s profit potential. If rivalry is

fierce, then competitors are trying to steal profit and market share from one

another. As a result, this reduces profit potential for all firms within the industry.

According to Porter’s 5 forces framework, the intensity of rivalry among firms is

one of the main forces that shape the competitive structure of an industry.

Porter’s intensity of rivalry in an industry affects the competitive environment and

influences the ability of existing firms to achieve profitability.

The lowest weighted mean, on the other hand, is 2.42 and is

characterized qualitatively as Low. By using this weighted mean, the researchers

 87

have concluded that only a small percentage of respondents undertook

competitive analyses of each category to discover rivals. It was weighted mean

of 2.82, indicating that the respondents were aware of the multiple stores that

had developed innovative ways to serve customers.

Moreover, according to Bruin (2016) a good indicator of competitive rivalry

is the concentration ratio of an industry. The lower this ratio, the more intense

rivalry will probably be. When rivalry is high, competitors are likely to actively

engage in advertising and price wars, which can hurt a business’s bottom line. In

addition, rivalry will be more intense when barriers to exit are high, forcing

companies to remain in the industry even though profit margins are declining.

These barriers to exit can for example be long-term loan agreements and high

fixed costs.

In general, as shown in table 11, the respondents are knowledgeable

about threats of new entrants as resulting in the assessment of the respondents

about the threat of new entrants. It has a composite mean of 2.72 which has a

verbal interpretation as high and states that almost all of the respondents know

how to handle the pressure of having new competitors in their industry.

The table shows that all of the statements belonging to the threat of

new entrants have a 2 point something weighted mean which has a verbal

interpretation as high and no one has ever reached a 3 point something weighted

mean to be considered very high.

 88

Table 11
Assessment on Respondents Competitive Advantages in Threats of New
Entrants
F. Threat of new Entrants Verbal
Weighted
Interpretatio
Mean
n
1. My business has a special procedure that I use
to operate it, and process needs to be secured and 2.79 High
kept a secret.

2. My business provides consumers with a well –

known brand to draw brand – loyal customers. 2.97 High

3. The industry where my business belongs has a

high start – up cost. 2.66 High

4. Once my business fails, I might not use the

equipments I currently have. 2.69 High

5. It is quite difficult for the new entrants to

understand the business sector to which my 2.63 High
company belongs.

6. A new competitor in the industry is having

trouble attracting consumers. 2.70 High

7. It is difficult for the newly introduced competitor

in the industry to gather the resources necessary to 2.62 High
compete effectively.
Composite Mean 2.72 High

Most of the respondents are very aware of how crucial is the threat of new

entrants into their industry. According to Dan (2013) existing businesses' capacity

to turn a profit is impacted by the threat of new competitors and the competitive

climate they face. A high threat of entrance indicates that new competitors will

probably be drawn to the industry's earnings and will be able to easily enter the

market. Existing competitors' market share and profitability may be threatened or

reduced by new competitors, and this could lead to adjustments in product

quality or pricing.
 89

Moreover, According to Baker (2022) states how dangerous a new rival

might be for businesses that are established in their respective markets. This

covers how simple it is for new businesses to get started in the sector. When a

market is under threat, it usually indicates that new competitors enter the market

often and quickly gain market share. If the threat is minimal, there won't be many

new rivals in those markets. Even when new businesses do enter the market,

they will have a difficult time finding success. With the obstacles to entry in mind,

you can analyze them to determine whether your industry faces a high or low

threat from new entrants.

Table 12
Assessment on Respondents Competitive Advantages in Bargaining Power
of Suppliers
G. Bargaining Power of Suppliers Verbal
Weighted
Interpretatio
Mean
n
1. I have enough suppliers who can supply goods
for my business. 3.31 Very High

2. My suppliers provide me with unique goods and

services for my business. 3.29 Very High

3. The majority of the goods I sell are supplied by

my suppliers. 3.56 Very High

4. My supplier solely provides things for my

business; he or she does not sell them to my 3.43 Very High
customers directly.

5. If I desire, I can obtain substitute products from

other supplier. 3.00 High

6. I am knowledgeable enough to sell what my

sources give me. 3.48 Very High

7. Low cost but high- quality products are available

through my business suppliers. 3.33 Very High
Composite Mean 3.34 Very High
 90

The overall assessment of the competitive advantage of the respondents

in terms of bargaining power of suppliers has a composite mean of 3.34 which

has a verbal interpretation of very high. This means that the store owners in

Lemery, Batangas have a huge competitive advantage in terms of their

bargaining power of suppliers.

The table shows that all of the statements from one to four and six to

seven have a highest weighted mean which has a verbal interpretation of very

high. While the remaining statement which is “If I desire, I can obtain substitute

products from other suppliers” has a weighted mean of 3.00 which has a verbal

interpretation of “high”. It means that some of the store owners in Lemery

Batangas don't have a chance to have substitute products from the other

suppliers.

Lastly, the store owners in Lemery Batangas have a huge competitive

advantage in terms of bargaining power of suppliers. According to Park (2019)

business depends on certain suppliers that provide labor, materials and other

components. Competitive pressure from these suppliers is strong when they can

exercise sufficient bargaining power to influence the terms and conditions of

exchange in their favor. This pressure is further strengthened when suppliers are

concentrated. Suppliers have a weak bargaining power when close substitutes

for their goods or services are available, and it is neither costly nor difficult to

change suppliers. Suppliers also have less power over your pricing and terms of

sale when your firm is a significant customer and the loss of your business would

have serious negative effects. Similarly, customers may be at the mercy of a

 91

supplier if the supplier controls the market, enabling the supplier to exert pricing

power.

In addition, Martin (2022) analyzes how much power a business’s supplier

has and how much control it has over the potential to raise its prices, which, in

turn, lowers a business’s profitability. It also assesses the number of suppliers of

raw materials and other resources that are available. The fewer suppliers there

are, the more power they have. Businesses are in a better position when there

are multiple suppliers.

Table 13
Assessment on Respondents Competitive Advantages in Bargaining Power
of Buyers
H. Bargaining Power of Buyers Verbal
Weighted
Interpretatio
Mean
n
1. My business has a huge number of buyers such
that losing one will not affect my business. 3.38 Very High

2. The products I sell for my business are very

affordable. 3.33 Very High

3. I make sure that my customers are very aware

about my products and services. 3.30 Very High

4. My business is selling a unique product and not

the same as what my competitor offers. 2.69 High

5. My consumers are having a hard time to switch

the products that I sell from the other competitor. 2.91 High

6. Sometimes, I gave discounts to my buyers so

they will comeback. 3.21 High

7. I am not adding significant premiums to the retail

costs of my goods. 3.32 Very High
Composite Mean 3.16 High
 92

The overall assessment of the level of competitive advantage in terms of

bargaining power of buyers has a composite mean of 3.16 with a verbal

interpretation of high. This means that the store owners in the new market in

Lemery, Batangas know how to have their own consumers.

The table shows that the statements “my business has a huge number of

buyers such that losing one will not affect my business”, “the products that I sell

for my business are very affordable”, I make sure that my customers are very

aware about my products and services”, and “I am not adding significant

premiums to the retail costs of my goods” got the highest weighted mean of 3.38,

3.33, 3.30 and 3.32 in order. While the remaining three which are “my business is

selling a unique product and not the same as what my competitor offers”, “my

consumers are having a hard time to switch the products that I sell from the other

competitor” and “sometimes I gave discounts to my buyers so they will come

back” got the lowest weighted mean with 2.69, 2.91 and 3.21 in order and have a

verbal interpretation of high

In conclusion, most of the store owners in the new market in Lemery,

Batangas know how they may gain a competitive advantage in their industry in

terms of bargaining power of buyers. According to Bruin (2016) The bargaining

power of buyers is also described as the market of outputs. This force analyzes

to what extent the customers are able to put the company under pressure, which

also affects the customer’s sensitivity to price changes. The customers have a lot

of power when there aren’t many of them and when the customers have many

alternatives to buy from. Moreover, it should be easy for them to switch from one
 93

company to another. Buying power is low however when customers purchase

products in small amounts, act independently and when the seller’s product is

very different from any of its competitors.

Moreover, Dan (2020) states that bargaining power of buyers refers to the

pressure consumers can exert on businesses to get them to provide higher

quality products, better customer service, and lower prices. When analyzing the

bargaining power of buyers, conduct the industry analysis from the perspective of

the seller. According to Dan, If the consumer is price sensitive and well-educated

about the product, then buyer power is high. Then if the customer purchases

large volumes of standardized products from the seller, buyer bargaining power

is high. If substitute products are available on the market, buyer power is high.

And of course, if the opposite is true for any of these factors, buyer bargaining

power is low.
 94

Table 14
Assessment on Respondents Competitive Advantages in Threat of
Substitute Products and Services
I. Threat of Substitute Products and Verbal
Weighted
Services Interpretatio
Mean
n
1. Compared to other products, I offer my goods at
a lesser price or with higher price but have a better 3.22 High
characteristic.

2. The expenses for my customers to move to

another product will be high. 2.98 High

3. My customers are particularly devoted to the

brand that my shops offer. 3.17 High

4. Substitute goods satisfy customer’s wants when

a variable change. 3.19 High

5. The most common reason why consumers

choose substitute goods is just because the price. 3.46 Very High

6. Customers make decisions based on their

desires for one product over the other. 3.44 Very High

7. Quantity and Quality sometimes affect the

consumer’s decision to purchase/buy goods. 3.41 Very High

8. One of the variables that the consumers will look

into or consider is the geographical location of the 3.09 High
store.

9. I offer a free delivery service since my

competitors doesn’t offer it. 2.80 High

10. Substitute goods satisfy customer’s wants

when a variable change. 3.27 Very High
Composite Mean 3.20 High

As shown in table 14, the store owners in the new market in Lemery,

Batangas have a highly competitive advantage in terms of the threat of substitute

products and services. It has a composite mean of 3.20 and has a verbal

interpretation of high and it shows that the respondents know how to manage
 95

and control their business in the challenges of substituting products and services

of every consumer.

The table demonstrates that the statements from slots one through four

and eight to nine have a verbal interpretation of high, while the statements from

sections five through seven and ten have the highest weighted mean with a

verbal interpretation of very high. According to the findings, the business owners

are not overly concerned about the possibility of replacement goods and services

in the new market in Lemery, Batangas.

According to Texas (2019) states that threats of substitutes products and

services are products in other industries that can potentially affect the demand

for your own product. In general, the more substitute products that are available

to the customer, the more difficult it becomes for firms to raise their prices. The

degree of difficulty will depend on how easily one product is substituted for

another in the mind of the customer. Thus, the strength of competitive pressures

from substitute products depends on three factors: Whether (1) substitute

products are attractively priced and available; (2) buyers view the substitutes as

comparable when analyzing price, quality, performance and other attributes; and

(3) buyers can easily switch to substitutes.

In addition, Dan (2013) states that a substitute product is a product from

another industry that offers similar benefits to the consumer as the product

produced by the firms within the industry. The threat of substitution in an industry

affects the competitive environment for the firms in that industry and influences

those firms’ ability to achieve profitability. The availability of a substitution threat

 96

affects the profitability of an industry because consumers can choose to

purchase the substitute instead of the industry’s product. The availability of close

substitute products can make an industry more competitive and decrease profit

potential for the firms in the industry. On the other hand, the lack of close

substitute products makes an industry less competitive and increases profit

potential for the firms in the industry. A threat of substitutes for example is the

beverage industry due to a market with many competitors.

4. Significant Relationship between competitive advantages and financial

resiliency.

This section presents the results of the significant relationship of financial

resiliency and competitive advantages of store owners in New Market Lemery,

Batangas.

As seen in the Table 15, there is positive significant relationship between

competitive advantages and other sub variables of financial resiliency. The p-

value of financial resources is 0.000; financial knowledge and behaviour which is

0.0036; and social capital which is 0.000. From the table above, it stated that the

p-value on financial resiliency is less than 0.05 level of significance. Thus this

indicates that financial resiliency have a positive relationship to competitive

advantages. On the other hand, table above depicts that financial resiliency have

a positive relationship between threat of new entrants, bargaining power of

buyers and threat of substitute products and services.

 97

Table 15
Significant relationship between Competitive Advantages and Financial
Resiliency

Financial Resiliency
Variable r-value p-value Decision on Verbal
Ho Interpretation
Economic Resources 0.588 0.000 Reject Significant
Financial Resources 0.588 0.000 Reject Significant
Financial Knowledge 0.180 0.036 Reject Significant
and Behavior
Social Capital -0.302 0.000 Reject Significant
Competitive Advantages
Rivalry among -0.049 0.570 Failed to Not Significant
existing competitors reject
Threat of new entrants 0.503 0.000 Reject Significant
Bargaining power of 0.006 0.947 Failed to Not significant
suppliers reject
Bargaining power of -0.234 0.006 Reject Significant
buyers
Threat of substitute 0.155 0.072 Reject Significant
products and services

Study of Khamatkhanova (2018), states that financial resources of a

company play a critical role in the proper running of organizations and are a

crucial factor in the process of extended reproduction in the context of economic

system transformation. To remain competitive in the market, not only maintain

financial stability and payment capability, but also effectively manage the use and

development of financial resources. Because financial resources are the source

 98

of all other resources, their successful management is one of the defining

characteristics of an organization's ability to adapt to changing market conditions.

The respondents believed that, financial resiliency significant to threat of

new entrants with the level of p-value 0.000 which is less than the level of

significant p=0.05. So this aims that determining the attractiveness of the store it

can shape out the competitive portrait of a business. Also, if the new entrants

enter the market which offer the same products and services the competitive

position of the store will be at risk. On the same table above, financial resiliency

of the store owners reflected a positive relationship between bargaining powers

of buyers and threat of substitute products and service. It depicts that; p-value of

bargaining powers of buyers got the 0,006; and p-value of 0.072 in threat of

substitute products and services with this the researches reject the Ho. This

means that through all the financial assets and capabilities of store owners they

understand the industry structure of competitiveness whenever they change.

Thus, through the enough knowledge of being financial literate or the

financial resiliency of respondents they must actually know how these buckets of

knowledge can have a positive relationship between being a competitive. This

study conclude, that being financially aware of the impacts of assets and income

of the respondents it can have a positive relationship on competitive strategy on

how they can understand the industry through the changes that might happen

and reflects on their business.

 99

5. Proposed Output

Based on the findings of the researchers, the respondents are basically

cultivated on how to run their business. They were aware about the disciplines to

properly manage their business and knows how to maintain the flow of it.

However, as the researchers’ purpose a seminar to help the store owners in the

New Market at Lemery, Batangas, they have come up to an idea wherein they

would be implementing an activity whereas the said respondents would gain

knowledge on how to be financially resilient by acquiring competitive advantage.

The researchers will set a development program through organizing a

seminar which consist of:

1. Lectures about Financial Resiliency.

2. Visual presentations of Competitive Advantages

The researchers would be implementing this program with help of some

Financial Management Speakers that has already gained an exemptional

knowledge about the topic. The researchers would also cordially ask the

speakers to share their personal experiences on achieving their goals. In return,

the speakers would receive a token of appreciation and a certificate which

formally presents that they were able to be an outstanding guest speaker in this

seminar.

As an outcome, the researchers assume that the respondents would gain

the following:
 100

1. Understanding of the overall role and importance of financial

knowledge and behavior;

2. Understanding of the steps on how to be financially resilient;

3. Knowledge about having competitive advantages and its benefits;

4. and an enhanced perception of goals to achieve their success.

101
102
 103

Chapter V
SUMMARY, FINDINGS, CONCLUSIONS AND
RECOMMENDATIONS

This chapter represents the summary of objectives and methodology, the

sailent findings, the conclusion drawn from the findings and the

recommendations.

Summary

The capacity to endure life events that affect one's assets and/or income

is known as financial resilience. Individual persons are affected by some

financially stressful occurrences, such as job loss, bankruptcy, disability, and

health issues.Being financially capable is also possibly a great advantage when it

comes to starting a business. An entrepreneur could choose what idea to

implement at their business and consider it as the best starter pack. Being

resilient also entails the ability to adapt to challenges, to rebuild, and even

emerge stronger and wiser because of the experience. When faced with

unanticipated stress, an entrepreneur that follows resilience principles benefits in

several ways.

The study’s significance is determined by the information sought, which

includes determining the level of their viewpoints in economical, financial,

financial knowledge and behavior and social capital, rivalry among existing

competitors, threat of new entrants, bargaining power of suppliers, bargaining

power of buyers, threat of substitute products and services and if there is a

 104

significant difference in the utilization when financial skills were grasped by the

store owners in Lemery, Batangas.

Moreover, the respondents of this study are the store owners that sell

different kinds of goods in Lemery, Batangas to finance their everyday expenses

and to prepare for their future finances. To conduct this study, the researchers

gathered different information from the internet, previous thesis that has the

same studies into this study and also from books that we may find in the different

libraries.

The researchers also made a questionnaire to conduct a survey to the

store owners in the new market in Lemery, Batangas to support this study. With

that, research reliability test score turned out to be 0.9593 using Cronbach’s

Alpha and was interpreted as excellent. Furthermore, the survey was distributed

to one hundred thirty-six (136) respondents which were chosen of using a

random sampling. The data gathering was done through giving a research survey

questionnaire made, wherein frequency and percentage, weighted mean were

used for the statistical treatment of data. This research began in the second

semester of academic year 2021-2022 and ended in the first semester of

academic year 2022-2023.

FINDINGS

1. The majority of the respondents are under the age of above 34 years old. It

reaches 75.7 percent of the entire population with the frequency of 103. Most

of the respondents are male comprising 64.7 percent of the total population

with the frequency of 88. Meanwhile, High percentage was lifted on a college
 105

graduate store owners with 47.8 percent and a frequency of 65. However,

according to the respondent’s average daily income, the final result reveals

that Php 311-3,879 have a frequency of 67 with 49.3 percent which is the

highest.

2. The respondents have a very high financial resilience as resulting in the

assessment of respondents’ financial resiliency in economic resources. It has

a composite mean of 3.39 which is interpreted as very high and states that

almost all the respondents have maintained their economic resources. The

respondents have also a high interpretation of financial resiliency in terms of

financial sources, and has composite mean of 3.19 and determined as high.

On the other hand, the respondents have also gained their financial resilience

in terms of Financial Knowledge and Behavior since the composite mean has

resulted to be very high and calculated as 3.33. Meanwhile, the respondents

have a high financial resiliency based on their social capital as the composite

mean is 2.79 and is declared as high.

3. Based in the researcher’s findings, the respondents have highly competitive

advantages in rivalry among existing competitors. It has a composite mean of

3.05, which is considered high and indicates that almost all respondents were

aware of their competitors. The respondents were also knowledgeable about

threats of new entrants as resulting in the assessment of the respondents

about the threat of new entrants. It has a composite mean of 2.72 which has a

verbal interpretation as high. In addition, the overall assessment of the

competitive advantage of the respondents in terms of bargaining power of

 106

suppliers has a composite mean of 3.34 which has a verbal interpretation of

very high. Meanwhile, the level of competitive advantage in terms of

bargaining power of buyers has a composite mean of 3.16 with a verbal

interpretation of high. Lastly, the store owners in the new market in Lemery,

Batangas have a highly competitive advantage in terms of the threat of

substitute products and services. It has a composite mean of 3.20 and has a

verbal interpretation of high and it shows that the respondents know how to

manage and control their business in the challenges of substituting products

and services of every consumer.

4. The respondents believed that, financial resiliency significant to threat of new

entrants with the level of p-value 0.000 which is less than the level of

significant p=0.05. So this aims that determining the attractiveness of the

store it can shape out the competitive portrait of a business. Also, if the new

entrants enter the market which offer the same products and services the

competitive position of the store will be at risk. On the same table above,

financial resiliency of the store owners reflected a positive relationship

between bargaining powers of buyers and threat of substitute products and

service. It depicts that; p-value of bargaining powers of buyers got the 0,006;

and p-value of 0.072 in threat of substitute products and services with this the

researches reject the Ho. This means that through all the financial assets and

capabilities of store owners they understand the industry structure of

competitiveness whenever they change.

 107

5. Based on the findings of the researchers, the respondents are basically

cultivated on how to run their business. They were aware about the

disciplines to properly manage their business and know how to maintain the

flow of it. However, as the researchers’ purpose is to help the store owners in

the New Market at Lemery, Batangas, they have come up to an idea wherein

they would be implementing an activity whereas the said respondents would

gain knowledge on how to be financially resilient by acquiring competitive

advantage.

Conclusion

Based on the findings, the following conclusions were drawn:

1. The majority of the respondents are from the age range 34 years old and

above, male, college graduate and with a 311 - 3,879 average daily

income.

2. The store owners in the new market in Lemery, Batangas presents a high

and very high composite mean in their financial resiliency. With this, it

shows that the store owners in the new market in Lemery, Batangas know

how to be resilient in their industry.

3. Competitive Advantages and Financial Resiliency have a positive,

statistically significant association; it has been demonstrated by statistical

treatment and analysis.

 108

4. Competitive advantages and financial resilience are positively correlated.

Threat of new entrants, buyer bargaining power, and threat of substitute

products and services are all positively correlated.

5. The seminar program to the store owners at the new market in Lemery,

Batangas is intended to increase their competitive advantages and

financial edge in order to assist them of being resilient in times of crisis

and has a significant positive impact on and success for their businesses.

Recommendations

Based on the findings and conclusions of the study, the researcher

recommends:

1. The researchers advise the Municipality of Lemery, Batangas to hold a

seminar for local store owners to discuss their competitive advantages in

order to aid them and compete with other towns at the same time, as well

as to potentially enhance their economy.

2. This study may help other future researchers and suggest to search more

facts to expand it to give more knowledge about financial resiliency and

competitive advantages that may help not only the respondents but also

for the other future researchers.

3. The Batangas State University should preserve and present this study to

their library to give knowledge for every student who wants to help store

owners from different cities in terms of their financial resiliency and

competitive advantages.
 109

4. In order to help store owners gain competitive advantages and financial

resiliency, as well as to assist them once they begin a business,

researchers should put the theories, facts, and lessons from this study into

practice.

5. A comparable study might be undertaken in the future to verify the study's

validity for future researchers. They can also increase or decrease the

variables.
 110

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APPENDICES
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