Republic of the Philippines

Region III
Division of Gapan
MARUHAT NATIONAL HIGH SCHOOL
Maruhat, Macabaklay, Gapan City

BACKGROUND OF THE STUDY AND LITERATURE REVIEW

INTRODUCTION

Akmal and Saputra (2016) argue that financial problems are not only cause by low
incomes, but can also be cause by errors in financial management such as misuse of credit, lack
of financial planning, and no savings. To not make mistakes in financial management, every
individual must be able to take financial decisions accurately and that cannot happen without
good financial literacy.

It is not uncommon that micro enterprises are confronted with many financial difficulties.
Among of the financial problems faced by micro enterprises are related to access to capital,
liquidity, imbalance of capital structure and other financial related issues. To properly appraise
these issues, micro enterprise entrepreneurs have to understand the key financial concepts
(Abubakar, 2015).

Sariwulan et al. (2020) determine the direct and indirect effects of digital literacy,
economic literacy, and entrepreneurial skills on the performance of small-and medium-sized
enterprises (SMEs) in garment clusters in the Bulak tourism industry Depo.

With regard to debt behavior, those who are more financially literate are less likely to
have credit card debt and more likely to pay the full balance of their credit card each month
rather than just paying the minimum due (Lusardi and Tufano, 2009, 2015).

There is sample evidence of the impact of financial literacy on people’s decisions and
financial behavior. For example, financial literacy has been proven to affect both saving and

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Republic of the Philippines
Region III
Division of Gapan
MARUHAT NATIONAL HIGH SCHOOL
Maruhat, Macabaklay, Gapan City

investment behavior and debt management and borrowing practices. Empirically, financially
savvy people are more likely to accumulate wealth (Lusardi and Mitchell, 2014).

This research aimed to find the advantages of utilizing financial literacy to entrepreneurs.
And also, intended to determine the common business ethics, and find how the Entrepreneur
used knowledge regarding business finance in their business.

Remund (2010, p. 279) indicate that 'by the most basic definition, financial literacy
relates to a person's competency for managing money'.

Lusardi (2019) stated that individuals today are more responsible for their personal
finances than ever before due to individuals' challenging financial circumstances affect by
several factors such as rising life expectancies and pension and social welfare systems getting
strained.

A financially literate citizen is well-oriented in dealing with money and prices and is
capable of responsibly managing his personal/family budget, including managing financial assets
and commitments with regard to a changing life situation“ (MČFR, 2007).

Financial literacy can help improve the quality of financial services to contribute to a
country’s economic growth and development. Therefore the lack of financial literacy can be a
serious problem for all countries (Margaretha and Pambudhi, 2015).

Financial literacy is also associated with higher returns on investments and investment in
more complex assets, such as stocks, which normally offer higher rates of return. This finding
has important consequences for wealth; according to the simulation by Lusardi, Michaud,
andMitchell (2017).

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Republic of the Philippines
Region III
Division of Gapan
MARUHAT NATIONAL HIGH SCHOOL
Maruhat, Macabaklay, Gapan City

The use of literary narratives, such as novels, books, short stories, and comics, has also
been employed in business ethics education (Badaracco, 2006;Gerde & Foster, 2008;Harris &
Brown, 1989;Michaelson, 2016;Shepard et al., 1997;Sucher, 2007;von Weltzien Hoivik, 2009).

Financial literacy has been discussed widely as a significant factor that influence the
performance and survival of micro businesses (e.g. Dahmen & Rodriguez, 2014; Gonzalvo &
Avila, 2019).

Aribawa’s research (2016) found that business people who have financial literacy will
positively influence their business performance.

Although not an absolute state, Financial literacy can play a vital role in making people
aware of the possibilities and risks associated with financial management decisions. It is a
continuum of capabilities subjected to demographical characteristics such as age, culture, family,
education, domicile, etc. and also an evolving state of competency by which each individual
responds to an ever-changing economic scenario (Mihalcova et al., 2014).

According to Lusardi & Mitchell (2014) and Yushita (2017), financial literacy is the
financial knowledge and ability possessed by individuals in managing finance and spending
money, so that individuals can improve their standard of living and avoid financial difficulties,
whereas the Financial Services Authority defines financial literacy as a financial ability and
knowledge that can help people in their knowledge of financial service institutions, benefits,
features, and financial risks through beliefs and skills to improve decision making quality.

Financial literacy in Business ethics:

Business ethics education has become commonplace in a variety of forms. These include
ethics courses, ethics components of traditional functional courses, and different types of service

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Republic of the Philippines
Region III
Division of Gapan
MARUHAT NATIONAL HIGH SCHOOL
Maruhat, Macabaklay, Gapan City

learning projects (e.g., AACSB, 2005; Weber & Glyptis, 2000; Weber & Sleeper, 2003)
designed to promote behavioral, managerial and/or cognitive competence (Rossouw, 2002).

A review of the business ethics literature and related fields suggests that business ethics
education can be efficacious (e.g., Gautschi, III & Jones, 1998; Sims, 2002).

The first goal states that business ethics education should strive to develop students’
awareness of moral issues. In pursuit of this goal, Weber and Glyptis (2000) evaluated the
outcomes of a business ethics course with and without a service learning component.

Financial literacy in Business finance:

Financial literacy is achieved through financial education. Financial education should

enable individuals to develop their decision-making competencies related to money, dealing with
it as well as with the risks of its investment. Financial literacy as management of one’s personal
or family finances includes three components, namely: money, price and budget literacy. The
importance of good financial education (Pastoráková, 2011) has been acknowledged at the global
level.

Given such reality, financial literacy is believed to provide individuals with the ability to
make informed decisions about financial planning, wealth accumulation, debt, and pensions
(Watanapongvanich et al., 2020).

(Lusardi & Mitchell, 2014) points out that a relatively low level of education results in a
low level of financial, (Kiliyanni & Sivaraman, 2016) argue that a high level of literacy does not
necessarily mean a high level of financial literacy. Functional literacy is the keyword here which
is the ability to use printed and written material to fulfill one's different needs at home, to
function in society, to achieve one's personal and professional goals, etc. (Mihalcova et al.,
2014).

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Republic of the Philippines
Region III
Division of Gapan
MARUHAT NATIONAL HIGH SCHOOL
Maruhat, Macabaklay, Gapan City

Financial literacy in entrepreneurships

Every entrepreneur's success becomes a challenge when it comes to achieving business

goals based on opportunity and resource ownership. This will have to do with effectiveness and
performance (Sariwulan et al., 2020).

Skill is the ability to use ideas and creativity in doing, changing, or making something
more meaningful so as to produce a value from the work. Skill has 3 indicators, namely,
Technical skills, Management skills, Entrepreneur skills (Sariwulan et al. 2020).

Sharpening skills in financial management will require expanding financial literacy, so

that some researchers correlate financial skills and financial literacy (Dewi et al. 2020).

The other side of young entrepreneurs is that they are business people. As businessmen,
they understand how to prepare financial statements for various purposes, such as funding,
investment, or other financial actions (Dahmen & Rodriguez, 2014). Moreover, they must
possess good financial knowledge so that the business continues to grow and performs well.

Four principles informed the design of these questions ,as described in detail by Lusardi
and Mitchell (2014). The first is simplicity: the questions should measure knowledge of the
building blocks fundamental to decision making in an intertemporal setting. The second is
relevance: the questions should relate to concepts pertinent to people’s day-to-day financial
decisions over the life cycle; moreover, they must capture general rather than context-specific
ideas. Third is brevity: the number of questions must be few enough to secure widespread
adoption; and fourth is capacity to differentiate, meaning that questions should differentiate
financial knowledge in such a way as to permit comparisons across people. Each of these
principles is important in the context of face-to-face, telephone, and online surveys.

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Republic of the Philippines
Region III
Division of Gapan
MARUHAT NATIONAL HIGH SCHOOL
Maruhat, Macabaklay, Gapan City

CONCEPTUAL FRAMEWORK

Management accounting has been at the heart of long-term corporate growth and
development. Entrepreneurship and moral behavior are inextricably linked. Entrepreneurial skills
such as originality, innovation, and sensitivity are thought to be related to the qualities needed to
make moral decisions. (Ahmed, 2010)

Because financial administration is such a delicate sector, almost every firm has a distinct
department for it, staffed by a committed, professional, and competent team, taking the
appropriate financial planning and competent team, taking the appropriate financial planning
decisions promptly leads to long-term business sustainability and progress. (Alkaabi, 2019)

Researchers will use survey to find the impact of financial literacy and analyses the
advantages of utilizing business ethics, and business finance on a business. Statistical method
will be done in analyzing and interpreting the data gathered.

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Republic of the Philippines
Region III
Division of Gapan
MARUHAT NATIONAL HIGH SCHOOL
Maruhat, Macabaklay, Gapan City

The research paradigm is hereby presented using the IPO model.

INPUTS
Implementing financial literacy include:

 Business Ethics
 Business Finance
 Entrepreneurship

PROCESS

 Assessment
 Survey Checklist
 Interpretation of Data Gathered

OUTPUTS
 Encouraged entrepreneurs to apply proper
etiquettes and proper financing on their
business
 Utilized entrepreneurship on business
organization
 Enhanced financing of a business

Figure 1. Research Paradigm

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Republic of the Philippines
Region III
Division of Gapan
MARUHAT NATIONAL HIGH SCHOOL
Maruhat, Macabaklay, Gapan City

STATEMENT OF THE PROBLEM

This research aimed to find the advantages of financial literacy to entrepreneurs and
includes to answer the following questions:

 How does financial literacy related to entrepreneur in terms of:

 Business ethics
 Business finance
 Entrepreneurship

 How do business finance significant to:

 Financial planning
 Financial management
 Fiscal estimating

 What are the challenges of the business in:

 Entrepreneurship
 Business ethics

 Is there significant impact in the success of entrepreneur the application of financial

literacy?

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Republic of the Philippines
Region III
Division of Gapan
MARUHAT NATIONAL HIGH SCHOOL
Maruhat, Macabaklay, Gapan City

HYPOTHESIS

There is no significant impact in the success of entrepreneur with the application of

strategic financial management of financial literacy.

SCOPE AND DELIMITATION

The study was focused on the advantages of financial literacy to entrepreneurs. This
study was conducted at Gapan City, Nueva Ecija, with the duration from February 2022 to May
2022. The respondents were the entrepreneur. Checklist was used as the instrument to gather
data. Significant findings collected with the use of survey questionnaire distributed randomly to
answer the given statements regarding the financial literacy to entrepreneurs.

SIGNIFICANCE OF THE STUDY

The beneficiaries of this study are the owners of a business and ABM students, because
this study identified the common financial literacy and how owners of business can use business
ethics to further improve their entrepreneurship.

This also served as guide for the ABM students who plan to have their business in the
future, in that way they can apply what they have learned to succeed in their business.

DEFINITION OF TERMS

ABM Students - this refers to the senior high school students who chose Accountancy Business
and Management strand as their preparation for their college degree. They are the researchers of
this particular study.

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Region III
Division of Gapan
MARUHAT NATIONAL HIGH SCHOOL
Maruhat, Macabaklay, Gapan City

Business Ethics – this refers to the application of ethical values to business behavior. Business
ethics is also one of the ways in implementing of financial literacy to this research study.

Business finance- this refers to the process of acquiring financial resources and measures to
enhance the financial performance in business.

Entrepreneur - this refers to a person who undertakes the organization and ownership of a
business with intent of making a profit. They were the respondents of this research study.

Entrepreneurship - this refers to the process of getting into and operating your own business.

Financial literacy- this refers to financial knowledge and ability possessed by individuals in
managing finance and spending money.

Financial management - this refers to the process of acquiring financial resources and measures
to enhance the financial performance in firms.

Financial Planning – this refers to the process of getting your finances organized

Fiscal Estimating – this refers to estimate the financial to keep a business running efficiently
within its allotted budget

Functional Literacy –this refers keyword here which is the ability to use printed and written
material to fulfil one different needs at home and to function in society.

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Republic of the Philippines
Region III
Division of Gapan
MARUHAT NATIONAL HIGH SCHOOL
Maruhat, Macabaklay, Gapan City

CHAPTER II

RESEARCH METHODOLOGY

This research methodology provides the research design and the tools that were
administered by the researchers. Furthermore, this identified the participants of the study, its
reliability and validity and the research procedure on how researchers gathered and obtained
data.

Research Design

In this research the descriptive method was used in gathering data with likert-type scale
and checklist as the main tool. The research utilized descriptive research design. Assessment and
survey checklist served as the main tool in collecting information. Descriptive research is defined
as a research method used to describe the existing phenomena as accurately as possible
(Atmowardoyo,2018). Descriptive studies look at the characteristics of a population; identify the
problems that exist within a unit, organization or population; or look at variations in
characteristics or practices in organizations or even countries (Siedlecki,2020).

Participants of the studies

The participants of the study were 15 entrepreneurs in Baranggay Macabaklay and

Baranggay Bungo 2, Gapan City, Nueva Ecija.

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Republic of the Philippines
Region III
Division of Gapan
MARUHAT NATIONAL HIGH SCHOOL
Maruhat, Macabaklay, Gapan City

Participants Total
Place
Male Female

Macabaklay 2 6 8

2 5 7
Bungo
4 11 15
TOTAL
Table 1. Participants of the study

Data Gathering Tool

The researchers used assessment and survey checklist in gathering data for the research.
It consists of written medium to gather responses from the research subjects. The survey consists
of three (3) parts with five (5) items focuses on the advantages of financial literacy to
entrepreneurs which includes business ethics, business finance and entrepreneurship. A likert-
type scale was used also to gather

more information from the respondents. The respondents were offered five options for a response
which is strongly agree, agree, neutral, disagree and strongly disagree into random entrepreneurs
at Gapan City, Nueva Ecija to answer the following written statement that correspondents if that
entrepreneur is effectively using financial literacy in their business.

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Republic of the Philippines
Region III
Division of Gapan
MARUHAT NATIONAL HIGH SCHOOL
Maruhat, Macabaklay, Gapan City

Reliability and Validity

To guarantee that the data gathered were valid, the survey checklist and questionnaire
were subjected to check-rechecked method in which the researchers sought the assistance of the
research adviser. The reliability of the instrument was subjected to a test-retest to 12 ABM

tudents of Maruhat NHS, Division of Gapan City who did not belong to the participants of the
study.

Administration of Instruments

The survey questionnaire and checklist were personally administered by the researchers for
the permission from the research adviser. Print copies of the questionnaire that contain inquiries
of the study and its extent were distributed to the participants. The objectives of the study were
explained to the participants. Close monitoring of the participants were undertaken while
answering the item-statements.

The data gathering was supervised personally by the researchers after the permission from
the research adviser. Printed copies of the questionnaire contain the inquiries of the study that
indicates the extent of the study's accuracy and reliability from the participants' answers, that
measures and analyzes the data for them to understand the importance of what the researchers
want to impart.

Procedure of Analysis

The following limits and categories were used in the Likert-type scale of the checklist.

Value Degree

5 Strongly Agree

4 Agree

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Region III
Division of Gapan
MARUHAT NATIONAL HIGH SCHOOL
Maruhat, Macabaklay, Gapan City

3 Neutral

2 Disagree

1 Strongly Disagree

The portions of distribution and to come up with the verbal descriptions of item statements
frequency distribution is employed.

Therefore, the hypothesis “There is no significant impact in the success of entrepreneurs

with the application of financial literacy.” was tested using frequency distribution and
percentage.

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Republic of the Philippines
Region III
Division of Gapan
MARUHAT NATIONAL HIGH SCHOOL
Maruhat, Macabaklay, Gapan City
Chapter III

PRESENTATION, INTERPRETATION AND ANALYSIS OF DATA

Figure 2 present the comparison on frequency distribution and percentage of respondents

who answered question 1 for financial literacy.

13%

Strongly agree
Agree
Neutral
Disagree
Strongly disagree

87%

Figure 2. Financial Literacy is important to run a business

The figure above shows that 13 or equivalent to 87% of the respondents are strongly
agree and two or equivalent to 13% of the respondents are agree that financial literacy is
important to run a business.

According to (Davidsson,2004) Financial literacy is the understanding and improvement of the

financial concepts that enables an individual or entrepreneur in making effective informed
decision in the management of the profitable business.

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Republic of the Philippines
Region III
Division of Gapan
MARUHAT NATIONAL HIGH SCHOOL
Maruhat, Macabaklay, Gapan City
Figure 3 present the comparison on frequency distribution and percentage of respondents who
answered question 2 for financial literacy.

27%

Strongly agree
Agree
Neutral
Disagree
Strongly disagree

73%

Figure 3. Financial literacy control your Business Ethics

The figure above shows that 11 or equivalent to 73% of the respondents are strongly
agree and four or equivalent to 27% of the respondents are agree that financial literacy
controlling business ethics.
According to (Hajar Alhosseiny,2021) business ethics refers to contemporary
organizational standards, principles, sets of values and norms that govern the actions and
behavior of a individual in the business organization.

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Republic of the Philippines
Region III
Division of Gapan
MARUHAT NATIONAL HIGH SCHOOL
Maruhat, Macabaklay, Gapan City
Figure 4 present the comparison on frequency distribution and percentage of respondents who
answered question 3 for financial literacy.

20%

Strongly agree
Agree
Neutral
Disagree
Strongly disagree

80%

Figure 4. Financial literacy keep Business Financial Organized

The figure above shows that 12 or equivalent to 80% of the respondents are strongly
agree and three or 20% of the respondents are agree that financial literacy should keep financial
organized.

According to (Abdul-Rahaman & Adejare, 2014) Accounting and record keeping

frightens some business owners. Keeping record of income and expenditure helps an owner of
business to keep proper track of financial transactions. Dawuba and Azeko, (2015) noted that
poor record keeping or non-availability of financial records have consequences of
mismanagement of resources and poor cash management.

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Republic of the Philippines
Region III
Division of Gapan
MARUHAT NATIONAL HIGH SCHOOL
Maruhat, Macabaklay, Gapan City
Figure 5 present the comparison on frequency distribution and percentage of respondents who
answered question 4 for financial literacy.

47%
Strongly agree
53% Agree
Neutral
Disagree
Strongly disagree

Figure 5.Entrepreneur set financial to generate more profit

The figure above shows that eight or equivalent to 53% of the respondents are strongly
agree and seven or equivalent to 47% of the respondents are agree that entrepreneur should set
financial to generate more profit

Jackson and Jackson (2016) described a sustainable business as an entity that creates
profit and typically benefits the needs of others in services or products. The challenges for many
small business owners include how to develop and integrate innovation strategies to sustain long
term growth.

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Republic of the Philippines
Region III
Division of Gapan
MARUHAT NATIONAL HIGH SCHOOL
Maruhat, Macabaklay, Gapan City
Figure 6 present the comparison on frequency distribution and percentage of respondents who
answered question 5 for financial literacy.

33%

Strongly agree
Agree
Neutral
Disagree
Strongly disagree

67%

Figure 6. Entrepreneur prefer to be financially literate.

The figure above shows that 10 or equivalent to 67% of the respondents are strongly
agree and five or equivalent to 33% of the respondents are agree that Entrepreneur prefer to be
financially literate.

According to Lusardi and Mitchell, 2014. There is a sample evidence of the impact of
financial literacy on people’s decisions and financial behavior. For example, financial literacy
has been proven to affect both saving and investment behavior and dept management and
borrowing practices. Empirically, financial

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Republic of the Philippines
Region III
Division of Gapan
MARUHAT NATIONAL HIGH SCHOOL
Maruhat, Macabaklay, Gapan City
Figure 7 present the comparison on frequency distribution and percentage of respondents who
answered question 1 for business finance significant to entrepreneurs.

40%

Strongly agree
60% Agree
Neutral
Disagree
Strongly disagree

Figure 7. Business finance lead entrepreneur to borrow funds.

The figure above shows that nine or equivalent to 60% of the respondents are strongly
agree and six or equivalent to 40% of the respondents are agree that business finance lead
entrepreneurs to borrow funds.

According to Kenya, 2007 financial literacy enables one to make informed decisions as
far as money matters are concerned thus one can borrow, safe invest wisely.

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Republic of the Philippines
Region III
Division of Gapan
MARUHAT NATIONAL HIGH SCHOOL
Maruhat, Macabaklay, Gapan City

Figure 8 present the comparison on frequency distribution and percentage of respondents who
answered question 2 for business finance significant to entrepreneurs

13%

Strongly agree
Agree
Neutral
Disagree
Strongly disagree

87%

Figure 8.Set emergency funds in the future.

The figure above shows that 13 or equivalent to 87% of the respondents are strongly agree
and two or equivalent to 13% of the respondents are agree that Entrepreneur set emergency funds
for the future of their business.

Heckman, Lim & Montello(2014), who argued that one of the biggest financial stresses
among young is when they do not have enough money to participate in the same activities as
their peers.

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Republic of the Philippines
Region III
Division of Gapan
MARUHAT NATIONAL HIGH SCHOOL
Maruhat, Macabaklay, Gapan City

Figure 9 present the comparison on frequency distribution and percentage of respondents who
answered question 3 for business finance significant to entrepreneurs

7%

Strongly agree
Agree
Neutral
Disagree
Strongly disagree

93%

Figure 9. Entrepreneur prefer to have an expansion of their business.

The figure above shows that 14 or equivalent to 93% of the respondents are strongly
agree and one or equivalent of 7% of the respondent is agree that entrepreneur prefer to have an
expansion of their business to gain more savings.

A business strategy helps businesses to improve their competitive status and determines
the performance of businesses in industry (Wheelen, T. L., & Hunger, J.D.,2012). Thus, growth
is a must for businesses to survive in developing industries. Businesses need to be in a
continuous change and development process in order to make progress.

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Republic of the Philippines
Region III
Division of Gapan
MARUHAT NATIONAL HIGH SCHOOL
Maruhat, Macabaklay, Gapan City

Figure 10 present the comparison on frequency distribution and percentage of respondents who
answered question 4 for business finance significant to entrepreneurs

47%
Strongly agree
53% Agree
Neutral
Disagree
Strongly disagree

Figure 10. Financial surplus achieve with the business literacy.

The figure above shows that seven or equivalent to 47% of the respondents are strongly
agree and eight or equivalent to 53% of the respondents are agree that financial surplus can
achieve with the business literacy.

It is a typically held contention that enhanced financial information results in more

responsible financial conduct and thus, viable monetary choices (Tang, Baker, & Peter, 2015).

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Republic of the Philippines
Region III
Division of Gapan
MARUHAT NATIONAL HIGH SCHOOL
Maruhat, Macabaklay, Gapan City

Figure 11 present the comparison on frequency distribution and percentage of respondents who
answered question 5 for business finance significant to entrepreneurs

33%

Strongly agree
Agree
Neutral
Disagree
Strongly disagree

67%

Figure 11. Follows business practices to run a business.

The figure above shows that 10 or equivalent to 67% of the respondents are strongly
agree and five or equivalent to 33% of the respondents are agree that following business
practices in running of business is helpful.

According to Byrd (2010) identified that the leadership and business practices of a
successful and unsuccessful small business owners differed significantly. The focus of Byrd’s
study was to examine the specific differences between the personal leadership styles of
successful and unsuccessful small business owners.

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Republic of the Philippines
Region III
Division of Gapan
MARUHAT NATIONAL HIGH SCHOOL
Maruhat, Macabaklay, Gapan City

Figure 12 present the comparison on frequency distribution and percentage of respondents who
answered question 1 for business literacy influence entrepreneurs

7%

Strongly agree
Agree
Neutral
Disagree
Strongly disagree

93%

Figure 12. Business experience bad debt loses.

The figure above shows that 14 or equivalent to 93% of the respondents are strongly
agree and one or equivalent of 7% of the respondent is agree that businesses are effectively
avoided bad dept losses.

Following the bank crashes that induced one of the worst turmoil, the developed
economies experienced, the European sovereign dept crisis, which had begun in 2010, continues
to shape the insolvency scene. In the Western European countries, the number of corporate
collapses rose year-by-year by the a margin of 0.3% - from 174,463 in 2010 to 174,917 in 2011
(Mohr, 2012), a historically high level.

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Republic of the Philippines
Region III
Division of Gapan
MARUHAT NATIONAL HIGH SCHOOL
Maruhat, Macabaklay, Gapan City

Figure 13 present the comparison on frequency distribution and percentage of respondents who
answered question 2 for business literacy influence entrepreneurs

6%

47%
Strongly agree
Agree
Neutral
Disagree
47% Strongly disagree

Figure 13. Entrepreneur have an enough funds to achieve their business goals.

The figure above shows that seven or equivalent to 47% of the respondents are strongly
agree while seven or equivalent to 47% of the respondents are agree and one or equivalent to 6%
of the respondent are neutral that they have enough funds to achieve your business goals.

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Republic of the Philippines
Region III
Division of Gapan
MARUHAT NATIONAL HIGH SCHOOL
Maruhat, Macabaklay, Gapan City

Figure 14 present the comparison on frequency distribution and percentage of respondents who
answered question 3 for business literacy influence entrepreneurs

27%

Strongly agree
Agree
Neutral
Disagree
Strongly disagree

73%

Figure 14. Business literacy influence entrepreneur to have enough revenue to continue

The figure above shows that 11 or equivalent to 73% of the respondents are strongly
agree and four or equivalent to 27% of the respondents are agree that their revenue is enough to
continue to run their business productively.

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Republic of the Philippines
Region III
Division of Gapan
MARUHAT NATIONAL HIGH SCHOOL
Maruhat, Macabaklay, Gapan City

Figure 15 present the comparison on frequency distribution and percentage of respondents who
answered question 4 for business literacy influence entrepreneurs

13%

Strongly agree
Agree
Neutral
Disagree
Strongly disagree

87%

Figure 15. business literacy help entrepreneur to avoid business closure or bankruptcy.

The figure above shows that 13 or equivalent to 87% of the respondents are strongly agree
and two or equivalent to 13% of the respondents are agree that theyy can avoid business closure
or bankruptcy using business literacy.

As we are in the middle of a pandemic outbreak, it is very difficult to estimate long term
effects, although society has been hit by several pandemics in the past, it is difficult to estimate
the long-term economic, behavioral or societal consequences as these aspects have not been
studied to a great extent in the past. The limited studies that do exist indicate that the major
historical pandemics of the last millennium have typically been associated with subsequent low
returns on assets (Jorda, Singh, & Taylor, 2020).

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Region III
Division of Gapan
MARUHAT NATIONAL HIGH SCHOOL
Maruhat, Macabaklay, Gapan City

Figure 16 present the comparison on frequency distribution and percentage of respondents who
answered question 5 for business literacy influence entrepreneurs

20%

Strongly agree
Agree
Neutral
Disagree
Strongly disagree

80%

Figure 16. Business literacy helps entrepreneur to run their business productively.

The figure above shows that 12 or equivalent to 80% of the respondents are strongly
agree and three or 20% of the respondents are agree that financial literacy helped entrepreneur to
run their productively.

However, a recent review of the literature shows considerable heterogeneity i9n the
effectiveness of business training program (McKenzie and Woodruff (2012).

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Region III
Division of Gapan
MARUHAT NATIONAL HIGH SCHOOL
Maruhat, Macabaklay, Gapan City

CHAPTER IV

CONCLUSION

Based from the findings of the study, financial literacy has a great impact in putting up
entrepreneurship. The findings from the study revealed from the answers to the question “How
does financial literacy helps in putting up a business?”. A financially literate business owner is
more likely to be fully in control of their business. Gaining an understanding of what balance
sheets and profit and loss statements mean provides a clear view of the financial state of your
enterprise and subsequently facilitates smarter business decisions. The findings of this study
showed that one of the best way to start a business is to have enough funds, having business
goals, conduct market analysis and set your financial to generate more profit. Financial literacy
has a material impact on families as they try to balance their budget, buy a home, fund their
children, or ensure an income in case of emergency.

There is sample evidence of the impact of financial literacy on people’s decisions and
financial behavior. For example, financial literacy has been proven to affect both saving and
investment behavior and debt management and borrowing practices. Empirically, financially
savvy people are more likely to accumulate wealth (Lusardi and Mitchell, 2014). Financial
literacy is the ability to use knowledge and skills to manage financial resources effectively for a
lifetime of financial wellbeing (PACFL, 2008).

After all, businesses need to make money, which means entrepreneur need to know how
to manage their finances effectively, no matter what kind of business you run, control of your
finances will help you avoid losses and grow your business faster. As entrepreneur, you must
keep a record of your transactions. More importantly, you need to understand where your money
is coming from and where it is going. In addition, financial literacy helps you make the right
decisions that can impact your profitability.

30 | P a g e
Republic of the Philippines
Region III
Division of Gapan
MARUHAT NATIONAL HIGH SCHOOL
Maruhat, Macabaklay, Gapan City

The findings of the study also states that the lack of knowledge on financial literacy and
funds to continue business without considering the use of financial management commonly
experience a low-rate survival and challenges faced by business owners. The results of the study
confirmed that having enough funds are necessary for business to grow and have its savings for
the future of the business, also financial literacy implies that business are effectively avoided bad
debt loses which will tend to business bankruptcy.

Based on the findings of the study the following conclusions were drawn:

1. How does financial literacy related to entrepreneur and include to answer etc.:

 Financial literacy is related to business ethics because it helps the entrepreneurs to

promote integrity among their employees and gain trust from their customers.
 In business finance to have a capacity to keep a business operating smoothly
without running out of cash while also securing funds to for longer-term business.
 And in entrepreneurship related to financial literacy because of the ability and
readiness to develop, organize and run a business enterprise, along with any of its
uncertainties in order to make a profit. Financial literacy is enables entrepreneur
to take responsibility for every peso and to maintain a sharp focus on costs and
the simple measures of cash flow.

2. How do business finance are significant to:

 Business planning is significant to financial planning because it helps guide the

day to day decision making of the entrepreneur. It is also help entrepreneur to
determine what to spend , where to spend it and when it should be spent.


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Republic of the Philippines
Region III
Division of Gapan
MARUHAT NATIONAL HIGH SCHOOL
Maruhat, Macabaklay, Gapan City

 In financial management help to determine strategic approaches as how better

production or discover affordable raw materials.
 And in fiscal estimating is to help to estimate is a forecast of the capital needed
for the project activities or a program.

3. What are the challenges of the business in:

 The challenges of the business facing by every entrepreneur. The entrepreneur

is facing developing the business, financial investment or funds, and good
employees.
 And in business ethics are the health and safety of the workplace, technology
and privacy practices and harassment and discrimination in the workplace.

4. Is there significant impact in the success of entrepreneur the application of financial
literacy?
 There is no significant impact in the success of entrepreneur with the
application of financial literacy.

RECOMMENDATION

1. Apply financial literacy not only to entrepreneurship but applicable to other business
organization like partnership and corporation.
2. Must try other statistical tools in determining the advantages of financial literacy in
putting up a business.
3. Pursue conducting research about business owners or entrepreneurs find some ideas on
how they succeed in their business.

32 | P a g e
Republic of the Philippines
Region III
Division of Gapan
MARUHAT NATIONAL HIGH SCHOOL
Maruhat, Macabaklay, Gapan City

REFERENCE

Abubakar, H. A. (2015). Entrepreneurship development and financial literacy in Africa. World Journal of
Entrepreneurship, Management and Sustainable Development, 11(4), 281-294.

Akmal, H., Saputra, Y.E. (2016). Analisis Tingkat Literasi Keuangan. Jurnal Ekonomi Bisnis Islam, 1(2), 235-
244

Aribawa, D. (2016). Pengaruh Literasi Keuangan Terhadap Kinerja Dan Keberlangsungan Umkm Di Jawa
Tengah. Jurnal Siasat Bisnis, vol. 20, pp. 1–13.

Badaracco, J.L. (2006). Questions of character: Illuminating the heart of leadership through literature.
Harvard business school press.

Dahmen, P. & Rodriguez, E. (2014). Financial literacy and the success of small businesses: An observation
from a small business development centre. Numeracy, 7(1), Article 3.

Gautschi, III, F. H. & Jones, T. M. (1998). Enhancing the ability of business students to recognize ethical
issues: An empirical assessment of the effectiveness of a course in business ethics. Journal of Business
Ethics, 17: 205-216

Gerde, V. W., & Foster, R. S. (2008). X-Men ethics: Using comic books to teach business ethics. Journal of
Business Ethics, 77(3), 245-258

Gonzalvo, Z. & Avila, E. C. (2019). Level of financial literacy of micro-business owners in the municipality
of Ragay, Camarines Sur, Philippines. Asia Pacific Journal of Academic Research in Business
Administration, 5(1), 1-7

Lusardi, (2019) Financial literacy and retirement planning in the United States, in: Journal of Pension
Economics and Finance, Vol. 10, No. 4, 2011, pp. 509-525.

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Republic of the Philippines
Region III
Division of Gapan
MARUHAT NATIONAL HIGH SCHOOL
Maruhat, Macabaklay, Gapan City

Lusardi, A., Michaud, P. C., & Mitchell, O. S. (2017). Optimal financial knowledge and wealth
inequality. Journal of Political Economy, 125(2), 431–477

Lusardi, A., & Mitchell, O. (2007). Financial literacy and retirement preparedness: Evidence and
implications for financial education, Business Economics, 42, 35-44.

Lusardi, A., & Mitchell, O. S. (2014). Financial literacy and planning: Implications for retirement
wellbeing. Working Paper 1 Pension Research Council. Philadelphia, PA: The Wharton School

Lusardi, A., & Mitchell, O. S. (2014). The Economic Importance of Financial Literacy: Theory and
Evidence. Journal of Economic Literature 2014, 52 (1), 5-44.

Margaretha, F. and Pambudhi, R. A. (2015). Tingkat Literasi Keuangan pada Mahasiswa S-1 Fakultas
Ekonomi. Jurnal Manajemen dan Kewirausahaan, vol. 17, no. 1, pp. 76–85.

Mihalcova, B., Csikosova, A., & Antosova, M. (2014). Financial Literacy-the urgent need today. Elsevier,
109, 317-321

Pastoráková, E. (2011). Výzvy a prekážky finančnej gramotnosti v oblasti poisťovníctva. In: Finančná
gramotnosť ako súčasť ekonomického vzdelávania. Zborník príspevkov z medzinárodnej vedeckej
konferencie. Bratislava, NHF EU, s. 128-132

Remund (2010) Financial literacy explicated: The case for a clearer definition in an increasingly complex
economy. J Consum Aff 44:276–295. doi:10.1111/j.1745-6606.2010.01169.x

Rossouw, D. (2002). Three Approaches to Teaching Business Ethics. Teaching Business Ethics, 6, 411-433

Sariwulan, T., Suparno, S., Disman, D., Ahman, E., & Suwatno, S. (2020). Entrepreneurial performance:
The role of literacy and skills. The Journal of Asian Finance, Economics, and Business, 7(11), 269-280

Sims, R. R. (2002). Business ethics teaching for effective learning. Teaching Business Ethics, 6: 393-410

Sucher, S. (2007). Teaching the moral leader, a literature-based leadership course. New York: Routledge

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Republic of the Philippines
Region III
Division of Gapan
MARUHAT NATIONAL HIGH SCHOOL
Maruhat, Macabaklay, Gapan City

Von Weltzien Hoivik, H. (2009). Developing students’ competence for ethical reflection while attending
business school. Journal of Business Ethics, 88(1), 5-9.

Watanapongvanich S, Binnagan P, Putthinun P, Khan MSR, Kadoya Y. Financial literacy and gambling
behavior: evidence from Japan. J Gambl Stud. (2020). doi: 10.1007/s10899-020-09936-3. [Epub ahead of
print].

Yushita, A. N. (2017). Pentingnya Literasi Keuangan Bagi Pengelolaan Keuangan Pribadi. Jurnal Nominal.
Universitas Negeri Yogyakarta, 6(1), 11-26.

Weber, J. and S. Glyptis. 2000. Measuring the impact of a business ethics course and community service
experience on students’ values and opinions. Teaching Business Ethics 4: 341-358

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Republic of the Philippines
Region III
Division of Gapan
MARUHAT NATIONAL HIGH SCHOOL
Maruhat, Macabaklay, Gapan City

CURRICULUM VITAE
Name: Eric DG. Mendoza
Age: 18
Sex: Male
Birthdate: January 14, 2003
Address: Macabaklay, Gapan City
Facebook Account: Eric De Guzman
Religion: Catholic
Civil Status: Single
Citizenship: Filipino
Mother’s Name: Aurea De Guzman
Occupation: Street Sweeper
Father’s Name: Ricky Mendoza
Occupation: N/A

Educational Attainment:
Elementary: St. Joseph Elementary School
Macabaklay, Gapan City 2015- 2016
Secondary: Maruhat National High School
Junior High School 2019- 2020
Senior High School 2021- 2022
Skills: Playing Volleyball
Ambition: To be a Seaman

36 | P a g e
Republic of the Philippines
Region III
Division of Gapan
MARUHAT NATIONAL HIGH SCHOOL
Maruhat, Macabaklay, Gapan City

CURRICULUM VITAE
Name: Mike L. Vargas
Age: 18
Sex: Male
Birthdate: May 14, 2003
Address: Maruhat, Gapan City
Facebook Account: Mike Vargas
Religion: Catholic
Civil Status: Single
Citizenship: Filipino
Mother’s Name: Amelia L. Vargas
Occupation: Sewer
Father’s Name: Nolly SM. Vargas
Occupation: Barangay Police

Educational Attainment:
Elementary: Bungo Elementary School
Bungo, Gapan City 2015- 2016
Secondary: Maruhat National High School
Junior High School 2019- 2020
Senior High School 2021- 2022
Skills: Drawing, Painting
Ambition: To be a Man of Success

37 | P a g e
Republic of the Philippines
Region III
Division of Gapan
MARUHAT NATIONAL HIGH SCHOOL
Maruhat, Macabaklay, Gapan City

CURRICULUM VITAE
Name: Jomar V. Vendivel
Age:19
Sex: Male
Birthday: July 14, 2002
Address: Macabaklay, Gapan City
Facebook Account:
Religion: Catholic
Civil Status: Single
Citizenship: Filipino
Mother’s Name: Dominga V. Vendivel
Occupation: Housewife
Father’s Name: Arcadio G. Vendivel
Occupation: STL

Educational Attainment:
Elementary: St. Joseph Elementary School
Macabaklay, Gapan City 2015-2016
Secondary: Maruhat National high School
Junior High School 2019-2020
Senior High School 2021-2022
Skills: Playing badminton, painting
Ambition: To become successful businessman or license teacher

38 | P a g e
Republic of the Philippines
Region III
Division of Gapan
MARUHAT NATIONAL HIGH SCHOOL
Maruhat, Macabaklay, Gapan City

CURRICULUM VITAE
Name: Jomay G. Barredo
Age: 19
Sex: Female
Birthdate: April 17, 2003
Address: Macaabklay, Gapan City
Facebook Account: Jomay Barredo
Religion: Born Again
Civil Status: Single
Citizenship: Filipino
Mother’s Name: Leonora Barredo
Occupation: Housewife
Father’s Name: Eduardo Barredo
Occupation: Farmer

Educational Attainment:
Elementary: St. Joseph Elementary School
Macabaklay, Gapan City
2015- 2016
Secondary: Maruhat National High School
Junior High School 2019- 2020
Senior High School 2021- 2022
Skills: Playing Chess, Volleyball
Ambition: To be a Successful Business Woman and a Flight Attendant

39 | P a g e
Republic of the Philippines
Region III
Division of Gapan
MARUHAT NATIONAL HIGH SCHOOL
Maruhat, Macabaklay, Gapan City

CURRICULUM VITAE
Name: Hanelyn H. Mendoza
Age: 18
Sex: Female
Birthdate: July 14 2003
Address: Macabaklay, Gapan City
Facebook Account: Hanelyn Mendoza
Religion: Catholic
Civil Status: Single
Citizenship: Filipino
Mother’s Name: Rosana H. Hernandez
Occupation: Housewife
Father’s Name: Alejandro D. Mendoza
Occupation: Farmer

Educational Attainment:
Elementary: St. Joseph Elementary School
Macabaklay, Gapan City 2015- 2016
Secondary: Maruhat National High School
Junior High School 2019- 2020
Senior High School 2021- 2022
Skills: Dancing, Painting, Singing
Ambition: To be a Successful Business Woman

40 | P a g e
Republic of the Philippines
Region III
Division of Gapan
MARUHAT NATIONAL HIGH SCHOOL
Maruhat, Macabaklay, Gapan City

APPENDICES

QUESTIONS Strongly Agree Neutral Disagree Strongly

Agree Disagree
Financial Literacy
1. Financial literacy is important 13 87% 2 13% - 0% - 0% - 0%
to run a business.
2. Control your business ethics. 11 73% 4 27% - 0 - 0% - 0%
3. %

4. Keep your business financial 12 80% 3 20% - 0 - 0% - 0%

organized. %
5. Set financial to generate more 8 53% 7 47% - 0 - 0% - 0%
profit. %
6. Prefer to be financially 10 67% 5 33% - 0 - 0% - 0%
literate. %

Business Finance Significant to Entrepreneurs

1. Prefer to borrow funds. 9 60% 6 40% - 0 - 0% - 0%
%

2. Set emergency funds in the 13 87% 2 13% - 0 - 0% - 0%

future %
3. Prefer to have expansion of 14 93% 1 7% - 0% - 0% - 0%
your business.

41 | P a g e
Republic of the Philippines
Region III
Division of Gapan
MARUHAT NATIONAL HIGH SCHOOL
Maruhat, Macabaklay, Gapan City
4. Financial surplus achieved 7 47% 8 53% - 0 - 0% - 0%
with the business literacy. %
5. Follow business practices to 10 67% 5 33% - 0 - 0% - 0%
run a business %
Business Literacy Influence Entrepreneurs
1. Business experience bad dept 14 93% 1 7% - 0 - 0% - 0%
loses. %
2. Have an enough funds to 7 47% 7 47% 1 6% - 0% - 0%
achieve your business goals.
3. Revenue are enough to 11 73% 4 27% - 0 - 0% - 0%
continue to run a business. %
4. Avoid business closure. 13 87% 2 13% - 0 - 0% - 0%
%

5. Business literacy helps you to 12 80% 3 20% - 0 - 0% - 0%

run your business %
productively.

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