METHODOLOGY

Presented in this chapter are the research design, sources of data, participants of the
study, sampling techniques, data to be gathered, research instrument, and statistical
treatment of data.
Research Design
The research design adopted the descriptive type of the study to describe the
situation or phenomenon as it exist at the time of the study, seek familiarity with the subject
and to portray selected characteristics of the subject accurately.
The study utilized qualitative approach to the research. This is to determine whether
the qualitative variables such as occupation, education and income have a significant role to
their business. It used an open-ended question after every question so the participants are
able to precisely cite the operational processes and strategies they used in their production,
know the location of their suppliers, the reason in acquiring the agricultural raw materials in
the preferred location, its significant role to the profitability of the businesses, and the
problems encountered in small-scale home-based food industries in Cavite.
Sources of Data
The study utilized both primary and secondary data. Primary data are gathered
through the aid of the survey questionnaire and personal interview.
Secondary data on small-scale home-based food industries are collected through
print and online informations like journals and articles for the latest data about the study.
Participants of the Study

The participants of the study were 126 small-scale home-based food industries
owners in Cavite. As they respond, they can help the study to acquire more information that
may help it to become valuable and profitable.

Sampling Techniques
The small-scale home-based food industries as participants that were
included in the study were in total enumeration which means that they are selected in a
complete count with a total of 126 small-scale home-based food industries that are only
registered in the local government, Department of Trade and Industry (DTI), Provincial
Coconut Livelihood and Enterprise Development Office (PCLEDO) and other reliable
sources in Cavite.
Data Gathering Procedures
The researchers thought of the outline thoroughly with the help of reading materials
like articles and journals about small-scale home-based food industries that later helped to
improve the study. The researchers prepared a letter to have an access to DTI, PCLEDO and
every municipality to get the lists of small-scale home-based food industries. The
researchers conducted personal interviews at the actual location of the participants with the
aid of survey questionnaire and additional questions asked to determine the profile of the
owner and the business, demanded agricultural raw materials, location of their supplies, the
reason in acquiring the agricultural raw materials in the preferred location, its significant
role to the profitability of the businesses, and the problems encountered by small-scale
home-based food industries in Cavite.
Research Instrument

A self-administered questionnaire was used in the study. It is made up of vivid

questions in order to answer all the intentions of the study. The first part of the questionnaire
is composed of the socio-demographic profile of the owner. The second part contains the
socio-demographic profile of the business. The third part includes the agricultural materials
used in the business, its production, and how they market their products. And the last part is
the problems encountered by small-scale home-based food industries.

Statistical Treatment of Data

Descriptive research, also known as statistical research, was used in this study. It
describes data and characteristics about the population or phenomenon being studied.
Descriptive research answer the question who, what, where, when and how. It is concerned
with condition of relationship that exists. In descriptive statistics, we simply state what the
data shows and tells us. The data collected were classified, and coded for analysis using
sample descriptive statistics such as mean, frequency counts, ranks, and percentage to
discuss the demand for agricultural raw materials of small-scale home-based food industries
in Cavite. Some data were tabulated in order to easily analyze and identify the possible
patterns in the data.
Gross Profit Margin (GPM) measures the percentage of every peso spent remaining
after the firm has paid its good. The lower the relative cost of merchandise sold, the higher
the gross profit margin.
GPM =

Sales Cost of Goods Sold

Sales

Operating Profit Margin (OPM) determines the percentage of every peso sales that
is represented by operating profits. It measures the overall operating efficiency and
incorporates all of the expenses associated with the ordinary or normal operation of the
business.
OPM =

Operating Profit
Sales

Net Profit Margin (NPM) considers income after all costs. Operating cost, cost of
sales and taxes have been deducted.
NPM =

Net Profit after taxes

Sales

Return on Operating Expenses (ROE) measure of the earning power or profitability

of the business for every peso spent.
ROE =

Net Income
Operating Expenses