INTRODUCTION
WHY STUDY MATTER
Our study will show how important that a business expansion is a
critical yet risky decision for micro businesses, and proper financial
planning determines whether an expansion leads to growth or
financial failure.
Many micro businesses struggle to assess profitability and financial
feasibility, often relying on intuition rather than structured financial tools like
capital budgeting techniques and investment analysis. Without proper
evaluation, businesses may invest in expansions that fail to generate
sufficient returns, leading to financial losses, reduced competitiveness, or
even business closure.
GAP
Although there are many studies discuss about capital budgeting
techniques, but they mostly focus on large companies or theoretical
models. There is a lack of research on how micro businesses in the
Philippines apply these techniques in real business situations. There
is limited research investigating how micro enterprises— Many
Filipino micro businesses rely on intuition or informal decision-
making rather than formal financial models—navigating their capital
budgeting and investment analysis when expanding their business
operations. This study will fills this gap by examining real-world
applications of these financial tools in micro business expansion.
Your study aims to analyze real-world business practices and
understand whether these micro businesses use capital budgeting
tools effectively or face challenges in applying them.
Your study aims to bridge the gap between theory and practice
by investigating whether micro business owners use financial
models or just rely on experience and intuition.
Your study will examine how using both techniques together can
help businesses make smarter expansion decisions, ensuring long-
term profitability and sustainability.
>The findings will not only contribute to the growing body of knowledge
on capital budgeting in emerging economies but will also provide
valuable insights for business owners, financial analysts, and
policymakers on how to improve financial decision-making among micro
enterprises.
PURPOSED
This study focuses on micro businesses in Dasmariñas, Cavite —
micro businesses a group that often faces challenges in making
expansion decisions due to limited financial resources and
knowledge of capital budgeting techniques. Unlike larger firms,
micro businesses may not have formal financial management
strategies, which can lead to poor investment decisions and
business failures. Understanding how they use capital budgeting
and investment analysis will help improve their profitability and
business growth.
SOP
1. What is the profile of the respondents?
This question gathers background data (e.g., type of business, years of
operation, capitalization, and number of employees) to see if these
factors influence capital budgeting decisions.
2. How do businesses assess profitability in expansion using
capital budgeting and investment analysis?
This question determines how micro businesses apply tools like
Return on Investment (ROI), Value Creation, Payback Period
Overall Portfolio Return, Payback Period, Market Share Growth,
Revenue Growth Attributed to Expansion
when deciding to expand.
3. what extent are these techniques commonly used in specific
business activities?
Here, we will analyze whether businesses actually use capital
budgeting techniques when paying for raw materials, upgrading
equipment, or expanding stores.
4. Is there a significant difference in capital budgeting
techniques based on business profiles?
This question tests whether different types of businesses (e.g., retail
vs. manufacturing) use different financial strategies for expansion.
