“KAPIT SA PATALIM”: PROCLIVITY AND

PERPETUITY OF “5-6” CREDIT FACILITY

AMONG THE WET MARKET
MICRO-ENTREPRENEURS
ELIZABETH BALDISIMO ONAG
MASTER IN BUSINESS ADMINISTRATION
 OUTLINE OF THE PRESENTATION

➢BRIEF INTRODUCTION OF THE STUDY

➢PROBLEM RATIONALE
➢THEORETICAL FRAMEWORK
➢CONCEPTUAL FRAMEWORK
➢METHODOLOGY
➢RESULTS AND FINDINGS
➢CONCLUSIONS
➢RECOMMENDATIONS
 BACKGROUND OF THE STUDY
A. Global Issue of Poverty

Asia is in the midst of urban

poverty and deprivation challenges that
are evolving with the processes of
growth and urbanization
(ADB, 2014).

Global poverty is a major

problem for about 853 million population that
live in Asia including the Philippines.
(Atamanov et al., 2018)
 BACKGROUND OF THE STUDY

Urban poverty is complex and

multidimensional—extending beyond the
deficiency of income or consumption,
where its many dimensions may account in
the following: B. The Urban
Poverty
Phenomenon
✓ inadequate access to land and housing;
✓ physical infrastructure and services;
✓ economic and livelihood sources;
✓ health and education facilities;
✓ social security networks and;
✓ voice and empowerment.
 BACKGROUND OF THE STUDY

C. What is Poverty?

As defined by the United Nation According to Asian Development

Sustainable Development Goal, Bank (ADB), Poverty is a
Poverty is a deficiency from deprivation of essential assets and
opportunities to which every human is
both financial gain and resources which entitled. (ADB,1999)
disabling the individual to have a
sustainable livelihood. .(UNDP, 2015)
• Ultra-poor - are individuals whose
household per capita expenditure is
below food subsistence thresholds;

• Near ultra-poor - those with

household per capita expenditure is CLASSIFICATION
at least equal to subsistence OF
thresholds but below the
median of subsistence and POVERTY
poverty thresholds; (UP Economics,2000)

• Marginal poor - individuals with

household per capita expenditures that
are at least equal to the
median of the subsistence
and poverty threshold
 BACKGROUND OF THE STUDY
D. Ease of Accessing the “5-6”
Credit Financing facility

In the Philippines, The wet market entrepreneurs in

uplifting the well-being of Navotas are among the urban
poverty stricken population, who
the poor population has been a have to struggle through
concern when the BSP recognized life’s day-to-day economic
microfinance as a legitimate banking and financial, social and
activity and set the rules and environmental and other
regulations for its practice within the
going concerns.
banking sector.
 PROBLEM RATIONALE

Major Problem:

This study is an assessment of the influences of urban

poverty in accessing the ‘5-6’ micro-lending
facility to determine if this popular informal credit scheme
deters poverty level among the wet market
microentrepreneurs in Navotas?

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 PROBLEM RATIONALE

Specific Problem:

1. What is the level of perception of wet market microentrepreneurs in winning for

their proclivity or appetite in the “5-6” financing facility in relation to weaning their

poverty condition?

2. What is the level of perception of wet market microentrepreneurs in winning for

their perpetuity or continuity in the “5-6” financing facility in relation to weaning their
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poverty conditions?
 THEORETICAL FRAMEWORK

Wet Market
Microfinance Social Needs
Microentrepreneurs Theory of
Change
“5-6”
Achieved
Micro- Social Capital
Micro- Business
lending Accessibility Business Theory
Goals
facility Enterprise

Expected
“5-6” Micro-lending Utility Theory Business Profit
investors

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 CONCEPTUAL FRAMEWORK

Proclivity

5-6 Wet Market Income and Weaning

Financing Micro- Going from/
Facility entrepreneur Concerns Deterring
Poverty

Perpetuity
Innovative Strategies of
Poverty Alleviation &
Micro Financing and
Capacity Building
Management e.g. the
Conditional Cash Transfer,
Group lending, etc.

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 RESEARCH SIMULACRUM

Qualitative Method Quantitative Method

Proclivity to avail
Struggles in Accessing the 5-6
lending facility to Wean from

the 5-6 credit

Ho 1
facility

Dependent
Variable
Ho 2
Poverty

Perpetuity to avail Poverty

the 5-6 credit
facility Ho 3

Ho 4
Demographic Profile
and Business Profile

Independent Variables
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 HYPOTHESIS OF STUDY

Ho1: There is no relationship between Ho2: There is no relationship

weaning from poverty and between weaning from
winning for proclivity for the poverty and winning in
“5-6” credit facility perpetuity for the “5-6”
credit facility

Ho3: There is no significant difference Ho4: There is no significant

between the demographic profile difference between the
and poverty despite their appetite business profile and poverty
and perpetuity for the “5-6” credit despite their appetite and
facility;
perpetuity for the “5-6”
credit facility;
 THE LOCALE OF
THE STUDY
NAVOTAS CITY

Population :249,463
(PSA,2015)

Area: 10.69 square

kilometers
“City of fish in the
Philippines”

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 PUBLIC WET MARKETS

Agora Wet Market

Tangos Wet Market
Tres Talipapa Wet Market
San Roque Wet Market
 DATA GATHERING PROCEDURE

Navotas Public Markets -> 4

Target Respondents -> 200

Requests the List of Inquires the Market Distributes the survey

Public Wet Markets Administrator about questionnaire to the
from the Navotas City the study Wet Market
Government Entrepreneurs

Step 1 Step 2 Step 3

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 RESULTS AND FINDINGS

The Level of perception in winning for proclivity in 5 – 6 facility.

✓ Respondents strongly agree that no collateral needed,

availability of amounts needed, terms of loan is revocable,
shorter process of loan, and daily loan pay-off were factors of
proclivity in “5-6” facility

✓ They agreed that loyalty to “5-6” financial facilities was also a

factor in choosing “5-6” as their source of fund.

✓ However, they disagree that interest rate in “5-6” facility was

affordable.
 RESULTS AND FINDINGS
The Level of perception in winning perpetuity in “5-6” facility

✓ Respondents strongly agree that perpetual support for “5-6”

lending facility was influenced by provision of basic needs in
consumption and provision of means to send children to
school.

✓ They agree that perpetuity in “5-6” facility help in promotion

of social capital of trust-cooperation – reciprocity, increase in
capital investment, provides family hospitalization, procuring
household appliances, and growth in status of life.

✓ However, the micro-entrepreneurs disagree that “5-6” facility

increase their profitability.
 RESULTS AND FINDINGS
Weaning from poverty and Winning for proclivity for the “5-6” facility

✓ The mean rank of the proclivity items for each gross income group
compares the effect of the different income levels.

✓ The Kruskal-Wallis H test showed that there were statistically

significant differences in scores of terms of loan is revocable (χ2(d.f.
= 4, ρ = 0.045) =9.745) and affordability of interest rate (χ2(d.f. = 4, ρ
= 0.001) =18.593) between the different income level.

✓ The rest of the items for winning for proclivity in 5 – 6 facility were
found insignificant at 5% level.
 RESULTS AND FINDINGS
Weaning from poverty and Winning in perpetuity for the “5-6” facility

✓ The mean rank of the perpetuity scores for each gross income group
compares the effect of the different income levels

✓ The Kruskal-Wallis H test showed that all items between the

different income level were statistically significant differences in
perpetuity scores at 5% level.
 RESULTS AND FINDINGS

Borrowing Money and Length of time in business

✓ Majority of the respondents (N = 124) were frequently borrowing

money, particularly those who were in the business for 10 years
and above (N =40), 1 – 3 years (N = 32), 4 – 6 years (N = 29), and 6
– 9 years (N = 20).

✓ Kruskal-Wallis (H) test showed that there was a statistically

significant difference in score of frequency of borrowing money
between the different category of time in business
 RESULTS AND FINDINGS
Demographic profile of the respondents

✓ The demographic profile of the respondents showed indicated

that most were in their old age, female, graduates of high school
and elementary, married, with 2 – 3 dependents, and receiving
less than PhP10,000 monthly income

✓ a Kruskal-Wallis test showed that there were no significant

differences in age, income, gender and the level of income
received by the micro-entrepreneurs at 5% level

✓ The number of dependents and level of income were not

significant at 5% (χ2(d.f. = 4, ρ = 0.101 > 0.05) = 7.753) implying
that household of micro-entrepreneurs were poor regardless of
the number of dependents.
 RESULTS AND FINDINGS
Business profile of the respondents

✓ Kruskal Wallis showed that 52% of the micro-entrepreneurs, under

the poverty threshold of PhP10,000 were fish vendor, meat
vendor and vegetable-fruit vendor that were renting their stall or
store. They have one helper in each store. Most of the stores were
not registered in the local government. Initial capital and present
capital was below the PhP10,000

✓ The results implied that most of the micro-entrepreneurs were

under the poverty line and in perpetuation of the poverty cycle
(borrow – sell and consume for sustenance).
 FINDINGS ON THE HYPOTHESIS

Ho1: There is no relationship between Ho2: There is no relationship between

weaning from poverty and winning for weaning from poverty and winning in

proclivity for the “5-6” credit facility perpetuity for the “5-6” credit facility

FINDINGS:
FINDINGS:
Ho2 is rejected as to increase in
Ho1 is rejected as to the terms of loan profitability, increase in capital
is revocable and affordability of interest. investment, provides family
However, Ho1 is accepted as to the hospitalization, ability to procure
availability of the amounts needed, no household appliances, provides basic
collateral needed, shorter process of needs consumption, provides
loan, daily loan pay-off and loyalty to “5- education to children, promotes social
6” financial facilities. capital of trust, cooperation and
reciprocity and growth in status of life.
 FINDINGS ON THE HYPOTHESIS
Ho3: There is no significant difference Ho4: There is no significant difference

between the demographic profile and between the business profile and

poverty despite their appetite and poverty despite their appetite and

perpetuity for the “5-6” credit facility perpetuity for the “5-6” credit facility

FINDINGS: FINDINGS:

Ho4 is accepted in the type of

Ho3 is accepted to age, gender, no. of business, rental of location, no. of
dependents and occupation of spouse location rented, no. of worker,
except for educational attainment and civil registration of business, initial capital
status. of business and present capital of
business, nevertheless, rejected as
to the no. of years in the business.
 CONCLUSIONS

The “5-6” financing facility Their access to the 5-6 Lenders interprets
accessed by the wet market lending is a social capital of the
entrepreneurs in Navotas borrower as a hint
maintenance mode
helped them establish in credit worthiness
for them to keep going of the borrower,
business enterprises which
afforded them income in against the challenges the higher the
the short-term and of bearing a family or social capital the
making both-end meet greater the chance
business relationship of being funded.
conditions. on a daily survival basis.

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 RECOMMENDATIONS
1. Revisit and Strengthen the
Government’s Conditional Cash
Transfer and Capacity Building
Management for micro financing
strategy
2. National Government should
provide a sustainable special
program
3. Local Government should formulate
an effective business policy
4. Promotion of more flexible lending
terms and conditions of Formal
Sector
5. Streaming line of the P3 program to
motivate micro-entrepreneurs

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THANK YOU!

TO GOD BE
THE HIGHEST
GLORY!