Abstract: Micro, Small and Medium Enterprises (MSMEs) had been a major source of employment. However, medium and large enterprises have gradually mushroomed in the market. This study was conducted to determine the effects of the establishment of a hypermarket on the micro enterprises of Isabel, Leyte, Philippines. The study used the descriptive survey method supplemented by documentary inspection, viz.: financial statements of microenterprises. The respondents were store owners and managers. The comparative performance data of the micro enterprises before and after the establishment of the hypermarket revealed a decreasing trend on the following key indicators: sales, profit and customers. It was also discovered that virtually no effort has been exerted by the management to reverse the decreasing trend. Micro enterprises also have no participation in business networks and have not availed of government support services. The study concluded that establishment of a hypermarket has unfavorable effects on the micro enterprises. It is recommended that: 1) micro enterprises organize themselves into a business group to share and hone innovative ideas, 2) avail of government support available in the locality and 3) explore the viability of business combinations such as retailer’s cooperative, thus pooling the micro enterprises’ meager resources and making them more competitive.
Keywords: Business, small business management, descriptive survey method, business performance, micro enterprises, hypermarkets, Philippines.
Title: Impact of the Establishment of a Hypermarket on Micro Enterprises of Isabel, Leyte, Philippines
Author: Marjonnel B. Abella
International Journal of Management and Commerce Innovations
ISSN 2348-7585 (Online)
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