Helping Sari-Sari Stores and Improving the Philippine Economy

Introduction

The arising issues pertaining to sari-sari stores can jeopardize the success of the storeowner's business. By addressing the concerns and giving potential solutions, we may be able to help storeowners in properly managing their business and make their microeconomic units flourish.

Sari-Sari Stores Going Out of Business?

Sari-sari stores may go out of business due to the increasing price of commodities caused by inflation. Inflation influences the prices of goods and services, hence affecting what sellers choose to provide for their customers in order to fulfill their wants and needs.

Because of the rising prices of commodities, customer consumption on these goods and services are cut short. These situations can decrease the income of sari-sari stores and further motivate the decision of closing down their businesses.

Other Factors Affecting the Shutdown of Sari-Sari Stores

• The success of a sari-sari store can be determined by looking at the personnel running it.
• A lack of store and money management skills can hinder the sari-sari store from succeeding due to the several distractions that may be placed in the store which personnel can indulge in (televisions, internet, etc.
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  ) hence hindering them from maintaining a productive workflow.

• Credit also plays a role in the shutdown of sari-sari stores. Many businesses are closed due to unpaid debts and at times, when credit is taken advantage of.

Sari-Sari Stores Versus the Bigger Market

Supermarkets and convenience stores have been around for a long period of time. As sari-sari stores gradually continue to shut down due to the popular demands of these larger markets, how can sari-sari stores keep up with the competition?

Credit in Sari-Sari Stores?

Unpaid debts left by consumers can affect the daily profits of sari-sari storeowners and tarnish their incomes and opportunities to support their families.

There are even times wherein these debts are fully neglected as storeowners do not want to habitually ask their customers to pay for their debts while taking the risk of losing them (as customers of their firms). How can credit benefit both the consumer and the provider?

Manufacturers and companies should give sari-sari storeowners discounts when purchasing goods for their establishments (Desiderio, 2018). Sari-sari stores should incorporate other forms of income to their establishments to increase demand, foot traffic, and the income of storeowners (e.g. Food stalls, carinderia). Seminars should be fostered by the government to help small entrepreneurs start their own sari-sari stores and learn how to properly manage it. These seminars will also cater to the personal of sari-sari stores to help them improve their financial and business management skills. FMCG companies should use sari-sari stores as a platform to promote their goods and increase the demand for their products through advertising, and other programs (Fernando, 2019). Credit cards for sari-sari stores can promote the building of trust between the owner and consumer through instances such as paying on time (Fernando, 2019).

Conclusion

• Promotes competitiveness in the market, hence the continuous purchase of goods and services of the consumer and provider.
• People running and working in these establishments are able to maximize their productivity, earn more income for the amount of work that they do, and provide for their families.
• The chances of sari-sari stores shutting down decreases.
• Sari-sari stores are able to provide more goods and services to their consumers.
• A strong synergy and trust is built between the storeowner, personnel, and consumer.