Lhorene Chapter 6

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CHAPTER VI

Socio-Economic Aspect

This chapter discusses the benefits of the proposed business and

how the business affects the economy, employment, environment,

household, and government. It stated also the contribution of the business

to the economy and the relevance of it to the society. This should be

considering by the business in order to attain a positive feedback to the

community. The business should not only be concern about its profit but

also on the effect of it to the people and the condition of the society.

6.1. Effects of the Business to the Society

Society refers to the group of people living together in

organized communities with shared bylaws, traditions and values.

The proposed business will play a part to the society because it will

affect the government and also the household. The business will

give contributions to them that is beneficial on their part.

6.1.1. Effects in the Government

Government is a political system which is in charge of

administering and regulating a specific community or the country

itself. By that, they are concern in all circumstances that affects

the country. One of it is the tourism which can really help in the

growth of our country. Tourism is a major source of income for

many countries. It is advantageous if a lot of people are visiting


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our country because by this, it will have a higher economic

growth. The proposed business can be an additional tourist

attraction in General Santos City, and foreigners and also local

people may urge to visit the place. The business can contribute to

the tourism development of the City.

Moreover, the government needs revenue to defray its

expenses and that is why they impose tax on persons, properties,

and also businesses. The government and also the taxpayers

can benefit on this matter. The Lave Water Spa business is

foreseeable to generate income that could be taxable, which is

subject to Income Tax and Business Tax, which will be remitted

to the Government. Also, the business is required to pay various

Local Taxes and Fees that will be used to support the activities of

the locals for its people.

6.1.2. Effects in the Household

Families and businesses have often been treated as

naturally separate institutions, but in reality they are inextricably

intertwined. Such picture manifest that the institution of the family

have implications for the emergence of new business

opportunities, opportunity recognition, business start-up

decisions, and the resource mobilization process. Thus, this

business is supposed to be an eye-opener to the families to


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create business or support such business through sending labor

force or even entrepreneurs.

6.2. Effects of the Business to the Economy

Economy, as defined by Webster Dictionary, is the process or

system by which goods and services are produced, sold, and bought

in a country or region. Economics also comprises the employment

and states’ market value which will be affected if this proposed

business will be established.

6.2.1. Effects in Employment

The Lave Water Spa provides job opportunities to the

locality which reduces the unemployment rate of the economy.

This implies an increase of job opportunities to the society

wherein they can be part of the manpower of the water spa

business. Through this, unemployment rate of the country will be

reduced.

6.2.2. Effects in the Market Share

The business is a potential player in the Gross Domestic

Product (GDP) and as well as the Gross National Product (GNP)

of the Philippines. GDP is a measurement of all officially

recognized final goods and services produced within a country in

a certain period while GNP is a measure of a country’s economic

performance, or what its citizens produced and whether they


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produced these items within its borders. Since, the business will

provide new opportunities for a good investment; it will surely

increase the said two economic measurements. A good GDP

and GNP signify a good standard of living of a certain country.


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EXECUTIVE SUMMARY

Introduction

The feasibility study of establishing “Lave Water Spa” was

conducted to ascertain the profitability of the business to be established.

“Lave Water Spa” is intended to meet the demand of the generals for a

new kind of relaxing. It is in line with the objectives of knowing the different

processes in establishing the proposed business and the analysis of its

marketing, technical, organizational, financial, and socio-economic

aspects. The study is intended for 15 years up to 59 years old and it is

offered for the Generals. The researcher had centered their research and

interviews to the prospective competitors that exist outside the City of

General Santos. All data were summarized and converted to a more

meaningful and useful information.

Market Aspect

The proposed “Lave Water Spa” business is in service industry that

caters the new techniques and experience of an individual for

entertainment and amusement field. It offers new experience that will take

them to the next level of relaxing. It will be the first one to offer such

experience and will probably be a new attraction to the city .It will operate

for 12 hours from 10:00am to 10:00 pm, 6 days a week. The target market
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of the proposed business is the residents and individuals of General

Santos City that ranges from 15 years old and above.

“Lave Water Spa” will have an estimated market share of 1.31%.

The proposed business will use a direct distribution channel in its service

and distribution. The pricing strategy is based on the surveys and

interviews conducted and the price range of the competitors in the industry

adjusted to come up with a reasonable price.

Technical Aspect

The “Lave Water Spa” will be located Digos Makar Road. The

proposed business will operate for 12 hours for 6 days in a week. The

equipment and machineries are available in the local area.

Organization and Management Aspect

The ownership of “Lave Water Spa” will be in the form of

partnership. It will use line organizational structure. It will offer 6 job

opportunities. The employees will work 12 hours, 6days a week. The

proposed business will have 10 months duration from project feasibility

study to the start of its operation.

Financial Aspect

The total capitalization of “Lave Water Spa” will be Php5,000,000

from 2 partners who will be contributing Php2,500,000 each in the form of


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cash. The projections were taken over for a period of 5 years of its

operation. The project will provide a payback period of 2 years and 5

months.

Socio- Economic Aspect

Lastly, on the socio-economic aspect, the business will benefit the

clients physically, mentally, emotionally, socially and also in spiritual

aspect and to the society through employment opportunities that will

lessen the unemployment rate. The proposed business will also help the

economy in income generation through taxes, permits and licenses

payment.

Conclusions

Based on the above information, it shows that putting up “Lave

Water Spa” in General Santos City is feasible. It expresses that the

proposed business is profitable in the near future and is worth to be

established.
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ACKNOWLEDGEMENT

The researcher would like to dedicate

The researcher of this study dedicates this piece of hard work to the

people behind this output, to her family that she always cherish and love

the most. Their support throughout the journey is such an inspiration that

gives strength and motivation to complete the output and to continue the

course. Their presence and their love for her are very important as face

every opportunity and challenges towards becoming a Accountant.

The researcher also dedicate the study to her close friends for giving

her a hand and a shoulder to lean on when she’s on doubt and supporting

for the accomplishment of this study.

Most of all, the researcher dedicate this study to the Almighty God

the Father in Heaven, the source of her life for without Him, the researcher

would be nothing.
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The Researcher

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