The Effects of TRAIN Law to Selected Variety Stores in Mandaluyong City

Abstract

As the TRAIN Law took effect this year, it made such a huge impact on the business world. The purpose of this research is to know the effects of the change in fiscal policy to MSMEs, specifically to the variety stores. This study used the descriptive method, specifically the normative method to ascertain the common negative effects of TRAIN Law to variety stores in Mandaluyong City. Likert-type scaling technique was used in assessing whether the respondents agree or disagree to the presented practices. Based on the result of the study, the respondents are mostly composed of stores that operates for more than three (3) years with daily sales of five thousand (5,000) and below, having an initial capital of forty thousand and above. The variety of storeowners confirmed that they increased the price of the products they sell, lowered the number of their inventory, agreed to not add a slight mark-up on the sale price, but overall agreed that it is still a good idea to invest in small business like variety stores. A change in fiscal policy may cause a drastic rise in the inflation in the market, negatively influencing customer’s behavior and leading to a passive possible loss. This study gave answer as to the effects of TRAIN Law to selected variety stores in Mandaluyong City. The researcher determined that the variety store owners should review the customer's needs and the strategy in determining the needed inventory level. Also, determine which expenses that can be cut to improve the profitability of the business and to consider refinancing on the products that will surely generate profit.