Profit Sustainability of Small Scale Business: The Role of Social Influence

Vol.4, No.1

Abstract

The purpose of this study is to determine the sustainable profitability of what way the owner
maintains sales of locally manufactured cosmetics by means of social influence and business
planning in terms of cultural change and financial capital. Also, they effectively adapt the
social influence in terms of individual socialization, social intuition, and interpersonal
communication.

The result of the study reveals that the age of the consumer was 21–25 years old, female, and
usually preferred to buy in a physical store, while the peak day of the week was Saturday. The
weekly profit was 5,000 and below, and the monthly profit was 20,000 and below. Lastly, the
yearly profit of a local business was between 150,000 and 200,000. The description of the
profit sustainability was highly sustainable in terms of cultural change and financial capital.
The effectiveness of social influence in purchasing cosmetics was moderately effective in
terms of individual socialization and very effective in terms of social institution and
interpersonal communication. The most overcome challenge of respondents is the financial
due to unexpected expenses in the company (ex., need a replacement for utensils and
equipment that is effective). There is an action plan that can be proposed for sustaining the
profit of local cosmetics to identify the problem/ result of each weak point of variable overcome
challenges.

This study recommended that the owner should maintain the proper product positioning and
cleanliness of the store by organizing the product, matching the product, or having an edge
over the rivals, should have a great relationship with the customer, and listen to the positive
and negative impact, able to manage their finances, and lastly action plan implemented or
adapt based on the given table.