SDCA Journal of Accountancy

Abstract

Business owners have the skills and knowledge to run their businesses in a successful way without ruining them. One of the greatest challenges business owners face is how to manage debt. Most business owners receive loans and borrow money without knowing areas in which they will be able to gain more funds to complete the payments of the debt. Most businesses fall due to their inability to pay their debt. This study, based on the narrative model, used a phenomenological strategy to first explain the perception of the effect of borrowing money and the challenges business owners face in running their businesses debt-free. The study employed respondents who have experienced struggles in paying their debts and struggles in running a business that has debts. Respondents’ experiences and feedback were analyzed to answer the research questions presented in this study. The methodology utilized includes interviews with sixteen respondents around Bacoor, Cavite. Field notes were also collected during each interview. Data collected from each interview and the researchers’ field notes were compared to identity themes. The themes synthesized from these research results helped answer the questions. This study found that the majority of the business owners who are in debt are small business owners; some of them are in debt because they lack funds to run their businesses, while others are in debt to keep their businesses going. Respondents in this study believed that in order for their businesses to run even though they lack resources, The best option is to borrow or receive a loan from cooperatives. Business owners need more information as to utilizing debt and having a long-lasting business opportunity. Furthermore, they need to know how to manage and eradicate debt in order to have a debt-free business.

Keywords: Challenges; Opportunities; Debt management; Entrepreneurs.