ABSTRACT
BIBLIOGRAPHY
QUE, MARK ANTHONY B. APRIL 2009. Profiling of Enterprises in Selected
Agritourism Destinations in La Trinidad Benguet, Benguet State University, La Trinidad
Benguet.
Adviser: David Joseph L. Bognadon
ABSTRACT
The study was conducted to find out the demographic profile, activities/services
or products offered, who are the major customers, the basis of pricing and sources of
capital, what problems do the entrepreneurs in these selected Agri-tourism destinations
encounter in their operation.
The study was conducted in La Trinidad Benguet from January 2009 to February
2009. A total of 30 entrepreneurs served as the respondents of the study. Survey
questionnaires and interviews were used primarily to gather data. The data was
categorized, tabulated and analyzed through frequency counts and simple averages.
According to the results of the study, most of the respondents are at their middle
age, 36-44 years old, female, majority are married, and had formal education up to
college degree. Majority of the respondents have been in operation from 8 years and
beyond. The most common business is farming. Most of the respondent’s annual income
only goes to below P100, 000.The products they most likely offer are processed products
mainly from strawberries and cut flowers. The services they offer are trading center,

giving nutritional evaluation, trainings and seminars, chemical analysis and OJT to
students.
Majority of the respondents employs both family relatives and outsiders laborers.
Almost half of the respondents say that their major customers are local individual buyers
simply because they are only located here in La Trinidad and tourist only come
seasonally. Majority of them base their prices on the prevailing market price because of
the seasonality of demand. The major source of capital of the respondents comes from
both creditors and their own savings. They borrow mainly from cooperatives and another
source is their relatives.
In terms of production, the two main problems encountered by the entrepreneurs
are the lack of capital and the seasonality of demand for their products. The other
problem that they encounter is the very high cost of input materials. The respondents
encounter many problems in marketing. The main problems are low market price and
demand, theft, and competition with other firms. Due to these problems, financial related
concerns arose with insufficient funds for the succeeding operation.

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TABLE OF CONTENTS
Page
Bibliography………………………………………………………………………… i
Abstract …………………………………………………………..………………… i
Table of Contents ………………………………………….………………..………. iii

INTRODUCTION

Background of the Study ………………………….……………….............. 1

Statement of the Problem …………………………………………………... 3

Objectives of the Study ……………………………………………….......... 4

Importance of the Study ………………………………………………......... 4

Scope and Limitation …………………………………………...………...... 5
REVIEW OF LITERATURE
Agritourism: Definition…………………………………………………….. 6
Demographic Profile of Entrepreneurs …………………………………….. 6
Agritourism Activities in La Trinidad …………………………………...… 7
Major Customers ………………………………………………………...… 8
Problems in Agritoursim …………………………………………………… 8
Agritourism: Factors ……………………………………………...…….….. 9
Agritourism: Supply and Demand ………………………………….....…… 9
Agritourism Destinations in La Trinidad ………………………...…….….. 10
METHODOLOGY

Locale and Time of the Study ………………………………....…………… 11
Respondents of the Study ………………………………….……………….. 11

iii

Data Collection ……………………………………………….…………..... 11
Data to be Gathered …………………………………………….......……… 12
Data Analysis ………………………………………………………..….….. 12
RESULTS AND DISCUSSION

Demographic profile of the respondents …………………………………… 13

Years in Operation and Type of Business …………………………….......... 15
Annual Income …………………………………………………..………… 16
Product and Services Offered by the Entrepreneurs ……………………….. 17
Source of Labor …………………………………………………………….. 19
Major Customers …………………………………………………………… 20
Pricing of Products and Services …………………………………………… 20
Sources of Capital ………………………………………………………….. 21
Problems Encountered by the Entrepreneurs ………………………………. 22
Possible Solutions to Problems …………………………………………….. 24
SUMMARY, CONCLUSIONS AND RECOMMENDATIONS
Summary …………………………………………………………………… 26
Conclusions ………………………………………………………………… 28
Recommendations …………………………………………………………. 29
LITERATURE CITED …………………………………………….…………..….. 31
APPENDIX

A. Letter to Respondents ………………………………………………….. 32

B. Survey Questionnaire …………………………………..……….……… 33


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INTRODUCTION


Background of the Study
Agritourism is simply defined as a type of vacation destination, that the activities
done are related to agriculture (Cachero, 2008).
Agritourism enterprises can be an alternative business to allow farms to diversify
their core operations, add jobs for family members and others, and keep land in
production while preserving scenic vistas, maintaining farming traditions, and educating
non-farmers about the importance of agriculture to a community’s economic base, quality
of life, history and culture. Interest and demand for agricultural products and experiences
by visitors and residents is high while price sensitivity is low, thus creating positive
conditions for business success.
An agritourism enterprise can take many forms including retail sales, hay rides,
corn mazes, pick-your-own operations, and use of woodlands on farms for hunting,
hiking, horseback riding, and other activities. There may be educational components
including programs for schoolchildren and elder hostel tours, as well as exhibits and
demonstrations tailored to specific visitor groups.
Agritourism is a relatively new concept in the United States, but it is gaining in
popularity with farmers and ranchers as a way to make extra money and contribute to the
preservation of their communities and lifestyles. Because agritourism is new, much is left
to be understood about what motivates farmers and ranchers to undertake agritourism
ventures (David Mace, 2005). As stated in the study of David Mace, Factors Affecting
the Motivation of Agritourism Entrepreneurs, he said that economic factors are not the
dominant reasons for operating an agritourism business, agritourism motivation is
Profiling of Enterprises in Selected Agritourism Destinations
in La Trinidad Benguet / Mark Anthony B. Que. 2009


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comprised of a complex set of economic and social variables, and that the balanced social
and economic approach to agritourism shows that farmers and ranchers view this tool
pragmatically.
Many children in the world are spending more and more time indoors using
computers. The average number of hours may range from one to three every day. This is
in addition to the time they spend in front of television and video games. This situation
can place children at increased risk for repetitive stress injuries, eye strain, obesity and
other health hazards due to a sedentary lifestyle. They are also exposed to the harmful
effects of toxic emissions from new computer equipment and electromagnetic radiation
from old video monitors.
This is the reason many children today have no idea of how it feels to be
outdoors, to see animals and plants or simply to be close to nature. Virtual reality has
taken over their perception of what the real world is. Researchers realize now that many
of these children are suffering from what is called nature deficit disorder. This type of
disorder is the cumulative effect of withdrawing nature from children’s experiences.
To reverse this trend and to fulfill many people’s desire for their families to enjoy
the clean unpolluted air of the countryside, many communities worldwide are now going
back to nature by turning into the growing business of agricultural tourism or simply agri-
tourism. After all, new research shows that nature is a powerful therapy for depression,
obesity and other types of illnesses and disorders.
In many countries, agri-tourism evolved as a result of the loss of traditional farm
income due to modern global agricultural economy. Farm owners developed creative
Profiling of Enterprises in Selected Agritourism Destinations
in La Trinidad Benguet / Mark Anthony B. Que. 2009


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ways to educate, entertain and even influence the way people looked at farms and how
they relate to them.
The Philippines has also caught up in the concept of agri-tourism. One successful
project is the Leisure Farms Tagaytay in Lemery, Batangas, designed to entertain and
educate people of various ages on the many benefits of a close communion with nature
through farming (De Jesus, 2007).
In the middle of our fast-paced world, it’s time to turn to nature more and more to
counter the anxiety, stress and tension of everyday life.
This study was conducted to generate necessary data, which would be useful for
potential entrepreneurs, for them to have enough knowledge of the current condition of
the entrepreneurs presently operating in these agritourism destinations.

Statement of the problem:
This study seek to answer the following problems:
1. What is the demographic profile of the entrepreneurs in these Agri-tourism
destinations?
2. What are the activities/services or products offered by the enterprises in these
Agri-tourism destinations?
3. Who are the major customers of the enterprises in these Agri-tourism
destinations?
4. What is the basis of pricing and sources of capital of the enterprises in these
Agri-tourism destinations?
5. What problems do the enterprises encounter in these Agri-tourism destinations
in their operation?
Profiling of Enterprises in Selected Agritourism Destinations
in La Trinidad Benguet / Mark Anthony B. Que. 2009


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Objectives of the Study
The study aimed to:
1. To determine the demographic profile of entrepreneurs in these Agri-tourism
destinations.
2. To determine the activities/services or products offered by the enterprises in
these Agri-tourism destinations.
3. To know who are the major customers of the enterprises in these Agri-tourism
destinations.
4. To know the basis of pricing and sources of capital of the enterprises in these
Agri-tourism destinations.
5. To know what problems do the enterprises in these Agri-tourism destinations
encounter in their operation.

Importance of the Study
Agritourism is a fast growing industry in our country also a good source of
income and employment. Hence, the result of the study could help potential entrepreneurs
to see the benefits that can be obtained from agritourism. It would be a guide to
prospective entrepreneurs in discovering and seeking of a viable business. It also
challenges present agritourism entrepreneurs to improve more on the services and
products they provide to meet the needs of people.
Furthermore, this study would contribute knowledge to future researchers to
further study the said industry.



Profiling of Enterprises in Selected Agritourism Destinations
in La Trinidad Benguet / Mark Anthony B. Que. 2009


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Scope and Limitation of the Study
This study is limited to the profiling of the Enterprises in Selected Agitourism
Destinations in La Trinidad Benguet. It covers the demographic profile of the
entrepreneurs, determination of services/products available, their major buyers and the
problems they encounter.

Profiling of Enterprises in Selected Agritourism Destinations
in La Trinidad Benguet / Mark Anthony B. Que. 2009

REVIEW OF LITERATURE


Agritourism: Definition
According to Mrs. Mariam Cachero, Tourism officer of La Trinidad, agritourism
is simply defined as a type of vacation destination, that the activities done are related to
agriculture.
Agritourism is a style of vacation that normally takes place on a farm. This may
include the chance to help with farming tasks during the visit. Agritourism is often
practiced in wine growing regions in Italy and Spain. In America, Agritourism is wide-
spread and includes any farm open to the public at least part of the year. Tourists can pick
fruits and vegetables, ride horses, taste honey, learn about wine, shop in farm gift shops
and farm stands for local and regional produce or hand-crafted gifts, and much more.
Agritourism is developing into a large part of the tourism industry and will soon
be one of the largest sectors of tourism (Wikipedia, 2008).

Demographic Profile of Entrepreneurs

Various personal demographic variables appear to differentiate successful from
less successful entrepreneurs in Africa, as they do elsewhere (Kallon, 1990; Mead, 1999;
Mead and Liedholm, 1998; Stewart, 1996). Earlier studies found that successful African
entrepreneurs tended to be male, middle-aged, married with a number of children, and
more educated that the general population.
More recent studies have found that female entrepreneurs experience more
operational and strategic impediment to success than their male counterparts
(Rutashobya, 2001). Mead and Liedholm (1998) found that male-owned firms grew
Profiling of Enterprises in Selected Agritourism Destinations
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faster than those owned by women. Yet other recent surveys report higher rates of female
entrepreneurial participation, both as owners and employees (Frese, 2000). For example,
Mead and Liedholm (1998) report female ownership participation rates of 48 percent and
employees of 44 percent. This is particularly the case for the micro and small enterprises
(MSEs), employing very few if any people and generating little or no income for the
owners (Kiggundu, 2002).
The predictive validity of demographic variables tends to be unstable over time,
especially when studied in isolation. This may be partly due to the conceptual and
measurement problems of success as a dependent variable (Van Dijk, 1995), and partly
due to changing societal values and practices. Keyser, de Kruif and Frese (2000) found
no significant differences in success due to age or gender among Zambian SME owners.
As predictors of success or failure, demographic variables should be studies
longitudinally, and in combination with other variables to form clusters, which show up
either as problems or success factors (Dia, 1996; Mead, 1999; Kiggundu, 2002).

Agritourism Activities in La Trinidad
These are several agritourism activities being provided by the municipality of La
Trinidad. This includes:
Strawberry farm. During the summer enjoy strawberry picking at the strawberry
fields.
Rose garden. Have a magnificent view of the Rose Garden of the Philippines.
Master’s garden and Eve’s garden. Have an invigorating view of the natural way
of farming and have a treat of fresh vegetable salad.

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Benguet State University. A must try destination to buy tasty treats made by its
food processing center, and have a nice walk around its eco parks.

Major Customers
The most valuable relationships that you will create are the relationships between
you and your customers, particularly in a small agri-tourism enterprise. Many of the
farmer-customer relationships in agri-tourism rely on personal contact; the direct
marketing relationship nurtures that necessary personal touch. Direct marketing is a way
for you to reach your target customers personally, without using a "middleman."
By reaching your customer directly, you do not have to pay a commission to an
intermediary: you are doing the job yourself. With simple, inexpensive tools like flyers,
brochures, and an Internet website, you can meet and greet potential customers with your
own personal touch (Blacka et al., 2001).

Problems in Agritoursim
Safety & Security. While having visitors to one's farm may be pleasant and
increase farm income, growers must be aware there can be several drawbacks.
Agritourism providers have experienced problems with trash, vandalism, trespassing,
mistreatment of animals, and nuisance complaints. Landowners may also suffer from a
loss of privacy, calls at anytime of day or night, and limited security (theft of their home
or farm equipment).



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Liability. In most cases, a farmer's standard comprehensive personal liability
policy will not cover claims arising from recreational use. This type of policy typically
covers injuries and property damage resulting from farming activities but excludes
coverage for other business pursuits. While farming or agricultural activities may not be
clearly spelled out in the policies, agritourism is more than likely not considered
"farming" by insurers (Anonymous, 2008).
Financial. Analyn as cited by Fajardo (1982) said that the determination of what
business to be put up depends on its financial capacity. Financial capital is essential
resource of the entrepreneurs; this is the lifeblood of the enterprise, and every business
needs money before it was started as well as for the development and growth.
Agritourism: Factors. Johnson as cited by Handayan (2003) said that the most
important factor in tourism industry is the management or supervision of people and
human resources management, which talk about employment and business. Hence
basically it serves the customers by satisfying their needs and expectations, which differ
greatly as a result of their diverse cultural, traditional and religious background.
Agritourism: Supply and Demand. According to Blacka, because the relationship
between our supply of agri-tourism activities and the customers' demand is important, we
should continuously evaluate that relationship. We might find at the beginning of our
agri-tourism project that our supply outweighs the demand (in other words, we do not
have enough customers). However, with a good marketing plan, we will be able to attract
more customers to our farm. The most efficient and effective way of communicating with
our customers is through direct marketing (Blacka et al., 2001).

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Agritourism Destinations in La Trinidad
Strawberry farm. Located at Swamp area, abound in Betag and Puguis.
Rose Garden. Located at Bahong Tomay.
Master’s Garden and Eve’s Garden. Located at Longlong Puguis.
Benguet State University. Located at Km.6 La Trinidad.


METHODOLOGY


Locale and Time of the Study
The study was conducted in the different Agri-tourism destinations in La
Trinidad, specifically at Swamp Area Betag, Long long Puguis, and Bahong.
La Trinidad is a 1st class municipality in the province of Benguet, Philippines. It
is the capital municipality of Benguet. It has a land area of 8079.51 hectares, and a
mountainous topography.
The study was conducted from January 2009 to February 2009.


Respondents of the Study
The respondents of the study were the entrepreneurs who are just currently
located in those Agri-tourism destinations. They may or may have not any link to
agritourism. The respondents will be selected randomly by the researcher with a number
of 30 samples.

Data Collection
A prepared survey questionnaire was used to collect the needed data. The
researcher personally distributed the questionnaires to the respondents. A follow up
interview were done to verify the responses that were not clear to the researcher. An
interview of key informants is also used for further information.





Profiling of Enterprises in Selected Agritourism Destinations
in La Trinidad Benguet / Mark Anthony B. Que. 2009

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Data Gathered
The data gathered includes the demographic profile of entrepreneurs in
agritourism destinations in La Trinidad, activities and products they offer, their major
buyers and financial problems they encounter.

Data Analysis


The data that collected are consolidated, categorized, and tabulated. Descriptive
statistics such as frequency counts and percentages, averages and ranking will be also
used for interpretation.


Profiling of Enterprises in Selected Agritourism Destinations
in La Trinidad Benguet / Mark Anthony B. Que. 2009

RESULTS AND DISCUSSION


Demographic Profile of the respondents
Table 1 presents the personal profile of the respondents according to age, gender,
civil status and educational attainment. In comparison to the review of literature, most of
the respondents are at their middle age, 36-44 years old. This is because they were the
ones who have been in the business for a long time already, from 8-14 years. The
youngest is 20 while 62 the oldest. The respondents are dominantly composed by females
with 80% while males are only at 20%. This may be explained by the fact that males are
meant really for the work itself and not managing it. Majority of them are married and
happy. All of them had formal education some even graduated college.


Table 1. Demographic profile of the respondents
PARTICULARS FREQUENCY PERCENTAGE
Age
18-26 4 13.33
27-35 6 20
36-44 9 30
45-53 7 23.33
54-63 4 13.33
TOTAL 30 100





Profiling of Enterprises in Selected Agritourism Destinations
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Table 1 Continued…
PARTICULARS FREQUENCY PERCENTAGE
Gender
Male 6 20
Female 24 80
TOTAL 30 100
Civil Status
Single 7 23.33
Married 21 70
Separated 1 3.33
Widowed 1 3.33
TOTAL 30 100
Educational Attainment
Elementary 2 6.67
High School 9 30
College Undergraduate 9 30
College Graduate 10 33.33
Vocational Course 0 0
TOTAL 30 100




Profiling of Enterprises in Selected Agritourism Destinations
in La Trinidad Benguet / Mark Anthony B. Que. 2009


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Years in Operation and Type of Business
Majority of the respondents have been in operation from quite a while, from 8
years and beyond, still many just recently started their operation. In Bahong most
entrepreneurs venture in farming, in Strawberry farm in Betag majority of them venture
in a souvenir and dry good store, others also in farming, in BSU a processing center and a
marketing outlet are the particular businesses found, while in Long-long Puguis farming
is the particular business ventured, specifically organic farming.
Topping them in the type of business ventured is farming because this is what
they have been doing since they were born and they are also the ones who succeeded the
business of their family.
For me the researcher, the most promising business that could give high profit is
the farming of organic vegetable because of its high demand. According to one of my
respondents, their supply of organic vegetables is really not sufficient to satisfy the
market demand. Sadly, they cannot do anything because their produce is limited because
of lack of space for farming.


Table 2. Number of years in operation and type of business
YEARS IN OPERATION FREQUENCY PERCENTAGE
1-5 13 43.33
6-10 10 33.33
11- 15 3 10
16 and Above 4 13.33
TOTAL 30 100
Profiling of Enterprises in Selected Agritourism Destinations
in La Trinidad Benguet / Mark Anthony B. Que. 2009


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Table 2. Continued….
TYPE OF BUSINESS FREQUENCY PERCENTAGE
Bahong
Farming 7 23.33
Flower stall 2 6.67
Convenience Store 4 13.33
BSU
Food Processing 1 3.33
Marketing Outlet 1 3.33
Long-long Puguis
Farming 1 3.33
Strawberry farm
Farming 2 6.67
Dry Goods Store 6 20
Souvenir Store 6 20
TOTAL 30 100


Annual Income
Most of the respondent’s annual income only goes to below P100, 000. Some of
the respondents said that they only gain P60, 000 to P80, 000 a year due to very high cost
of input materials and some say lack of government support like providing the farmers
free or just cheaper fertilizers. Unlikely to the organic farmers, they produce their own


Profiling of Enterprises in Selected Agritourism Destinations
in La Trinidad Benguet / Mark Anthony B. Que. 2009


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Table 3. Annual income
PARTICULARS FREQUENCY PERCENTAGE
P100, 000 and below 22 73.33
P100, 000- P150, 000 4 13.33
P150, 000 – P200, 000 0
P200, 000 – P250, 000 0
Above P250, 000 4 13.33
TOTAL 30 100.00

fertilizers and don’t use any chemicals for pesticides, their input material cost come only
in a small amount.

Product and Services Offered by the Entrepreneurs
The respondents offer various and multiple products but not much on services.
Only some of them offer services. The products they most likely offer are processed
products mainly from strawberries and cut flowers. Majority of them produce their own
product which makes them in control of the quality of their product while others just
order from other firms. The services they offer are trading center, giving nutritional
evaluation, trainings and seminars, Chemical analysis and OJT to students.





Profiling of Enterprises in Selected Agritourism Destinations
in La Trinidad Benguet / Mark Anthony B. Que. 2009


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Table 4. Product and services offered
PARTICULARS FREQUENCY PERCENTAGE
Products
Cut flowers/rose 9 30
Grocery items 5 16.67
Organic vegetables 2 6.67
Dry goods 6 20
Processed products 10 33.33
Strawberry 2 6.67
Souvenirs 6 20
Flower arrangement 2 6.67
Services
Trading Center 1 3.33
Nutritional evaluation 1 3.33
Chemical analysis 1 3.33
Trainings and Seminars 1 3.33
OJT 1 3.33
Own Produced Products
Cut flowers/rose 10 33.33
Organic vegetables 2 6.67
Dry goods 3 10
Processed products 4 13.33

Profiling of Enterprises in Selected Agritourism Destinations
in La Trinidad Benguet / Mark Anthony B. Que. 2009


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Source of Labor
Majority of the respondents employ both family relatives and non-relatives
laborers. They do not rely on only one type of labor source so 76.67% or 23 out of the 30
respondents employs family relatives, at the same time 60% or 18 out of 30 respondents
still hires non-relatives workers. Most of the respondents say that they get family labor
simply just to save money for wages but some still give wages. The laborers are paid at a
fixed rate depending on the entrepreneur.


Table 5. Distribution of labor source
TYPE OF LABOR FREQUENCY PERCENTAGE
A. Family labor
Fulltime
1-3 15 50
Part time
1-5 8 26.67
TOTAL 23 76.67
B. Non-family/Hired labor
Full time
1-10 11 36.67
11 20 1 3.33
Part time
1-10 6 20
TOTAL 18 60
Profiling of Enterprises in Selected Agritourism Destinations
in La Trinidad Benguet / Mark Anthony B. Que. 2009


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Major Customers
Almost half of the respondents say that their major customers are local individual
buyers simply because they are only located here in La Trinidad and tourist only come
seasonally. Some export their products to other countries or some sell to other firms in
other places. Tourists are the ones who come from other countries, Local tourist are the
ones who are from our country but not from the locality, and Local individual buyers are
the ones that are from in the locality.

Pricing of Products and Services
According to the respondents majority of them based their prices on the prevailing
market price because of the seasonality of demand. They cannot just make their own
prices because of competition with other firms that’s why entrepreneurs communicate
with each other to come up with a standard price to their products. Although in organic
farming, they say the demand is constant so they can base their price on cost of
production plus profit. For example they usually price 1 kilo of lettuce at P100, but when
there is high demand, customers are willing to pay twice the price they offer.

Table 6. Major customers
PARTICULARS FREQUENCY PERCENTAGE
Tourist 5 16.67
Local tourist 7 23.33
Local individual buyers 14 46.67
Firms 4 13.33
TOTAL 30 100

Profiling of Enterprises in Selected Agritourism Destinations
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Table 7. Pricing of products and services
BASIS OF PRICING FREQUENCY PERCENTAGE
Base on prevailing market price 22 73.33
Competitive pricing 1 3.33
Base on cost of production + profit 7 23.33
TOTAL 30 100

Sources of Capital
The respondents’ source of capital majority comes both from creditors and their
own savings. Only five of them use their own savings to operate their business and nine
borrowed. They borrow mainly from cooperatives and another source is their relatives.


Table 8. Source of capital
SOURCE FREQUENCY PERCENTAGE
Borrowed 9 30
Own saving 5 16.67
Both 16 53.33
TOTAL 30 100





Profiling of Enterprises in Selected Agritourism Destinations
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Problems Encountered by the Entrepreneurs
In terms on production, the two main problems encountered by the entrepreneurs
are the lack of capital and the seasonality of demand for their products. Eighteen or 60%
of them have problems in capital and at the same time 21 or 70% have problems in the
seasonality of demand. The other problem that they encounter is the very high cost of
input materials. With these problems they cannot produce the volume they want when
peak season comes.
The respondents seem to encounter many problems in marketing their products
and services. The main problems are low market price and demand, theft, and
competition with other firms. This means that they do not have control over their
products in terms of marketing them, the market dictates them. With these problems,
income is very low sometimes even none. Other problems are shown in table 9.
As stated in the review of literature, financing is a key factor for the business to
continue operating. Due to problems in marketing their product and services, the common
problem related to it is low income and therefore insufficiency of fund for the succeeding
operation. Other problems also derived form production problems are the hard to afford
input materials like fertilizers and pesticide.






Profiling of Enterprises in Selected Agritourism Destinations
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Table 9. Problems encountered
PROBLEM FREQUENCY PERCENTAGE
. Production
Lack of capital 18 60
Seasonality of demand 21 70
Others (High cost of materials) 5 16.67
(Lack of laborers) 1 3.33
Marketing
Low market price 13 43.33
High competition 7 23.33
Low demand for product 10 33.33
Hard to meet quality required by customers 5 16.67
Theft 7 23.33
Price fluctuations 5 16.67

Finance
Low income for succeeding operation 10 33.33
High loan interest 2 6.67
Lack of creditors 1 3.33
Others (hard to afford input materials) 4 13.33





Profiling of Enterprises in Selected Agritourism Destinations
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Possible Solutions to Problems
The possible solutions to the problems encountered are shown in table 10. These
are also done by the respondents who encountered them in their operation. Eventually,
only few of them do something to solve these problems.
For solutions in production problems, 12 or 40% said that they borrow from
creditors to increase their capital, 1 or 3.33% said to lessen production to minimize
production cost to compensate with the seasonability of demand. Another respondent said
to lessen credit to customers in order to address lack of capital in production. Another
respondent said to have an alternate business, meaning to change his products according
to what is in demand for the present season. Two or 6.67% each said to adjust planting
time and to recycle used materials.
For marketing problems, 4 or 13.33% said to control price by communicating
with competitors for a standard price, and when the demand is low 1 or 3.33% said to
lessen production and another one said she exports her products in other countries. To
meet the quality standards of customers, only 1 or 3.33% said to improve his packaging
material. For theft problems, 2 or 6.67% said they refer to their records to monitor the
outflow of their products and know if something is missing and 1 or 3.33% installed
security cameras to monitor her products.
Only a few entrepreneurs do something for their financial problems, for the high
interest rates, 1 or 3.33% said to look for creditors with lesser interest rates, and another 1
or 3.33% said to include additional products in their product line to generate additional
income.

Profiling of Enterprises in Selected Agritourism Destinations
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Table 10. Possible solutions to problems encountered
POSSIBLE SOULTION FREQUENCY PERCENTAGE
Production
Borrow from lending institutions 12 40
Lessen Production 1 3.33
Lessen credit to customers 1 3.33
to avoid lack of capital

Alternate Business 1 3.33
Adjust planting time 2 6.67
Recycle used materials 2 6.67
Marketing
Adjust planting season 1 3.33
Lessen production 1 3.33
Price control 4 13.33
Improve packaging 1 3.33
Export 1 3.33
Inventorying (bookkeeping) 2 6.67
Use of security devices 1 3.33
Financial
Borrow from coop or other lending 1 3.33
institutions with lesser interest rates

Additional products to generate income 1 3.33


Profiling of Enterprises in Selected Agritourism Destinations
in La Trinidad Benguet / Mark Anthony B. Que. 2009

SUMMARY, CONCLUSIONS AND RECOMMENDATIONS


Summary
This study is a profiling of enterprises in selected agritourism destinations in La
Trinidad. The 30 respondents came from the different agritourism destinations located in
La Trinidad. The survey was conducted through the use of a survey questionnaire with a
follow up interview; to determine the demographic profile of entrepreneurs in these Agri-
tourism destinations; to determine the activities/services or products offered by the
enterprises in these Agri-tourism destinations; to know who are the major customers of
the enterprises in these Agri-tourism destinations; to know the basis of pricing and
sources of capital of the enterprises in these Agri-tourism destinations; to know what
problems do the enterprises in these Agri-tourism destinations encounter in their
operation.
According to the results of the study, most of the respondents are at their middle
age, 36-44 years old, female, majority are married, and had formal education up to
college degree. Majority of the respondents have been in operation from 8 years and
beyond, still many just recently started their operation. The most common business is
farming. Most of the respondent’s annual income only goes to below P100, 000 due to
very high cost of input materials and some say lack of government support. But organic
farming promises high income due to its high demand. The products they most likely
offer are processed products mainly from strawberries and cut flowers. The services they
offer are trading center, giving nutritional evaluation, trainings and seminars, chemical
analysis and OJT to students.
Profiling of Enterprises in Selected Agritourism Destinations
in La Trinidad Benguet / Mark Anthony B. Que. 2009


27
Majority of the respondents hire both family and non family laborers at the same
time. Most of the respondents hire family labor simply just to save money for wages but
some still give wages. The laborers at paid at a fixed rate depending on the entrepreneur.
Almost half of the respondents say that their major customers are local individual buyers
simply because they are only located here in La Trinidad and tourist only come
seasonally. Majority of them base their prices on the prevailing market price because of
the seasonality of demand. Source of capital of respondents’ majority comes both from
borrowing to creditors and their own savings. They borrow mainly from cooperatives and
another source is their relatives.
In terms of production, the two main problems encountered by the enterprises are
the lack of capital and the seasonality of demand for their products. The other problem
that they encounter is the very high cost of input materials. The respondents seemly
encounter many problems in marketing. The main problems are low market price and
demand, theft, and competition with other firms. Due to these problems, the common
problem derived from it for financing the business was the low income and therefore do
not enough funds for the succeeding operation. Other problems also derived form
production problems are those cannot be afford input material like fertilizers and
pesticide.







28
Conclusions
Based on the findings of the study, the following conclusions were derived.
1. Most of the respondents are at their middle age, 36-44 years old, female,
majority are married, and had formal education up to college degree.
2. The products they offer are processed products mainly from strawberries, cut
flowers and souvenirs. The services they offer are trading center, giving nutritional
evaluation, trainings and seminars, chemical analysis and OJT to students.
3. Almost half of the respondents’ major customers are local individual buyers
because they are only located here in La Trinidad and tourist only come seasonally.
4. Majority of them based their prices on the prevailing market price because of
the seasonality of demand. Source of capital of respondents’ majority comes both from
borrowing to creditors and their own savings.
5. The major problems encountered by the respondents, in terms on production
are the lack of capital and the seasonality of demand for their products. The other
problem that they encounter is the very high cost of input materials. In marketing, the
main problems are low market price and demand, theft, and competition with other firms.
The main problem in financing is the low income of the entrepreneurs and insufficiency
of funds for the succeeding operation.







29
Recommendations
1. Since one primary problem of the entrepreneurs is the lack of capital, and what
they do is to borrow money from lending institutions, It is recommended that other
financing institutions that offer lower interest rates be explored as an alternative
2. Since the demand for most of their product is seasonal, is suggest that they
should only concentrate on producing products only on their peak season and have an
alternate business during off season.
3. They should work together as a group and coordinate with government
agencies and seek government support to attract more tourists.
4. All the entrepreneurs should coordinate with each other and make a common
price for their products to minimize competition.
5. Advertisements of our agritourism destinations should be done, for the
entrepreneurs not only rely on local individual buyers as their customers but also other
tourist. This would increase tourists that would come and visit our place.








LITERATURE CITED


AGRITOURSIM WIKIPEDIA. 2008 The free encyclopedia. Retrieved August 11, 2008
from http://en.wikipedia.org/

ANONYMOUS. 2008. Using Tourism to Your Advantage on the Farm - an Income
Opportunity. Transylvania County Center. Retrieved October 6, 2008 from
http://transylvania.ces.ncsu.edu/content/agritourism

BLACKA, A. et al 2001. Virginia Cooperative Extension. Knowledge for the Common
Wealth. Retrieved October 6, 2008 from http://www.ext.vt.edu/pubs/agritour/310-
003/310-003.html#L8

DE JESUS, A. 2007. Inquirer. Agri-tourism. Retrieved September 20, 2008 from
http://globalnation.inquirer.net/philippineexplorer/philippineexplorer/view_article.p
hp?article_id=102696

FAJARDO, F. 1982. An Assessment of the Soft Broom Enterprises in Bagulin, La Union.
BS Thesis. BSU, La Trinidad, Benguet. P.6

MACE, D 2005. Factors Motivating Agritourism Entrepreneurs. Retrieved October 6,
2008 from http://www.agmanager.info/events/risk_profit/2005/Mace.pdf.

HANDAYAN, R I. 2003. An assessment of the Ecotourism Industry La Trinidad
Benguet. BS Thesis. BSU, La Trinidad, Benguet. P. 4.

KIGGUNDU, M. N. 2002. The African Entrepreneur Demographic Characteristics:
Entrepreneurs and entrepreneurship in Africa. Journal of Developmental
Entrepreneurship. Retrieved August 26, 2008 from
http://www.evancarmichael.com/African-Accounts/1652/20-The-African-
Entrepreneur-Demographic-Characteristics-Entrepreneurs-and-entrepreneurship-in-
Africa.html

Profiling of Enterprises in Selected Agritourism Destinations
in La Trinidad Benguet / Mark Anthony B. Que. 2009


32
APPENDIX A

Letter to Respondents

Republic of the Philippines
Benguet State University
College of Agriculture
DEPARTMENT OF AGRICULTURAL ECONOMICS
AND AGRIBUSINESS MANAGEMENT


December 2008

Agritourism entrepreneurs
La Trinidad, Benguet

Sir/Madam:


I am a fourth year student taking up Bachelor of Science in Agribusiness major in
Enterprise Management at Benguet State University. To fulfill my field of study, I am
required to conduct this research titled, “Profiling of Entreprices in Selected Agritourism
Destination in La Trinidad.”


In this connection, may I therefore ask your time, your honesty, and sincerity in
giving the needed information about my study.


Thank you very much! May God bless you all.


Respectfully yours,



MARK ANTHONY B.QUE
Student Researcher



Noted by:



DAVID JOSPEH L. BOGNADON
Thesis Adviser

Profiling of Enterprises in Selected Agritourism Destinations
in La Trinidad Benguet / Mark Anthony B. Que. 2009

33
APPENDIX B

Survey Questionnaire for Respondents
Please fill the blanks with the necessary information and check the choices that
correspond to each statement asked. Kindly answer all questions honestly. This
questionnaire will be treated with confidentiality. Thank you.

I.
General information
1. Name __________________
2. Age ________
3. Civil Status : single ___ married ___ separated ___ widowed ___ others ___
4. Educational Attainment:
Elementary ___ High school ___ College undergraduate ____
College Graduate ___ Vocational Course ___

II. Survey Proper

1. Number of years in operation ________
2. Type of business (ex. Hotel, Store) _____________
3. To what government agency are you registered? _________
4. Annual Income:
P100,000 below ___ P100,000 – P150,000 ___
P150,000 – P200,000 ___ P200,000 – P250,000 ___
Above P250,000 ___
5. Do you own the stall/structure where your business is located? Yes ___ No ___
6. If rented, how much do you pay per month? P_____________



Profiling of Enterprises in Selected Agritourism Destinations
in La Trinidad Benguet / Mark Anthony B. Que. 2009

34

7. What products and services do you offer in your business? Please specify.
Products Services
_____________________ _____________________
_____________________ _____________________
_____________________ _____________________
_____________________ _____________________
_____________________ _____________________
8. Which of these products are produced by you?
____________________
____________________
____________________
____________________
____________________
9. How many workers do you have? Please specify when broken down as:
Family member: ___ (part time) ___ (full time)
Non-family member: ___ (part time) ___ (full time)
10. How much do you pay for your workers? How do you pay them?
Daily rate P_________
Weekly rate P________
Monthly rate P________
Depending on the volume produce P_________
Others (pls. specify) P_________
11. Who are your major customers?
Tourists___ Local tourists___
Local individual buyers___ Firms___
Profiling of Enterprises in Selected Agritourism Destinations
in La Trinidad Benguet / Mark Anthony B. Que. 2009

35

12. Mode of payment of customers?
Cash___ Credit___ Others_________
13. How do you price your product/service?
Base on prevailing market price _____
Competitive pricing _____
Base on cost of production + profit _____
others _____
14. What is the source of your capital?
Borrowed ____ Own saving ____ Both ____

15. If borrowed, from whom do you borrow?

Banks____ Cooperatives _____ Relatives _____ Neighbors _____

16. What problems do you encounter in producing your products/services in your
business? What do you o to overcome them?
Problems Solution
___ lack of capital

___ lack of skilled workers

___ seasonality of demand

___ insufficient supply of materials

___ low quality of product/service

___ others (pls. specify)



Profiling of Enterprises in Selected Agritourism Destinations
in La Trinidad Benguet / Mark Anthony B. Que. 2009

36

17. What problems do you encounter in marketing your products/services? What do you
do to overcome them?
Problems Solution
___ low market price

___ high competition

___ low demand for product

___ hard to meet quality required by

customers
___theft
___ price fluctuations

___ others (pls. specify)


18. What problems do you encounter in financing your business your business? What do
you do to overcome them?
Problems Solution
___ low income for succeeding operation

___ high loan interest

___ lack of creditors

___ others (pls. specify)

19. Do you record your transactions? Yes ____ No ____
20. If no, why?

____ no knowledge in bookkeeping/recording
____ not enough time to do it
____ impractical to hire a bookkeeper
Profiling of Enterprises in Selected Agritourism Destinations
in La Trinidad Benguet / Mark Anthony B. Que. 2009

37

Profiling of Enterprises in Selected Agritourism Destinations
in La Trinidad Benguet / Mark Anthony B. Que. 2009

Document Outline

  • Profiling of Enterprises in SelectedAgritourism Destinations in La Trinidad Benguet
    • BIBLIOGRAPHY
    • ABSTRACT
    • TABLE OF CONTENTS
    • INTRODUCTION
      • Background of the Study
      • Statement of the problem:
      • Objectives of the Study
      • Importance of the Study
      • Scope and Limitation of the Study
    • REVIEW OF LITERATURE
      • Agritourism: Definition
      • Demographic Profile of Entrepreneurs
      • Agritourism Activities in La Trinidad
      • Major Customers
      • Problems in Agritoursim
      • Agritourism Destinations in La Trinidad
    • METHODOLOGY
    • RESULTS AND DISCUSSION
      • Demographic Profile of the respondents
      • Years in Operation and Type of Business
      • Annual Income
      • Product and Services Offered by the Entrepreneurs
      • Source of Labor
      • Major Customers
      • Pricing of Products and Services
      • Sources of Capital
      • Problems Encountered by the Entrepreneurs
      • Possible Solutions to Problems
    • SUMMARY, CONCLUSIONS AND RECOMMENDATIONS
      • Summary
      • Conclusions
      • Recommendations
    • LITERATURE CITED
    • APPENDIX