Chapter 3 METHODOLOGY This chapter provides the method on how the study will proceed.

It elaborates and limits the scope of the study. It discusses the research design, research environment, subjects of the study, research instruments to be used and how will the data be analyzed. Research Design This study is a descriptive comparative, evaluative type which used naturally available records and data of selected microfinance institutions in Nueva Vizcaya more specifically in Solano.The nonfinancial performances of the selected institutions to be studied are that of their 2010, 2011 and 2012 operation. Population of the Study, Sampling Procedure and Size The population of the study is the management and office staff of the 5 Micro Finance in Solano, Nueva Vizcaya. There are 5 management staff and 45 office staff. The sample size is therefore all of the staff of the institutions and the researchers made used of the purposive sampling procedure. Research Environment The microfinance institutions under the study are located in the province of Nueva Vizcaya particularly under the municipality of Solano. The microfinance institutions are involved on lending/credit matters and other financial services. MFI 1 is Rangtay sa Pagrang-ay Incorporated, MFI 2 is Tulay Sa Pag-unlad , MFI 3 is Alalay sa Kaunlaran , MFI 4 Village enterprise Development Foundation Inc.

and MFI 5 is Advance Microfinancing Corp.

Subjects of the Study MFI 1- Rangtay sa Pagrang-ay, Inc. (RSPI), Ilocano for bridge to progress, is a non-stock, non-profit Christian non-government organization with the mission of reaching out to the less privileged and transforming their lives through Christ-centered enterprise, microfinance and community development. RSPI offers loan products for the different needs of a poor family; designs and delivers adult learning and values education programs to develop and instill Christian values in clients and staff alike; and chooses to support enterprise that do not harm the environment. It also has business development services to help clients manage and expand their ventures; and partners with other institutions for its community development programs.

Established in Baguio City on March 1987, it now has twenty-five branches in ten provinces all over Luzon, and around 40,000 clients.

MFI 2 - Tulay sa Pag-unlad, Inc. (TSPI) is microfinance NGO with a mission to provide individuals and communities the opportunities to experience fullness of life through small and microenterprise development. It provides the poor with opportunities to lead self-sufficient, responsible and dignified lives, through a broad range of microfinance services for micro and small enterprise development.

TSPI's business and social development programs promote entrepreneurship skills enhancement, and address basic needs for healthcare, housing, education, micro-insurance and other nonfinancial services that would enhance the opportunities of the poor to get out of poverty.

MFI 3- ASKI, the organization, was born in October 1986 in the year of the EDSA People Power Revolution when social issues like poverty and unemployment were widely felt. A group of business leaders in Nueva Ecija, out of Christian zeal and compassion, joined hands to think of a positive powerful response to the issues and help deliver the economic turnaround microenterprise development. They chose to start small and right at home in Cabanatuan City. With a small capital investment of P460,000 provided by the Maranatha Trust of Australia, the group reached out to the small entrepreneurs, to the street pliers, to the movers of the micro economy that had no access to bigger funding institutions. Challenged by their mission and the efforts of other development NGOs, the founders and managers dug deep and wide on their routes of service. Slowly, the organization grew into what it is today, a byword in the eco-social development in Central Luzon and nearby regions Alalay sa Kaunlaran, a partner in development.

ASKI was officially registered with the Securities and Exchange Commission (SEC) on March 23, 1987 under the name Alalay sa Kaunlaran sa Gitnang Luzon, Incorporated as a non-stock, non-profit organization committed to the promotion and development of micro and small-tomedium enterprises and the delivery of social services.

In 2005, ASKI established three (3) new branches: San Rafael (Bulacan), Santiago (Isabela) & Tuguegarao (Cagayan Valley). In 2006, it opened branches: Tayug, (Pangasinan), Paniqui (Tarlac), Angeles (Pampanga), Solano (Nueva Vizcaya), Urdaneta (Pangasinan), Cauayan

(Isabela) and Roxas (Isabela). A branch located in Plaridel, Bulacan was opened in July 2007 while another branch in Tarlac located in Concepcion was established in May 2008. At February 2012, ASKI had 25 branches.

MFI 4- Village Enterprise Development Foundation the bank sees itself becoming the avenue the yellow path through which the countrysides green resources are transformed into new golden wealth. It aims to be the primary development financial institution in the Philippine countryside. The company is inspired by the vision to be the most progressive, stable and strong private development financial institution in the Philippine countryside. And the company is guided with the missions to make our depositors happy with the value and quality of services they get from Producers Bank, to provide responsive and innovative credit and other services needed by farmers, micro and small to medium entrepreneurs, to assure challenging and rewarding jobs and long-term employment for our employees, to make our stakeholders very proud of our contributions to economic development in the Philippine countryside. MFi 5- Advance Microfinancing Corp. is located at Aratal Street, Brgy. Quirino Solano, Nueva Vizcaya beside its main office namely Advance Credit Corporation. The department started way back 2006. It is presently headed by Mr. Rexon Vinoray. The institution offers services such as loans, insurance, livelihood and capital build-up.

Research Instruments The research instruments used in this study is a self-made questionnaire which consists of parts that are based on the different literature, concepts and related studies along the area of nonfinancial performance. Part I of the is intended to the determine profile of the micro financial

institutions, the second part on the other hand consists of several items that will develop the profile of the profile of the management and office staff of the same subject of the study and part three of the data gathering tool is level of satisfaction and the extent of effectiveness of the nonfinancial performance of the respondents in terms of several criteria. (Please see to the appended questionnaire) Data Analyses and Treatment of Data The data gathered from the respondents management and office staff of the Micro Finance Institutions is presented in several tables as bases for analysis and interpretation. In the interpretation of data, the researcher make used of the Likert four- rating scales to determine the respondents Level of satisfaction and the extent of effectiveness of the non-financial performance of the respondents. The following table shows the distribution of the scales. Qualitative Descriptions Level of Satisfaction Very much satisfied Moderately satisfied Low level of satisfaction Very low level of satisfaction Extent of Effectiveness Effective to a very great extent Effective to a moderate extent Low extent of effectiveness Very low extent of effectiveness Numerical Equivalents 3.5 4 2.6 - 3.5 1.6 - .2.5 .01 -1.5

Frequency distribution and analysis is use to find out in which categories the majority of the respondents profile belonged. A frequency table is one in which possible values for a variable are grouped into class and the number of observed values which fall into each is recorded (Kazmier, 1988). The number of the respondents choice and percentage are displayed

in the table. The mean and standard deviation analysis are used to analyze the level of financial literacy (knowledge) and the level of their application of the financial knowledge. To facilitate the statistical analysis the SPSS (Statistical packages for Social Sciences) are used for the entire research work.