CHAPTER I

INTRODUCTION

Background

Junk shop is a buy and sell business which is less considered by many

since the traded products are unclean and soiled. But in another view, it is a

lucrative business that generates a lot of money both for garbage collectors and

junk shop owners. Junk shop business is most relevant today considering that

the government has promoted environmental awareness among its citizens,

expressing the need for proper waste disposal and recycling of materials as a

major factor in protecting the environment. (Business Diary Philippines, 2015)

Amy Stanbrough (2013) states that the word junk is almost always a

figurative term- an item that one person considers worthless could be rare and

invaluable to another. Maybe that’s why approximately 15 percent of the

population will step into and shop in a resale shop in a given year, says that

Association of Resale Professionals. Similarly, Ruben Anlacan Jr. (2012) states

that Junk shop may not be glamorous business, but many people have made

millions in this seemingly humble business. In developing countries, a junk shop

is an establishment that buys and sells used items. However, since here in the

Philippines most items that are sold to junk shops are rarely usable, the bulk of

the income comes from scrap trading. Junk shops aren’t exactly the top of mind

when thinking of what type of business to put up. True, it entails getting one’s

hands dirty in the most literal sense possible, but dirt and scrap can actually turn
a profit. Fact is, people dispose of a pretty big amount of junk on a daily basis.

Compound that with the disposal of large items like old vehicles and even

buildings up for demolition. It’s a business that has a good market and enjoys

stable growth. Turning cash- now that is a good motivation. Furthermore, Carlo

S. Lorenciana (2014) states that everyday people produce and throw away tons

of trash out of their houses and other establishments and as the saying goes

“one man’s trash is another man’s treasure”, other people actually rely on these

trash to earn a living. It is deemed as dirty business but junk shop has been

helping garbage collectors and traders themselves to find a good and stable

source of income. These junk shop entrepreneurs are living proofs of another

adage that says “true money is in the trash.

Dr. –Ing. Heino Vest (2003) states that the world is changing day by day,

people no longer prefer reusable materials so the use of disposable materials like

plastics and papers are getting higher. Because of the increase in the number of

disposable materials, the amount of waste being produced from it has also

subsequently increased. Trash to Cash Junk Shop answers the problem in terms

of the solid wastes that can still be use. It also answers to the call of the

government to take actions and solutions toward environmental friendly nation.

Junk shop is the most relevant and appropriate business though its nature

is a small scale industry. This study will be a significant endeavour in promoting

environmental awareness and consciousness among its citizens, expressing the

need for proper waste disposal and recycling materials which are the major

factors in protecting the environment. The study used the quantitative descriptive
method of research which concerned with the questionnaires as an instrument in

conducting a survey to determine if the proposed business is feasible in the

chosen area.

Conceptual Framework

One of the most irresistible problems in the world today is the increase of

solid waste produced due to an increasing population. Vella A. Atienza (2004)

states that the burden of collecting and disposing solid waste is placed on the

power of the municipal government. However, the responsibility given to the local

government is beyond their ability. Many municipalities in the Philippines have

some troubles in complying with the rules and regulations that the government

passed through the Republic Act No. 9003 also known as Ecological Solid Waste

Management Act of 2000. Atty. Rita Linda V. Jimeno (2012) states that some of

the mayors and local government officials told her that the law did not provide

financial and technical assistance and that it sets unrealistic deadlines.

The government cannot solve the solid waste management problem

alone. It needs the assistance and support of the community and with the

presence of the informal sectors to achieve an improved waste management

system in the Philippines.

Partnership Law

Figure 1. Schematic Diagram of the Study

study. The first box shows the demographic profile of the respondents and the

Partnership Law. The middle box shows the Feasibility Analysis. The last box

represents the business plan as the output of the study.

Statement of the Problem

The main purpose of the study is to evaluate the feasibility of the proposed

business named Trash to Cash Junk Shop. Specifically, it sought to answer the

following questions:

1. What is the demographic profile of the respondents in terms of:

1.1 Gender

1.2 Status

1.3 Age

1.4 Income

1.5 Employment

2. To what extent is the demand for the establishment of Trash to Cash

Junkshop in terms of:

2.1 Product

2.2 Price

2.3 Number of purchases

2.4 Purchase method

3. What other aspects should be undertaken to complete the feasibility

process in terms of:

3.2 Technical aspects

3.3 Marketing aspects

3.4 Financial aspects

3.5 Capital requirements and strategy

3.6 Environmental impact assessment

3.7 Socio-economic impact

4. What intervention plan can be designed on the basis of the findings of the

study?

Significance of the Study

The findings of the study are deemed important to the following:

BSBA Students. This study will encourage them to make study before

establishing a business and in order for them to be guided in their

feasibility studies in the future.

Bureau of Internal Revenue. This study will be significant for them as this will

be a source of income for the community of Tandag City if the said

business will be built, through the taxes that will be paid to them.

Community. This study will help them assess and to be aware that there is

money in trash through recycling trashes that can help the community of

Tandag City.
Future Entrepreneurs. This study would serve as a guide on how to handle or

plan a business and on how to make a profitable business from the

trashes that can still be used and recycled to help the community of

Tandag City.

Future Researchers. This study played an important role to the future

researchers. This serves as a guide in the provision of some relevant

information related to their study. This is one of the foundations of more

refined study in order to widen the knowledge of others towards the said

business.

Itinerant waste buyers. This study will encourage them to buy solid wastes that

can be sold to the said business in higher prices if the said business will

be put up in the near future.

Junk Shop owners. This study will be significant for them as they will be the

customers in the near future.

Local Government of Tandag. This study will help them handle the wastes that

the citizen of Tandag City throw from different dump sites through the

collection of the trucks owned by the government of the said city.

Proponents. This will serve as a guide when they choose to put up this kind of

business and also, it help the proponents in determining the feasibility of

the business as this will be of great use if ever it is to be built in the near

future.
Scope and Limitation of the Study

This study is focus in assessing the feasibility of establishing a Junk shop

in Tandag City as one of the sectors involved in the country’s Solid Waste

Management Junkshops are now being recognized for its large contribution in

recycling activities and waste recovery. Trash to Cash Junk shop is a buy and

sell business definitely respondents are the households from five barangay of the

Tandag City the Barangay Mabua, Telaje, Dagocdoc, Bag-ong Lungsod, and

Barangay Bongtod. Its focus is to accentuate what the impacts of Junk shop

business to them. This study is conducted during the 1st and 2nd Semester of

A.Y. 2015- 2016. The length of time is enough to gather the necessary data and

facts that aided the proponents derived their findings, conclusions and as well as

the recommendations.

Definition of Terms

For the purpose of clarification and better understanding of this research

the following terms are defined:

Big Junk shop. This refers to a junk shop which employs workers. Its area is

over 100 square meters and includes parking space. (WACS, 2008)

Informal Sector. This refers to the part of an economy that is characterized by

private, usually small-scale, labor-intensive, largely unregulated, and

unregistered manufacturing or provision of services. (UNEP-IETC, 1996)

buying reusable and recyclable materials. (UNEP-IETC, 1996)

Junk Shop. This refers to a business which buys and sells solid wastes.

(Business Diary Philippines, 2015)

Medium Junk shop. This refers to a junk shop which some use family labor or

paid workers or combination of both. Its area in square meters rangers

from over 50 square meters to 100 square meters. (WACS, 2008)

Scavenger. This refers to a person who searchers through and collects items

from discarded materials. ([Link])

Small Junk shop. This refers to a junk shop which a family labor is used to

operate the said business. Its area occupied by less than 50 square

meters and is usually located in the home lot of the owner. (WACS, 2008)

Solid waste. This refers to any discarded or abandoned materials.

([Link])

Solid waste management. This refers to all the activities pertaining to the

control, transfer and transport, processing, and disposal of solid waste in

accordance with the best principles of public health, conservation and

other environmental considerations. ([Link])

Waste recycling. This refers to the method or process for recovering waste

products as inputs or resources. ([Link])