IDEAS home Printed from https://ideas.repec.org/a/apa/ijbaas/2020p111-120.html
   My bibliography  Save this article

Industry Analysis of Pawnshop in the Philippine

Author

Listed:
  • Isaias Lagsa Borres

    (Our Lady of Fatima University, Valenzuela City, Philippines)

Abstract

Clients come into a pawnshop for three reasons. First they need cash, to obtain a quick loan. The second is to pawn private belonging such as jewelry, gadgets and other valuable items and the last is to buy unredeemed items that are for auction. But, now it has evolved into multi purposes. Pawnshop is now the same as "sari-sari store" that sells variety of products and services. Through the years like investment, pawnshop is likewise diversified into unrelated business strategy like the business of money remittance, money changing, bills payment for collections services, e-load, providing facilities in either sale of micro insurance products to households. Pawnshop is the oldest source of credit. It acquired popularity as an alternative source of credit in the Philippines. This study utilized the mixed method: quantitative and qualitative. A descriptive evaluative research design was applied in fully describing the data obtained from the respondents. To give breadth and depth, triangular method in the instrumentation process-interview, questionnaire and observation was used. To determine its financial performance with regard to its profitability, growth and stability, Financial Ratio analysis was used. However, to assess its attractiveness and competitiveness, Porter's five forces, SWOT and PESTEL analysis were utilized. The study had a total of fifty (50) respondents coming from the different departments of the selected pawnshop companies. Data were compared with samples taken from a base year and compared to any data that manifests itself after the baseline date. The researcher concluded that the current regulations about the rates of interest and the self governing means of repayment behavior or "owned-regulation" s work effectively in this industry and thus promotes awareness for consumer lending that helps develop a fair lending activity toward sustainability; the working poor and the middle-income are the most common customers of the pawnshop in the Philippines; the pawnshop industry in Metro Manila is dominated by females. Where most owners are middle-aged and educated women who generally hire qualified women staff. It can surmise that female make good pawnshop owners.

Suggested Citation

  • Isaias Lagsa Borres, 2020. "Industry Analysis of Pawnshop in the Philippine," International Journal of Business and Administrative Studies, Professor Dr. Bahaudin G. Mujtaba, vol. 6(2), pages 111-120.
  • Handle: RePEc:apa:ijbaas:2020:p:111-120
    DOI: 10.20469/ijbas.6.10005-2
    as

    Download full text from publisher

    File URL: https://kkgpublications.com/business-v6-i2-article-5/
    Download Restriction: no

    File URL: https://kkgpublications.com/wp-content/uploads/2020/05/ijbas.6.10005-2.pdf
    Download Restriction: no

    File URL: https://libkey.io/10.20469/ijbas.6.10005-2?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Caskey, John P, 1991. "Pawnbroking in America: The Economics of a Forgotten Credit Market," Journal of Money, Credit and Banking, Blackwell Publishing, vol. 23(1), pages 85-99, February.
    2. Lamberte, Mario B. & Balbosa, Joven Zamoras, 1988. "Informal Savings and Credit Institutions in the Urban Areas: The Case of Cooperative Credit Unions," Working Papers WP 1988-06, Philippine Institute for Development Studies.
    3. Lamberte, Mario B., 1988. "The Financial Markets in Low-Income Urban Communities: The Case of Sapang Palay," Working Papers WP 1988-05, Philippine Institute for Development Studies.
    4. Ajab Khan Burki, 2017. "Financial crisis and determinants of capital structure of investment banking sector in Pakistan," Journal of Administrative and Business Studies, Professor Dr. Usman Raja, vol. 3(3), pages 154-161.
    5. John P. Caskey & Brian J. Zikmund, 1990. "Pawnshops: the consumer's lender of last resort," Economic Review, Federal Reserve Bank of Kansas City, vol. 75(Mar), pages 5-18.
    6. Abeer Alatrash, 2018. "Impact of Using Total Quality Management on the FinancialPerformance of Companies Listed on the Palestine Exchange," International Journal of Business and Economic Affairs (IJBEA), Sana N. Maswadeh, vol. 3(6), pages 244-252.
    7. Paige Marta Skiba & Jeremy Tobacman, 2019. "Do Payday Loans Cause Bankruptcy?," Journal of Law and Economics, University of Chicago Press, vol. 62(3), pages 485-519.
    8. Galbreath, Jeremy & Galvin, Peter, 2008. "Firm factors, industry structure and performance variation: New empirical evidence to a classic debate," Journal of Business Research, Elsevier, vol. 61(2), pages 109-117, February.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Cacnio, Faith Christian Q., 2001. "Microfinance Approach to Housing: The Community Mortgage Program," Discussion Papers DP 2001-28, Philippine Institute for Development Studies.
    2. Eoin McLaughlin & Rowena Pecchenino, 2022. "Fringe banking and financialization: Pawnbroking in pre‐famine and famine Ireland," Economic History Review, Economic History Society, vol. 75(3), pages 903-931, August.
    3. Fitzpatrick, Katie, 2024. "Non-bank credit and food hardship: The association between payday loans, pawn loans, rent-to-own contracts and food hardship in households with children," Children and Youth Services Review, Elsevier, vol. 157(C).
    4. J. Brandon Bolen & Gregory Elliehausen & Thomas W. Miller, 2020. "Do Consumers Need More Protection From Small‐Dollar Lenders? Historical Evidence And A Roadmap For Future Research," Economic Inquiry, Western Economic Association International, vol. 58(4), pages 1577-1613, October.
    5. Daniel Bjorkegren & Joshua Blumenstock & Omowunmi Folajimi-Senjobi & Jacqueline Mauro & Suraj R. Nair, 2022. "Instant Loans Can Lift Subjective Well-Being: A Randomized Evaluation of Digital Credit in Nigeria," Papers 2202.13540, arXiv.org.
    6. Elango, B. & Pattnaik, Chinmay, 2013. "Response strategies of local firms to import competition in emerging markets," Journal of Business Research, Elsevier, vol. 66(12), pages 2460-2465.
    7. Raza, Syed Ali & Farooq, M. Shoaib & Khan, Nadeem, 2011. "Firm and industry effects on firm profitability: an empirical analysis of KSE," MPRA Paper 36797, University Library of Munich, Germany.
    8. Saeidi, Sayedeh Parastoo & Sofian, Saudah & Saeidi, Parvaneh & Saeidi, Sayyedeh Parisa & Saaeidi, Seyyed Alireza, 2015. "How does corporate social responsibility contribute to firm financial performance? The mediating role of competitive advantage, reputation, and customer satisfaction," Journal of Business Research, Elsevier, vol. 68(2), pages 341-350.
    9. Kartal Demirgunes, 2016. "The Effect of Liquidity on Financial Performance: Evidence from Turkish Retail Industry," International Journal of Economics and Finance, Canadian Center of Science and Education, vol. 8(4), pages 63-79, April.
    10. Robin Prager, 2014. "Determinants of the Locations of Alternative Financial Service Providers," Review of Industrial Organization, Springer;The Industrial Organization Society, vol. 45(1), pages 21-38, August.
    11. Robert Collinson & John Eric Humphries & Nicholas Mader & Davin Reed & Daniel Tannenbaum & Winnie van Dijk, 2024. "Eviction and Poverty in American Cities," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 139(1), pages 57-120.
    12. Asma Zgarni & Gharbi Lamia, 2019. "The Impact of Competition Intensity and Strategic Capabilities on Competitive Strategic Business Choices: The Case of Tunisian Manufacturing Industries," International Review of Management and Marketing, Econjournals, vol. 9(1), pages 144-151.
    13. Degenshein, Anya, 2017. "Degenshein_Strategies of Valuation," OSF Preprints 6ka29, Center for Open Science.
    14. repec:ilo:ilowps:312713 is not listed on IDEAS
    15. Jeremy Galbreath, 2016. "When do Board and Management Resources Complement Each Other? A Study of Effects on Corporate Social Responsibility," Journal of Business Ethics, Springer, vol. 136(2), pages 281-292, June.
    16. Tarun Kumar Soni & Akshita Arora & Thi Le, 2022. "Firm-Specific Determinants of Firm Performance in the Hospitality Sector in India," Sustainability, MDPI, vol. 15(1), pages 1-16, December.
    17. Francisco Gomes & Michael Haliassos & Tarun Ramadorai, 2021. "Household Finance," Journal of Economic Literature, American Economic Association, vol. 59(3), pages 919-1000, September.
    18. Khaled Alsaifi & Marwa Elnahass & Aly Salama, 2020. "Carbon disclosure and financial performance: UK environmental policy," Business Strategy and the Environment, Wiley Blackwell, vol. 29(2), pages 711-726, February.
    19. Viktar Fedaseyeu, 2012. "Debt Collection Agencies and the Supply of Consumer Credit," Working Papers 442, IGIER (Innocenzo Gasparini Institute for Economic Research), Bocconi University.
    20. Dawid Szutowski, 2024. "The impact of sectoral and macroeconomic variables on company profitability in the energy sector. Analysis using neural networks," Bank i Kredyt, Narodowy Bank Polski, vol. 55(3), pages 357-380.
    21. Kankam-Kwarteng, Collins & Osman, Barbara & Acheampong, Stephen, 2020. "Performance of restaurants: Recognizing competitive intensity and differentiation strategies," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 6(3), pages 25-34.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:apa:ijbaas:2020:p:111-120. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Professor Dr. Bahaudin G. Mujtaba (email available below). General contact details of provider: https://kkgpublications.com/business/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.