Location and Its Effect on Business Sustainability

Abstract

Location is a major factor influencing the sustainability and success of small businesses, especially in rural areas where infrastructure and economic opportunities are limited. This study examined small grocery stores in Barangay Imbatug, Baungon, Bukidnon, to determine how four location-related factors—customer, competition, transportation efficiency, and cost of resources—affect business sustainability. The purpose of the study is to provide enterprise development in rural communities. A descriptive-correlational research design was used to assess the relationship between location factors and sustainability outcomes. Twenty-eight registered grocery store owners from Zone 4, Barangay Imbatug, participated as respondents. Data were gathered using a validated researcher-made questionnaire that measured perceptions on location factors and three sustainability dimensions: economic sustainability, environmental sustainability, and social responsibility. Statistical tools such as frequency counts, weighted means, standard deviations, and Pearson's r were applied in data analysis. Findings showed that customers received the highest mean score (M=3.56), highlighting its importance in attracting and maintaining customers in rural areas. In contrast, the cost of resources obtained the lowest score (M=3.34), indicating financial challenges common among store owners. Environmental sustainability had the lowest mean (M=3.41), suggesting limited awareness of eco-friendly practices. A very strong positive correlation (r=0.8340) was found between location factors and business sustainability, showing that favourable location characteristics significantly contribute to business viability. The results also indicated that longevity in business does not guarantee sustainability without proper strategic planning. In conclusion, the study confirms that location is a crucial determinant of small success in rural areas such as Barangay Imbatug. Customer accessibility and transportation efficiency contribute greatly to business performance, while environmental practices require further improvement. The study recommends that entrepreneurs conduct community needs assessments and ensure long-term planning to strengthen their sustainability efforts.