Influence Of The Factors Of Business Opportunities Among Micro And Small Enterprises In Selected Areas Of Cavite
Keywords:
business opportunities, entrepreneurship, micro and small enterprises
Abstract
Micro and small enterprises provide employment opportunities, offer innovative environments for entrepreneurs to develop new products and services, and help people out of poverty. This study generally aimed to understand the factors of business opportunities that influence micro and small enterprises. The researchers employed descriptive-correlational research design and have used random sampling. This study selected 397 registered micro and small enterprises. Findings revealed that participants were mostly under sole proprietorship, having 1 to 9 employees with an estimated range of asset size of 3,000,000 pesos and operated within 1 to 3 years. Human capital (entrepreneurial knowledge by employees), social capital (communication with family and friends), and financial capital (invested additional funds for business operations) were the factors of business opportunities. Human, social, and financial capital were highly influential factors for business opportunities in micro- and small enterprises. Considerably, there was no significant relationship between the business profile of the participants and the degree of influence of factors of business opportunities, except with the number of employees and social capital. Thus, the researchers recommended that MSEs develop their entrepreneurial knowledge and skills, expand their business networks, and take advantage of financial institutions that offer lower borrowing fees.
References
Abiodun, E. A., & Amos, D. D. (2018). The performance of women entrepreneurs: Human and financial capital. A Research Journal of Social Science and Humanity, 2(1), 30-37. https://www.researchgate.net/publication/325711904_The_Performance_of_Women_Entrepreneurs_Human_and_Financial_Capital
Ali, A., & Yousuf, S. (2019). Social capital and entrepreneurial intention: empirical evidence from rural community of Pakistan. Journal of Global Entrepreneurship Research, 9(1), 1-13. https://doi.org/10.1186/s40497-019-0193-z
Ali, R. S. (2018). Determinants of female entrepreneurs' growth intentions: A case of female-owned small businesses in Ghana's tourism sector. Journal of Small Business and Enterprise Development, 25(3), 387–404. https://doi.org/10.1108/JSBED-02-2017-0057
Ali, S., Li, G., Yang, P., Hussain, K., & Latif, Y. (2020). Unpacking the importance of intangible skills in new product development and sustainable business performance; strategies for marketing managers. PloS One, 15(9), 1-26. https://doi.org/10.1371/journal.pone.0238743
Angeles, I. T. (2022). A qualitative study on the effect of access to finance on the growth motivation of micro-and small enterprise owners in the Philippines. International Journal of Multidisciplinary Research and Growth Evaluation, 3(1), 317–327. https://doi.org/10.54660/anfo.2022.3.1.16
Awartani, F., & Millis, B. (2018). Determinants of growth in micro and small enterprises: Empirical evidence from Jordan. 2018 IEEE 5th International Conference on Data Science and Advanced Analytics (DSAA), 2018, 614-622. https://doi.org/10.1109/DSAA.2018.00079
Banupriya, R., & Venkadesh, D. (2019). A study on financial management practices of micro, small and medium enterprises in Tamilnadu. The International journal of analytical and experimental modal analysis, 11(8), 2513. http://www.ijaema.com/gallery/297- august-2745.pdf
Barbosa, R. (2021). Financial management practices of micro and small enterprises in Tanauan, Leyte, Philippines. TARAN-AWAN Journal of Educational Research and Technology Management, 2(1), 60–69. Retrieved from https://journal.evsu.edu.ph/index.php/tjertm
Blankson, C., Cowan, K., & Darley, W. K. (2018). Marketing practices of rural micro and small businesses in Ghana: The role of public policy. Journal of Macromarketing, 38(1), 29–56. https://doi.org/10.1177/0276146717741067
Ceci, F., Masciarelli, F., & Poledrini, S. (2019). How social capital affects innovation in a cultural network: Exploring the role of bonding and bridging social capital. European Journal of Innovation Management, 23(5), 895-918 https://doi.org/10.1108/EJIM-06-2018-0114
Cofré-Bravo, G., Klerkx, L., & Engler, A. (2019). Combinations of bonding, bridging and linking social capital for farm innovation: How farmers configure different support networks. Journal of Rural Studies, 69, 53-64. https://doi.org/10.1016/j.jrurstud.2019.04.004
Cole, R. A., & Sokolyk, T. (2018). Debt financing, survival, and growth of startup firms. Journal of Corporate Finance, 50, 609-625. https://doi.org/10.1016/j.jcorpfin.2017.10.013
Dagpin, J. C., Escaño, A. R., Mendoza, X. L. D., & Vertuso, J. C. (2022). Microenterprises Shutdown Amidst COVID-19 Pandemic: A Focus on Determinants and Exit Strategies. Asia Pacific Journal of Academic Research in Business Administration, 8(1). DOI: 10.13140/RG.2.2.27056.23047
Dar, I. A., & Mishra, M. (2021). Human capital and SMEs internationalization: Development and validation of a measurement scale. Global Business Review, 22(3), 718–734. https://doi.org/10.1177%2F0972150918817390
Department of Trade and Industry. (2022). 2021 MSME Statistics. Retrieved from https://www.dti.gov.ph/business/msmes/msme-resources/msme-statistics
Department of Trade and Industry. (2021). MSME Laws. Department of Trade and Industry Philippines. https://www.dti.gov.ph/negosyo/msme-resources/msme-laws/
Guevara, Y., & Thiagarajan, S. (2019). Challenges faced by micro and small businesses in Belize. International Journal of Business and Applied Social Science (IJBASS), 5(3), https://doi.org/10.33642/ijbass.v5.n3p1
Hatmawan, A. A. (2020). Analysis of factors affecting SME’s performance with financial capital and network abilities as mediation variables. APMBA (Asia Pacific Management and Business Application), 9(2), 151-166. Retrieved from https://apmba.ub.ac.id/index.php/apmba/article/download/395/294
Jalil, M. F., Ali, A., & Ahmed, Z. (2022). Microfinance services and MSE growth in Pakistan: The mediating perspective of social and psychological capital. Journal of Entrepreneurship, Management, and Innovation, 18(1), 93–130. https://doi.org/10.7341/20221814
Kamal, M. A. (2019). Factors influencing human capital in the ready-made garments industry in Bangladesh. Journal of Social Economics Research, 6(1), 34–49. https://doi.org/10.18488/journal.35.2019.61.34.49
Khan, N. U., Li, S., Safdar, M. N., & Khan, Z. U. (2019). The role of entrepreneurial strategy, network ties, human and financial capital in new venture performance. Journal of Risk and Financial Management, 12(1), 41. https://doi.org/10.3390/jrfm12010041
Lee, B. (2018). Human capital and labor: the effect of entrepreneur characteristics on venture success. International Journal of Entrepreneurial Behavior & Research, 25(1), 29–49. https://doi.org/10.1108/IJEBR-10-2017-0384
Lukiyanto, K., & Wijayaningtyas, M. (2020). Gotong Royong as social capital to overcome micro and small enterprises' capital difficulties. Heliyon, 6(9), e04879. https://doi.org/10.1016/j.heliyon.2020.e04879
Malaluan, A. Q. (2019). Performance of micro and small enterprises in the Philippine Setting. Journal of Economics and Management Sciences, 2(1), 15-15. https://doi.org/10.30560/jems.v2n1p15
Njiraini, P., Gachanja, P. & Omolo, J. Factors influencing micro and small enterprise's decision to innovate in Kenya. Journal of Global Entrepreneurship Research, 8(1), 1–9. https://doi.org/10.1186/s40497-018-0132-4
Nyanamba, S. O. (2019). Influence of capital structure on the financial performance of micro craft enterprises in Kenya (Doctoral dissertation). Retrieved from http://ir.jkuat.ac.ke/bitstream/handle/123456789/5611/Nyanamba%2C%20Steve%20Ondieki%20PhD%20BA%2C%20%202018.pdf?sequence=1&isAllowed=y
Pardalis, G., Mahapatra, K., & Mainali, B. (2020). Swedish construction MSEs: simply renovators or renovation service innovators? Building Research & Information, 48(1), 67-83. https://doi.org/10.1080/09613218.2019.1662713
Prasetyo, P. E., Setyadharma, A., & Kistanti, N. R. (2020). Social capital: The main determinant of MSME entrepreneurship competitiveness. International Journal of Scientific & Technology Research, 9(3), 6627-6637. https://www.researchgate.net/publication/340760550_Social_Capital_The_main_determinant_of_MSME_entrepreneurship_competitiveness
Sebikari, K. V. (2019). Entrepreneurial performance and small business enterprises in Uganda. International Journal of Social Sciences Management and Entrepreneurship (IJSSME), 3(1), 162-171. Retrieved from http://mail.sagepublishers.com/index.php/ijssme/article/viewFile/41/43
Senate Economic Planning Office. (2012). The MSME sector at a glance. http://legacy.senate.gov.ph/publications/AG%20201203%20%20MSME.pdf
Setianto, R. H., Sipayung, R. S., & Azman-Saini, W. N. (2022). Working capital financing and corporate profitability in the ASEAN region: The role of financial development. Entrepreneurial Business and Economics Review, 10(1), 51-64. https://doi.org/10.15678/EBER.2022.100104
Shinozaki, S., & Rao, L. N. (2021). COVID-19 impact on micro, small, and medium-sized enterprises under the lockdown: evidence from a rapid survey in the Philippines. https://dx.doi.org/10.2139/ssrn.3807080
Tambunan, T. (2019). Recent evidence of the development of micro, small and medium enterprises in Indonesia. Journal of Global Entrepreneurship Research, 9(1), 1–15. https://doi.org/10.1186/s40497-018-0140-4
Tjandra, C. K., Murhadi, W. R., & Herlambang, A. (2022). The determinants of working capital management in Indonesia and the Philippines. Jurnal Siasat Bisnis, 26(1), 110-121. https://doi.org/10.20885/jsb.vol26.iss1.art8
Zainol, N. R., Al Mamun, A., Ahmad, G. B., & Simpong, D. B. (2018). Human capital and entrepreneurial competencies towards the performance of informal microenterprises in Kelantan, Malaysia. Economics & Sociology, 11(4), 31. https://doi.org/10.14254/2071-789X.2018/11-4/2
Ali, A., & Yousuf, S. (2019). Social capital and entrepreneurial intention: empirical evidence from rural community of Pakistan. Journal of Global Entrepreneurship Research, 9(1), 1-13. https://doi.org/10.1186/s40497-019-0193-z
Ali, R. S. (2018). Determinants of female entrepreneurs' growth intentions: A case of female-owned small businesses in Ghana's tourism sector. Journal of Small Business and Enterprise Development, 25(3), 387–404. https://doi.org/10.1108/JSBED-02-2017-0057
Ali, S., Li, G., Yang, P., Hussain, K., & Latif, Y. (2020). Unpacking the importance of intangible skills in new product development and sustainable business performance; strategies for marketing managers. PloS One, 15(9), 1-26. https://doi.org/10.1371/journal.pone.0238743
Angeles, I. T. (2022). A qualitative study on the effect of access to finance on the growth motivation of micro-and small enterprise owners in the Philippines. International Journal of Multidisciplinary Research and Growth Evaluation, 3(1), 317–327. https://doi.org/10.54660/anfo.2022.3.1.16
Awartani, F., & Millis, B. (2018). Determinants of growth in micro and small enterprises: Empirical evidence from Jordan. 2018 IEEE 5th International Conference on Data Science and Advanced Analytics (DSAA), 2018, 614-622. https://doi.org/10.1109/DSAA.2018.00079
Banupriya, R., & Venkadesh, D. (2019). A study on financial management practices of micro, small and medium enterprises in Tamilnadu. The International journal of analytical and experimental modal analysis, 11(8), 2513. http://www.ijaema.com/gallery/297- august-2745.pdf
Barbosa, R. (2021). Financial management practices of micro and small enterprises in Tanauan, Leyte, Philippines. TARAN-AWAN Journal of Educational Research and Technology Management, 2(1), 60–69. Retrieved from https://journal.evsu.edu.ph/index.php/tjertm
Blankson, C., Cowan, K., & Darley, W. K. (2018). Marketing practices of rural micro and small businesses in Ghana: The role of public policy. Journal of Macromarketing, 38(1), 29–56. https://doi.org/10.1177/0276146717741067
Ceci, F., Masciarelli, F., & Poledrini, S. (2019). How social capital affects innovation in a cultural network: Exploring the role of bonding and bridging social capital. European Journal of Innovation Management, 23(5), 895-918 https://doi.org/10.1108/EJIM-06-2018-0114
Cofré-Bravo, G., Klerkx, L., & Engler, A. (2019). Combinations of bonding, bridging and linking social capital for farm innovation: How farmers configure different support networks. Journal of Rural Studies, 69, 53-64. https://doi.org/10.1016/j.jrurstud.2019.04.004
Cole, R. A., & Sokolyk, T. (2018). Debt financing, survival, and growth of startup firms. Journal of Corporate Finance, 50, 609-625. https://doi.org/10.1016/j.jcorpfin.2017.10.013
Dagpin, J. C., Escaño, A. R., Mendoza, X. L. D., & Vertuso, J. C. (2022). Microenterprises Shutdown Amidst COVID-19 Pandemic: A Focus on Determinants and Exit Strategies. Asia Pacific Journal of Academic Research in Business Administration, 8(1). DOI: 10.13140/RG.2.2.27056.23047
Dar, I. A., & Mishra, M. (2021). Human capital and SMEs internationalization: Development and validation of a measurement scale. Global Business Review, 22(3), 718–734. https://doi.org/10.1177%2F0972150918817390
Department of Trade and Industry. (2022). 2021 MSME Statistics. Retrieved from https://www.dti.gov.ph/business/msmes/msme-resources/msme-statistics
Department of Trade and Industry. (2021). MSME Laws. Department of Trade and Industry Philippines. https://www.dti.gov.ph/negosyo/msme-resources/msme-laws/
Guevara, Y., & Thiagarajan, S. (2019). Challenges faced by micro and small businesses in Belize. International Journal of Business and Applied Social Science (IJBASS), 5(3), https://doi.org/10.33642/ijbass.v5.n3p1
Hatmawan, A. A. (2020). Analysis of factors affecting SME’s performance with financial capital and network abilities as mediation variables. APMBA (Asia Pacific Management and Business Application), 9(2), 151-166. Retrieved from https://apmba.ub.ac.id/index.php/apmba/article/download/395/294
Jalil, M. F., Ali, A., & Ahmed, Z. (2022). Microfinance services and MSE growth in Pakistan: The mediating perspective of social and psychological capital. Journal of Entrepreneurship, Management, and Innovation, 18(1), 93–130. https://doi.org/10.7341/20221814
Kamal, M. A. (2019). Factors influencing human capital in the ready-made garments industry in Bangladesh. Journal of Social Economics Research, 6(1), 34–49. https://doi.org/10.18488/journal.35.2019.61.34.49
Khan, N. U., Li, S., Safdar, M. N., & Khan, Z. U. (2019). The role of entrepreneurial strategy, network ties, human and financial capital in new venture performance. Journal of Risk and Financial Management, 12(1), 41. https://doi.org/10.3390/jrfm12010041
Lee, B. (2018). Human capital and labor: the effect of entrepreneur characteristics on venture success. International Journal of Entrepreneurial Behavior & Research, 25(1), 29–49. https://doi.org/10.1108/IJEBR-10-2017-0384
Lukiyanto, K., & Wijayaningtyas, M. (2020). Gotong Royong as social capital to overcome micro and small enterprises' capital difficulties. Heliyon, 6(9), e04879. https://doi.org/10.1016/j.heliyon.2020.e04879
Malaluan, A. Q. (2019). Performance of micro and small enterprises in the Philippine Setting. Journal of Economics and Management Sciences, 2(1), 15-15. https://doi.org/10.30560/jems.v2n1p15
Njiraini, P., Gachanja, P. & Omolo, J. Factors influencing micro and small enterprise's decision to innovate in Kenya. Journal of Global Entrepreneurship Research, 8(1), 1–9. https://doi.org/10.1186/s40497-018-0132-4
Nyanamba, S. O. (2019). Influence of capital structure on the financial performance of micro craft enterprises in Kenya (Doctoral dissertation). Retrieved from http://ir.jkuat.ac.ke/bitstream/handle/123456789/5611/Nyanamba%2C%20Steve%20Ondieki%20PhD%20BA%2C%20%202018.pdf?sequence=1&isAllowed=y
Pardalis, G., Mahapatra, K., & Mainali, B. (2020). Swedish construction MSEs: simply renovators or renovation service innovators? Building Research & Information, 48(1), 67-83. https://doi.org/10.1080/09613218.2019.1662713
Prasetyo, P. E., Setyadharma, A., & Kistanti, N. R. (2020). Social capital: The main determinant of MSME entrepreneurship competitiveness. International Journal of Scientific & Technology Research, 9(3), 6627-6637. https://www.researchgate.net/publication/340760550_Social_Capital_The_main_determinant_of_MSME_entrepreneurship_competitiveness
Sebikari, K. V. (2019). Entrepreneurial performance and small business enterprises in Uganda. International Journal of Social Sciences Management and Entrepreneurship (IJSSME), 3(1), 162-171. Retrieved from http://mail.sagepublishers.com/index.php/ijssme/article/viewFile/41/43
Senate Economic Planning Office. (2012). The MSME sector at a glance. http://legacy.senate.gov.ph/publications/AG%20201203%20%20MSME.pdf
Setianto, R. H., Sipayung, R. S., & Azman-Saini, W. N. (2022). Working capital financing and corporate profitability in the ASEAN region: The role of financial development. Entrepreneurial Business and Economics Review, 10(1), 51-64. https://doi.org/10.15678/EBER.2022.100104
Shinozaki, S., & Rao, L. N. (2021). COVID-19 impact on micro, small, and medium-sized enterprises under the lockdown: evidence from a rapid survey in the Philippines. https://dx.doi.org/10.2139/ssrn.3807080
Tambunan, T. (2019). Recent evidence of the development of micro, small and medium enterprises in Indonesia. Journal of Global Entrepreneurship Research, 9(1), 1–15. https://doi.org/10.1186/s40497-018-0140-4
Tjandra, C. K., Murhadi, W. R., & Herlambang, A. (2022). The determinants of working capital management in Indonesia and the Philippines. Jurnal Siasat Bisnis, 26(1), 110-121. https://doi.org/10.20885/jsb.vol26.iss1.art8
Zainol, N. R., Al Mamun, A., Ahmad, G. B., & Simpong, D. B. (2018). Human capital and entrepreneurial competencies towards the performance of informal microenterprises in Kelantan, Malaysia. Economics & Sociology, 11(4), 31. https://doi.org/10.14254/2071-789X.2018/11-4/2
Published
2022-11-26
How to Cite
Mendoza, X. L., Bruno, L. Y., Bryan S. Maglaque, & Jamielyn N. Solis. (2022). Influence Of The Factors Of Business Opportunities Among Micro And Small Enterprises In Selected Areas Of Cavite. Asian Journal of Management, Entrepreneurship and Social Science, 3(01), 136-155. Retrieved from https://ajmesc.com/index.php/ajmesc/article/view/221
.png)
.jpg)
Contact Person +6282139474255
Email : editor.ajmesc@gmail.com
