SUCCESS FACTORS AMONG PHILIPPINE

ENTREPRENEURS1

J. Mark Munoz
Tabor School of Business
Millikin University
1184 West Main St., Decatur, IL 62522
Phone (217) 420-6762
Fax (217) 424-6286
E-mail : jmunoz@mail.millikin.edu

Jianwen Liao
Northeastern Illinois University
5500 N. St. Louis Ave.,
Chicago, IL 60625
Phone (773) 442-6136
E-mail : J-Liao@neiu.edu

and

Harold P. Welsch
Department of Management
De Paul University
1. E. Jackson, Chicago, IL 60604
Phone (312) 362-8471
Fax (312) 362-5198
E-mail : hwelsch@wppost.depaul.edu

1
Original paper submitted to the Annual Conference of the United State Association of Small
Business and Entrepreneurship (2005), Indian Wells, California.
 2

ABSTRACT

The challenges that have been brought about by competitive and highly integrated
markets, economic downturn, terrorism, and internal political strife in the Philippines
pose difficulties and risks to entrepreneurs in the centrally located city of Cebu. Still,
amid these threats, the local entrepreneurs have managed to survive. A survey of 113
entrepreneurs from Cebu, Philippines bears out the fact that hard work, the desire for
financial independence and willingness to take risks, among others, have contributed to
their success. Since the typical Philippine entrepreneur is traditionally unwilling to
compromise family ties for business success, the entrepreneurs pursue a strategically thin
line that delineates entrepreneurial success and family harmony as an adaptation
mechanism to a global environment.

INTRODUCTION
Lack of adequate entrepreneurship is often cited as a serious bottleneck in the
development efforts of developing countries. Many developing countries have come to
the realization that entrepreneurship is the engine for economic prosperity and started to
formulate series of policies to stimulate entrepreneurship development. In an earlier
study, McClelland (1961) observed a correlation between desire for achievement and
motivation across different cultures. Subsequently, many entrepreneurship-related studies
in a developing country context have been devoted to topics such as: who are these
entrepreneurs, what motivates them and how business is created, to name just a few.
This paper explores some of the major issues faced by Philippine entrepreneurs.
Filipinos are enterprising individuals who have been engaged in business and commerce
for many centuries. Americans have taught the Filipinos to ask two critical questions:
“does it work?” and “what has he done?” (Andres and Andres, 2001: 13). Jimenez
(2002) underscored the importance of innovation and entrepreneurship among Philippine
business practitioners. Philippine entrepreneurs who have a steady income stream,
continue to explore ways to augment their income. It is not uncommon to see
entrepreneurs owning more than two ventures in the Philippines. They are manifesting
the Filipino’s quest to improve their standard of living. There are bigger dreams that they
want to fulfill and seek to uncover ways to earn more and improve their lot through the
establishment of a business (Sanchez, 2000: 15). An increase of status is also desired.
Recognition and contribution are two main goals of entrepreneurs. The average Filipino
worker would like to be known as a “businessman ” (Damaso, 1982: 103). As of 2000,
there were 820,960 registered business establishments in the Philippines (National
Statistics Office, 2004). Many entrepreneurs have been drawn by the income and the
independence offered by self-employment.
Jimenez (2002) reported an international entrepreneurship research study
conducted by Accenture entailing in-depth interviews with 900 board level executives in
22 countries. The 2001 Accenture study noted that characteristics relating to
entrepreneurial behavior are rather universal, except for certain differences in cultures
and environments prevailing around the world. Though the study included respondents
from several international locations, the Philippines was not included. This study seeks to
uncover potentially distinct attributes of Philippine entrepreneurs.
 3

As the Philippine business environment becomes more globally integrated, and

collaborative engagements with Philippine entrepreneurs loom, an understanding of the
entrepreneurial mindsets of individuals in this emerging nation becomes highly relevant.
Paje (2002) noted that in developing countries such as the Philippines, there are limited
job opportunities in the formal sector of the society, as a result unemployment rates tend
to be high in the countryside and migration of people to the urban centers ensue. As
absorption of the new entrants is limited, these segment of the society are forced to
engage in entrepreneurial activities due to the lack of other options. Morato (2004)
pointed out that 91% of the registered enterprises in the Philippines are considered as
micro enterprises (informal businesses with very few employees), 8% are described as
small (less than 20 employees), while only about 1% are medium (20-99 employees) and
large (100 or more employees). This suggests that home-based, family owned ventures
abound in this emerging nation of 80 million.
In the context of international entrepreneurship, critical questions need to be
asked to better understand this environment. This paper focuses on these questions:
What are the attitudes of the Philippine entrepreneurs toward self-employment? What are
the reasons for the residents’ selection of business over other activities? What is the
likelihood of the entrepreneurs’ involvement in business in the next two years? What are
the Philippine entrepreneurs’ attitudes and beliefs regarding business?

PHILIPINE ENTREPRENEURS
The Philippine entrepreneur’s motivation to engage in business is anchored on an
aspiration not only for oneself but for the family as well. Value is placed on extended
families over that of individuals. Thus, Philippine entrepreneurs want to prosper for the
sake of the family. This concept is strengthened by the belief that the only source of
emotional, economic, and moral support is the family (Andres, and Andres, 2001: 6).
In a study on entrepreneurship in 23 countries including the Philippines, Benz &
Frey (2003) concluded that individuals engaged in self-employment tend to have greater
work satisfaction than employees as a result of the freedom and independence they enjoy.
Individuals are pulled toward entrepreneurship by the prospect of profit, independence,
and a satisfying way of life (Longenecker, Moore and Petty, 1997: 6). Hamilton (2000)
pointed out that entrepreneurs are at times willing to earn lower wages as along as they
are engaged in self-employment. Since entrepreneurial activities entail a level of risk, in
investing resources entrepreneurs directly assume financial risk. In leaving secure jobs,
they risk their careers. The stress and time required in starting and running a business
may place their families at risk.
There exist entrepreneurial attributes within the Philippine culture. In a cross-
cultural study, Hofstede (1991) indicated that the Philippine culture has high power
distance, high masculinity, low uncertainty avoidance. These attributes are identified by
McGrath et al (1992) as traits typically present among entrepreneurs across international
venues. In Hostede’s study, however, Filipinos scored low on individualism. High
individualism typically characterizes entrepreneurs (McGrath et al, 1992). This
collectivist or group-oriented behavior can temper entrepreneurial tendencies.
Yet, the expectation of achievement attracts the enterprising individual.
Achievement is a self-administered reward derived from reaching a challenging goal
 4

(Gibson, Ivancevich, and Donnelly, 1997: 182). Some authors view entrepreneurship as
a matter of attitude. The right attitude converts one’s quickened heart rate and night
sweats into kind of excitement that leads to a successful business (Wolter, 2002: 63).

Sampling
The respondents of this study were 113 randomly selected entrepreneurs in six
major business locations in Cebu, Philippines. The entrepreneurs were asked to complete
the Entrepreneurial Profile Questionnaire, which was used as a data collection instrument
in this study. The Entrepreneurial Profile Questionnaire collected data on the
demographic and business profile of the Philippine entrepreneurs. Data regarding the
entrepreneurs’ attitudes toward business risks incurred in establishing a business, their
reasons for engaging in business, their future business plans, the consequences business
engagement on their lives, personal beliefs and attitudes toward business, and the
problems faced in conjunction with their business ventures.
There was no need for the researcher to translate the questionnaire into the local
dialect. English is used as the language of instruction and business communication in the
Philippines. For this reason, there was a low possibility of ambiguities or fallacies of
intention in the treatment of the data.
Based on the authors’ knowledge, this is the first study that delves into the
entrepreneurial psyche of the Philippine entrepreneur. The area of study, Cebu is the
second largest city in the Philippines, and has posted the largest economic growth in the
country (Cebu Investment Promotions Center, 2004). The city has a population in excess
of 1.5 million, urbanized, and has over 10,000 enterprises in operation (Department of
Trade and Industry-Cebu, 2004).
The study was conducted in coordination with the Cebu Chamber of Commerce
Inc. and a local company, Synergy Tech International. One thousand questionnaires were
opportunistically distributed in business clusters in the districts of Mandaue, Lapu-lapu,
and the Metropolitan Cebu area. Usable completed questionnaires constituted 11.3% of
all forms distributed. The sample, comprising 113 entrepreneurs, were engaged in
trading, professional services, food service, money lending, and poultry farming.

Survey Instrument and Data Collection

The Entrepreneurial Profile Questionnaire (EPQ) was utilized as a data collection
instrument. The EPQ was designed to survey the effect of individual, societal and
environmental factors on entrepreneurship by collecting a combination of demographic
information and extensive detail related to characteristics and orientations. A five-point
Likert scale ranging from “strongly agree” (5) to “strongly disagree” (1) was provided
next to each statement. The EPQ was successfully piloted and validated through a series
of studies in Romania, Turkey, Russia, Poland, the Czech Republic, Hungary, Lithuania,
Estonia, Germany, Venezuela as well as South Africa, Mexico and United States (Gundry
& Welsch, 2001). The previous studies suggest that the measured dimensions determine
entrepreneurial intensity and are reasonably reliable (Welsch, 1998).
Data on the respondents of the study are presented below.
------------------------------------
Tables 1, 2, 3, 4 about here
 5

------------------------------------

RESULTS

Attitudes Toward Business

The Philippine entrepreneurs’ attitudes toward business can be traced to their
cultural orientation. This orientation governs their lives in both the personal and
professional level. An important theme in the life of the typical Filipino is the love for
study and hard work in order to meet ordinary material needs without borrowing (Lynch,
1992: 18). Filipinos in rural locations migrate to larger cities in order to attain economic
security. Andres (1999: 8) highlights the culture’s craving for importance, love, respect,
recognition, dignity, and financial security. In addition, Philippine entrepreneurs prefer
that they own their business rather than pursue a promising career (Table 5). Filipinos
tend to believe that employment limits ones income potential. With entrepreneurship,
income opportunity may increase according to the level of effort exerted in order to
improve the financial situation. Consequently, there is a belief that there is no limit to the
length of time maximum effort is placed to establish their business. Everything is being
done in order to succeed in business, and they are willing to make significant personal
sacrifices to achieve success. As a result, business becomes the central activity in their
lives. Filipinos with entrepreneurial acumen believe that they should be in business for
the welfare of the community. Nagai (2004) alludes to the fact that ideology of
modernization has been internalized in the Philippines, and led to the transformation of
the country’s social vision. It is not surprising that Filipino businessmen group
themselves into “chambers of commerce” in order to engage in socio-civic activities.
This situation is evident among entrepreneurs in Cebu.
Financial independence and achievement are important to the Filipino
entrepreneur. In explaining the mechanism of enterprise creation, Camposano (1992: 9)
expounded that people generally initiate ventures or create enterprises because of
dissatisfaction with the status quo, desire for achievement, independence and autonomy,
and the need to augment income. Other reasons are boredom, job lay-offs, individual
employment, increase in family need, such as when the children of a moderate-income
family need to go to college, or when a parent dies, leaving the spouse with no choice but
support the family (Camposano, 1993: 9).
--------------------------------
Table 5 about here
--------------------------------
Some entrepreneurs begin as employees, but work long enough for them to gain
specialized knowledge and establish their own business. While employed, they develop
new visions, which lead not only to the identification of emerging entrepreneurial
opportunities but also to the creation of holistic plan entailing an economic and financial
direction geared towards releasing themselves from dependency.
 6

Risks and Opportunities

Going into business independently may incur risks, but these risks are deemed
reasonable by the Philippine entrepreneurs, as a wider breadth of opportunities would
likely arise (Table 6).
According to Jimenez (2002), while it may be safe to wait out for a more
favorable economic climate in the Philippines, individuals and firms that dare take the
risk during challenging times are often the ones that manage to survive.
In addition, a combination of non-desirable business responsibilities needs to be
performed by entrepreneurs. These tasks contribute to tension since these activities may
be unstructured. There is no structured guidance for engaging in one’s own independent
business enterprise, and encouragement is often given sparingly (Wolter, 2002: 64). For
this reason, new entrepreneurs may experience adjustment problems and coping pains.
Other risks such as losing one’s position with friends, the prospect of failure, and
the ire of the family does not appear to be a major hurdle. The Philippine family is so
closely knit that the ideals of family solidarity are frequently upheld. When a Filipino,
particularly one from Cebu, is in trouble, he would likely have his family to support him.
As a form of security system, the Filipino has developed the extended family system,
since he cannot turn to the state for protection (Andres, 1999: 7). His relatives by
consanguinity and ceremony forms with him a relationship in which the parties involved
take turns in being a benefactor and beneficiary in a value known as reciprocity
(Hollnsteiner, 1992: 22). Thus, though the risks attendant to entrepreneurship exist, it is
not considered a major obstacle to the Filipino. Instead, opportunities in enterprise
development are positively perceived as an opportunity to achieve social and economic
improvement, leading to a peaceful coexistence with his family.
----------------------------------
Table 6 about here
----------------------------------
Reasons for Engaging in Business
Among 38 reasons to choose from, the Philippine entrepreneurs cited 19 reasons
for engaging in business (Table 7).
-----------------------------
Table 7 about here
-----------------------------
Projected Business Activities
There were eleven (11) indicators that denoted the Philippine entrepreneurs’
ambitions to perform activities for expanding their business interests in the future (Table
8). They aspired to conduct research, add new products or services, acquire new
equipment, expand distribution channels and upgrade their computer systems. Expansion
of the enterprise was an aspiration, since they aimed to sell to a new market. Thus, they
planned to add specialized employees, and projected that they could afford to hire
consultants, since professional advice was deemed necessary. The redesign of layout and
computerization of current operations were other aspirations indicated.
The Philippine entrepreneurs seek not only to diversify their products and
services, but concentrate on a broad range of related products (Poblador, 1998: 32).
While this attitude may be largely anchored on culture, the present business environment
 7

also pushes entrepreneurs towards aggressive diversification. For instance, Jimenez

(2002) quotes William Torres, President of Mosaic Communications Inc, as stating that
the Internet service industry is challenged to offer more value-added services in response
to growing competitive pressures from telecom firms expanding into data services.
Talisayon (2002) points to the fact that new business models and business
paradigms occurring in the Philippines are testing who among the current entrepreneurs
will excel, merely survive, or fall by the sidelines.
----------------------
Table 8 about here
------------------------
Many of the entrepreneurs do not have grandiose plans for the future, but believe
in taking small but steady steps that will eventually lead to “big rewards”. Gradual,
steady, and minor successes with slow but sure activities ensure the growth of the
business (Farber, 2003: 48). This attitude highlights the Filipino’s perseverance and
sense of sacrifice. Eventually, after the Philippine entrepreneur undertakes concrete
measures towards business improvement, a new focus towards an even bigger goal is
developed. There exist an inherent desire to build and create something larger than
oneself or the business. Particularly in the Philippines where people suffer from poverty
and unemployment, entrepreneurs recognize their vital role in keeping the national
economic situation viable by providing jobs and creating wealth (Camposano, 1993: 18).

Benefits Derived from Entrepreneurship

Six significant benefits derived from entrepreneurship were cited by the
respondents (Table 9). These benefits consisted of the improvement of the standard of
living, enjoyment of life, fulfillment of personal goals, creation of jobs, and provision for
financial security.
-------------------------
Table 9 about here
-------------------------
Entrepreneurship is a source of residual income in the Philippines (Go, 2002: 28).
A high income leads to other benefits that the Filipino yearns for. The benefits are varied
for Philippine entrepreneurs, especially in Cebu, a location identified as the melting pot
of residents outside the National Capital Region (vicinity of the country’s capital -
Manila). Improvement of standard of living, the benefit of a vacation, and the fulfillment
of worthwhile goals, such as a good education for children are deemed important. The
Filipino’s optimistic fatalism, often referred to as the “come what may ” attitude provides
the courage to go into untried fields that appear promising. (Andres, 1999: 5).
Lagua (1999) cites that SME’s in the Philippines contribute to the economy as a
result of the following : (1) generation of employment and income growth; (2)
stimulation of entrepreneurship and innovation; (3) expansion and diversification of
markets; (4) urban-rural dispersion and community stability; (5) increase in savings rate
and investment base; (6) alleviation of threats for survival of the poor; and (7) promotion
of pluralist society.

Difficulties Encountered in the Business Start-Up Stage

 8

A number of difficulties originating from various factors confronted Philippine

entrepreneurs in the business start-up stage (Table 10).
The first two difficulties were financial in nature. One pertained to obtaining a
loan as an entry-level financial requirement. Another referred to the cost of securing
rental spaces. Because of a law stipulating a ten percent increase in rental yearly,
security of tenure might be difficult for entrepreneurs with low start-up capital.
-----------------------
Table 10 about here
-----------------------
Financial security is compounded due to the fact that heightened global
integration has resulted to the cost of imported goods being cheaper than several local
commodities. In the Philippines, liberalization of imports could not lower the prices of
local commodities (Hamlin, 2002: 25). Other challenges identified are high construction
costs, lack of employees trained in marketing, lack of sources of technical assistance,
anti-market attitude and behavior, lack of clear regulations, inherent difficulties in the
business start-up process, lack of legal services, lack of international trading information,
unreliable suppliers, and lack of market information.
Paje (2002) observed that while the number of entrepreneurial activities abound,
failures take place as a result of (1) deficiency in skills and certain management
competencies on the part of the entrepreneur, (2) limitations in resources to acquire
valuable technology and knowledge, and (3) lack of the proper integration of know-how
into the organization.
Additionally, family pressures could increase problems as the demand for the
entrepreneur’s time from family members gets added into the equation.
Lagua (1999) pointed out that the SME sector serves as a critical link bridging
potential incongruous strategies existing between growth and equity. It is therefore
important for the government and private sectors to pursue complementary measures in
order to further economic progress. Ferreira (2003) suggests that the Philippine
government can play a proactive role in the development of entrepreneurs and enterprises
through the implementation of three initiatives : (1) create an environment that facilitates
opportunity-seeking, (2) establish transparent and egalitarian parameters that simplifies
opportunity-screening, and (3) develop open and accessible structures that encourages
opportunity-seizing. The government has an important supporting role to play in the
creation of entrepreneur-friendly environment.
Despite facing prospects of imbalance and incompatibilities between the society
and individuals, Philippine entrepreneurs remain steadfast in their business, perennially
on a quest to ride the wave of globalization and staying on course towards small but
notable business success.

CONCLUSION AND DISCUSSION

Many entrepreneurs believe that business in the Philippines is largely influenced
by culture and the values that the people uphold. Spanish and American influences may
have helped shape the Filipinos’ attitudes towards entrepreneurship, since the country has
been a colony of Spain for over 300 years and that of the US for about 50 years.
However, the characteristically Filipino concept that economic and social mobility is an
 9

integral part of life has spurred the entrepreneurial fire of the residents. Furthermore, the
traditional Filipino belief that one needs to be able to fully finance their children’s
education and continually look after the welfare of the family, has been a driving force
towards the appreciation of profit and financial stability brought about by
entrepreneurship.
This analysis is based on conclusions derived from the respondent survey
conducted in 2003. As business and economic environments are in constant flux, it is
possible that certain aspects of the society’s structure have changed. With regard to the
individual structure, it is important to note that though the Philippine entrepreneurs may
have shared views and insights, individuals vary in the extent of their beliefs. The
combination of entrepreneurial attitudes possessed by an individual does not necessarily
reflect that of the culture he or she is associated with.
Nevertheless, it is interesting to note that in the Philippine environment
entrepreneurs have learned to manage and nurture positive entrepreneurial beliefs despite
an unfavorable business and economic environment. In the course of globalization,
entrepreneurs worldwide are faced with several options when responding to emerging
opportunities and threats. Philippine entrepreneurs have chosen to move along and
capitalize on whatever niche they can find. In facing the daunting challenges that prevail
in an emerging environment, they have chosen to continually draw upon a reservoir of
self-motivational factors as an inspiration for business success.
Based on the 2001 Accenture international entrepreneurship study, Jimenez
(2002) highlights key recommendations for entrepreneurial organizations across borders :
(1) Clarify strategy and purpose in the entire organization, (2) Be big, yet small – act
within a global paradigm yet remain nimble, flexible, and quick to respond to arising
opportunities and challenges, (3) Cultivate entrepreneurial attitude and behavior –
through the communication and positive reinforcement that entrepreneurship is valued,
(4) Encourage diversity of structure and thinking – by being open and flexible to the
changing dynamics of the global economy, and (5) Make the best use of knowledge – by
digging deep into organizational structures, technological frameworks, and stakeholder
alliances to fully capitalize on intellectual assets.
A globalized environment paves the way for greater cross-cultural business
interactions. As international enterprises explore opportunities for expanding their
markets or building new competitive advantages in foreign shores, it is relevant to
understand the entrepreneurial mindsets of potential business partners, suppliers,
customers, and employees. An understanding of entrepreneurial predispositions, opens
the gateway to the formulation and implementation of more effective business policies,
systems and structures, developmental strategies, alliance models, and modes of
organizational development. It opens new doors towards the spreading out and the
creation of unified culture on international entrepreneurship. Furthermore, an assessment
of the compatibility of entrepreneurial attitudes between the home country and that of a
new market, or one market with another, helps in the identification of potential areas of
business conflict or synergy creation.
 10

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Table 1
Classification of Respondents According to Gender
(N = 113)

Gender F %
Male 67 59.29
Female 46 40.71
Total 113 100.00

Table 2
Classification of Respondents According to Educational Level
(N = 113)

Educational Level F %
Grammar School 4 3.54
High School 8 7.08
College 83 73.45
Graduate School 18 15.93
Total 113 100.00

Table 3
Classification of Respondents According to Age
(N = 113)

Age Range F %
Below 25 years 49 35.40
26-30 years 9 7.96
31-35 years 25 22.13
36-40 years 26 23.01
41-45 years 4 3.54
Over 45 9 7.96
Total 113 100.00

Table 4
Classification of Respondents According to Type of Business
(N = 113)

Type of Business F %
Service organization 4 3.54
Retail (including restaurants) 59 52.21
Finance/Insurance/Real Estate 3 2.65
Transportation 5 4.42
Professional Services 1 0.88
Distribution/Wholesale 15 13.27
Manufacturing 11 9.74
Construction 6 5.32
Others (ie, agriculture, poultry 9 7.96
 13

farming, fishing)
Total 113 100.00

Table 5
Philippine Entrepreneurs’ Attitudes Toward Business

Attitude Indicators Mean

I would rather own my own business than pursue another
promising career. 4.18
There is no limit as to how long I would give a maximum effort
to establish my business. 4.14
I will do whatever it takes to make my business a success.
4.10
I would be willing to make significant personal sacrifices in order
to stay in business. 4.03
My business is the most important activity in my life. 3.80
I would like to make a significant contribution to the community
by developing a successful business. 3.58
I would rather own my own business than a higher salary
employed by someone else. 3.53
I would go to work somewhere else only long enough to make
another attempt to establish my own firm. 3.53
Owning my own business is more important than spending more
time with my family. 3.02
My personal philosophy is to do “whatever it takes” to establish
my own business. 3.27
I plan to eventually sell my business. 1.50

Table 6
Risks Incurred and Opportunities Gained by Philippine Entrepreneurs
When Establishing a Business

Risk Indicators Mean

Attending to a variety of undesirable responsibilities in a
business 3.94
Quality time with my children 2.64
My position in the eyes of my friends 2.61
Willingness to take on additional debt 2.61
Risk of total failure in the business 2.19
Giving up my friends 2.03
Sixty hours of work per week 1.96
Incurring the wrath of my family 1.73
Loss of significant recreation time 1.71
Mortgaging my house 1.67
Loss of time in another profession 1.57
Borrowing my assets 1.50
Conflict with the family 1.39
Lost time with the family 1.38
 14

Use of all my savings 1.26

Break of my marriage 1.03
Opportunity Indicators
Sending my children to a better college/school 4.22
Acquiring additional skills at significant personal expense
3.89
Watching my favorite TV program 3.73
Willing to take on any task in my business 3.41
Attending my favorite sporting event 3.38

Table 7
Philippine Entrepreneurs’ Reasons for Engaging in Business

Reasons Mean
To be able to develop an idea for a product or a business 4.26
To fulfill a desire to have high earnings 4.24
To keep learning 4.17
To take advantage of an opportunity that appeared 4.13
To be my own boss; to work for myself 4.08
To fulfill the need for more money to survive 4.06
To achieve a personal sense of accomplishment 4.02
To increase the status and prestige of the family 3.99
To make a direct contribution to the success of a family 3.99
To have considerable freedom to adopt my own approach to work 3.92
To give myself, my spouse and children security 3.91
To have fun 3.88
To achieve something and get recognition for it 3.86
To be challenged by the problems and opportunities of starting a business
and making it grow 3.84
To become part of a network of entrepreneurs 3.82
To have greater flexibility in my personal and family life 3.82
To refrain from working for an unreasonable boss 3.78
To achieve a higher position for myself in society 3.57
To have influence in my community 3.42
To be respected by friends 3.38
To be able to work with people I choose 3.33
To have the opportunity to lead rather than be led by others 3.32
To control my own time 3.31
To follow the example of a person I admire 3.25
To have an element of variety and adventure in my work 3.12
To make better use of my training or skills 3.11
To be innovative and be in the forefront of technological development 3.00
To be able to work with people I like 2.87
To make use of a time in my life when business made sense 2.74
To contribute to the welfare of the community I live in 2.26
To have access to fringe benefits 2.18
To contribute to the welfare of my ethnic group 2.11
To contribute to the welfare of my relatives 2.03
 15

To work in a desirable location for me and my family 1.73

To continue a family tradition 1.50
To compensate for my frustration in my previous job 1.31
To escape from unsafe working conditions 1.25
To perform the only thing I could do 1.17

Table 8
Philippine Entrepreneurs’ Projected Business Activities

Projected Activities Mean

Researching on new markets 4.03
Adding a new product or service 4.01
Acquiring new equipment 3.99
Expanding distribution channels 3.81
Upgrading computer systems 3.80
Selling to a new market 3.78
Adding specialized employees 3.67
Seeking professional advice 3.57
Redesigning layout 3.44
Computerizing current operations 3.43
Seeking additional financing 3.41
Adding operating space 3.30
Redesigning operating methods 3.18
Expanding current facilities 3.13
Replacing present equipment 3.11
Offsite training for employees 3.04
Expanding advertisement and promotion 2.54
Expanding the scope of operating activities 2.38

Table 9
Benefits Derived from Entrepreneurship Identified by Philippine Entrepreneurs

Benefits Mean
Improvement of standard of living 3.95
Enjoyment of life 3.88
Fulfillment of personal goals 3.78
Creation of jobs 3.65
Provision for financial security 3.54
Provision of sufficient income 3.40
Provision for the family of an opportunity to work 3.15
Reinforcement of the feelings of autonomy, freedom 3.03
Creation of the means to express myself 2.83
Creation of an opportunity to serve the community 2.40
Reduction of personal stress 2.36
 16

Table 10
Difficulties Met by Philippine Entrepreneurs in the Start-Up Stage

Difficulties Mean
Obtaining a loan 4.08
Entry level financial requirements 4.07
Number of competitors 4.00
Finding a good location 3.96
Lack of security 3.96
Construction costs 3.93
Lack of employees trained in marketing 3.91
Lack of sources of technical assistance 3.87
Anti-market attitudes and behavior 3.83
Lack of clear regulations 3.81
Beating the entire risk of start-up 3.80
Lack of legal services 3.79
Lack of international trading information 3.78
Unreliable suppliers 3.77
Fatigue from long hours 3.75
Being taken seriously by family members 3.74
Lack of market information 3.73
Bureaucratic red tape 3.65
Lack of guidance and counsel 3.64
Lack of managerial service 3.61
Scheduling business and family activities 3.56
Lack of distribution channels 3.48
Lack of access to capital 3.42
Narrow attitude toward my ethnic groups in business 3.41
Lack of entrepreneurial understanding 3.40
Negative attitude toward profit-making 3.38
Extension of credit from suppliers 3.21
Corruption 3.17
Lack of employees trained I financial affairs 3.16
Lack of family encouragement 2.90
Storage / warehouses 2.89
Finding enough time to spend with children 2.67
Lack of knowledge of relevant information sources 2.50
Government assistance agencies 2.49
Lack of confidence from customers because of my ethnic origin 2.41
Discriminating practices against my ethnic group 1.83
Among women:
Narrow attitude toward women in business
Discriminating practices against women
Lack of confidence in women among the customers