CHAPTER 1

INTRODUCTION

Background of the Study

All over the world indigenous communities often live in areas that are very rich in

terms of natural resources. Despite this wealth, they are often among the poorest and

most marginalized groups in society. The classical reasons that have been employed to

explain the hurdles for indigenous communities in exploiting local resources to their own

advantage typically focus on the lack of capital, know-how, and access to markets.

Consequently, natural resources located in territories inhabited by indigenous

communities have been often exploited by external factors, such as national governments

and multinational corporations. However, these interventions have not caused significant

positive changes in the indigenous peoples’ socio-economic conditions. (Giovaninni,

2014).

With the given scenarios, Indigenous people themselves have turned to

entrepreneurial activity as a means of improving their condition, that condition, is

generally relative to poverty and disadvantage. The World Bank came up with its Draft

Operational Policy concerning Indigenous peoples with the acknowledgement that

Indigenous peoples are commonly among the poorest and most vulnerable segments of

society.” Confronted with depressing economic statistics concerning their Indigenous

populations, many nations, have been forced to recognize the desperate circumstances
among their Indigenous communities and attempt to address those circumstances.

Indigenous people, along with other poor populations of the world, have become the

target of a wide range of initiatives and programs to assist in economic development, and

prominent among these have been initiatives aimed at fostering entrepreneurship.

The term “Indigenous people” has no universal definition. But most definitions

encompass cultural groups that have a historical continuity with a region before its

colonization and who have lived largely independent or isolated from the influence of the

larger nation-state. ( Frederick & Foley, 2005). But then, according to Hindle and Moros

(2012), Indigenous people are individuals, groups, communities or nations who reside as

disadvantaged minority citizens or non-citizens of a mainstream policy, which, through

the success of physical and cultural invasion, has come to dominate them in lands they

once controlled or who have been displaced by the dominant supremacy from lands they

once controlled.

According to University of Asia and the Pacific’s Center for Research (2014), The

Philippines has some 14 to 17 million Indigenous people who despite legislation that has

tried to secure their ancestral lands continue to be bypassed by development. A big

portion of their ancestral lands are arable, opening windows of opportunity for

agricultural entrepreneurs, leading to increased productivity, income and employment of

our Indigenous Cultural Communities (ICCs) Indigenous peoples (or IPs) remain one of

the most vulnerable sectors in Philippine society. (NA, 2017)

The loss of self-determination denied Indigenous peoples the right over their own

responsibility to manage their own affairs. Thus, stimulating a new sense of self
determination through Indigenous entrepreneurship has been a positive step for some

groups. When it comes to livelihood, the opportunity to run their own business—not

simply be handed dole outs—is vital to marginalized communities looking to rise above

poverty. (Tayao-Juego, 2018).

Indigenous peoples and mainstream governments have come to see entrepreneurship

as a potentially powerful means of redressing the relative disadvantages of Indigenous

people. (Hindle, F. & Moros, P., 2012). Indigenous entrepreneurship is an activity

focused on new venture creation or the pursuit of economic opportunity or both, for the

purpose of diminishing Indigenous disadvantage through culturally viable wealth

creation. Does entrepreneurship have common characteristics that apply to all people,

regardless of their culture or history. Or is there something specific to entrepreneurship

of Indigenous Peoples’ that relates to their cultural, historical and/or geographical

contexts? Is there a common dimension of entrepreneurship between all Indigenous

People, or is it specific to a person or group of peoples in a specific place? (Hernandez,

G., 2012)

Here in the Philippines, the Department of Social Welfare and Development take on

a modified approach anchored on the goals through the Pantawid Pamilyang Pilipino

Program (4Ps) in the hope of strengthening its coverage by targeting the most vulnerable

and disadvantaged groups in the society. It is an approach designed to maximize the

reach of the Modified Conditional Cash Transfer (MCCT) Program for the purpose of

helping families and children in difficult circumstances to overcome their situation and

mainstream them into the regular CCT while generating appropriate resources and

services in the community. In fact, one of the major beneficiaries of this program
includes the Indigenous People (IPs), currently, 12.6% of the beneficiaries are IPs.

( Socio-economic Report, 2017).

Indigenous Peoples (IPs) in Quezon Province are engaged in different

entrepreneurial activities and these are monitored by the social workers under the MCCT

program. Some of these include: Intercropping type of farming as well as cacao’s

organic farming in General Nakar; verm’s composting in Real; fiber glass boat and fish

sonar finder in Mauban; native pig raising, community rice store and another fiber glass

boat in Bordeos, these are all done by the Dumagat group of IPs from those locations. On

the other hand, the following entrepreneurial activities are done by another group of

Indigenous Peoples known as the Aetas: Swinery in Lopez, uraro production in

Buenavista, and the Agrivet community store and uraro production in Catanauan.

Buying and selling of native jewellery are the entrepreneurial activities of most Badjao

IPs in Brgy Barra and Dalahican in Lucena City. Although these IPs in Quezon province

already started their entrepreneurial activities, still some challenges, discrimination and

limitation exists. On the other hand, there is still no concrete study related to the

competencies of the Indigenous entrepreneurs in Quezon Province up to this date. Thus,

it would be appropriate to conduct a study about how these IPs can continuously

strengthen their entrepreneurial activities through determining their entrepreneurial

competencies in order to properly manage their businesses and assured long term

success.

Research Objectives:
 This study aimed to strengthen the entrepreneurial competencies of Indigenous

Peoples’ (IPs) in Quezon Province. Specifically, this sought to attain the following

objectives:

1. Determine the demographic profile of the respondents in terms of:

1.1. Age

1.2. Gender

1.3. Civil status

1.4. Income

1.5. Education

2. Describe the Indigenous Entrepreneurs in Quezon Province in terms of:

2.1. History

2.1. Culture

2.2. Tradition

3. Assess the entrepreneurial competencies of Indigenous entrepreneurs in Quezon

Province in terms of:

3.1. Opportunity competencies

3.2 Relationship competencies

3.3 Conceptual competencies

3.4 Organizing competencies

3.5 Strategic competencies

3.6 Commitment competencies

4. Determine the problems encountered by Indigenous Entrepreneurs in Quezon

Province;
 5. Determine if there is a significant relationship between the background

characteristics of the respondents and their entrepreneurial competencies.

6. Prepare intervention programs of the Indigenous Entrepreneurs in Quezon

Province.

Significance of the Study

This research focuses on the personal entrepreneurial competencies of the

Indigenous entrepreneurs in Quezon Province, at the same time adds value towards

strengthening the different entrepreneurial activities of the IPs based from their location.

Specifically, the study was deemed significant to the following:

Indigenous Entrepreneurs in Quezon Province, being the respondents of this

study, they will become more familiar with their own level of competencies and that will

be their basis for the future growth and continuous development for their entrepreneurial

activities be more successful for long term success.

Department of Social Welfare and Development-Region 4A to whom the

findings of the study will be significant as this can provide them a concrete idea on how

they will be dealing with the different groups of IP entrepreneurs in Quezon Province.

The result of this study can also provide them a bigger picture from the current situation

of the IP entrepreneurs, thus, give them a better idea on how they can continuously

extend the necessary help or aid for the IPs to continuously strengthen their source of

livelihood.
 Local Government Units, the result of this study can be utilized by the different

LGUs where the entrepreneurial activities of the respondents are located, for the creation

of different policies, programs and activities related to IP entrepreneurs and their

communities. This study can also provide them a bigger picture on what specific aid

they can extend to the IP communities.

To the future researchers, It is hoped that this investigation would help future

researchers in finding other variables that would be connected with this research and

thereby help future researchers by providing them with basis for their own studies which

is laid on the background information and data from this study. The output, however, can

be adopted for their future endeavors.

Scope and Limitation of the study

The Indigenous entrepreneurs mentioned in this study were limited only among

the Dumagats, Aetas and Badjao’s in Quezon Province who are those under the care and

monitoring of the Department of Social Welfare and Development under the Pantawid

Pamilyang Pilipino Program (4Ps) through the Modified Conditional Cash Transfer

(MCCT) Program, other groups of Indigenous People engage in different entrepreneurial

activities outside the mentioned scope were not covered by this study.

The variables of this study is limited to the entrepreneurial competencies of

Indigenous entrepreneurs in Quezon Province in terms of : Opportunity, Relationship,

Conceptual, Organizing, Strategic and Commitment competencies.

The sample respondents of this study are limited to the _200_ regular

beneficiaries of the Department of Social Welfare and Development under the Pantawid
Pamilyang Pilipino Program (4Ps) through the Modified Conditional Cash Transfer

(MCCT) Program.

The study was conducted during the first semester (September to January) until

Summer of the Academic year 2020-2021

The researcher encountered some limitations in searching for similar studies due

to the limited number of researches conducted in the Philippines related to IP

entrepreneurship.

Definition of Terms
 Chapter II

Related Literature

This chapter reveals significant readings and relevant information, associated and

pertinent on the different variables which conforms its used in the conduct of this study.

This includes the research paradigm, theories and studies written by experts and hereby

presented.

The Indigenous People Right Act (IPRA 1997) defined Indigenous Peoples as a group of

people or homogenous societies identified by self-ascription and ascription by others,

who have continuously lived as organized community on communally bounded and

defined territory, and who have, under claims of ownership since time immemorial,

occupied, possessed and utilized such territories, sharing common bonds of language,

customs, traditions and other distinctive cultural traits, or who have, through resistance to

political, social and cultural inroads of colonization, non-indigenous religions and

cultures, became historically differentiated from the majority of Filipinos. Moreover,

they shall likewise include peoples who are regarded as indigenous on account of their

descent from the populations which inhabited the country, at the time of conquest or

colonization, or at the time of inroads of non-indigenous religions and cultures, or the

establishment of present state boundaries, who retain some or all of their own social,

economic, cultural and political institutions, but who may have been displaced from their

traditional domains or who may have resettled outside their ancestral domains.

(Tindowen, 2016)

Balilia (2013) defined Indigenous peoples as the descendants of the inhabitants of a

country or a region who are present when people of different ethnic or cultural origins

arrive and later become dominated by more dominant Filipinos who migrated into the

frontier areas in the 20th century.

Indigenous minority ideologies, cultures, and priorities often contrast that of modern

mainstream society, adding further complexity to already challenging human rights and

equity concerns. When Indigenous peoples become a minority population in a modern

society, they often strongly desire to maintain. and impart their distinct social and

economic structures, politics, language, culture, traditional lands, and beliefs to future

generations.

In indigenous societies throughout the world ‘business’ and economic activities are

embedded in cultural and social aspects, creating unique styles of entrepreneurship,

which are often community-orientated, and with diverse livelihood outcomes. The

diversity among indigenous groups across the world is impressive from a cultural,
socioeconomic and structural point of view (United Nations, 2009), but nonetheless

indigenous peoples share some common problems, including discrimination, the

expropriation of land, marginalization and violence, abuse and identity acceptance

(United Nations, 2013). For this reason, the United Nations Permanent Forum on

Indigenous peoples has not adopted a general definition for indigenous peoples,

instead, they consider the issue in terms of identification (United Nations, 2009).

The Aetas

The Aetas belong to the Negrito group, which is one of the six-major ethnographic

groupings in the Philippines2 . As of 1997, there are 56,265 Aetas in the Zambales

Province based on the statistics of the National Commission on Indigenous People

(NCIP). This is 43.4% of the total population (129,516) of Aeta/Agta/AetaAbiyan/Aeta-

Remontado group around the archipelago. The total Aeta population has increased more

than six times while the Aetas of Zambales grew by more or less five times since the

1975 Census. The entire Aeta group comprises one per cent of the 11,778,190 indigenous

people in the country.

Agta and Aeta/Negrito: These short, dark-skinned and kinky-haired peoples are

considered the earliest inhabitants of the Philippines. Aside from having been perpetually

pushed into the hinterlands of Central Luzon, mainly in the provinces of Zambales,

Bataan and Pampanga, and in other parts of the country, they also suffer from racial
discrimination. With a population of about 160,000, they are the most widely distributed

among indigenous peoples.

All Aeta communities have adopted the language of their Austronesian Filipino

neighbors, which have sometimes diverged over time to become different languages.

These include, in order of number of speakers, Mag-indi, Mag-antsi, Abellen, Ambala,

and Mariveleño.

Religion

There are different views on the dominant character of the Aeta religion. Those who

believe they are monotheisticargue that various Aeta tribes believe in a supreme being

who rules over lesser spirits or deities, with the Aeta of Mt. Pinatubo worshipping “Apo

Na”. The Aetas are also animists. For example, the Pinatubo Aeta believe in

environmental spirits such as anito and kamana. They believe that good and evil spirits

inhabit the environment, such as the spirits of the river, sea, sky, mountain, hill, valley

and other places. No special occasion is needed for the Aeta to pray, although there is a

clear link between prayer and economic activities. The Aeta dance before and after

a pig hunt. The night before Aeta women gather shellfish, they perform a dance which is

partly an apology to the fish and partly a charm to ensure the catch. Similarly, the men

hold a bee dance before and after the expeditions for honey.

Clothing

Their traditional clothing is very simple. The young women wear wrap around skirts.

Elder women wear bark cloth, while elder men wear loin cloths. The old women of the

Agta wear a bark cloth strip which passes between the legs, and is attached to a string
around the waist. Today most Aeta who have been in contact with lowlanders have

adopted the T-shirts, pants and rubber sandals commonly used by the latter.

Practices

The Aetas are skillful in weaving and plaiting. Women exclusively weave winnows and

mats. Only men make armlets. They also produce raincoats made of palm leaves whose

bases surround the neck of the wearer, and whose topmost part spreads like a fan all

around the body.

Medicine

Aeta women are known around the country as experts of herbal medicines.

The Aeta are an indigenous people who live in scattered, isolated mountainous parts

of the Philippines. Aetas are considered as the earliest inhabitants of the Philippines,

preceding the Austronesian migrations. They are nomadic and build only temporary

shelters made of sticks driven to the ground and covered with the palm of banana leaves.

The well-situated and more modernized Aetas have moved to villages and areas of

cleared mountains. They live in houses made of bamboo and cogon grass. Aetas are

found in Zambales, Tarlac, Pampanga, Angeles, Olongapo, Panay, Bataan and Nueva

Ecija. But because of the Mount Pinatubo eruption, some of them moved to resettlement

areas in Pampanga and Tarlac.

The Aeta people in the Philippines are Australo-Melanesians. Today other groups of

Australo-Melanesians are the Aborigines in Australia, Papuans and the Melanesians of

the Solomon Islands, Vanuatu, Fiji, New Caledonia etc. The history of the Aeta

continues to confound anthropologists and archaeologists. One theory suggests that the
Aeta are the descendants of the original inhabitants of the Philippines, who, contrary to

their sea-faring Austronesian neighbors, arrived through land bridges that linked the

country with the Asian mainland about 30,000 years ago. Unlike many of their

Austronesian counterparts, the Aetas have shown resistance to change. The attempts of

theSpaniards to settle them in reducciones or reservations all throughout Spanish

rule failed.

Mining, deforestation, illegal logging, and slash-and-burn farming has caused the

indigenous population in all parts of the Philippines to steadily decrease to the point

where they number in the thousands today. The Philippines affords them no protection.

In addition, the Aeta have become extremely nomadic due to social and economic strain

on their culture and way of life that had previously remained unchanged for thousands of

years.

Demographics

The life expectancy at birth of the Aeta is just 16.5 years, with only a third of children

surviving to adulthood at 15 years – at which point life expectancy is still only 27.3

years. Young women reach full adult height (average 140 cm) at age 12 or 13. The most

thorough longitudinal study done of any Aeta group (or any ethnic community) is

available on the Web.

Culture

Language

All Aeta communities have adopted the language of their Austronesian Filipino

neighbors, which have sometimes diverged over time to become different languages.
These include, in order of number of speakers, Mag-indi, Mag-antsi, Abellen, Ambala,

and Mariveleño.

Cultural values of indigenous peoples are often incompatible with the basic assumptions

of mainstream theories, which may be based on different set of cultural values. Dana and

Light (2011) showed that entrepreneurship among the Sámi is different in form and

substance from the commonly accepted mainstream model; Light and Dana (2013)

showed the same for indigenous people in Alaska. This implies that when a person from

an indigenous group starts a business, it may be difficult for people from unlike cultures

to understand fully the causal variables and rational behind attitude toward enterprise.

Dumagats

Based from the study of Del Moro, 2018, The Dumagats are one of the major groups

of indigenous peoples living in the Southern Tagalog. The Dumagats, now

numbering only about 30,000, inhabit the fertile Sierra Madre Ranges on Quezon

province's northern tip. A large throng of this ethnic tribe can be found in the town

of General Nakar, while a few of them can be spotted in three municipalities of

Polillo island. Primarily, the Dumagats depend on farming, kaingin (orchard

farming or slash-and-burn agriculture), paid labor, vending logs and other forest

commodities as livelihood. They rely on fishing, hunting animals, gathering crops

and other natural bounties for survival. Loan dependence (usury) has reduced many

of them to dismal poverty. The government has even allocated more than 47

settlement areas as their home. But the tendency to become wanderers or nomads is
still practiced among Dumagat families and this brings them deep in the Sierra

Madre forest. https://www.bulatlat.com/news/3-34/3-34-dumagat.html)

Dumagats origin is the same with Aeta's in Northern Luzon. Their ancestral origin is

traced from Negrito's which is one of the earliest inhabitants in the Philippines. They

are found in the hillsides and mountains of Quezon, Bulacan, Rizal and Laguna

provinces. The term "Dumagat" is thought to be derived from the word "rumakat",

"lumakat" or  "lumakad" which signifies the migration of early Negritos in

Philippines by walking in land and not by the sea.

They have their own language used among themselves. They did not have wedding

ceremony but a simple conversation only between two parties during a union.

Today, many of them wears the same as the lowlands. Some of them were already

literate after some efforts of governments, missionaries and volunteers in the past.

They stay now in one place and start to cultivate land for multi-cropping. They are

producing native products like rattan in exchange for the goods of lowlanders. Some

of them are working with lowlander's farm. There is also improvement in their

religion, they adopted some belief of Christians for believing in only one God.

(http://noypicollections.blogspot.com/2011/08/dumagat-tribe-in-luzon.html

Badjao

Widely known as the “Sea Gypsies” of the Sulu and Celebes Seas, the Badjao are

scattered along the coastal areas of Tawi Tawi, Sulu, Basilan, and some coastal

municipalities of Zamboanga del Sur in the ARMM. Amongst themselves, they're known
as Sama Laus (Sea Sama) and are found living on houseboats where they make their

livelihood solely on the sea as expert fishermen, deep sea divers, and navigators. They

come to shore to barter their harvests for farmed produce such as fruits and cassava, as

well as, replenish their supplies and/or make repairs to their houseboats. Unique to their

cultural rituals is the concept of life and their relationship to the sea: For example, as a

childbirth ritual, a newly born infant is thrown into the sea and members of the clan dive

to save the newborn. Other traditions such as marriages are prearranged by the parents

for their sons and daughters; the process similar to other ethnic groups, in that, a dowry is

often presented to the parents of the woman a man wishes to marry. And, only the

Badjao leader can consecrate a marriage. Therefore a leader is chosen based on

individual inherent virtues, wisdom, and “charisma”...an inate ability to attract followers.

(https://originalpeople.org/the-aeta-people-indigenous-tribe-of-the-

philippines/

The Concept of Entrepreneurial Competency

An entrepreneur is expected to interact with these environmental forces which

require him to be highly competent in different dimensions like intellectual,

attitudinal, behavioral, technical, and managerial aspects. Entrepreneurs are

therefore permanently challenged to deploy a set of competencies to succeed in their

entrepreneurial endeavors. Based on the work of Boyatzis (2012), entrepreneurial

competencies are defined as underlying characteristics possessed by a person which

result in new venture creation, survival, and/or growth.

These characteristics include generic and specific knowledge, motives, traits, self-

images, social roles, and skills that may or may not be known to the person

(Boyatzis, 2012). That is, these characteristics may be even unconscious attributes

of an individual. Some of these competencies are innate while others are acquired in

the process of learning and training and development. Thus, entrepreneurial

competencies are defined as individual characteristics that include both attitudes and

behaviours, which enable entrepreneurs to achieve and maintain business success.

Competency

The role of an entrepreneur’s competency is highly a critical factor in achieving

excellence in performance to ensure a sustainable growth and success of a venture

amidst a competitive business environment. It was suggested that the entrepreneur’s

demographic characteristics, attitudinal, behavioral, managerial and technical

competencies are often cited as the most influential factors related to the

performance of small and medium sized enterprises. (Man, Lau and Chan, 2002;

Noor et al., 2010).

David McClelland claimed that competencies could be used for predicting job

performances and further he held that competencies were not biased by race, gender

or socio-economic factors. His study helped to identify performance aspects which

are not attributable to a worker’s intelligence or degree of knowledge and skill.

Entrepreneurial Competencies

Entrepreneurial competencies are the skills necessary for an entrepreneur to venture into

an enterprise, organize and manage an enterprise, and to ably and competently realize the
goal for which the enterprise is established. These competencies help entrepreneur to

successfully venture into an enterprise. The term refers to the key characteristics that

should be possessed by successful entrepreneurs in order to perform entrepreneurial

functions effectively (Czobor, 2013).

It was classified into behavioural competencies: enterprise launching competencies and

enterprise managing competencies (Eship Notes). Ventureprise.com classified these

competencies into personal effectiveness competencies, workplace competencies and

industry-wide technical competencies

Entrepreneurial competencies mediate in the relationship between entrepreneurial

characteristics and business performance. It means that the more powerful

entrepreneurial characteristics will lead to an increase in the competence of the SMEs

owner, which will ultimately have an effect on business performance (Sarwoko, et. al,

2013). Bacigalupo, et. al (2016) defines entrepreneurship as a transversal competence,

which applies to all spheres of life: from nurturing personal development, to actively

participating in society, to (re)entering the job market as an employee or as a self-

employed person, and also to starting up ventures (cultural, social or commercial). It

builds upon a broad definition of entrepreneurship that hinges on the creation of cultural,

social or economic value. It thus embraces different types of entrepreneurship, including

intrapreneurship, social entrepreneurship, green entrepreneurship and digital

entrepreneurship. It applies to individuals and groups (teams or organizations) and it

refers to value creation in the private, public and third sectors and in any hybrid

combination of the three. Lastly, it is domain neutral: one can act upon ideas and

opportunities to generate value for others in any domain and possible value chain.
Johnson (2017) enumerates 11 entrepreneurial competencies as to his study: opportunity

recognition; opportunity assessment ability; risk mitigation; resource leveraging;

conveying a compelling vision; bricolage, guerrilla and bootstrapping skills; focus and

adaptation; creative problem solving or imaginativeness; value innovation or creation of

something; tenacity and perseverance; building and using entrepreneurial networks;

entrepreneurial self efficacy and resilience. 33 As an attempt to investigate the

relationships between entrepreneurial characteristics and firm performance, Man, et.al.

(2008) operationalized a theoretical framework of the competitiveness of small and

medium-sized enterprises (SMEs) and empirically tested the four hypotheses derived

from it. The framework links together entrepreneurial competencies and SME

performance with two further constructs: competitive scope and organizational

capabilities. The empirical study consisted of a stage of instrument development specific

to the research context, as well as a stage of hypothesis testing. The results of hypothesis

testing, involving a sample of 153 owner/managers of SMEs, provided evidence for the

direct and indirect contributions of the entrepreneur‘s opportunity, relationship,

innovative, human and strategic competencies in affecting the long-term performance of

an SME via competitive scope and organizational capabilities. This initial success, with

the validated survey instrument of entrepreneurial competencies, may serve as the

ground for further research in this area. Throughout the past few decades, significance of

entrepreneurial competencies has been amplified due to the strategic role taken part by

the entrepreneur of a business enterprise. Therefore, Wickramartne, et.al (2014) examine

the impact of owner/managers entrepreneurial competencies on Entrepreneurial

Orientation (EO) of tea manufacturing firms in Sri Lanka and the relationship between
background characteristics of owner/managers and entrepreneurial competencies. The

study reveals that the personal background of 34 the owner affects their entrepreneurial

competencies. The value of innovativeness is more prevalent than that of risk-taking.

Siwan and Rowley (2010) suggest that although the concept of entrepreneurial

competencies is used widely by government agencies and others in their drive for

economic development and business success, the core concept of entrepreneurial

competencies, its measurement and its relationship to entrepreneurial performance and

business success is in need of further rigorous research and development in practice.

Four main clusters of competencies were identified: personal and relationship, business

and management, entrepreneurial, and human relations competencies. Whilst previous

research on the competencies of entrepreneurs has identified the two clusters of business

and management, and entrepreneurial competencies, the competencies in the other two

clusters have received less attention and have not been identified as clusters. Arguably,

competencies in these clusters are valued more highly by female entrepreneurs than by

their male counterparts. Barazandeh, et.al (2015) analyzed the relationship between

entrepreneurial competencies along with social norms and entrepreneurs‘ business

performance. It shows that the entrepreneurial competencies have a positive relationship

to business performance. It also reveals that social norms has a direct effect to

entrepreneurial competencies; however, social norms has nothing to do with business

performance. 35 Significant relationships were identified between entrepreneurial

potential and the following personality variables: entrepreneurial skills, resources

organization, internal locus of control, and creativity. No significant relationship between

average risk propensity and entrepreneurial potential was identified. The participants
with high entrepreneurial potential proved to be more aware of the discrepancy in this

respect (RodicaLuna and Cazan, 2010). The study of Sanchez (2011) indicates that

entrepreneurial competence plays an influential role in organisational capability and

competitive scope, and also has a direct effect on firm performance. The use of

organisational capabilities affects positively the firm performance and it partially

mediates the relationship between entrepreneurial competence and firm performance.

Although competitive scope is not significantly related to business growth, it is a strong

predictor of other performance dimensions, such as efficiency and relative performance.

Organisational capability is a strong predictor of competitive scope. Opportunity

competencies Opportunity recognition has always been considered as a central aspect of

entrepreneurship. However, in entrepreneurship education research, little attention has

been devoted to understand the learning needs associated to effective entrepreneurial

opportunity recognition. Opportunity recognition is a cognitive skill whereby an

entrepreneur aims to enhance an existing product or rather create a non-existing product.

(Aouni, 2008). Specific human capital, in particular opportunity competence, importance

of social networks and specific motivation (i.e. self-efficacy) significantly contribute to

engagement in innovative work behavior, which, in turn, predicts innovative

performance of employees. The results, hence, underline the complex interplay between

human capital, innovation, and work related learning. Stimulating innovation and

entrepreneurship in its defining initial stage is not simply a matter of hiring high

educated or experienced staff. Cooperation across the traditional disciplinary boundaries

is hence called for in efforts to effectively combine lifelong learning, human capital, and

innovation (Lans, et. al , 2015). Opportunity identification is emerging as an important

content area in entrepreneurship education. DeTienne and Chandler (2017) propose that

opportunity identification is a competency that can be developed as are other unique

competencies and that the entrepreneurship classroom is an appropriate venue for

developing the skills necessary to improve the ability to identify opportunities. The study

reveals that opportunity identification is something that can be learned or developed. The

idea of innovation is not also determinant for an opportunity to be identified. Today‘s

working life is increasingly characterized by entrepreneurial challenges. Entrepreneurial

challenges start at an individual level with the identification of opportunities, which is

acknowledged as one of the key competencies for lifelong learning. Since 37 the

identification of opportunities relies heavily on the opportunity identification competence

(OIC) of individuals, understanding the meaning of OIC is relevant. Research conducted

by Baggen (2017) shows that individuals have different capabilities for identifying

opportunities. Generating demand for your product requires much more than simply

releasing it onto the market. You need to conduct research, determine what consumers'

needs are, establish yourself as a leader in your industry and repeatedly prove your

products' worth (Kittaneh, 2014). Market research should provide information about

industry information, consumer close-up and competition close-up. Kinias (2013) has

formulated the opinion that the entrepreneur needs knowledge in order to recognize the

entrepreneurial opportunity and this knowledge comes from his personal background, his

education, his working experience and from the empirical knowledge of the field for

which he is interested. Relationship competencies This is the ability to persuade,

convince or influence others in order to get them to go along with or support a particular

agenda, or get ‗buy in‘ from others. It requires the ability to plan how to win support,
gain co-operation or overcome barriers using a variety of approaches. Having gained

support, it is the ability to build and maintain relationships with networks of people who

may be able to 38 effectively assist the organization. At lower levels it is about

presenting clear, logical arguments. At the higher level it requires taking a sophisticated

strategic approach to influencing. Relationship or network building maintains effective

and constructive working relationships, partnerships or networks of contacts with people

who are, or might someday be, instrumental in achieving work-related goals.

Relationship competency is evident in terms of developing long term trusting

relationship with others, negotiating with others, interacting with others, maintaining a

personal network of work contacts, and communicating with others effectively. In

business, entrepreneurs are required to deal with many people including suppliers,

customers, employees, government authorities, competitors, and other stakeholders. This

contact gives them access to information and other resources. Evidence suggests that

small firms in particular are critically dependent on their networks because it is through

these that they gain advice and support from professionals and experts such as lawyers,

accountants, and consultants government bodies, research and training institutes, and

even suppliers and customers. This is consistent with the resource dependency theory

which suggests that entrepreneurs use their social relations to get the resources they need

to support their business. Entrepreneurs, therefore, need to possess or acquire

interpersonal and communication skills. Building relationships is about your ability to

identify and initiate working relationships and to develop and maintain them in a way

that is of mutual benefit 39 to both yourself and the other party. Good relationships are

the keys to getting things done and are essential when your success is dependent on
others as well as understanding the techniques required to develop, maintaining and

managing business relationships with clients and partner organizations in order to

implement and manage projects and to identify new business opportunities. This includes

managing clients'/partners' expectations during project delivery, establishing and

maintaining relationships at all levels of the organization, and increasing partner loyalty

throughout the course of an engagement and after. It includes using the available

channels to obtain information on the clients' ongoing and future strategic business needs

with a view to increase profitable business and commercialization opportunities with a

win-win mindset. Relationship core activities are to: set objectives necessary for

obtaining feedback and assistance; maintain effective communication; share ideas,

issues, and opportunities with members of personal network; seek referrals from others

with relevant expertise and influence and attend and maintain relationships with relevant

formal and informal professional groups and organizations. Day, et. al (2017) argued that

relationship marketing can readily be adopted by a small entrepreneurial business but it

will need to be adapted to the entrepreneurial environment into which it is introduced.

Results from initial research suggest that entrepreneurial enterprises employ relationship

marketing more effectively than less entrepreneurial organizations and they derive

commercial benefits such as higher growth rates and fewer customer defections. 40 The

authors argue that entrepreneurship can be learned and so less entrepreneurial firms have

the potential to learn from more successful entrepreneurs. They offer some specific

recommendations but they recognize that the task is not easy because the SME has to

create an internal culture that is capable of both embracing relationship marketing and

being alert to opportunity. Conceptual competencies The ability in making cognitive and
analytical thinking, learning, decision making and problem solving, sustaining temporal

tension, innovating and in coping with uncertainty and risk belong to this category. They

have a stronger linkage with entrepreneurial traits and are less directly observable. They

involve high level of conceptual activities and are reflected in the entrepreneur‘s

behaviors when they conduct analysis, learn, make decisions and solve problems etc.

They may also enhance the effectiveness of carrying a task in the present or in the future.

Similar to strategic competencies, conceptual competencies require a more abstract level

of abilities. However, unlike strategic competencies, conceptual competencies are

concerned with a shorter-term perspective, resolving instant events, or requiring intuitive

responses A managerial competency that refers to a leader's ability to integrate

information and make judgments used a number of relevant factors. For example, the

successful selection of a team depends on understanding the interactions of a number of

factors, such as the interrelationships between 41 players, their level of ability, the

environmental conditions of the game, and the characteristics of the opposing team.

Within a corporate organization, top managers and supervisors differ with respect to

function, authority and responsibility. Top managers need to be conceptual thinkers

because they are responsible for entire divisions, whereas supervisors are responsible for

particular groups within the division. The manager's job is developing strategies,

methods and tactics, then conveying that vision and associated objectives to supervisors.

The supervisor is to implement the strategies and ensure that employees efficiently

execute and achieve objectives (Houston, 2017). Organizing competencies This is about

adopting a methodical approach to work. It involves planning and organizing oneself and

others in order to deliver work and prevent future problems. This includes the ability to
adapt and change plans as the requirements of the situation change. At the higher levels it

involves long-term, strategic and creative thinking. Efficiency orientation‖, ―concern for

high quality of work‖, and ―monitoring‖ should be the required competencies in

managing various functional areas in a firm so as to keep the firm operating efficiently. It

also suggested the importance of managerial roles of an entrepreneur in human

competence. It is also similar with managerial competence. 42 Bowdoin.edu defines

organizational competencies as a systematic course of action for self and others in order

to accomplish objectives; determines priorities and allocates resources effectively.

Organizational skills can be termed as a set of skills that help you achieve your higher

goals in life. These skill sets help you plan, implement the procedures, monitor growth

and ultimately achieve your set goals. To put it the other way, organizational skills are

kind of self-discipline measures that differentiate a leader (and good administrators) from

the rest. These skills help an individual to acknowledge a reason/purpose for each day.

These skills make an individual focus towards a higher goal in life. Organizational

competencies are often thought to be simply employee skills rather than the compelling

cross company core competencies that drive integrated business execution and

management alignment. A broader definition of organizational competencies focuses on

the first word – ―organizational‖. Under this definition, the organization becomes the

focus. It is the organization as a whole that must perform – not just an individual

employee. Under this approach the organization must step outside itself and evaluate

what things it does on an ongoing, systemic basis that enables it to achieve its mission.

(www.blandi.org) Recruits groups and resources to achieve lofty goals with extreme

adeptness, tackles multiple complex projects and directs their operation concurrently and
smoothly; communicates expectations to organization and builds in accountability

measures and maintains accurate and complete records, 43 and develops district-wide

organizing systems and processes are core activities of organizing function Chena (2008)

demonstrate the potential of entrepreneurial self-efficacy as a distinct characteristic of

the entrepreneur. From these results, some important implications can be drawn on

entrepreneurial assessment, education, counseling, and community intervention. Self-

efficacy is a moderately stable belief that requires systematic and continuous efforts to be

changed. The teaching of entrepreneurial skills tends to be technical, with insufficient

attention paid to the cognition and belief systems of the entrepreneur. Educators should

take into account entrepreneurial attitudes and perceptions when designing or assessing

their course objectives. Conscious efforts could be made to enhance self-efficacy by

involving the students in ―real-life‖ business design or community small business

assistance, by inviting successful entrepreneurs to lecture, and by verbal persuasion from

the instructor and renowned entrepreneurs (www.microsoft.com). Shepherd and Patzelt

(2014) introduce the notion of operational entrepreneurship—the selection and

management of transformation processes for recognizing, evaluating, and exploiting

opportunities for potential value creation—to offer examples of research opportunities at

the interface of entrepreneurship and operations management. Specifically, most believe

that operations management has been under‐utilized for gaining a deeper understanding

of (i) the knowledge and motivation required for opportunity recognition, (ii) evaluations

of a recognized opportunity to determine if it represents an opportunity for the specific

entrepreneur, and (iii) the role that feedback from an exploitation of a current opportunity

plays in the recognition and evaluation of subsequent opportunities.

Strategic competencies Being the owner of the firm, the entrepreneur must set the

direction for the whole company. This category of competencies requires the

entrepreneur to have a vision or a big picture in their mind for their business, to have

clear goals to achieve, or to formulate and implement strategies to achieve these vision

and goals, for example, systematic planning, and strategic planning competencies.

Strategic competencies equip people and organizations to take position and move in a

highly dynamic context that poses constantly changing challenges to the realization of

their aims. Lacking such competencies undermines the ability to adapt to such changing

environments, leading to increasing marginalization. Strategic competencies go beyond a

'how to' approach. They can be compared to the game of chess. Winning the game

involves much more than mere application of the rules of the game. There is no fixed

course of action that can be planned beforehand, because of multiple uncertainties about

the other player‘s moves. Playing the game does involve knowing the rules of the game,

but also the ability to apply relevant experience, the ability to develop and constantly

adapt scenarios, and more (Wigboldus, 2009).

Commitment competencies Successful entrepreneurs are often characterized as diligent

people with a restless attitude in their work. In other words, they have a strong

competency in totally committing, determining and dedicating, as well as taking

proactive actions towards their responsibilities and duties. This corresponds to the

entrepreneurial role of the drive to see firm through to fruition. Another aspect of this

competency area is the initiative or proactive orientation, which calls for the

entrepreneurs taking actions before being asked or forced to by events. Most

entrepreneurs emanate from established firms, but the impact of these employment
histories on entrepreneurial outcomes is poorly understood. Sorensen and Phillips (2011)

argue that work experiences in the prior firm shape both the entrepreneur ‘s competence

in and commitment to the entrepreneurial role. They focus on the effects of employer

size on the prospective entrepreneur, and argue that employer size has a negative effect

on both entrepreneurial competence and commitment. This implies that entrepreneurs

from small firms should have superior economic performance and, for a given level of

performance, be less likely to exit entrepreneurship. Research on entrepreneurship

focuses predominantly on success which ignores the high failure rate of new ventures

and precludes a holistic view of the entrepreneurial process. Findings suggest that more

coping and learning occur in the economic aspect of failed entrepreneurs' lives in

comparison to the social, psychological and physiological aspects. Findings also provide

a proposition for 48 testing in future research: Type of coping engaged in by failing

entrepreneurs is related to the kind of learning experienced through failure (Singh, et. al,

2017).

Chapter III

METHODOLOGY

This chapter discusses the research locale, unit of analysis/respondents, research

design, procedures/data collection, data analysis and statistical treatment.

Research Locale
This study dealt with strengthening the entrepreneurial competencies of Indigenous

Peoples’ (IPs) in Quezon Province. The research was conducted in different

municipalities located in Quezon Province, specifically: Bordeos, Buenavista,

Catanauan, General Nakar, Lopez, Mauban and Real wherein the Indigenous (IP)

entrepreneurs are active under the Pantawid Pamilyang Pilipino Program (4Ps) through

the Modified Conditional Cash Transfer (MCCT) Program in Quezon Province.

Population and Sampling

This study focused on the Indigenous (IP) entrepreneurs who are a regular beneficiaries

of the Department of Social Welfare and Development under the Pantawid Pamilyang

Pilipino Program (4Ps) through the Modified Conditional Cash Transfer (MCCT)

Program in Quezon Province.

There are about 431 Indigenous (IP) entrepreneur recipient under the program and they

will be the respondents of this study.

The number of respondents were also the number of Indigenous entrepreneur recipients

in each municipality. Table 1 below present the total population of IP’s from each

location.

Table 1. Distribution of Indigenous People in Quezon Province under the MCCT

Program of DSWD
 No. of IP Entrepreneur (N)
Municipality

Bordeos 90
Buenavista 22
Catanauan 35
General Nakar 200
Lopez 27
Mauban 17
Real 40
Total 431

Research Design

This study made use of the descriptive type of research employing survey questionnaire

for the variables in this study. The descriptive method allows the researcher to obtain

facts about the existing conditions and detect significant relationships between current

phenomena, which generate and make available information needed by the researcher

(Estolas, 2012).

Procedures/Data Collection

The researcher requested the approval and permit for conducting the study from the

Officer In-Charge of DSWD Region IV-A in their main office located in Alabang,

Muntinlupa. With that, the researcher was redirected her concern to the Social worker in

charge for the 4Ps program specifically those who are handling the IP entrepreneurs in

Quezon Province. Upon approval, the survey questionnaire was personally distributed

and administered by the researcher to the selected respondents. Further, the researcher
asked the respondents to answer every question sincerely and honestly assuring them that

their answers will be treated with confidentiality. After retrieval of the questionnaires, it

was tabulated, analyzed, and interpreted through statistical measurements.

Data Analysis

To obtain the necessary data, the researcher utilized a modified questionnaire developed

by ________________________. It is composed of 6 variables to evaluate the

entrepreneurial competencies of Indigenous Peoples’ (IPs) in selected municipalities in

Quezon Province.

The researcher did some necessary adjustment with the questionnaire in order to conform

to what is being required in this study and make it more applicable among the

respondents. After some thorough reviews of several literatures, the researcher came up

with a 30 item questionnaire to determine the respondent’s personal evaluation on their

entrepreneurial competencies based on: Opportunity, Relationship, Conceptual,

Organizing, Strategic and Commitment competencies.

The modified questionnaire is composed of four parts. Part I intends to elicit responses

about the background characteristics of the respondents in terms of : age, gender, civil

status, Income, education. Part II aimed to gather responses about the history, culture

and tradition among the Indigenous (IP) entrepreneurs. Part III was intended to secure

the responses on the aspect of the entrepreneurial competencies of Indigenous

entrepreneurs in Quezon Province in terms of; Opportunity, Relationship, Conceptual,

Organizing, Strategic and Commitment competencies.

Part IV was designed to collect responses on the problems encountered by the

respondents.

The secondary sources of data were obtained through books, journals, articles, and other

references that were related to the study. Some ideas were obtained by surfing the net

and browsing unpublished materials written in various perspectives to widen the

researchers’ knowledge and to have a clearer view on matters regarding the study.

To determine the level of entrepreneurial competencies among the respondents, the four-

point Likerts Scale was used. It is expressed as follows including its verbal

interpretation:

Point Scale Interpretation

4 3.25 - 4.00 Strongly Agree

3 2.50 - 3.24 Agree

2 1.75 - 2.49 Disagree

1 1.00 - 1.74 Strongly Disagree

Statistical Treatment

The data gathered were treated, analyzed and interpreted using statistical tools such as

weighted arithmetic mean, percentage, independent t-test as well as the analysis of

variance (ANOVA). Statistical treatment applied was intended to determine the level of
Gender Sensitization among the regular faculty members of Southern Luzon State

University including its satellite and extension campuses.

To determine the respondents’ background characteristics, the frequency percentage

formula was used.

f
Wherein: p = n x 100

f = frequency

n = total number of respondents

p = percentage

To identify the level of Gender Sensitization among respondents, the Weighted

Arithmetic mean (WAm) was used.

Σ fw
Wherein: WAm =
n

∑fw = summation of the product frequency and weight

n = total number of responses per item

WAM = Weighted Arithmetic Mean

Independent t-test was used to compare the responses of two groups. The

independent t-test formula is:

 Where:

t = computed t value

µ B – weighted mean of the first group

µ B – weighted mean of the second group

n A – sample size of the first group

n B – sample size of the second group

ƩA2 – sum of the squared mean of the first group

ƩB2 – sum of the squared mean of the second group

To compare responses of more than two groups, Analysis of Variance (ANOVA)

was used. The ANOVA formula is shown below.

Figure 2: One-way ANOVA Table (Fankhann, I. R., 2016)

*SST = SSB + SSW

*k – number of groups

*n – number of samples

*df – degree of freedom

 SURVEY QUESTIONNAIRE

Entrepreneurial Competencies

Opportunity Competencies 4 3 2 1
I can identify goods/services customer wants
Natutukoy ko ang maayos na serbisyong nais/ ninanais
ng mga mamimili / kostumer
I can perceive unmet consumer needs
Nakikita ko ng madalian ang mga pangangailangan ng
mga mamimili / kostumer.
I actively look for products/services that provides real
benefits. Aktibo akong humahanap ng mga alternatibong
produkto at serbisyo para sa kapakanan ng mamimili.
I seize high-quality business opportunities
Nais kong makamit ang mataas, malawak at maraming
oportunidad sa pagnenegosyo.
I treat new problems as opportunities
Tinitingnan ko ang bawat pagsubok at problema bilang
oportunidad sa pagnenegosyo
Relationship Competencies
I can develop long-term trusting relationships with each
other’s Nagtitiwala ako sa bawat kasapi ng negosyo para
sa lalo pang matagal na pagsama-sama.
I can negotiate with suppliers
Nakikipag-ugnayan ako ng lubos sa mga “Suppliers” na
kabalikat sa pagnenegosyo
I interact with customers
Nakikisalamuha ako ng maayos sa mga mamimili /
kostumer
I maintain a personal network of work contacts.
Napapanatili ko ang maayos na pakikipag-ugnayan sa
mga taong kasapi sa pagnenegosyo.
I communicate with others effectively.
Nakikipag-ugnayan ako ng maayos at may kahusayan sa
mga tao
Conceptual Competencies
I look at old problems in new ways.
Tinitingnan ko ang mga dating problema sa makabagong
paraan
I explore new idea.
Napapalawak ko ang mga bagong ideya.
I take reasonable job-related risks
Isinasaalang-alang ko ang mga panganib na kaunay sa
pagnenegosyo
I apply skills and knowledge into practice.
Iniuugnay ko ang aking kaalaman at kasanayan sa
pagnenegosyo.
I learn as much as I can in the business.
Nagpupursigi ako na matutunan ang mga bagay-bagay sa
negosyo hangga’t kaya.
Organizing Competencies
I plan the operation of the business.
Pinag-aaralan ko ang mga gawain sa pagnenegosyo
I plan the organization of different resources
Pinag-aaralan kong maisaayos ang mga bahagi at gamit sa
pagnenegosyo.
I keep organization running smoothly
Pinananatili ko ang maayos na paggalaw ng negosyo sa
magandang paraan.
I coordinate tasks
Nagkakaroon ako ng pagbabaha-bahagi ng mga gawain sa
pagnenegosyo.
I supervise and lead subordinates
Nakatutugon ako sa pangangailangan ng bawat isa sa
pagnenegosyo.
Strategic Competencies
I can determine long-term issues, problems and
opportunities. Nakikita ko ang posibleng maging sanhi ng
malaking problema, isyu at mga opotunidad sa gawain ng
pagnenegosyo.
I am aware of the projected direction of the industry.
Handa ako sa mga posibleng pagbabago at hamon ng
insdustriya sa gawaing pagnenegosyo
My current actions are aligned with strategic goals
Iniuugnay ko ang kasalukuyang aksyon sa mga
estratehiyang kinakailangan sa pagkamit ng adhikain sa
pagnenegosyo.
I assess day-to-day tasks in context of sustainability.
Nakapagtataya ako sa pang-araw-araw na gawain
kaugnay ng pagsasaayos at pagtataguyod ng negosyo
I evaluate business performance. Nakapag-aanalisa at
nakapagbabalangkas ako ng kakayahan sa negosyo.
Commitment Competencies
I refuse to let the venture fail May takot akong bumagsak
ang karera sa pagnenegosyo
I possess extremely internal drive Nagkakaroon ako ng
malalim na potensyal sa pansariling pananaw at adhikain
sa negosyo
I commit myself to long-term goals. Nagkakaroon ako ng
pangmatagal na adhikain sa pagnenegosyo
I maintain a high energy level. Napapanatili ko ang
mataas na gawi at kilos sa pagnenegosyo
I motivate self to function at optimum performance
Nagaganyak ko ang sarili upang mapataas ang aking gawi
/ kilos sa mataas na kakayahan sa pagnenegosyo.

Problems Encountered by the Beneficiaries

Ano ang mga hamon at pagsubok na kinahaharap mo o nang iyong grupo sa
pagpapatakbo ng inyong negosyo?

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