FACTORS AFFECTING THE ENTREPRENEURIAL CAPABILITIES OF THE YOUTH IN THE

CITY OF MALOLOS, BULACAN

GROUP 5

ALGABA, REGINE B.

BAELLO, MARYJOY A.

NAMOCALE, JERIANN V.

VALDERRAMA, FRANCESCA

Marcelo H. Del Pilar National High School Senior High School Department

Accountancy, Business and Management

School Year 2021–2022

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 FACTORS AFFECTING THE ENTREPRENEURIAL CAPABILITIES OF THE YOUTH IN THE

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Table of Contents

Title Page .................................................................................................................................... 1

Table of Contents ........................................................................................................................ 2

Introduction and Review of Related Literature .......................................................................... 3

Introduction ..................................................................................................................... 3

Statement of the Problem ................................................................................................ 6

Conceptual Framework ................................................................................................... 6

Significance of the Study ................................................................................................ 7

Scope and Delimitations ................................................................................................. 7

Definition of Terms......................................................................................................... 8

Methods....................................................................................................................................... 8

Respondents and Sampling Method................................................................................ 8

Instruments .................................................................................................................... 10

Data Collection Procedure and Ethical Considerations ................................................ 10

Data Analysis ................................................................................................................ 11

References ................................................................................................................................. 13

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INTRODUCTION

Given the current economic challenges facing many countries across the globe, the notion of

engendering greater entrepreneurial activity has become a prominent goal for many national governments.

The relevance of entrepreneurship to economic development has been highlighted by many researchers

(e.g. Davidsson et al, 2006) and it is now well-recognized that education and training opportunities play a

key role in cultivating future entrepreneurs and in developing the abilities of existing entrepreneurs to grow

their business to greater levels of success (Henry et al, 2003). This pandemic is heavily affecting labor

markets, economies and enterprises, including global supply chains, leading to widespread business

disruptions (ilo.org). Many businesses experienced a decline in sales, a few even had to close their

businesses (albuquerqueexpress.com). In addition, according to a report from The Brookings Institution,

the economic costs, social crises, and long-term effects of COVID-19 will fall disproportionately on young

adults. However, creativity does not stop even during the time of COVID-19 (unesco.org). Social media

became rampant and used as an effective tool to earn money. The Global Digital Report 2020 says that

more than a whopping 4.5 billion people around the globe are using the internet, which is nearly 60 percent

of the world's total population. Due to its widespread popularity and increasing adaptability, social media

is becoming a new platform for entrepreneurs and marketers (researchgate.net). It has much potential for

business and entrepreneurial opportunities for its convenience for both seller and buyer. Throughout this

challenging time, many youth entrepreneurs around the world are finding innovative ways to navigate the

impact of COVID-19, adapt, and support their communities by developing new products and services

(cipe.org). Youth require a new set of skills in order to become resilient, self-reliant, and eventually, the

employment leaders in their communities (thepalladiumgroup.com).

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An entrepreneur is one who innovates, by making new things or by making things differently

(Schumpeter, 2008). This study defines an entrepreneur as a person who sets up a business and takes on the

financial risks with the main aim of making a profit. Herrington and Kew (2015) define entrepreneurship

as any attempt at a new business or new venture creation, such as self-employment, a new business

organization or the expansion of an existing business by an individual, a team of individuals or an

established business. Lazear (2005) emphasizes that entrepreneurship requires the ability to combine

resources simultaneously and efficiently. This study defines entrepreneurship as the process and activity of

setting up a new business or venture for profit. The common thread in the above definitions, along many

other definitions of entrepreneur and entrepreneurship, is the emphasis on the fact that entrepreneurship is

the mind set and process to create, develop and grow a business enterprise through risk-taking, creativity,

the integration of different resources, identification of market opportunities and/or innovation in a new or

an existing organization. Entrepreneurship is driven by the need to achieve certain rewards such as

monetary profits, recognition, career growth, personal satisfaction and/or a change in lifestyle. In addition,

Schumpeter (1967, p.621) has pointed out that economic development depends to a large extent on the

active and enthusiastic participation of intelligent entrepreneurs in the economic process. The majority of

studies from a variety of scientific disciplines have found empirical evidence for a significant positive

macroeconomic impact of entrepreneurship (e.g. Atems and Shand 2018; Audretsch and Keilbach 2004a;

Fritsch and Mueller 2004, 2008). However, several empirical studies show that the macroeconomic impact

of entrepreneurship can also be negative under certain conditions (e.g. Carree and Thurik 2008; Andersson

and Noseleit 2011; Fritsch and Mueller 2004, 2008). Potential explanations for these contradictory results

are to be found in the complex relationship between entrepreneurship and economic growth. Moreover,

social factors can go a long way in encouraging entrepreneurship. In fact, it was the highly helpful society

that made the industrial revolution a glorious success in Europe. Strongly affect entrepreneurial behavior,

which contributes to entrepreneurial growth. The social setting in which the people grow, shapes their basic

Be consistent with the proper citation: Finding first (Last

name of the author, First letter of name. year). 4
 FACTORS AFFECTING THE ENTREPRENEURIAL CAPABILITIES OF THE YOUTH IN THE

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beliefs, values and norms. Entrepreneurship can be stressful, and the balance between work and private

obligations is often difficult to find (Forson, 2013). Nguyen and Sawang (2016) examined the role of a

conflict between work and family, improving relationship with family and social support for the well-being

of small enterprises owners. The results have shown that the conflict between work and family has a direct

negative impact on mental health, work, family, and life satisfaction of an entrepreneur. Similarly, it has

been found out that social support has a positive impact on the subjective and mental well-being of an

entrepreneur. Furthermore. psychological traits have been widely used in entrepreneurship literature. In this

line, Harris et al. (2007) established that personality characteristics influence the probability of a person

creating a new business. Espíritu Olmos (2011) also states that certain psychological features are associated

with an entrepreneur. From the social psychology approach, psychological characteristics are linked to

attitudes, which were defined by Fishbein and Ajzen (1975) as a predisposition to respond favorably or

unfavorably in time with respect to a certain object. This attitude is a predictor of people’s behavior in

aspects such as entrepreneurship.

This study aims to describe the factors affecting the entrepreneurial capabilities of youth in

Malolos, Bulacan. Most people in low-income countries are young, and a majority of them are poor

(Woodruff, 2007). Young people should play a crucial role in addressing both current and future global

challenges (fondationbotnar.org). They also have limited financial assets, which puts those living in

economically vulnerable households at an increased risk of falling below the poverty line within 3 months,

should their income suddenly stop or decline (OECD, 2020). The new normal has a tremendous impact on

finding out what youth can do to fulfill their financial resources, thus some want to be entrepreneurs even

when they are still at a young age. According to Seb Sabogal & Zoe O'Dwyer, the COVID-19 pandemic

has exposed the fragility of the global economy and the need for entrepreneurial skills for youth to survive

in times of uncertainty. This study will influence by three factors: Economic Factors, Social Factors and

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 FACTORS AFFECTING THE ENTREPRENEURIAL CAPABILITIES OF THE YOUTH IN THE

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Psychological Factors. The research will explore these factors on how they affect the youth’s capability as

an entrepreneur in Malolos City, Bulacan.

STATEMENT OF THE PROBLEM

The purpose of this study is to describe the factors affecting the entrepreneurial capabilities of youth in the

city of Malolos, Bulacan. Specifically, it will answer the following questions:

1. How may the factors affecting the entrepreneurial capabilities from the youth in the city of Malolos

be described in terms of:

a. Economic Factors

b. Social Factors

c. Psychological Factors

2. What business implications can be drawn from the results of the study?

CONCEPTUAL FRAMEWORK
Font style: Times new Roman
INPUT PROCESS OUTPUT

PROFILE
 AGE
 SEX  DESCRIBE HOW
 PROFILING FACTORS AFFECT
FACTORS ENTREPRENEURIAL
 SURVEY
 ECONOMIC
QUESTIONER CAPABILITIES
FACTORS
 DATA
 SOCIAL FACTORS IPO model requires an output, will
ANALYSIS
 PSYCHOLOGICAL you be creating a business plan
FACTORS
proposal? Marketing strategy?
webinars? etc

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 FACTORS AFFECTING THE ENTREPRENEURIAL CAPABILITIES OF THE YOUTH IN THE

CITY OF MALOLOS, BULACAN

SIGNIFICANCE OF THE STUDY

Provide intro.
Youth. This study will give awareness on the factors affecting their entrepreneurial capabilities. The

research may serve as their inspiration to start their businesses.

Adult. Through this research, adult may visualize the potential capability of youth in becoming an

entrepreneur.

Future Researchers. The findings of this research may help the future researchers to gain more knowledge.

This study may serve as a reference to the related findings by which later similar studies may be conducted.

SCOPE AND DELIMITATION

respo will be limited also to the young entrepreneur right?
The purpose of this study is to describe the factors affecting the entrepreneurial capabilities of

youth. In the years 2021-2022, this research will be conducted at the city of Malolos, Bulacan. Furthermore,
define to be the what?
respondents will be the young ages from fifteen to twenty-four as this age was define by United Nations.

Based on Harappa.Education, 2021, a descriptive research is one that describes the characteristics of a

phenomenon, situation or population. Since this research is descriptive normative type of research, the
No need
researchers will conduct this study using the stratified random sampling technique. According to (Bruce B.

Frey, 2018) stratified random sampling is a method for sampling from a population whereby the population

is divided into subgroups and units are randomly selected from the subgroups. Open and Close-ended

survey questionnaires will be used to collect data, and Google Form will be served as the medium. Multiple

choice will be used in gathering data. Participants' unanimity, on the other hand, is ensured by the

information they will provide. Researchers will assure that their responses would be treated with the utmost

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confidentiality. Data gathered will be evaluated using the mean and percentage concepts. The researchers

will conduct this study to describe the factors affecting entrepreneurial capabilities of Malolos youth.

DEFINITION OF TERMS

Factor. One of the elements contributing to a particular result or situation: (dictionary.com). This serve as

the input to be measured as it affects the entrepreneurial capabilities of youth in Malolos, Bulacan

Entrepreneurial Capability. A distinct set of individual and organizational capabilities and skills as well

as actions, practices, and routines that aim to explore, integrate, and exploit untapped business opportunities

within an instituted market context (link.springer.com). The potential and skills of Malolos youth with

regards to the business.

METHODS

RESEARCH DESIGN

The researchers will utilize descriptive research in the conduct of the study. According to

Williams (2007) descriptive research is a research method that can determine the situation in current

phenomenon. Furthermore, Nassaji (2015) also states that the goal of descriptive research is drawing and

classifying the phenomenon. Moreover, Walliman (2011) defines that descriptive research relates to an

observation in collecting the data. Since, the researcher will use descriptive research, this study is

descriptive in nature.

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 FACTORS AFFECTING THE ENTREPRENEURIAL CAPABILITIES OF THE YOUTH IN THE

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RESPONDENTS

ages 15 to 24
The participants of the study were selected from the youth population in the city of Malolos,

Bulacan. The researchers utilize the slovin’s formula in order to determine the factors affecting the

entrepreneurial capabilities of respondents from a population of 25 setting 5% margin of error. In order to

select the participants for this study, the researchers used stratified random sampling. As defined by

Hayes, Adam (2021), Stratified random sampling is a method of sampling that involves the division of a

population into smaller sub-groups known as strata. Thus, in the selection of respondents, each student

has equal chance to be chosen as part of the sample. The respondents consisted of youth in Malolos

Bulacan from ages fifteen to twenty-four will be breakdown into groups per barangay and since there is

51 barangays of Malolos one sample are chosen randomly from two barangays. The sample segregated

will not overlap to one another.

Barangays in Malolos City Sample

Anilao 1
Atlag
Babatnin 1
Bagna
Bagong Bayan 1
Balayong
Balite 1
Bangkal
Barihan 1
Bulihan
Bungahan 1
Caingin
Calero 1
Caliligawan
Canalate 1
Caniogan
Catmon 1
Cofradia
Dakila 1
Guinhawa
Ligas 1
Liyang
Longos 1
Look 1st

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 FACTORS AFFECTING THE ENTREPRENEURIAL CAPABILITIES OF THE YOUTH IN THE

CITY OF MALOLOS, BULACAN

Look 2nd 1
Lugam

INSTRUMENTS

The researchers will prepare a close-ended survey questionnaire consisting of multiple questions

in order to describe the factors affecting the youth’s entrepreneurial capabilities. It will be composed of

25 items on the following factors: Economic, Social and Psychological. A closed-ended question refers

to any question for which a researcher provides research participants with options from which to choose a

response (Wikipedia, 2021). The prepared questionnaire will be subjected to content validity by 3 to 5

experts and will be revised based on the comments to be given by the experts prior to use.

DATA COLLECTION

The researchers will ask for the approval of the Local Municipality of Malolos

Bulacan to ask permission to gather data from each of their barangay residence. Waivers will

also be given by the researchers, assuring that the information of the respondents including name

and pertinent information will remain confidential. Once approved and waivers of the

participants are signed, the researchers will administer the questionnaires to the respondents.

Each item will be explained to ensure validity of the data to be collected.

Data collection should be enumerated (bulleted, numbered or flow chart). Consider the pandemic
situation, relate it to the data gathering procedure that will be conducted for the study.

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DATA ANALYSIS

In order to present and analyze the data to be collected in this study, the following statistical tools will be

used:

A.) Table. To present the profile of the study in regards to the entrepreneurial capabilities of

Malolos youth.

B.) Percentage. To show the overall percentages of the respondents in regards to the factors

affecting their entrepreneurial capabilities.

C.) Weighted Mean. To describe the most factor/s affecting the entrepreneurial capabilities of

Malolos youth.

Furthermore, weighted mean will be interpreted using the interval below:

D.) Pearson Coefficient of Correlation. To examine the linear relationship between The three (3)

variables of our study, Economic Factors, Social Factors, Psychological factors that are measured

on the same interval or ratio scale.

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REFERENCES:

Abazi-Alili, H., Ramadani, V., Ratten, V., Abazi-Çaushi, B., & Rexhepi, G. (2016). Encouragement

factors of social entrepreneurial activities in Europe. International Journal of Foresight and

Innovation Policy, 11(4), 225-239.

https://www.inderscienceonline.com/doi/abs/10.1504/IJFIP.2016.084529

Azhar, M., & Akhtar, M. J. (2020). Social media: A catalyst for entrepreneurship and marketing. South

Asian Journal of Marketing & Management Research, 10(11), 62-70.

https://www.indianjournals.com/ijor.aspx?target=ijor:sajmmr&volume=10&issue=11&article=00

Bruce B. Frey (2018) Stratified Random Sampling

https://methods.sagepub.com/reference/the-sage-encyclopedia-of-educational-research-

measurement-and-evaluation/i20156.xml

Chrispen Maireva* and Nzwirashe Rejoyce Magomana (2021) The Influence of Endogenous Factors on

Entrepreneurial Success Among Youths in Masvingo Urban, Zimbabwe.

https://pdfs.semanticscholar.org/ca7c/e86dd60a67e365ae1314ca2297c940974d6a.pdf?_ga=2.251

205697.67323524.1644129943-1084393878.1644129943

Dioneo-Adetayo, E. A. (2006). Factors influencing attitude of youth towards entrepreneurship.

International Journal of Adolescence and Youth, 13(1-2), 127-145.

https://www.tandfonline.com/doi/abs/10.1080/02673843.2006.9747970

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Harappa Diaries (2021) Descriptive Research: Methods and Examples

https://harappa.education/harappa-diaries/descriptive-research/

Levesque, M., & Minniti, M. (2006). The effect of aging on entrepreneurial behavior. Journal of business

venturing, 21(2), 177-194.

https://www.sciencedirect.com/science/article/abs/pii/S0883902605000388

Nowiński, W., Haddoud, M. Y., Lančarič, D., Egerová, D., & Czeglédi, C. (2019). The impact of

entrepreneurship education, entrepreneurial self-efficacy and gender on entrepreneurial intentions

of university students in the Visegrad countries. Studies in Higher Education, 44(2), 361-379.

https://www.tandfonline.com/doi/abs/10.1080/03075079.2017.1365359

Relivingmbadays. (2012). Factors affecting Entrepreneurship Development

https://relivingmbadays.wordpress.com/2012/12/26/factors-affecting-entrepreneurship-

development/

Yu, T. L., & Wang, J. H. (2019). Factors affecting social entrepreneurship intentions among agricultural

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