EVALUATING THE ENTREPRENEURIAL PERFORMANCE OF MICRO-ENTERPRISES IN THE BICOL REGION, PHILIPPINES

Abstract

This article examines the entrepreneurial performance of micro-enterprises in the Bicol region, Philippines, using the 14 pillars of the Global Entrepreneurship Index. It also examines the effect of managerial efficiency on economic performance and the significant influence between the development index and economic performance. Micro enterprises contribute to economic development as they comprise the largest portion of the micro, small and medium enterprise sector and provide the biggest share of the country’s employment. However, micro-enterprises still face significant obstacles to growth. Using descriptive statistics, slack-based data envelopment analysis, bootstrap-bias corrected and accelerated regression, multivariate analysis, and hierarchical regression, the study found out that micro-enterprises usually practice opportunity perception, start-up skills, networking, cultural support, and high growth. Micro enterprises that showed strong development performance have managerial efficiency indicating no shortage in sales and their potential. Moreover, entrepreneurial activity stimulates attitude, aspiration, and monthly sales of micro-enterprises. It directly and highly affects sales because micro-enterprises always practice the pillars of technology absorption, opportunity start-up, competition, and human capital. This article illustrates a model suggesting that micro-enterprises should improve opportunity perception, start-up skills, risk acceptance, process innovation, high growth, and internationalization to improve sales. Furthermore, the study may provide tips for micro-enterprises in the Philippines and may be used as a basis for programs and policies to support their development.