Determinants of Growth of Department of Trade and Industry Assisted Micro and Small Enterprises in Davao Region, Philippines

Authors: Jocelyn A. Gumpad

DOI: https://doi.org/10.37082/IJIRMPS.IPMESS-24.5

Short DOI: https://doi.org/mgd9

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Abstract: The study was conducted to identify determinant factors that led to the survival and growth of the DTI assisted micro and small enterprises in Davao Region, Philippines. Particularly, it analyzed entrepreneurs’ and enterprises’ profile, entrepreneurial characteristics, human resource practices, marketing strategies, sources of funds and business growth of these enterprises. Asset growth was used as an indicator to measure firm growth. Data were gathered from micro and small enterprises who are in the business for at least five years. These enterprises were randomly selected within the municipalities and component city of Davao Region, Philippines. To realize the objectives, the study used descriptive and regression research designs. A self-structured and modified survey questionnaire was utilized to collect primary data from micro and small enterprises. Statistical analysis was executed through frequency counts, percentages, means and logistic regression. The micro and small enterprises in Davao Region are dominated by females, aged 41 to 50 years old, married and college degree holders. More than half of these enterprises employed 1 to 5 workers in their firm. Majority of them have existed between five to ten years and mostly engaged in manufacturing or production business. Several characteristics were present most of the time in these entrepreneurs. Human resource practices were usually implemented, and marketing mix strategies were always adopted. They also frequently used internal finance as business revolving funds. Likewise, more than one third of them chose commercial or rural banks for external financing. Business growth of most micro and small enterprises for an average of five years has high growth rate. Amongst the variables used in the study, the need for achievement, locus of control, and external source of finance significantly predicted business growth of micro and small enterprises.

Keywords: Micro and Small Enterprises, Business Growth, Asset Growth, External Source of Finance, Need of Achievement, Locus of Control, Binary Logistic Regression

Paper Id: 4.205

Published On: 2024-01-30

Published In: Special Issue - International Conference on Innovative Practices in Management, Engineering & Social Sciences (January 2024)

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