ISSUES OCCURING IN BUSINESS START-UPS IN PUNTURIN AND BIGNAY VALENZUELA CITY A Thesis Presented to the faculty of the Senior High School Department In Partial Fulfillment Of the Requirements for the strand Accountancy, Business and Management PDF

Preview

Summary

ST.GREGORY COLLEGE OF VALENZUELA 162 P, Faustino st,.Punturin, Valenzuela city ISSUES OCCURING IN BUSINESS START-UPS IN PUNTURIN AND BIGNAY VALENZUELA CITY A Thesis Presented to the faculty of the Senior High School Department In Partial Fulfillment Of the Requirements for the strand Accountancy, Bu...

Description

ST.GREGORY COLLEGE OF VALENZUELA 162 P, Faustino st,.Punturin, Valenzuela city ISSUES OCCURING IN BUSINESS START-UPS IN PUNTURIN AND BIGNAY VALENZUELA CITY

A Thesis Presented to the faculty of the Senior High School Department

In Partial Fulfillment Of the Requirements for the strand Accountancy, Business and Management

Arcamo, John Paul Aviles, JheaneRovil P. Belza, Cheska Marie B. Evaristo, Maricris A. March 2020

ST.GREGORY COLLEGE OF VALENZUELA 162 P, Faustino st,.Punturin, Valenzuela city ABSTRACT In this era full of new venture, there was a lot of business failed in early years of start-ups. One of the strategies to be a successful start-ups is to know the problems or challenges in business. So what actually is the requirement of an business to, retain and growth on a business start-ups? Now a days, In any industry whether small or big, need to aware for those issues occurring during business start-ups. As preparing for succeeding a company,

people need to be future-ready, need to deepen the studies

on how to handle the problems in the firm to be able to serves its as benefits to the owner. This paper deals with the issues occurring during business start-ups. The result of the study shows the effective solutions to cope for the issues. It will be helpful to prevent failure in early years of start-ups because it serves as guidelines for the problems and challenges in business start-ups. Keywords: business start-ups, issues, entrepreneur, failures.

ST.GREGORY COLLEGE OF VALENZUELA 162 P, Faustino st,.Punturin, Valenzuela city ACKNOWLEDGEMENTS We would like to express our special appreciation and thanks to our adviser/ research mentor Mr. Benedict B. Diaz, you have been tremendous mentor for us. We would like to thank you for encouraging our research and allowing us to grow as a research student. Your advice on both research as well as on our career have been invaluable. We would also like to thank our panelist, Ms. Camela Olajay, Ms. Khim Stephanie Perez, Ms. Mary Cris Panuncialman for serving as our committee members even at hardship. We also want to thank all of you for letting our defense be an enjoyable moment, and for your brilliant comments and suggestions, thank you. For the principal of our school Ms. Maxima We would like to thank business men/women for letting us to get an information to finish this study. Lastly, a special thanks to our family. Words cannot express how grateful we are for having their support and sacrifices to finish this study.

ST.GREGORY COLLEGE OF VALENZUELA 162 P, Faustino st,.Punturin, Valenzuela city TABLE OF CONTENTS Title Page Abstract Acknowledgements Table of Content List of Tables List of Figures List of Appendices

Chapter I

THE PROBLEM AND ITS BACKGROUND Introduction

1

Theoretical Framework

2

Conceptual Framework

3

Statement of the Problem

4

Significance of the Study

4

Scope and Limitations

5

ST.GREGORY COLLEGE OF VALENZUELA 162 P, Faustino st,.Punturin, Valenzuela city Definition of Terms II

III

IV

6

RELATED REVIEW OF LITERATURE Local Literature

7

Foreign Literature

9

Local Studies

12

Foreign Studies

14

Synthesis of the Related Literature

17

METHODOLOGY Research Design

18

Research Locale

19

Instrumentation

21

Sampling and Sampling Technique

21

Data Gathering Procedure

23

PRESENTATION, ANALYSIS, AND INTERPRETATION OF DATA Sub-Problem No. 1

25

Sub-Problem No. 2

26

ST.GREGORY COLLEGE OF VALENZUELA 162 P, Faustino st,.Punturin, Valenzuela city V

SUMMARY, CONCLUSIONS, AND RECOMMENDATIONS Summary

28

Conclusions

29

Recommendations

30

Bibliography Appendix A. Survey Questionnaire

35

B. Interview Questionnaire

36

ST.GREGORY COLLEGE OF VALENZUELA 162 P, Faustino st,.Punturin, Valenzuela city

LIST OF TABLES Tables Table 1. Respondents of this study

Pages 20

Table 2. Most common problems/challenges occurring business start-ups

25

ST.GREGORY COLLEGE OF VALENZUELA 162 P, Faustino st,.Punturin, Valenzuela city

LIST OF FIGURES Figures

Pages

Fig. 1 Evolution of business

3

Fig.2 Procedure in Getting Data

23

ST.GREGORY COLLEGE OF VALENZUELA 162 P, Faustino st,.Punturin, Valenzuela city

LIST OF APPENDICES Appendices

Pages

Appendix A Survey Questionnaire

35

Appendix B Interview Questionnaire

36

ST.GREGORY COLLEGE OF VALENZUELA 162 P, Faustino st,.Punturin, Valenzuela city

Chapter I THE PROBLEM AND ITS BACKGROUND Introduction According to Baumaschinen (2018) 90% of entrepreneurs fail in starting a business. Most people fail because they make mistakes they could have prevented. Once individual has an aware of those mistakes, it can pursue success by averting them. Preventing them will allow you to work on things that create value. The Small Business Administration (SBA) points out, though, that these are likely to be advantages only “for the right person”. It will only know if you are one of them, if you are a selfstarter, compatible to deal with different personalities, good at making decisions, have a strong and physical stamina and, Planning and organizing well. It also supports the idea of Diokno (2016) that it is a "survival of the fittest" experiencing failures, rejections, and ups and downs, are part of the process. Just enjoy overcoming these struggles and it will surely get closer to the business success. However, in starting a new business can be both exciting frightening. Because entering a world of business is not easy at all. Ithas seen time andagain that the road ahead for start-ups is not a smooth one. It has a lot of things that you must to consider in starting of it like location, size, employees, quality control etc.This research is very reliable to the beginner entrepreneur because it aims to answer the question "Why do businessstart-up fail in the first place?” and "What are the issues occurring in the business start-up?” So that these beginner entrepreneurs will help to ensure their

ST.GREGORY COLLEGE OF VALENZUELA 162 P, Faustino st,.Punturin, Valenzuela city business success. Also, the research reported in this paper the reasons of failures in the early years of starting-up a business. Hence, the goal of this study is to give knowledge and information about starting up a business to the readers of this study. Theoretical framework The Theory of Start-ups – Leadership and Management Start-ups function in a unique context which is characterized by unfamiliarity and unpredictability. There is no place where a robust leadership is required more, than in a new venture. The odds – lack of human resources, financial capital, and access to customers – are bundled against the leaders, making leadership more crucial in some start-ups than in a large firm. Creating and sustaining a new successful business venture demands not only vision and financial capability but also leading others to transform that idea and capability into successful reality. This requires the start-up leader to be courageous, positive, transparent, righteous, forward-looking and helping employees grow into leaders.While the qualities that are conventionally associated with a strong leader, such as intelligence, decision making, toughness, and vision are always imperative to succeed, they don’t cover the full spectrum of what start-up leadership requires. Add to these pro-activeness, innovativeness and risk-taking. It is not enough to set a strategy for the company, or to execute it; start-up leadership requires both. Recognizing opportunities and acting upon them is vital for success. A distinct sense of curiosity is the driving force in tough times. Crises in startups are almost inevitable – a leader must be able to identify and mitigate them with

ST.GREGORY COLLEGE OF VALENZUELA 162 P, Faustino st,.Punturin, Valenzuela city recovery plans and lessons learned in place. It is not sufficient just to collect data, but to go beyond its face value, and analyze it to your strategic advantage (Tripathi,2017). According to hosted, (1999)getting things done through the other people or coordinating the efforts of people toward common goals. Management is about people. It means that without a people, nothings happen in managing a business. On the other hand, Management theory is either “perspectives” or “descriptions of the relationships among organizational characteristics” (Dean & Bowen, 1994). Conceptual framework

Needs and wants of market

Business start-up

Beginner entrepreneur/old entrepreneur Issues

Persist

Quit

Growth

Fig.1 Evolution of business In this figure, it shows the relation of independent and dependent variable. The dependent variable in the diagram was the beginner entrepreneur and old entrepreneur

ST.GREGORY COLLEGE OF VALENZUELA 162 P, Faustino st,.Punturin, Valenzuela city while the independent variable was the issues occurring in the business start-up. Having an idea about issues occurring in the business start-up is really significance in all aspect of business especially to the one whom handling the business which is the owner. It gives preparedness on how they need to deal with that variety of issues. Also, these issues are one of the most reason why business start-up failed but sometimes it is a reason why start up persisting and keep growing in the environment of business. Statement of the Problem The main concern of this present study is to aim to find out the issues that occur during business start-up. In line with this objective, started below are the problems that will be addressed throughout the study: 1. What are the challenges or problems occurring during business start-up? 2. How businessmen or women cope with those issue? Significance of the study The study is created to benefit different people. The first beneficiary of this study is the beginner entrepreneurs. It will be helpful for them because it gives information about the possible risks that they encounter in running a business. It will serves as a guideline in terms of starting up a business. The second beneficiary is the ABM students. This study may serve as a guide and consultation for the student undertaking similar studies via getting ideas about issues in business start-ups. The third beneficiary is ABM teachers. This study will help them to their discussions about those related

ST.GREGORY COLLEGE OF VALENZUELA 162 P, Faustino st,.Punturin, Valenzuela city lessons. Lastly, the future researchers, because it will be helpful reference would plan to make any related study precisely for this research. The primary significance of this study is to give people who want to start a business an information on how to prevent failures in terms of running a business Because nowadays new business failed quickly due to lack of awareness and information of beginner entrepreneur about starting-up a business. Scope and Limitation This study is focused only on the issue occurring in business start-up. Researchers do not focus on the broad ideas about business. Only focused on the new generation of business that opens in the month of July last year. Researchers choose this month because it is compatible time where business starts in early years of their business.From this moment, researchers will find out what are the risks that they face during business start-up and researcher will go to deal with this research untilthe end of first semester.The subaltern of this research is inBignay and Punturin only. Lastly this study will have Sixty (60)respondentsthat will be chosen based on what our research needed. And to fulfill this research, the respondents should be a beginner entrepreneur and consumer of that business in the Punturin and Bignay ValenzuelaCity.

ST.GREGORY COLLEGE OF VALENZUELA 162 P, Faustino st,.Punturin, Valenzuela city Definition of terms Accountancy, Business, and Management (ABM) Strand– a strand that provides a student with the skill and knowledge they need to work in the corporate. (Katigbak, 2018). ABM Students- student who taking ABMstrand in Senior High School. (Katigbak, 2018). ABM Teachers-teachers who teach ABM student in Senior highschool. (Katigbak, 2018). Business start-up- are all new venture and new firms that wanted to give the needs and wants of market. (Garcia,2008) Dependent variable- Is the variable being tested and measured in a scientific method. (Helmenstine, 2018). Independent variable- Is a variable believed to affect the dependent variable. This is the variable that you, the researcher, will manipulate to see if it makes the dependent variable change. (Helmenstine, 2018). Perspective- is a view of a three-dimensional image that portrays height, width, depth, for a more realistic image or graphic. (Emberton, 1998). Small Business Administration (SBA) –is designed to enhance small business access (Dilger, 2018). Subaltern- is classes that may include in a limit. (Mambro, 2016)

ST.GREGORY COLLEGE OF VALENZUELA 162 P, Faustino st,.Punturin, Valenzuela city Chapter II REVIEW OF RELATED LITERATURE Local Literature Kuehl and Lambing (1997) stated in their book that one of the most exciting times for an entrepreneur is the start-up or early ownership phase. Building a company from the idea stage takes creativity and vision is great challenged. Even for the entrepreneur who buys an existing business with plans to improve it, the early ownership phase requires new ideas and vision and presents the entrepreneur with existing goals to be accomplished. For these reason, most entrepreneurs find the early years of business ownership very rewarding. Once the start-up phase is over and the company is past the survival stage, the level of challenges may seem to decrease. Although there are constant problems to be solved, this is often not as enjoyable as developing company. Accordingto Grant (2019) that the factors involves in business start-up. A start-up is a company that is in the first stage of its operations. These companies are often initially bankrolled by their entrepreneurial founders as they attempt to capitalize on developing a product or service for which they believe there is a demand. Kuehland Lambing (1997) statedthat failure rate of new products even by large corporations is proof that there is no easy way to determine if a product is going to be successful. Although many attempts have been made by companies and academics to improve the success rate, no magic formula has yet been discovered. One study of new products tried to identify some of the essential factors that led to success or failure. They found that if only one or two key factors were wrongs, it could lead to product

ST.GREGORY COLLEGE OF VALENZUELA 162 P, Faustino st,.Punturin, Valenzuela city failure. Some of the key factors are; satisfy a need and get quality and pricing right the first time. Rise (2011) statedthat to avoid failures there are five principles of business startups that entrepreneurial need to know. These are; “Entrepreneurs are everywhere” To be in a start-up, you don't have to work in a garage. Anyone working with in my department includes the notion of entrepreneurship! Start-up nition: a human institution intended to produce fresh products and services under extreme uncertainty conditions. This implies that entrepreneurs are every-where and the start-ups strategy can operate in any size, including a very big company. “Entrepreneurship is management" Start-up is an institution, not just a product, and therefore needs a fresh type of management specifically tailored to its extreme uncertainty context. In fact, entrepreneur should be considered a job title in all modern companies that depend on innovation for their future growth. “Validating Learning” There is start-ups not only for making things, making cash, or even serving clients. To learn how to construct a sustainable business, they exist. This learning can be scientifically validated by conducting frequent experiments that enable entrepreneurs to test each element of their vision. “Build-measure-Learn” The fundamental activity of a start-up is to turn ideas into products, measure how customers respond, and then learn to pivot or preserve. To accelerate this feedback loop, all effective start-up processes should be oriented. “Innovation accounting” In order to enhance business outcomes and hold innovators responsible, businessman need to concentrate on boring stuff: how to evaluate progress, how to set milestone, and how to prioritize jobs. This requires a new type of accounting designed for start-ups-and the individuals who hold them accountable. Unfortunately, whenever we look, why do start-

ST.GREGORY COLLEGE OF VALENZUELA 162 P, Faustino st,.Punturin, Valenzuela city ups fail so badly? The first issue is the attractiveness of a successful plan, a sound strategy and thorough market research. These things were indicators of possible success in previous eras. The overwhelming temptation is to apply them to start-ups too, but this does not mean work as start-ups are operating too much uncertainty. Startups still do not know who their customer is or who their customer is or what product should be. As the world becomes more uncertain, it gets harder and harder to predict the future. The second problem is that after seeing traditional management fail to solve this problem, some entrepreneurs and investors have thrown up their hands and adopted the ‘Just do it’ Foreign Literature Skripak, (2016) discussed in his book why some business fails and where to get help. It analyzes the reasons of failures of business start-ups. It tackles that starting a business, small or large is risky, and through many businesses succeed. The goal of this study is to give explanation of business start-ups tend to faster innovation and need to be more effective business. Also, to give information why business start-ups is important, what are the advantages and disadvantages of entering world of business. Kanchana, (2013) discussed in his book, the challenges being faced by entrepreneurs and to analyzes the measures to overcome them. It tackles that entrepreneurs must face numerous challenges on the road to success, about access to finance. It also discussed the responsibilities that fall on their shoulders. The common challenges faced by entrepreneurs are overestimating success, Misplaced purpose etc.

ST.GREGORY COLLEGE OF VALENZUELA 162 P, Faustino st,.Punturin, Valenzuela city The study is based on secondary data. The secondary data required for the studies were collected from various books and publications related to the topic under study. They tacklenew entrepreneurs face so many difficulties, i.e. lack of patience in solving issues, absence of sustained motivation, inability todream and use subconscious, etc. Other difficulties include: developing vision and thoughts,raising capital, setting up a team, finding the correct place, finding the correct staff, finding excellentclients,overcomingcompetition,unforeseen challenges and expenses, keeping up with industrial changes and trends and exiting the business. Bygrare & Charakis, (1937) stated the issues why entrepreneurs fail to manage growth. It tackles the challenges being face by the entrepreneur and how to handle for it. This book discusses that entrepreneurship begins with an opportunity, sustainable success comes from creating an organization that can ex...