Meeting the Challenge of Corporate

advertisement
Meeting the Challenge of Corporate
Entrepreneurship: The Entrepreneurial
Employee Activities among Micro, Small,
and Medium Enterprises in the
Philippines
Dr. Emilina Sarreal
De La Salle University – Manila
Background of the Study
• The Philippines conducted a study on
entrepreneurship using the Global
Entrepreneurship Monitor (GEM) framework in
2013.
• The study surveyed 2,500 adults, aged 18–64,
representing the 17 regions in the country. The
survey described the entrepreneurship indicators
in the country in terms of the entrepreneurial
attitude, activity, and aspiration of Filipinos.
Background of the Study
• In 2013, approximately 18.5 million Filipinos were
starting or running a new business while close to 6.6
million Filipinos were engaged in a business for at least
3 1/2 years.
• The Philippines exhibits the highest rate of business
start-up in the Asia-Pacific and South Asia region.
• On the other hand, the country has the highest
business discontinuance rate.
• Majority of the entrepreneurs in the Philippines are
driven by necessity given the high unemployment rate
and few job opportunities in the country.
Background of the Study
• The average Filipino entrepreneur is young, 18–34
years old, and married with at least secondary
schooling.
• Filipinos see their country as having an
environment conducive to entrepreneurship.
– Close to 48% of Filipinos see good
opportunities to start a business in their
environment.
Background of the Study
• Filipinos see entrepreneurship only as income
generation opportunities for the owners but not as
a job generation activity for the country.
– Only 0.33% of those engaged in a new business
expect to generate more than 19 jobs in the next
five years while 1.7% in an established business
expect to generate more than 10 jobs in the next
five years.
Background of the Study
• Majority of Philippine businesses, approximately
80%, are engaged in consumer services while
approximately 10% are into manufacturing,
construction, and other transformative business
activities.
• Most of the products sold are considered new in
the country, but many businesses are selling the
same products.
Background of the Study
• Filipino women have more positive attitudes toward
entrepreneurship than men.
– Fifty one percent (51%) of women see good opportunities
for starting a business compared to 44.51% of men.
– More women than men also believe that they have the
capability to start a business.
– More men than women have a higher fear of failure from
starting a new business.
– There are more men in the start-up stage of the business
while more women are present in an established business
– Filipino women entrepreneurs are more satisfied with their
work as entrepreneurs than men.
Background of the Study
• The capacity of Filipinos to start a business, the
high regard of Philippine society for successful
entrepreneurs, and the large domestic market are
main drivers of entrepreneurship in the country.
• On the other hand, barriers to entrepreneurship
are low and difficult access to financial support,
unclear and inconsistent implementation of
government policies, and the lack of capability of
entrepreneurs to grow and sustain the business.
Entrepreneurial Employee Activity (EEA)
• The 2013 Global Entrepreneurship Monitor
(GEM) gathered data using Entrepreneurial
Employee Activity (EEA) comprised of three
sources:
– Potential entrepreneurial employees are those who take
supporting roles in the development and implementation of
new ideas and activities for their employers
– Entrepreneurial employees who are involved as leaders in
idea development or new entrepreneurial activity for their
employers
– Entrepreneurial employees who are involved as leaders in
the preparation and implementation of these new ideas and
activities
Corporate Entrepreneurship
• Corporate entrepreneurship” is a term used to
describe entrepreneurial behavior inside
established mid-sized and large organizations.
Other popular or related terms include
“organizational entrepreneurship,”
“intrapreneurship,” and “corporate venturing.”
Copyright © 2003 John Wiley & Sons, Inc. Sekaran/RESEARCH 4E
MOD. B
Corporate Entrepreneurship and EEA
• The broad definition included all the employees
who in the past three years were actively involved
in leading roles developing ideas as well as those
employees taking leadership roles in the
preparation and implementation of these ideas.
The narrow definition refers only to the employees
who are currently developing and entrepreneurial
activity within his organization
GEM CONCEPTUAL FRAMEWORK
Findings
Regional EEA from highest to
lowest indicates that:
• Region 5 or the Bicol region
full time and part time
employee respondents
consistently claimed greater
leadership roles in both idea
development and
implementation of these
ideas in their organizations
in the past three years.
Entrepreneurial Employee Activity - Idea
Development (Full Time)
25.00
20.00
15.00
10.00
5.00
-
phase 1 leading role full time status
Findings
• Region 12 also known as
the SOCCSKSARGEN
followed by consistently
having higher EEA rates
in terms of leadership
roles in both idea
development and
implementation of new
activities in the past
three years.
Entrepreneurial Employee Activity Idea Development (Part Time)
60.00
50.00
40.00
30.00
20.00
10.00
-
phase 1 leading role Part time status
Findings
• ARMM or the
Autonomous Region in
Muslim Mindanao
respondents consistently
claimed leadership roles
only in idea
development but not in
the implementation of
new ideas and activities
in the past three years.
Entrepreneurial Employee Activity - Preparation
and Implementation (Full Time)
9.00
8.00
7.00
6.00
5.00
4.00
3.00
2.00
1.00
-
phase 2 leading role full time status
Entrepreneurial Employee Activity Preparation and Implementation
12.00
10.00
8.00
6.00
4.00
2.00
-
phase 2 leading role Part time status
Findings
• Aside from regions 5
and 12, region 4B
also known as
MIMAROPA,
consistently had the
highest EEA rates for
current involvement
in new idea
development in the
past 12 months.
Current involvement in new activity
full time status
60.00
50.00
40.00
30.00
20.00
10.00
-
Current involvement in new activity full time status
Current involvement in new activity
Part time status
60.00
50.00
40.00
30.00
20.00
10.00
-
Current involvement in new activity Part time status
Findings
• Majority or 63.8% of the
respondents are
employed in private and
for profit organizations.
Region 1 has the highest
share of its respondents
working in private, for
profit organizations at
92.3% of the regional
total; followed by Region
4A at 74.7% of the
regional total.
Employment by Organizational Type and
Region
CARAGA
ARMM
CAR
NCR
REGION 12
REGION 11
REGION 10
REGION 9
REGION 8
REGION 7
REGION 6
REGION 5
REGION 4B
REGION 4A
REGION 3
REGION 2
REGION 1
TOTAL PHIL
in %
62.4
33
66.8
2.1
18.3
17.8
70.2
8.4
25.7
35.1
73.3
16.9
66.8
1.8
66.5
33.5
78.2
6.9
52.5
16.5
66.2
23.7
48.8
16.2
45.3
0
74.7
8.1
60.5
4.6
66
2.9
92.3
63.8
12.1
0
20
40
60
7.7
80
Private for-profit
Government
Not for-profit
Others
Don’t know
Refused
100
120
Findings
• Majority (32.3%)
of the
respondents
belong to micro
enterprises while
about 21.9% of
the total
respondents
belong to small
enterprises
Employment by Organizational Size and Region
CARAGA 3.1
44.8
17.6
ARMM
76.7
CAR
62.7
NCR
17
REGION 12
15.1
REGION 11 0
REGION 10
0
15.4 0
24.3
8.9
51.9
10.6
36.4
9.5
REGION 9
9.4
24.1
14.5
36.6
REGION 8
62.1
54.9
14.7
REGION 7
39.4
25.2
REGION 6
37.7
27.7
REGION 5
46.3
REGION 4B
23.7
REGION 3
REGION 2
REGION 1
TOTAL PHIL
% share
0
0-9 Micro
32.3
20
10-99 Small
1.3
22
12 0
22
37.4
5.1
8.6 0
13.1
42.5
7.8
4.2
3.9
29.4
37.1
REGION 4A
0
44
18.5
21.9
0
8.7
40
60
80
100
100-199 Medium
>200 Large
don't know
120
refused
Findings
Organizational Size by Gender of
Workers
35
31.6
29.3
30
24.9
25
20
in %
• 32.7% and 31.6% of
male and female
respondents are
employed in micro
enterprises, respectively.
More female
respondents are
employed in small
enterprises than males at
24.9% and 21.2% of the
total.
15
33.1
32.7
21.2
10
8.6
3.8
5
8.6
2
3.1
1.2
0
0-9 Micro
10-99
Small
100-199
Medium
Male
>200
Large
Female
don't
know
refused
Findings
• Majority or 43% of the
respondents who are 5564 years old are
employed by micro
enterprises while small
enterprises employ
majority or 27.7% of the
total respondents aged
18-24 years old
Organizational Size by Age of
Workers
55-64
43
21.8
3
45-54
32.6
18.4
11.2
35-44
35.1
19
6.9
25-34
18-24
In % 0
30.9
27.9
20
22.7
11.3
27.7
5.7
40
60
80
100
120
0-9 Micro
10-99 Small
100-199 Medium
>200 Large
don't know
refused
Findings
• more respondents in small
enterprises have higher
educational attainment
than micro enterprises
• Vocational, high school
and elementary graduate
respondents dominate
micro enterprises while
those with post graduate
and college degrees
dominate medium and
large enterprises.
Organizational Size by Educational
Background of Workers
Post Graduate
12.8
College
12.2
Vocational
High School
17.6
32.7
35.3
22.2
30.9
18.2
Elementary
51
NurseryKindergarten
46.7
in % 0
20
20.8
13.8
40
60
80
100
0-9 Micro
10-99 Small
100-199 Medium
>200 Large
don't know
refused
120
Findings
• Potential entrepreneurial employees
– Employees who are performing supporting roles in both the
development of new idea or activity as well as in its preparation and
implementation can be considered as potential entrepreneurial
employees.
– Respondents who are involved in supporting roles in the development of
new idea or activity in their organizations are greater than those in
leadership roles with 49.9% assuming the support role and only 27.1%
doing the leadership roles.
– Respondents who are involved in supporting roles in the preparation
and implementation of new idea or activity in their organizations are
also greater than those in leadership roles with 61.6% assuming the
support role and only 25.5% doing the leadership roles
Findings
Role in the Idea Development Activity
by Age
Role in the Idea Development Activity
by Gender
60
55-64
50
11.1
22.2
47.5
46.3
45-54
100
0
40
35-44
30
20.3
40.7
51.3
20
25-34
47.4
52.6
24.2
10
6.3
16
18-24 0
100
8.5
0
0
Leading role
Supporting role
Male
Both
Female
Don’t know
0
20
Leading role
40
60
Supporting role
80
Both
100
Don’t know
120
Findings
Role in the Idea Development Activity by
Region
Role in the Idea Development Activity
by Educational Background
ARMM
Post Graduate
100
8.70
CAR 0
0
100
NCR
45.5
REGION 12
College
30.7
63.2
54.5
33.3
66.7
REGION 11 0
REGION 10 0
REGION 9 0
Vocational
21.1
63.9
REGION 8 0
REGION 7 0
REGION 6
High School
57.8
42.2
100
REGION 5
25.6
0
74.4
REGION 4B 0
REGION 4A 0
Elementary 0
100
REGION 3 0
REGION 2 0
REGION 1 0
Nursery-Kindergarten 0
TOTAL PHIL
0
Leading role
20
40
Supporting role
60
Both
80
100
Don’t know
120
27.1
0
Leading role
49.9
20
40
Supporting role
60
80
Both
100
Don’t know
120
Findings
• Out of the total respondents
engaged in both full and part
time employment,
employers are still the major
initiator of new activity in the
past three years at 32.1%
while only 14.8% of the total
respondents themselves
initiate new activity in the
same period.
• Colleagues comprise 22% of
those who initiate new
activities in organizations
Initiator of New Activity in the Past 3
Years by Region
ARMM
8.1
00
CAR 0
100
NCR
23.6
30.8
22.3
REGION 12 0
100
REGION 110 0
REGION 100 0
REGION 90 0
REGION 8 0
REGION 7
51.3
48.7
18.9
68
0
REGION 60 0
REGION 5
34.8
65.2
0
REGION 4B 0
100
REGION 4A 0
23.8 0
REGION 3 0
100
REGION 20 0
REGION 10 0
TOTAL PHIL
14.8
0
32.1
20
22
40
Myself (respondent)
Employer
Combination
Don’t know
60
80
100
Colleague(s)
120
Findings
Initiator of New Activity in the
Past 3 Years by Gender
Don’t know
23.6
Combination 4.7
Colleague(s)
55-640 11.1
21.8
45-54
14.1
17.8
35-44
29.2
Employer
40.1
Myself (respondent)
Initiator of New Activity in the
Past 3 Years by Age
13.8
27.3
11.5
25-34
14.3
18-24
15.6
10
23.1
13.5
30.4
30.4
29.2
18.4
43
22.8
16.4
0
0
47.6
20
Male
30
Female
40
50
60
70
20
40
60
Myself (respondent)
Employer
Combination
Don’t know
80
100
Colleague(s)
120
Findings
Initiator of New Activity in the Past 3
Years by Educational Background
Initiator of New Activity in the Past 3 Years
by Region
ARMM
Post Graduate 0
100
8.1
00
CAR 0
NCR
College
24.1
100
23.6
30.8
22.3
REGION 12 0
14
100
REGION 110 0
REGION 100 0
Vocational
13.8
REGION 90 0
54.1
REGION 8 0
REGION 7
High School
12.4
29
51.3
48.7
18.9
68
0
REGION 60 0
REGION 5
34.8
65.2
0
REGION 4B 0
Elementary 0
REGION 4A 0
100
23.8 0
REGION 3 0
Nursery-Kindergarten 0
100
REGION 20 0
100
REGION 10 0
0
20
40
Myself (respondent)
Employer
Combination
Don’t know
60
80
Colleague(s)
100
120
TOTAL PHIL
14.8
0
Myself (respondent)
32.1
20
Employer
22
40
60
Colleague(s)
80
Combination
100
120
Don’t know
Findings
Entrepreneurial Employee Activity Idea Development
Entrepreneurial Employee Activity Idea Development
20.00
30.00
18.00
25.00
16.00
14.00
20.00
12.00
10.00
15.00
17.24
8.00
25.00
14.29
10.00
6.00
2.53 -
-
- 2.35 -
-
-
-
-
-
-
2.20
5.00
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
Phils
REGION 1
REGION 2
REGION 3
REGION 4A
REGION 4B
REGION 5
REGION 6
REGION 7
REGION 8
REGION 9
REGION 10
REGION 11
REGION 12
NCR
CAR
ARMM
CARAGA
-
8.33
6.06
7.69
4.72
phase 1 supporting role full time status
Phils
REGION 1
REGION 2
REGION 3
REGION 4A
REGION 4B
REGION 5
REGION 6
REGION 7
REGION 8
REGION 9
REGION 10
REGION 11
REGION 12
NCR
CAR
ARMM
CARAGA
2.00
14.29
8.33
4.00
phase 1 supporting role Part time status
Findings
Entrepreneurial Employee Activity Preparation and Implementation
9.00
Entrepreneurial Employee Activity
- Preparation and Implementation
12.00
8.33
8.00
10.00
10.00
6.90
6.67
7.00
8.33
6.00
8.33
8.00
5.00
6.06
6.00
4.00
3.00
2.00
4.00
2.20
2.58
1.38
2.00
1.00
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
phase 2 leading role full time status
Phils
REGION 1
REGION 2
REGION 3
REGION 4A
REGION 4B
REGION 5
REGION 6
REGION 7
REGION 8
REGION 9
REGION 10
REGION 11
REGION 12
NCR
CAR
ARMM
CARAGA
CARAGA
CAR
ARMM
NCR
REGION 12
REGION 11
REGION 10
REGION 9
REGION 8
REGION 7
REGION 6
REGION 5
REGION 4B
REGION 3
REGION 4A
REGION 2
REGION 1
-
Phils
-
phase 2 leading role Part time status
Findings
EEA RATES BY AGE
E
E
A
R
A
T
E
S
14.0
12.0
10.0
8.0
6.0
4.0
2.0
-
EEA RATES BY EDUCATIONAL
BACKGROUND
12.2
11.1 11.1
10.4 10.4
10.0
100%
50.00
5.9
4.9
3.8
4.54.5
5.65.6
2.5
1.31.3
50.00
12.77
8.51
16.90
16.90
9.09
9.09
90%
70%
18-24
25-34
35-44
45-54
55-64
60%
PHASE1 LEADING
PHASE2 LEADING
CURRENTLY INVOLVED
INVOLVED IN LAST 3 YRS
50%
40%
EEA RATES BY GENDER
30.00
25.00
20.00
15.00
10.00
5.00
-
50.00
80%
1.01.0
- -
50.00
30%
20%
25.00
10.80
1.14 7.14
1.14 7.14
EEA phase 1
leading role
EEA phase2
leading role
Male
9.6617.86
10%
0%
EEA current
EEA phase 1
involvement in involvement in
new activity
last 3 years
Female
2.13
2.82
2.13
2.82
PHASE1
PHASE2
LEADING
LEADING
Pre-school/Kindergarten
CURRENTLY INVOLVED IN
INVOLVED LAST 3 YRS
Primary/Elementary
Secondary/High School
Post Secondary/Vocational
College
Post Graduate
Correlation Analysis
• There is significant correlation between full time, part time and self
employment status and involvement in new activities in the past 3 years;
• However, only the part time and self employed respondents are currently
involved in developing new ideas.
• Full time employees and self employed respondents generated new ideas in
the past 3 years
• Part time employees are involved in both phases 1 and 2 and occupy leading
role in these new activities. The first phase consists of idea development for
a new activity. This includes, for example, active information search,
brainstorming on new activities and submitting your own ideas to
management.
• The second phase concerns preparation and implementation of a new
activity. This includes for example promoting your idea, preparing a
business plan, marketing the new activity or finding financial sources and
acquiring a team of workers.
• Self employed respondents are involved in phase 2 and take active
leadership role in new activities.
Correlation Results
Chi Squre Test
Value
ipactive * occufull
ipactive * occupart
ipactive * occuself
ipactivenow * occupart
ipactivenow * occuself
ipinit * occufull
ipinit * ownmge
iporgsize * occufull
iporgtype * occufull
iporgtype * occupart
ipphase1 * occupart
ipphase2 * occupart
ipphase2 * occuself
ipteamyes * occupart
ipteamyes * occuself
Approx. Sig.
.124
.031
.581
.000
.586
.000
.591
.001
.577
.002
.527
.011
.484
.034
.354
.023
.222
.000
.240
.000
.708
.000
.590
.001
.587
.001
.742
.000
.708
.000
Analysis of Variance
•
self
employed
and
employed
Sig.
.000
Full time
and Part
time
Sig.
.116
Gender
Sig.
.542
Age
Sig.
.440
ipactivenow
.003
.327
.625
.226
ipphase1
.000
.949
.439
.351
ipphase1role
.115
.661
.624
.092
ipphase2
.003
.598
1.000
.436
ipphase2role
.893
.216
.697
.159
ipinit
.180
.137
.470
.984
ipteamsize
.249
.533
.779
.019
ipteamyes
.000
.159
.193
.987
ipjob5yr
.370
.407
.750
.602
ipactive
•
•
•
Significant differences exist across self
employed and employed respondents in:
– Involvement in the last 3 years in the
development of new activities for main
employer, such as developing or
launching new goods or services, or
setting up a new business unit, a new
establishment or subsidiary.
– Involvement in current development of
new activities
– Leadership in phases 1 and 2
– Active involvement in the development
of new activities
No significant difference exist across full and
part time status in all aspects of new activities
for main employer
No significant difference exist across gender in
all aspects of new activities for main employer
Significant difference exist across age brackets
in the perception of how many people will be
involved in developing new activities
Causal Analysis
R
.860
IPYES
Occupart
Occu self
OWNMGE
OPPORT
SUSKILL
FEARFAIL
EQUALINC
NBGOODC
NBSTATUS
NBMEDIA
BSTART
BJOBST
R Square
.739
Adjusted
R Square
.462
Coefficientsa
Standardized
Coefficients
Beta
P value
.028
Leadership in developing new activities for employer
Being part time employees
Being self employed
Being currently the owner of a business you help manage, selfemployed, or selling any goods or services to others
Perception of good opportunities for starting a business in the
area where you live
Possession of knowledge, skill and experience required to start
a new business
Absence of fear of failure from starting a business
Perception that most people would prefer that everyone had a
similar standard of living
Perception that not most people consider starting a new
business a desirable career choice
Perception that those successful at starting a new business
does not have a high level of status and respect
Perception that the public media feature stories about
successful new businesses
currently trying to start a new business, including any selfemployment or selling any goods or services to others with
others
currently trying to start a new business or a new venture for
your employer as part of your normal work with others
Gender
Males lead new activities
Phhhinc
Higher income take lead in developing new activities
Model
1
Constant
Occupart
Suskill
Equalinc
Knowent
Opport
nbstatus
Ownmge
Nbmedia
fearfail)
Phreduc
Bstart
Nbgoodc
Gender
Occuself
Phhhinc
Hhsize
bjobst
.843
-.309
-.292
.215
-.276
.176
.293
-.162
.148
-.117
-.132
.078
-.064
-.042
-.021
.012
-.010
Sig.
.101
.004
.107
.121
.201
.204
.333
.384
.403
.460
.547
.609
.699
.708
.848
.891
.959
.962
Recommendations
• As a result of the existing shortage in the pipeline of employees
taking on leadership role in entrepreneurial activities in their
respective companies, micro-level strategy such as balancing old
and new way doing things is recommended.
– For companies that wish to succeed with corporate entrepreneurship, the lesson
is simple: Success is not an either-or proposition. New businesses should be
nurtured through a series of balancing acts that combine entrepreneurship and
disciplined management, short- and long term thinking, and established and new
processes. Corporations must perform balancing acts in three areas: strategy,
operations, and organization.(Garvin & Levesque, 2009)
• As for needed government intervention, coordinated support
creates the foundation for entrepreneurial success, which is a
key driver for economic growth.
– To achieve maximum effect, such coordination efforts should take place among
a range of stakeholders, such as governments, corporations, entrepreneurs and
educational institutions.
Thank you!
Download
Related flashcards

System administration

65 cards

Management

61 cards

Create Flashcards