Business Administration Department

South East Asian Institute of Technology, Inc.

National Highway, Brgy. Cr. Rubber, Tupi
South Cotabato, Philippines

THE EFFECTS OF ENTREPRENEURIAL SKILLS TOWARDS PRODUCT QUALITY AS

PERCEIVED BY CONSUMERS OF APAREJA BUKO HALO-HALO

IN KORONADAL CITY, SOUTH COTABATO

____________________________________________

A Research Proposal Study

Presented to
The Faculty of BSBA-MM Department
SEAIT, Inc.

____________________________________________

In Partial Fulfillment
of the Requirements for the Degree
BSBA Major in Marketing Management

________________________________________________________

By

MARY GRACE S. CATURAN

April 22

AIRAH SHYNNE C. CABIZARES

Instructor

CHAPTER 1

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 Business Administration Department
South East Asian Institute of Technology, Inc.
National Highway, Brgy. Cr. Rubber, Tupi
South Cotabato, Philippines

THE PROBLEM AND ITS SETTING

Background of the Study

Entrepreneurial skills are those normally associated with being an

entrepreneur, although anyone can develop them. Being an entrepreneur usually

means starting and building your own successful business, but people with

entrepreneurial skills can thrive within larger organizations, too. Many

researchers have studied entrepreneurial skills, but found no definitive answers.

Some common themes are: Personal characteristics, Interpersonal skills, Critical

and creative-thinking skills, Practical skills and knowledge.

Hirschauer (2021), Entrepreneurial skills can encompass a broad range of

various skill sets like technical skills, leadership and business management skills

and creative thinking. Because entrepreneurial skills can be applied to many

different job roles and industries, developing your entrepreneurial skills can mean

developing several types of skill sets. For instance, to be a successful business

owner, you may need to develop your business management skills. To build and

maintain successful project teams you might need to improve your leadership

and communication skills.

Regardless of how you define it, entrepreneurship isn't easy.it tend to be

strongly innovative in outlook, and they may take risks that others would avoid.

As an entrepreneur, you'll likely have to work closely with others – so it's

essential that you're able to build good relationships with your team, customers,

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 Business Administration Department
South East Asian Institute of Technology, Inc.
National Highway, Brgy. Cr. Rubber, Tupi
South Cotabato, Philippines

suppliers, shareholders, investors, and other stakeholders. You need also to

come up with fresh ideas, and make good decisions about opportunities and

potential projects. Many people think that you're either born creative or you're

not. But creativity is a skill that you can develop, and there are many tools

available to inspire you.

Entrepreneurs also need solid practical skills and knowledge to produce

goods or services effectively, and to run a company. You need knowledge in

many different areas when you're starting or running a business, so be prepared

for some serious learning. Ensure that you have a working knowledge of the

main functional areas of a business: sales, marketing, finance, and operations. If

you can't fulfill all these functions yourself, you'll need to hire others to work with

you, and manage them competently. Entrepreneurs play a key role in any

economy, using the skills and initiative necessary to anticipate needs and

bringing good new ideas to market. Entrepreneurship that proves to be

successful in taking on the risks of creating a startup is rewarded with profits,

fame, and continued growth opportunities. Entrepreneurship that fails results in

losses and less prevalence in the markets for those involved.

Statement of the Problem

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 Business Administration Department
South East Asian Institute of Technology, Inc.
National Highway, Brgy. Cr. Rubber, Tupi
South Cotabato, Philippines

In this study, the researcher will aim to determine the Effect of

Entrepreneurial Skills towards product quality as perceived by consumers of

Apareja Buko Halo-Halo in Koronadal City, South Cotabato.

Specifically, it seeks to answer these listed questions below:

1. To determine the demographic profile of respondents in terms of:

A. Age

B. Gender

C. Ethnicity; and

D. Income

2. To determine the Entrepreneurial Skills in terms of:

A. Business management skills

B. Marketing Skills

C. Strategic thinking and planning skills; and

C. Customer service skills

3. To what extent are the effect of entrepreneurial Skills towards product quality

as perceived by the consumers of Apareja Buko Halo-Halo in terms of;

A. Features that meet consumer needs and give customer satisfaction

B. Nutritional Content Factor

C. Ingredients and Measuring Texture

D. Value or worthiness for money

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 Business Administration Department
South East Asian Institute of Technology, Inc.
National Highway, Brgy. Cr. Rubber, Tupi
South Cotabato, Philippines

4. Is there a significant relationship between the Entrepreneurial Skills and its

effect to the product quality as perceived by consumers of Apareja Buko Halo-

Halo.

Conceptual Framework

The research paradigm illustrates the conceptual framework of the study

that shows the relationship of the independent and dependent variable. This

framework embodies the specific direction by which the research will have to

undertake by describing the relationship between specific variables identified in

this study.

It can be seen from it that the indicators affecting Entrepreneurial Skills

are the independent variable and production quality perceived by consumers is

the dependent variable. This means that the said indicators of Entrepreneurial

Skills affects the production quality perceived by consumers. The conceptual

paradigm of this research study is shown on the next page.

Independent Variable Dependent Variable

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 Business Administration Department
South East Asian Institute of Technology, Inc.
National Highway, Brgy. Cr. Rubber, Tupi
South Cotabato, Philippines

sasa

To determine the Effect of entrepreneurial

Entrepreneurial Skills in Skills towards product
terms of: quality as perceived by
the costumers of Apareja
A. Business management Buko Halo-Halo in terms
skills of:

B. Marketing Skills 1 Features that meet

consumer needs and give
C. Strategic thinking and
customer satisfaction
planning skills; and
2 Nutritional Content
D. Customer service
Factor
skills
3. Ingredients and
Measuring Texture
4 Value or worthiness for
money

Figure 1 Conceptual Framework of the Study

Theoretical Framework

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 Business Administration Department
South East Asian Institute of Technology, Inc.
National Highway, Brgy. Cr. Rubber, Tupi
South Cotabato, Philippines

It is a universal fact that entrepreneurship is an important factor in

economic development. An Entrepreneur is the risk bearer and works under

uncertainty. But no attempts were made by economists for formulating

systematic theory of entrepreneurship. According to (William J. Baumol, 2018)

the economic theory has failed to provide a satisfactory analysis of either the role

of the entrepreneurship or its supply.

Prior to describe the importance of entrepreneurial skills and its impact on

intentions, it seems important to define the concept of “skills”. Chell (2013) define

as; “Skills are multidimensional constructs; they comprise the cognitive –

knowledge and what is learnt; the affective – emotional expression and what is

experienced; the behavior – action at strategic, tactical and personal levels; and

the context – sectoral, occupational, job and task levels” (p. 8). There is a debate

among researchers about the skills that whether and how these skills can be

learned or taught. Perhaps, Chell (2013) suggested that these skills can be

imparted and improved with the passage of time with repetition and practice.

Stella (2014) explains entrepreneurial skill as skill or competencies that are

critical for any entrepreneur for success in his or her business venture. Smith and

Morse (2005) noted that repetitive distinctions had been made in literature

between management skills or competencies and entrepreneurial skills or

competencies, further they also broadly categorized two basic themes of

managerial entrepreneurial skills or competencies such as; Functional

competencies (marketing, human resource, procurement and finance) and

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 Business Administration Department
South East Asian Institute of Technology, Inc.
National Highway, Brgy. Cr. Rubber, Tupi
South Cotabato, Philippines

Organizational competencies (motivating, leadership and other related skills)

Davidsson (1991) stated that starting a new business venture and business

related skills, exposure and education are highly interrelated. Furthermore,

Papulova (2007) recognized four areas of managerial skills imperative for

entrepreneurs working at Small and medium sized enterprises, technical skills,

interpersonal skills, conceptual skills and communication skills. Additionally, Chell

(2013) proposed a category of entrepreneurship skills. Determining the concept

of this research, the study came up with different theories.

According to (Schumpeter, 2018) entrepreneurs are not a class in

themselves like capitalists and workers. An individual is an entrepreneur only

when he actually carries out new combinations and ceases to be an entrepreneur

the moment he settles down to running the established business. An

entrepreneur exists only if the factors of production are combined for the first

time. Maintenance of a combination is not an entrepreneurial activity. In this way,

combination theory differs from the theory of rent formulated by Ricardo. Ricardo

included the term “entrepreneurial ability” as an independent factor of production

and it is concerned with profit. Thus, this theory fails to provide suitable solutions

to the problems.

Review Related Literature

This chapter present the related literature and studies after the thorough

and in depth search done by the researchers. This will also present the synthesis

of the art, theoretical framework to fully understand the research to be done. This

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 Business Administration Department
South East Asian Institute of Technology, Inc.
National Highway, Brgy. Cr. Rubber, Tupi
South Cotabato, Philippines

study explores the effects of entrepreneurial skills towards the production quality

perceived by consumers of Apareja Buko Halo-Halo in Koronadal City, South

Cotabato. Specifically, the study will determine the factors that effects of

entrepreneurial skills towards the production quality perceived by consumers of

Apareja Buko Halo-Halo in Koronadal City, South Cotabato.

In today’s world, entrepreneurial skills are playing a very vital role and

become an important part of the global business environment and it’s really

important for the sustained economic development and social progress. Sadera,

J (2021), Entrepreneurial skills are the foundation for continued economic growth

in the future.

The skills help the manager to relate with their fellow co-workers and know

how to deal well with their subordinates, which allows for the easy flow of

activities in the organization. Good management skills are vital for any

organization to succeed and achieve its goals and objectives. Business

management skills, such as communication, problem-solving and decision-

making, are abilities that will help you become more successful in your career.

They equip job seekers with skills that improve their likelihood of being hired and

employees with skills to be more productive in the workplace. Business

management skills are attributes a person running a company should have to

ensure its business goals are met. These skills are usually acquired through on-

the-job experience or by studying them on your own time. Employers are more

likely to hire employees with business management skills because such hires

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 Business Administration Department
South East Asian Institute of Technology, Inc.
National Highway, Brgy. Cr. Rubber, Tupi
South Cotabato, Philippines

know the operations of every department in a company. (Business Editorial

Team, 2021).

(Tim Storbeirski, 2009) Strategic thinking skills are any skills that enable

you to use critical thinking to solve complex problems and plan for the future.

These skills are essential to accomplish business objectives, overcome

obstacles, and address challenges—particularly if they're projected to take

weeks, months, or even years to achieve. What are strategic thinking skills?

In its simplest form, strategic thinking is an ability to plan for the future. It's

the capacity to prepare strategies and conjure ideas that will both cope with

changing environments and consider the various challenges that lie ahead.

Strategic thinking skills include such as; Analytical skills to ideate a strategy

that helps your organization reach its objectives, you must be capable of

analyzing a variety of inputs—from financial statements and KPIs, to market

conditions, emerging business trends, and internal resource allocation. This initial

analysis is crucial to creating a strategy that aligns with the current reality facing

your organization, Communication skills putting a strategy into place for your

company, regardless of its size, requires solid communication skills. The ability to

communicate complex ideas, collaborate with internal and external stakeholders,

build consensus, and ensure everyone is aligned and working toward shared

goals are all central to strategic thinking, Problem-solving skills strategic

planning is often used to solve problems or address challenges, such as missed

financial targets, inefficient workflows, or an emerging competitor. Implementing

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 Business Administration Department
South East Asian Institute of Technology, Inc.
National Highway, Brgy. Cr. Rubber, Tupi
South Cotabato, Philippines

a strategy that addresses the central challenge you face requires you to first

understand the problem and its potential solutions. From there, you can craft a

strategy that solves it, Planning and management skills strategy isn’t just about

thinking of a solution—it involves implementation, too. Once data has been

analyzed, the problem is understood, and a solution has been identified, you

need strong planning and management skills to bring everything together.

(D Knapp – 2014) As a skill set, customer service entails several qualities

like active listening, empathy, problem-solving and communication. Customer

service is used in many jobs at every level. While traditionally you might think of

customer care as a service from a business to a consumer, it is also applicable

within a business. At its simplest, it means that you will be able to understand

customers' issues and problems, and appreciate how to resolve them in a way

that will work for them. In particular, it will mean that you can appreciate and

respond to their emotions as well as the logic of their problem. Good

communication helps businesses develop trust with clients and clearly articulate

needs, expectations and challenges. Communicating more effectively can

improve the client relationship and potentially add more leads to the business.

Customer service skills are the skills necessary to communicate with

others, solve problems, demonstrate patience and understanding, ensure

customer satisfaction, and resolve customer complaints. Employees with

excellent customer service skills can have a massive impact on a company's

bottom line.

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 Business Administration Department
South East Asian Institute of Technology, Inc.
National Highway, Brgy. Cr. Rubber, Tupi
South Cotabato, Philippines

According to International Journal of Commerce and Management 2021

there are 16 Most Important Customer Service Skills that affects the product

qualities of a business such as; Patience, Attentiveness, Clear Communication

Skills, Knowledge about the Products, Ability to Use Positive Language, Acting

Skills, Time Management Skills, Ability to ‘Read’ Customers, A Calming

Presence, Goal Oriented Focus, Ability to Handle Surprise, Tenacity, Persuasion

Skills, Closing Ability, Empathy, and Willingness to Learn.

(Anastasia Belyh, 2017) Product quality may be rather wide as it is a

nebulous concept. It may be regarded as the overall or specific aggregate value

of satisfaction of the functions and characteristics of a product. The quality of a

product is usually relative. There is no standard measure though rules are in

place to ensure minimum quality standards are complied with by manufacturers.

Product quality may be viewed in three different perspectives such as Customer

product quality to a buyer will refer to its appeal, functionality, durability, and

reliability of a product. Manufacturer Quality will be viewed as engineering, the

type of raw materials used and packaging practices used in the production of a

specific good. Product this is more of an objective test of a product’s durability

and reliability.

Product quality is very important for the company. Maintenance of high-

quality products secures a high level of demand and patronage by end users

while poor quality products affect the consumer’s confidence, reputation, and

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 Business Administration Department
South East Asian Institute of Technology, Inc.
National Highway, Brgy. Cr. Rubber, Tupi
South Cotabato, Philippines

sales of the company. The focus is on product quality, pre-production, during and

post-production.

Characteristics of product quality such as; Fitness for use, Features that

meet consumer needs and give customer satisfaction, Freedom from deficiencies

or defects, Conformance to standards, Value or worthiness for money, Reliable

and dependable, Quality of design, Quality conformance to needs and

regulations, Proper storage, and Safety Factors affecting product quality such

as; Use of production technology, Skill set, tools, and experience of labor,

Availability of needed raw materials, Storage facilities, and Carriage or transport

facility.

Components of product quality such as; Quality planning: Repeated efforts

to discover defects and reveal the causes, Quality control: Controlling production,

carrying out repairs and warranty costs through defect discovery and

maintenance, Quality assurance: Effective tracking of problem reports and

customer complaints in an effort to resolve the queries in a timely fashion, and

Quality improvement: This involves public relations and interaction with other

enterprise customer management systems and integration with other enterprises

for recognizing customer complaints reports.

Methodology

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 Business Administration Department
South East Asian Institute of Technology, Inc.
National Highway, Brgy. Cr. Rubber, Tupi
South Cotabato, Philippines

This will present the research design, locale, of the study, research

instrument, respondent and sampling used, date gathering procedures and

statistician treatment of data.

Research Design

This study is a quantitative research which will employ the the descriptive

survey method that aim the main purpose of the study which is to determined the

perceived effect of entrepreneurial skills towards product quality of the

consumers of Apareja Buko Halo-Halo. This design is suitable to the study

because it will identify the factors affecting product quality of of Apareja Buko

Halo-Halo. At first, it will determine the indicators and different entrepreneurial

skills that can affect the product quality of of Apareja Buko Halo-Halo, This will

resolve the relationship of the two variable according to the indicators used.

According to Ardales, V. (2002), a descriptive survey method is a technique of

data gathering by asking questions to people who are though to be the

predictable source of data or information needed for the study. But for, us,it only

limit number of respondents for this study.

Locale of the Study

This study was conducted at National Highway in Brgy. Saravia,

Koronadal City, South Cotabato because the respondents are the customers of

Apareja Buko Halo-Halo.

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 Business Administration Department
South East Asian Institute of Technology, Inc.
National Highway, Brgy. Cr. Rubber, Tupi
South Cotabato, Philippines

Apareja Buko Halo-Halo in Koronadal City serves the freshest buko halo-

halo in town. Almost all ingredients used for Apareja Buko Halo-Halo are

harvested and well selected from the owner's plantation. For only P65.00 you

will be served with this delectable concoction of shaved ice, kaong, sweetened

kamote, banana, nata de coco, generous dose of evaporated milk, topped with a

slice of leche flan, sweet corn kernels and a scoop of ube ice cream.

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 Business Administration Department
South East Asian Institute of Technology, Inc.
National Highway, Brgy. Cr. Rubber, Tupi
South Cotabato, Philippines

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 Business Administration Department
South East Asian Institute of Technology, Inc.
National Highway, Brgy. Cr. Rubber, Tupi
South Cotabato, Philippines

Map of the locality in the Philippines

Respondents of the Study

The respondents of the study are the certified customers of Apareja Buko

Halo-Halo.

Research Instrument

The researchers used a self-made questionnaires with the help of their

research adviser then It was subjected to a validation process in order to

determine the validity of the research instruments then There will be two sets a

researcher’s questionnaire that used to determine the factors affecting the

product quality as perceived by the costumers of Apareja Buko Halo-Halo. The

second set of researcher’s self-made questionnaires was based in the different

entrepreneurial skills that can affect the product quality of of Apareja Buko Halo-

Halo. The following survey guides was used for the analysis and interpretation of

the data obtained from the respondents of the study.

Data Gathering Procedure

The researchers were observed the following procedures in data

gathering:

Asking Permission to Request the Data. The researchers will secure a

permission through approval letter from the Program head of Bachelor of Science

in Business Administration Department in order to conduct a survey to the

possible respondents.

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 Business Administration Department
South East Asian Institute of Technology, Inc.
National Highway, Brgy. Cr. Rubber, Tupi
South Cotabato, Philippines

Interviewing the Respondents. Upon approval of the letter, the

researchers will seek a permission to the respondents and will undergo a short

time interview in each possible respondents randomly.

Retrieving the Questionnaires. After a quick interview, the respondents

will give the questionnaires back to the researchers to help them in the study.

Tallying Data Gathered. At this stage, the researcher will tally and

analyze the data and will subjected for consolidation.

Statistician Treatment of Data. The researchers were used the following

statistical technique in treating the data;

Weighted Arithmetic Mean. Used to determine the factors affecting

affecting the product quality as perceived by the costumers of Apareja Buko

Halo-Halo.

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