DLSU Senior High School Research Congress Conference Proceedings
Document Type
Business Presentation
Research Advisor (Last Name, First Name, Middle Initial)
Manuel, Generie M.
Abstract/Executive Summary
Globalization has significantly impacted economies worldwide, presenting both business opportunities and challenges. In the Philippines, Micro, Small, and Medium Enterprises (MSMEs) are vital economic drivers. However, despite their importance, MSMEs often face systemic barriers such as limited capital, restricted market access, and insufficient institutional support. This study, grounded in Sarasvathy’s Effectuation Theory—which emphasizes leveraging existing means, minimizing risks, forming partnerships, and embracing uncertainty—investigates how Filipino micro-entrepreneurs navigate decision-making under resource constraints. Unlike traditional predictive models, effectuation is more suited to uncertain environments. This research examines Filipino entrepreneurial experiences that would validate the application of effectuation principles in the Philippine context and whether new, culturally rooted principles emerge. Using a phenomenological qualitative approach, the study conducted in-depth semi-structured interviews with five successful MSMEs in Laguna. Thematic analysis, facilitated by NVivo software, revealed six themes of lived-experiences, encompassing personal, social, strategic, psychological, emotional, and situational influences, that validated the application of all effectuation principles: Bird-in-Hand, Affordable Loss, Crazy Quilt, Lemonade, and Pilot-in-the-Plane. Bird-in-Hand and Affordable Loss were dominant during the enterprises’ early stages, while Crazy Quilt and Lemonade played key roles in adaptation and scaling. Beyond these, participants also displayed context-specific influences coded in this study as “Gold-in-the-Chest” for inheritance and “Power-of-the-Cross” for faith, reflecting unique Filipino values. These findings enrich the current understanding of effectuation by incorporating localized insights. The study affirms the relevance of effectual logic in developing economies and highlights the need to integrate such frameworks into entrepreneurship education and policy to support resilient, opportunity-focused MSMEs.
Keywords
entrepreneurs; effectuation; entrepreneurship; MSMEs; micro-enterprise