Startup Business: Entrepreneurial Motivation, Capabilities, and Challenges
Leslie P. Dacayo | Ma. Teresa B. Ballados
Discipline: business studies
Abstract:
The research problem focuses on the challenges startups encounter in achieving long-term sustainability and success, including financial constraints, inadequate business models, and insufficient management skills. This study investigates the entrepreneurial motivation, capabilities, and challenges that startup owners face. Data were collected from 80 participants using purposive and quota sampling methods, with a descriptive-correlational design applied for analysis. Findings reveal that startup owners exhibit high motivation levels, primarily driven by intrinsic factors such as independence, personal fulfillment, and the desire for increased income. High school graduates display stronger push motivations due to external pressures than those with higher education, leading to lower overall motivation across all demographic groups. Financial security and professional recognition were identified as primary motivators, with intrinsic factors consistently outweighing external pressures. Startup owners demonstrated high entrepreneurial capabilities in innovation, opportunity recognition, strategy development, and networking, particularly in fostering a creative work environment. Despite challenges being considered minimal, whether this reflects a comprehensive assessment of potential obstacles is uncertain. The analysis also indicated significant differences in entrepreneurial competencies based on business size and industry type, emphasizing the need for tailored support strategies. Overall, this study enhances understanding of the entrepreneurial environment by highlighting the importance of positive motivation and strong entrepreneurial capabilities as key drivers of startup success. The findings suggest practical implications for developing targeted support programs that enhance entrepreneurs' motivation and capabilities, aiding their long-term sustainability.
References:
- Cho, N. J., Lee, Y. S., Kim, J. H., & Yu, G. S. (2021). A study on the priority affecting the succession of the family firm using AHP. Asia Pacific Journal of Small Business, 43(1), 147-164. https://doi.org/10.36491/APJSB.43.1.7
- Díaz-Santamaría, C., & Bulchand-Gidumal, J. (2021). Econometric estimation of the factors that influence startup success. Sustainability, 13(4), 2242. https://doi.org/10.3390/su13042242
- Etrata, A. J. E., & Raborar , J. L. (2022). The Filipino generation Z’s entrepreneurial intention: What drives their business mindedness? International Journal of Research in Business and Social Science, 11(2), 57–66. https://doi.org/10.20525/ijrbs.v11i2.1660
- Farida, I., & Setiawan, D. (2022). Business Strategies and Competitive Advantage: The Role of Performance and Innovation. Journal of Open Innovation Technology Market and Complexity, 8(3), 163–163. https://doi.org/10.3390/joitmc8030163
- Ferrucci, E., Guida, R., & Meliciani, V. (2020). Financial constraints and the growth and survival of innovative start‐ups: An analysis of Italian firms. European Financial Management. https://doi.org/10.1111/eufm.12277
- Fraraccio, M. (2024). How small businesses lead to big innovation. Retrieved from https://tinyurl.com/bdf4pr7x
- Gil-Gomez, H., Guerola-Navarro, V., Oltra-Badenes, R., & Lozano-Quilis, J. A. (2020). Customer relationship management: Digital transformation and sustainable business model innovation. Economic Research-Ekonomska Istraživanja, 33(1), 2733–2750. https://doi.org/10.1080/1331677X.2019.1676283
- Hokmabadi, H., Rezvani, S. M. H. S., & de Matos, C. A. (2024). Business resilience for small and medium enterprises and startups by digital transformation and the role of marketing capabilities-A systematic review. Systems, 12(6), Article 220. https://doi.org/10.3390/systems12060220
- Ismail, I. J. (2022). Entrepreneurial start-up motivations and growth of small and enterprises in Tanzania: The role of entrepreneur’s personality traits. FIIB Business Review, 11(1), 79-93. https://doi.org/10.1177/23197145211068599
- Karan, A., Singh, M., & Rana, N. P. (2024). Does entrepreneurial motivation influence entrepreneurial intention? Exploring the moderating role of perceived supportive institutional environment on Indian university students. International Entrepreneurship and Management Journal, 20(1), 215–229. https://doi.org/10.1007/s11365-023-00899-6
- Kothari, T., & Roldan, M. (2022). The next billion in business: Women entrepreneurs in emerging markets. Journal of Comparative International Management, 25(1), 84–124. https://doi.org/10.55482/jcim.2022.32903
- Kuckertz, A., Brändle, L., Gaudig, A., Hinderer, S., Morales Reyes, C. A., Prochotta, A., Steinbrink, K. M., & Berger, E. S. C. (2020). Startups in times of crisis – A rapid response to the COVID-19 pandemic. Journal of Business Venturing Insights, 13, e00169. https://doi.org/10.1016/j.jbvi.2020.e00169
- Looze, J., & Desai, S. (2020). How has COVID-19 changed challenges for entrepreneurs? Implications for entrepreneurship support. Ewing Marion Kauffman Foundation. https://www.kauffman.org/wp-content/uploads/2020/11/How-has-COVID-19-Changed-Challenges-for-Entrepreneurs-November-2020.pdf
- Maran, T. K., Bachmann, A. K., Mohr, C., Ravet-Brown, T., Vogelauer, L., & Furtner, M. (2021). Motivational foundations of identifying and exploiting entrepreneurial opportunities. International Journal of Entrepreneurial Behavior & Research, 27(4), 1054–1081. https://doi.org/10.1108/IJEBR-05-2020-0291
- Martínez-Cañas, R., Ruiz-Palomino, P., Jiménez-Moreno, J. J., & Linuesa-Langreo, J. (2023). Push versus pull motivations in entrepreneurial intention: The mediating effect of perceived risk and opportunity recognition. European Research on Management and Business Economics, 29(2), 100214. https://doi.org/10.1016/j.iedeen.2023.100214
- Mukhsin, M. (2024). Cultivating innovation in the workplace: How does innovation culture influence employees’ innovative work behavior in digital companies in Indonesia? (Master’s thesis). University of Twente. https://essay.utwente.nl/98058/
- Neneh, B. N. (2022). Entrepreneurial passion and entrepreneurial intention: The role of social support and entrepreneurial self-efficacy. Studies in Higher Education, 47(3), 587–603. https://doi.org/10.1080/03075079.2020.1770716
- Nisperos, A. (2022). 11 government funding opportunities for startups in ph. PhilDev. Retrieved from https://tinyurl.com/bp7yjzx8
- Oyedele, O. M., Oluseyi, O., Ajoke, K. F., Akinfolarin, A. F., Oyekola, T. M., & Elemo, G. N. (2020). Entrepreneurial capability and entrepreneurial success. European Journal of Business and Innovation Research, 8(5), 56-79. https://doi.org/10.37745/ejbir/vol8.no5.pp56-79.2020
- Passaro, R., Quinto, I., Rippa, P., & Thomas, A. (2020). Evolution of collaborative networks supporting startup sustainability: Evidence from digital firms. Sustainability, 12(22), 9437. https://doi.org/10.3390/su12229437
- Pranowo, A. S., Sutrisno, J., Sulastiono, P., & Siregar, Z. M. E. (2020). The entrepreneurial competency, innovation capability and business success: The case of footwear industry in Indonesia. Quality - Access to Success, 21(178), 2–25. http://www.srac.ro/calitatea/en/arhiva/2020/QAS-4-2020-EN.php
- Rauh-Bieri, N. (2016). Developing Filipino entrepreneurs. William Davidson Institute at the University of Michigan, USAID. Retrieved from https://wdi.umich.edu/wp-content/uploads/DEVELOPING-FILIPINO-ENTREPRENEURS-January-3-2017.pdf
- Ridwan, M., Fiodian, V. Y., Religia, Y., & Hardiana, S. R. (2024). Investigating the effect of intrinsic and extrinsic motivation in shaping digital entrepreneurial intention: The mediating role of self-efficacy. Asia Pacific Journal of Innovation and Entrepreneurship, 18(2), 123–145. https://doi.org/10.1108/apjie-02-2024-0036
- Roshanzamir, A. (2019). Startups: Challenges and implications to success. Journal of Entrepreneurship and Business Innovation, 6(1), 15–28. https://doi.org/10.5296/jebi.v6i1.15863
- Salamzadeh, A., & Kawamorita Kesim, H. (2015). Startup companies: Life cycle and challenges (Conference paper). 4th International Conference on Employment, Education and Entrepreneurship (EEE), Belgrade, Serbia. https://doi.org/10.13140/RG.2.1.3624.8167
- Sevilla-Bernardo, J., Sanchez-Robles, B., & Herrador-Alcaide, T. C. (2022). Success Factors of Startups in Research Literature within the Entrepreneurial Ecosystem. Administrative Sciences, 12(3), 102. https://doi.org/10.3390/admsci12030102
- Shetty, S., Baliga, V., & Gil, M. T. (2024). Impact of entrepreneurial mindset and motivation on business performance: Deciphering the effects of entrepreneurship development program (EDPs) on trainees. Cogent Business & Management, 11(1), Article 2314733. https://doi.org/10.1080/23311975.2024.2314733
- Silva Júnior, C. R., Siluk, J. C. M., Neuenfeldt Júnior, A., Rosa, C. B., & Michelin, C. D. F. (2022). Overview of the factors that influence the competitiveness of startups: A systematized literature review. Gestão & Produção, 29, e13921. https://doi.org/10.1590/1806-9649-2022v29e13921
- Smith, J., & Lee, A. (2021). Entrepreneurial capabilities and firm performance: The role of experience in startups. Journal of Business Venturing, 36(4), 123-145. https://doi.org/10.1016/j.jbusvent.2020.106123
- Štefan Slávik, Hudáková, I. M., Katarína Procházková, & Branislav Zagoršek. (2022). Strategic Background of the Start-Up—Qualitative Analysis. Administrative Sciences, 12(1), 17–17. https://doi.org/10.3390/admsci12010017
- Songkajorn, Y., Aujirapongpan, S., Deelers, S., Rakthai, T., & Jutidharabongse, J. (2020). Innovation Capability Indicators for Entrepreneurs Developed the Business from Thai University Incubator. Journal of Southwest Jiaotong University, 55(6). https://doi.org/10.35741/issn.0258-2724.55.6.26
- Sopjani, X. (2019). Challenges and opportunities for startup innovation and entrepreneurship as tools towards a knowledge-based economy: The case of Kosovo (Master’s thesis). RIT Kosovo
- Teves, G., Muralla-Palustre, H., Saulo, C. M., Pajutan, J., Fetalino III, M. J., & Vandenberg, P. (2023). The Philippines’ ecosystem for technology startups. Asian Development Bank. Retrieved from https://tinyurl.com/49b72cux
- Victoria, M., & Raquiza, R. (2021). Micro, small, and medium enterprise (MSME) sector financing: Issues and challenges (UP CIDS Discussion Paper 2021-01). University of the Philippines Center for Integrative and Development Studies. https://tinyurl.com/dwmz2ymp
- Wei, Z., Lee, M.-J., Jia, Z., & Roh, T. (2023). Do entrepreneurial resources drive startup activation? Mediating effect of entrepreneurial orientation. Heliyon, 9(4), e15603. https://doi.org/10.1016/j.heliyon.2023.e15603
- Yuan, X. (2019). A review of succession and innovation in family business. American Journal of Industrial and Business Management, 9(4), 919–928. https://doi.org/10.4236/ajibm.2019.94066
- Zanella, G., Castro Solano, D. B., Hallam, C. R. A., & Guda, T. (2019). The role of the organization in the entrepreneur–opportunity nexus. International Journal of Entrepreneurial Behavior & Research, 25(7), 1537–1562. https://doi.org/10.1108/IJEBR-03-2018-0169
Full Text:
Note: Kindly Login or Register to gain access to this article.
ISSN 2984-8385 (Online)
ISSN 2984-8288 (Print)