ENTREPRENEURIAL CAPABILITY AND BUSINESS SUSTAINABILITY OF

CELLPHONE REPAIR SHOPS OWNERS IN BUTUAN CITY

A Thesis Presented to the

Faculty of Business Administration Program
Father Saturnino Urios University

In Partial Fulfillment
Of the Requirements for the degree of
Bachelor of Science in Business Administration Program

Jorahlyn Aparte
Ernest Joe March A. Ariola
Jane Frances D. Arreza
Junriel Atenta
Lovely B. Berba
Gene M. Bolaier
Roger Buladaco
Therese Hope C. Cabanas

July 2016

Chapter 1
THE PROBLEM AND REVIEW OF LITERATURE
Background of the Study
The evolution of technology gives a greater impact on the
rising

level

of

the

business

opportunities.

Technology

is

widely used globally mainly on different and it also enhance

the life of individuals. This helps almost all of mankind in
their day to day living. It is also an important tool for
communication nowadays.

Hence, technology especially cellphone

is now a basic need, new gadgets are made, new trends are
introduce, and new cellphone are available in the market.
Cellphone industry is a big business activity. Cellphone
companies are yielding high profit on this business venture.
However,

cellphone

do

not

last

forever

and

that

opens

up

opportunities for cellphone repair shop.

Repair shops troubleshoot any problem on cellphone unit.
It is a business that aids in making cellphone life expectancy
to last long through repairs.

It is also enhances gadgets,

install new application, and upgrade new software.

well-known for cellphone users.

This is

It is expanding through the

years and can attain high income when match with good and
proper entrepreneurial capability.

Entrepreneurial capability is extensively recognized as

the best way for success to attain business sustainability.
Customers

tend

to

choose

shops

with

technicians

having

sufficient knowledge and can be able to do work with tenacity.

Some cellphone technicians do not have college degree, some of
them are college and high school level. They learn fixing
phones by enrolling on vocational courses, watching Youtube
videos, and by experiment. They cannot always guarantee to fix
it immediately due to many and new release cellphone but they
can fix it if given a day or two. They endorse their talents
that they also fix different gadgets like laptop, tablet, and
iPad

that

make

their

business

popular.

They

also

do

home

service to reformat computers and sell licensed anti-virus and

OS (Operating system).
New software and OS (operating system) are installed on
newly created cellphone and because of that new technique is
needed upon fixing that may results to delay of completion.
These new techniques can be limited to those technicians who
are updated on the cellphone trend and to those who are not,
they

decline

repairs.

opportunities,

decrease

Declining
in

sales,

customers
and

bad

lead

to

impact

on

losing
their

business image. Cellphone users choose to go to shops rather

than

buy

new

cellphone

which

is

costly.

In

conclusion,

cellphone repair shop will always exist and will grow as long

as individuals use cellphones. With the cited situation, the

researchers are prompted to conduct the study.
Review of Related Literature
The review of literature provides the frame of the study
on the entrepreneurial capability and business performance of
cellphone repair shops in Butuan City.
Entrepreneurial Capabilities play

critical

role

in

market entry and in the success of new ventures. They determine

the capacity to identify opportunities, run new business, drive
innovations and learn from and adapt to changing circumstances.
(innovationpolicyplatform.org)
According to Gilles & Mondejar (2006) being knowledgeable
to whatever venture of an entrepreneur will seek, will be their
asset toward to the success of the business and success in
gaining the market reputation.
According to Asor, (2010) knowledge is an experience gain
from the work place of an entrepreneur.

Knowledgeable in what

kind of service of an entrepreneur render is a must, in order

to able to compete and of the success of the business in
gaining customers and income.
Employees who do not have a clear understanding of how
their

job

fit

into

the

overall

work

picture

of

their

organization and more likely to exhibit carelessness in ability

to

make

distinction

important.

on

which

aspects

their

job

are

most

However, Knowledge in work is important to have a better

understanding and it is easy for them to make decision and
solve problems involving to their work (reliable plant, 2006).
On the other hand, according to Hegwood, (2008) too much
Knowledge can lead to danger to the business. They also stated
that

knowledge

is

also

dangerous

when

they

have

too

much

knowledge far beyond their need and station in life.

In addition to this, too much knowledge acquire too easily
is destructively burden and not the useful intellectual or
spiritual tool that meant to be used (Genraux, 2004).
One of the things that describe an entrepreneur is their
ability

to

effective

search

for

entrepreneur

any
is

opportunities.
all

about

Because

looking

for

being

an

potential

problems and opportunities that can provide a solution. One of

the biggest parts of being an effective entrepreneur is by
means

of

discovering

or

identifying

in

order

to

obtain

financing equipment, land and work space. (Asor, 2010)

Entrepreneur acts on new business opportunities and seizes
unusual opportunities to obtain financing, equipment, land,
workspace, or assistance (Banastao, 2009).
According to Small Business(2005), consistently applying
proven

practices,

also

known

as

best

practices

or

good

practices, can significantly improve the results of any firm.

Developing customer value through solutions that meet new needs

and existing market need in unique ways. It will increase

productivity by creating and executing new process which in
firm may increase competitive advantage and provide meaningful
differentiation. Creativity in business is simply one element
of the innovation process through which new ideas lead to new
products,

procedures

or

services.

Seeking

opportunities

by

offering new ways of giving service to the customers and to

attract them to the business. (smallbusiness.chron.com)
According
lost

because

research

to
of

Kotelnikov,
unfocused

priorities.

(2005)

search

Opportunity

most

goals
can

and

opportunities
and

poorly

does

exist

are

defined
within

nearly every situation, event, proceeding, or happening. The

search

for

opportunities

is

not

one-time

event.

It

is

continuous and on-going. They must develop their anticipating

and entrepreneurial arts and skills to become sensitive to see,
not only those opportunities which are boldly advertised, but
also those hidden under the day to day problems and issues.
According

to

Asor,

(2010)

the

age

old

philosophy

of

positive thinking is a major step in the direction of success.

By behaving as if one already is a success at what they does,
it follows that there will be, and customers will believe it
too. Being confident is one of the most appealing traits they
can exhibit to their perspective clients, for them to know that
they will be getting the best their money can buy. Being aware

of their capabilities and not being doubtful that can they

accomplish

is

the

most

challenging

task.

Confidence

is

achieving because of positive thing. Thus, entrepreneurs should

be positive thinkers.
An entrepreneur, self-confident is absolutely vital. They
have got to believe in their self because everyone around may
doubt about them. They have to inspire everyone else, and that
includes their investors and even their first customers (Gilles
&Mondejar, 2006).
Visualizing

success,

having

positive

thoughts

and

developing a strong positive self-image seeing their selves as

an

expert

in

their

field

is

important

in

building

self-

confidence (selling power, 2011).

Self-confidence

is

extremely

important

in

almost

every

aspect of their lives, yet so many people struggle to find it.

Sadly, this can be a vicious circle. People who lack selfconfidence can find it difficult to become successful in the
business. They are working hard to cover up mistakes and hoping
that they can fix the problem before anyone notices.
For instance, if entrepreneurs are under-confident they
will avoid taking risks and stretching their self and they
might not try at all. And if they are over-confident they may
take

on

too

much

risk,

stretch

their

self

beyond

their

capabilities, and crash badly. They may also find that they are

so optimistic that they do not try hard enough to have a truly

success.
The

role

sustainable

of

place

business
is

at

in

making

our

the

center

of

world
the

a
study

more
of

sustainability management. If we follow studies monitoring the

acceptance and integration of sustainability by big companies,
there is a strong consensus emerging that sustainability is
having and will continue to have a significant material impact
on company strategies and operations. More and more executives
report that benefits of addressing sustainability accrue not
only

to

the

environment

and

to

society,

but

also

to

the

companies themselves, through tangible benefits in the form of

reduced costs and risks of doing business, as well as through
intangible benefits in the form of increased brand reputation,
increased attractiveness to talent and increased competiveness.
(papers.ssrn.com)
Market reputation of a business is vital to its survival.
The trust and certainty of the buyer can have an immediate and
significant impact on a business primary concern.
Businesses depends on verbal exchange by their partners so
as to set up, fabricate and keep up their reputation. In this
cutting edge period of long range interpersonal communication,
sites,

and

different

strategies

for

moment

correspondence.

Business organizations must be principled of their reputation

on a consistent premise and be receptive to any emergency that

may affect their reputation.
has

decent

market

In the event that an association

reputation

in

the

commercial

center,

customers may have an inclination for that business regardless

of

the

possibility

that

there

are

comparable

organizations

offering the same items or administrations at various costs.

Market reputation of an association can empower the business
to separate its item in exceedingly aggressive markets, permit
it to have premium estimating, and can turn into a definitive
element in whether a client chooses to be little one business
over another.
In extra to that as indicated by Metabiz (2013). Numerous
organizations
reputation.
stride

to

flourish

towards

Acknowledgment
push

forward

in

to

accomplishment

business

achievement.

sector
It

is

with
is

great
decent

additionally

conceivable that on the way of achievement market reputation

may get influenced. Keeping a track on this and keeping up
goodwill among clients or buyers, markets, retailers, suppliers
are extremely fundamental. Each association needs to value the
pretended by each and every component in the business sector.
Perceiving

these

components

will

guarantee

coherence

of

business and supportability.

The trust and confidence can have a direct and profound
effect of a business. If a business has a good reputation in

the

marketplace,

customers

may

have

preference

for

that

business even if there are similar business offering the same

products or services for different prices. The reputation of
the business can be gained through the knowledge of how an
owner handle it. Maintaining the reputation of it takes time
and requires educating workers within the business, including
that the business delivers on its promises to customers, being
transparent, trustworthy and responsive are essential to the
survival of any business. (businessinfocusmagazine.com)
Unfortunately,

just

like

every

other

industry

in

the

world, there exist dishonest business owners who take advantage

of their customers. This can give industry a bad reputation,
but this is does not mean the industry as a whole cannot be
trusted.
According to industry data collection in January (2015),
considering how much of them revolves around their smartphone
and how often they use it on a daily basis, it is small price
to pay to get their favourite device working like new. And once
they learn how much your device is actually worth, they have
realize the repair are definitely worth it.
A good customer system is one of the best value-added
survive business can offer to its customer. A quality customer
experience plays huge role in customer preferences, leading the
lowest prices. A transaction should not end when a customers

10

buys a product, because if the business offers more than one

product or service, the chances of that same customer coming
back

and

buying

customer

service

assures

the

another
comes

customer

product

in.

are

Providing

that

they

high.

This

quality

are

cared

is

customer
about

where
care
their

satisfaction, and this impression builds an avenue for the

person to come back again. Keeping existing customer is also a
lot less work than finding new ones, and providing quality
customer care will do just that for business (Isidro, 2010).
The word salesmanship is the set of persuading another to
respond favorably to a products or service. It is the process
of persuading and convincing a prospect to accept a product or
a service as one which offers satisfaction to human needs.
Helping a prospective customer realize the value of goods and
services towards fulfilling their needs and wants (Asor, 2010).
According to Hodge and Schachter(2010), salesmanship has
the two threshold criteria of honesty and accountability this
established the next look for salespeople who understand their
business, its goals, and how it measures financial success.
Salespeople

who

deliver

that

understanding

can

help

the

executives make faster, more informed decisions - decisions

that will help them achieve the business results they are
accountable for.
marketing

speak

Executives seek more than just sales or

around

the

products

and

services

the

11

salesperson

offers.

They

want

business

literate,

next-

generation salespeople who can become strategic resources.

Salesmanship is all about persuading potential buyers to
purchase

service

communication

with

and

it

involves

customers.

This

oral
cannot

and
be

face-to-face
done

without

confident of the worker. Salesmanship is a valuable way of

understanding the needs and behaviors of potential customers.
Am effective salesman full knows what product they sell or
services

they

offer.

They

must

be

able

to

convince

prospective buyer and answer all questions about the product or

service.

It

is

seller

initiated

effort

that

provide

prospective buyers information and motivates on persuades them

to

make

favorable

buying

decisions

concerning

the

sellers

product or service. The worker has to react and interact in any

different ways to different people. (www.reference.com)
According Kramer(2006). People communicate in two ways, by
means of audible or visual symbols - words, pictures, and
numbers and through body movements and physical touch - a
smile,

nod

salesmanship

of

the

employs

head,

pat

both

means,

on

the

verbal

back.
and

Effective
non-verbal

communication. It also takes advantage of the two-way process

of personal interaction. The skilled salesperson observes the
prospect's

personality,

motivation,

likes

and

dislikes.

Specific ability patterns, and reasons for participating in the

12

communication. Accordingly they adjusts their reasoning in each

individual situation.
In addition, according to De Cormier(1989), there are at
least

two

reasons

why

successful

salespeople

are

an

organizations most important asset. First, no business can

exist without a product or service being sold. Secondly, only
the salesperson generates cash, while everyone else in the
organization

uses

cash.

Yet,

few

fields

offer

so

much

disappointment to the novice as does selling. It is an easy

field to enter, but a difficult one to succeed.
According to Buzzotta (1972), some men succeed at selling,
while others do not.

Selling is a skill that can be taught and

learned. However, there is a shortage of skilled people able to

teach

salesmanship

properly.

As

result,

the

average

salesperson especially the recent college graduate, just does

not know how to sell. Instead, they merely go through the
motions of selling usually depending more on hope, hard work,
and product merits for success than on the mastery of selling
skills. Students can be taught effective selling skills through
a

fundamental

understanding

of

behavioral

knowledge,

micro

skills and the elements of the sales process. Through the

Counsellor Selling approach to sales training, improved selling
skills develop which consequently results in greater selling
success.

13

Synthesis
Researchers on related literature and the studies that
were included are related to the proponents study because
these studies are concerned with the entrepreneurial capability
and business sustainability. Both studies are related in the
area of the importance of having an entrepreneurial capability
to maintain the business sustainability of cellphone repair
shop. These studies are interconnected with each other in a way
that any businesses especially cellphone repair shop will use
appropriate

ability

to

guarantee

the

study

the

success

of

their

businesses.
Conceptual Framework
This

section

of

provides

brief

discussion

about the interrelationship of the independent variables and

dependent

variables

as

shown

in

the

research

paradigm.

This study is anchored on the concept of Pirouz (2015).

According to the author one of the most important steps that
the

entrepreneur

can

take

toward

achieving

their

greatest

potential in business is to learn to monitor their capability

and it is important on their work performance, relationships
and

everyone

around

them.

14

Their

capability

rubs

off

on

their

existing

potential

customers, their staff, suppliers, their investor and all those

they

come

into

sustainability.

contact

with.

Business

This

in

turn

sustainability

will

is

lead
scope

to
of

improvement. This improvement according to Metabiz, (2015) will

lead to sustainability of the business. Business sustainability
can be achieved by any organization when they have enough
potential and strength to accept changes in normal operating
conditions of the business in terms of economy, social and
environmental factors. It is also essential for business to
develop in a healthy way in order to reduce the negative impact
on the future due to present activities. Achieving business
goals in term of target market and revenue is not enough.
Building a brand which is sustainable form present to future
for

long

time

is

very

essential.

Knowledge, as stated by Gilles et al. (2006), is very

important. It will serve as asset towards to the success of the
business

and

also

Opportunity-seeking

key

according

to
to

market
Klemm

reputation.

(2007)

involves

creativity and creating towards innovation, it is also adopting

new

abilities

in

order

entrepreneur
Self-confidence

to

expand

render.
attracts

the

kind

of

service

the

(berkelysciencereview.com)
customers

and

necessary

component in finding success. Self-confidence also talks about

15

the knowledge of an entrepreneur. While the market reputation,

community acceptance and salesmanship serve as the independent
variable.
The dependent variable considered in this study is the
business sustainability at cellphone repair shops can be in
forms

of:

market

reputation,

customer

preference,

and

salesmanship.
According
words

to

the

to

Bracey

customer,

(2010),
being

building

trust

responsible

in

by

terms

keeping
of

the

cleanliness and timeliness to the services render and very

sensitive to the privacy of their work is the key to gain
market

reputation

for

the

survival

of

the

business.

Bradford (2013) stated that customer preference is the

currency in business, it is a market strategy in order customer
patronize the kind of service render according to Brandford the
affordability of the service, the quality of service render,
the convenience in terms of the location of the business and
the kind of atmosphere inside the business facility are the
factors that can attract customers to patronize the service.
(http://www.cssp.com/)
And lastly salesmanship is seller-initiated effort that
provides prospective buyers with information and persuade them
to

make

favorable

buying

decision

service. (www.yourarticlelibrary.com)

concerning

the

sellers'

16

Independent Variable
Entrepreneurial Capacity
Knowledge
Opportunity Seeking
Self-Confidence

Dependent Variable
Business Sustainability
Market Reputation
Community Acceptance
Salesmanship

Figure 1. Research Paradigm

17

Statement of the Problem

This study aims to know the entrepreneurial capability and
business
City.

sustainability

of

cellphone

repair

shop

in

Butuan

Specifically, the following questions will be answered:

1. What is the degree of entrepreneurial capability of

cellphone repair shop owners in Butuan City in terms of:
1.1 Knowledge;
1.2 Opportunity- seeking; and
1.3
2.

Self- confidence?

What

is

the

level

of

business

sustainability

of

cellphone repair shop owners in Butuan City in terms of:

2.1 Market Reputation;
2.2 Community Acceptance; and
2.3
3.

Is

Salesmanship?
there

entrepreneurial

significance

capability

and

relationship

business

cellphone repair shops in Butuan City?

between

sustainability

of

18

Hypothesis
This study is guided by a single null-hypothesis tested at
0.05 level of significance.
Ho1:

There

entrepreneurial

is

no

capability

significant
and

relationship

business

between

sustainability

of

cellphone repair.
Significance of the study
The

study

will

benefit

the

following

person/s

or

organization/s:
Cellphone Technicians. The study will help them improve
their ways of handling their business and can give them better
opportunities to attract customers.
Cellphone Users. This study will help them decide whether
they will invest phones or minimize their expenses through
repair.
Business Owners. This study will help them evaluate what
kind of entrepreneurial capabilitythey should apply to help
them attain success in their business ventures.
Future Entrepreneurs. This study will help them know how
to

sustain

their

future

capabilitythey must apply.

business

and

what

entrepreneurial

19

Future Researchers. The study is the tool for them to have

a further research.

Scope and Limitation of the Study

The study focuses on the Entrepreneurial Capability in
terms of knowledge, opportunity-seeking and self-confidence on
the

Business

Sustainability

in

terms

community acceptance and salesmanship.

of

Market

reputation,

The respondents of this

study are the cellphone technicians and cellphone customers of

the selected cellphone repair shop located in the downtown of
Butuan City.

The researchers will use primary source in form

of questionnaire, and other references such as books, internet

and related studies respectively in gathering data that are
needed for the completion of the study.
Definition of Terms
For the purpose of clarification, the important terms used
in this study are defined operation:
Business Sustainability. This refers to the triple bottom
line a process by which the companies manage their financial,
social, and environmental risks, obligations and opportunities.
Customer Reference. It refers to the feeling of being
satisfied by the service rendered.

20

Entrepreneurial capability. It is defined as a set of

activities
levels

and

practices

autonomously

by

which

generate

and

individuals
use

at

innovative

multiple
resources

combinations to identify and pursue opportunities.

Knowledge. It refers to the facts, information, and skills
acquired

by

person

through

experience

or

education;

the

theoretical or practical understanding of a subject. Thus, it

is also an awareness or familiarity gained by experience of a
fact or situation.
Market reputation. It is the practice of attempting to
shape

public

perception

of

person

or

organization

by

influencing information about entity.

Opportunity-seeking.

This

refers

to

the

quality

that

enables the entrepreneur to see and act upon new business

opportunities even in situations where other people see nothing
but problems and hopelessness only.
Salesmanship.

It

is

practice

of

investigating

and

satisfying customer needs through a process that is efficient,

fair,

sincere,

mutually

beneficial,

and

aimed

at

long-term

productive relationship.
Self-confidence. This refers to a feeling of trust in one
is abilities, qualities and judgments.

21

Chapter 2
METHOD
This

chapter

environment,

presents

population,

the

and

research

sample,

design,

sampling

research

techniques,

research instrument and data gathering.

Research Design
This study will use descriptive correlation method. This
study is descriptive because it describe the entrepreneurial
capability and business sustainability of cellphone repair shop
owners

in

Butuan

city.

It

is

correlational

because

it

determines the relationship between entrepreneurial capability

and business sustainability of cellphone repair shops owners in
Butuan City.
Research Environment, Population, and Sample
The researchers will conduct the study in Butuan City,
specifically in the downtown of Butuan City. ButuanCity is one
of the highly urbanized city in the Philippines.

It is also is

the commercial, industrial and administrative center of the

Caraga Region. The economy of Butuan City has experiencing
growth and most of the population uses cellphone through this

22

business

specifically

cellphone

repair

shops

are

now

increasing.
There are estimated 53 cellphone repair shop within the
downtown of Butuan City. Because of cellphone repair shops,
cellphone technicians applies their expertise and skills in
repairing cellphones which they uses as their primary source of
income. 10 cellphone technicians and 10 cellphone customers
will be considered as the respondents of the study.
Sampling techniques
The

researchers

will

use

purposive-convenience

sampling

technique in gathering the data. Purposive sampling technique

is chosen, because the subject are the cellphone technicians in
selected cellphone repair shops. It is also convenience because
only

those

present

cellphone

customers

at

that

time

the

questionnaire will be distributed will also be considered as

the respondents.
Research Instruments
This study will use the researcher-made questionnaire as
the tool in the data gathering.
The questionnaire is purely created and constructed by the
researchers. The questionnaire is divided into two parts. The
part

of

capability

the
with

questionnaire
knowledge,

covered

the

entrepreneurial

opportunity-seeking,

and

self-

23

confidence as the indicators. The part II of the questionnaire

covered the business sustainability with market reputation,
community acceptance and salesmanship as indicators. Likert
scale will be used for both Part I and II as follows:

SCALE

RANGE

4
3
2
1

Verbal description
Very high
HIGH
LOW
VERY LOW

3.50-4.00
2.50-3.49
1.50-2.49
1.00-1.49
The

researchers

will

refer

to

the

cellphone

expert

themselves for the validity of the questions.

Data Gathering Procedure
The researcher will write a letter that is addressedd to
the Dean of Business Administration.

With the approval of the

dean, the researchers will send the letter to the respondents

to ask permission for conducting of the study and distribution
of

the

questionnaires.

After

the

respondents

will

give

permission to the researchers, the researchers will distribute

the questionnaire personally. And after 3 days the researcher
will get the questionnaire. And lastly, the researchers will
tally all the results.
Statistical Treatment
To be determine by the statistician.

24