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The Drawback of Entrepreneurs Without Educational Degree in Business

Venturing at Davao CIty

A Research Paper
Presented to the Faculty of the Senior High School
University of Mindanao, Davao City

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In Partial Fulfillment of the Requirements

In Res1s (Qualitative Research)
2nd semester, SY 2018–2019

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Anderson, Alexie Rae O.

Magandam, Iris L.
Magdua, Celestina L.
Saban, Janice G.
Salazar, Sophie D.

January 2019
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Chapter 1

INTRODUCTION

Background of the Study

An entrepreneur is someone who develops a business model, acquires the

necessary physical and human capital to start a new venture, and operates it and is

responsible for its success or failure. Entrepreneurs identify an opportunity and then

capitalize on it. If there’s demand, they become the one with the supply (Hayes,

2003), the one who provides the demand of the market. Entrepreneur can be those of

who took up business related courses or not and/or have no educational degree at all.

Every business owner or an entrepreneur can benefit a lot of knowledge in handling

their ventures through business education but not all requires one. Through countless

of personal experiences in business venturing an entrepreneur already developed its

own skills in running a business which makes it not that necessary for them to have

their own business degree and yet this does not imply to everyone who aims to gain

profit and succeed in business venturing. However, according to Mack (2019), even

experienced businesspeople have gaps in their understanding, so taking a few classes

to shore up your skills in a particular area is always a good idea.

While it can be important for business owners and entrepreneurs to attain

qualifications related to the running of their businesses, it’s not imperative. Some of

the business world’s biggest names have only a few qualifications, but have gone on

to start up hugely successful companies (Jordan, 2018). The business education

program or courses helps aspiring entrepreneurs or entrepreneurs to mold their skills

in developing a successful business. Business education programs provide rich

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opportunities for relevant, real world learning experiences. These programs provide

pathways to specific apprenticeship and workplace destinations along with valuable

information and connections that help them to explore potential work and business

opportunities (Scott, 2014).

Entrepreneurship acts as a remedy for unemployment and growth problems

that are caused by the recent global economic crisis are the major issues in the

political agenda of all countries today. (Askun & Yildirim, 2011). The Global

Entrepreneurship Monitor (GEM), 2013 report said Filipinos regard entrepreneurship

“as a reliable means to improve one’s economic and social standing.” The report said

the country’s huge population, high educational attainment and the growing

consumption expenditure in the domestic market motivate the population to engage in

entrepreneurial activities (Reyes, 2015). As mentioned earlier, even the well

developed and knowledgeable entrepreneur will still fail. Here in Davao City, Charita

Puentespina, not a business degree holder became o successful entrepreneur with her

Waling Waling farm (Soliven, 2013)

In the K-12 program that the DepEd offers there is The Accountancy, Business

and Management (ABM) strand that focuses on the basic concepts of financial

management, business management, corporate operations, and all things that are

accounted for. For the college education courses which are related in business

venturing are Bachelor of Science in Customs Administration, Bachelor of Science in

Entrepreneurship, and many more.

To be successful in business venturing doesn’t acquire you a diploma or a

degree which is related in business, it acquires you to be skillful, innovative, risk-

taker, smart-thinker, optimistic, competitive, creative, and an opportunity seeker. But

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the importance of business education to entrepreneurs and aspiring entrepreneurs

plays a big role.

Purpose of the Study

Phenomenology is an approach to qualitative research that focuses on the

commonality of a lived experience within a particular group. The fundamental goal of

the approach is to arrive at a description of the nature of the particular phenomenon

(Creswell, 2013). The purpose of this phenomenological study is to find out the

experiences of the entrepreneurs without any educational background in business

venturing, how they dealt with their entrepreneurship journey, their management

mechanisms in dealing with their hardships, and the insights gained from those

experiences they have gone through their journey as entrepreneurs without any

educational background in business venturing. This research study describes personal

experiences, activities, failures and triumphs of an entrepreneur with lack of education

background in business venturing, desires and ambitions in life, and the capacity of

the informants to face the challenges and difficulties that they have encountered.

Research Questions

1. How important does having educational background in business venturing for

an entrepreneur?

2. What are the disadvantages of having no educational background in business

venturing?

3. How can an entrepreneur manage a business despite of not having any

background about it?

4. What programs do DepEd or other organizations offers for aspiring

entrepreneur who would want to engage themselves in business venturing?

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Theoretical Lens

According to Jordan (2018), Many business entrepreneurs prefer to not engage

themselves in education connected to running a business, and there’s nothing wrong

with that. On the contrary, it’s still helpful in developing and making progress to the

inner workings of a business. The advantage of possessing any background in

business field is that you’ll have them for lifetime. It’ll be useful for you to get better

job opportunities, no matter what happens to your business in the end. It is supported

by the study conducted by Scott (2017), that most of the entrepreneurs who have

gained and received training education perform better in formulating solutions to

business problems, creating new ideas and innovations, and analyzing market sales

than those who have not.

The knowledge acquired from a formal education is definitely important and

beneficial for business entrepreneurs, yet academic educational background might not

be the most efficient tool to be a successful one (Lill, 2019). Plenty of entrepreneurs

don’t even have any degree in relation about managing business but doing extremely

well; has freedom to think and feel like experts who lead and run businesses.

Real entrepreneurship is the product of continuous self-training, concepts,

characteristics, multiple skills and attitudes. As an entrepreneur, learning is a daily

undertaking and is bound to last a lifetime. However, learning is not limited to

academics and is confined to a laboratory environment. Entrepreneurship is the field

for opportunity seekers and risk takers (Parmar, 2017).

Significance of the Study

The findings of the study will be beneficial to the following:

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Entrepreneurs Without Business Degree. This study can help them in

formulating new business ideas and problem solutions that will fill the gap between

them and entrepreneurs with degree.

Aspiring Entrepreneurs. This study will serve as guiding tool that will help

them see the importance of having formal education in relation to business and what

impact it can bring to them as they enter entrepreneurship in the near future.

Future Researchers. This study can become very useful and credible source

where they can gain informations that may help them and their study.

Definitions of Terms

The following terms used in this study are defined in terms of operation and

concept to establish a common reference framework:

Entrepreneurship. In this study, the term refers to the act of creating a

business or businesses while building and scaling it to generate profit.

Entrepreneur. As used in this study, the term refers to make their own

business model, provied the needs and wants of its market and gain income from it.

According to the Merriam-Webster Dictionary, it is define as one who organizes,

manages and assumes the risks of a business or enterprise.

Business Venturing. In accordance to this study, business venturing mainly

means to take risk in coming up or managing a business.

Business Degree/Education. Technically and basically it refers to a plethora

of courses designed to provide students with all the necessary skills for business

success, especially those related to start-ups and running companies.

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Delimitation and Limitation

This study is descriptive in the idea of business and concentrated on those

entrepreneurs in Davao city who have beaten the downsides in business venturing.

The research sample is made out of youthful and professional entrepreneurs who have

gone hardships and how could they endure. The essential information gathering

strategy was interview face-to-face to determine the entrepreneurs based on their

experience and through their cooperation in business venturing. This research utilized

purposive and comfort testing as far as the business achievement and different

foundations have discovered that individuals who have not gotten enterprise

instruction perform better at maintaining their very own businesses. Also, the

coverage of this study is to determine the advantages and disadvantages of the

entrepreneurs who have been successful in business venturing without educational

degree.

The study does not cover the entreprenuers lack of basic skills in the business.

Although entrepreneurs have started a business, they need certain skills to be able to

run it successful. This study does not provide a complete picture of the posibilities on

how entrepreneurs may be able to develop their own self in the business.The

researcher limited this research to the youngsters and profesional entreprenuers in

Davao city who need to comprehend and pick up information even to those

entrepreneurs who have not finished their educational degree yet they end up fruitful.

This study is limited to the business students who actually expected to utilize this as

their primary reference of their work, eventhough this investigation has not

consummately ingenious to utilize. Entrepreneurs need to celebrate the fact that

constraints and limitations are sources of opportunity in the marketplace, and sources

of profit and competitive advantage inside the business (Zwilling, 2016)

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Chapter 2

REVIEW OF RELATED LITERATURE

In this literature review are selected readings, survey results, and studies

conducted globally to provide further support for this study. Few authors have done

their research in seeking information on the journey through success of

entrepreneurship even without educational background in business venturing and this

will help the researchers in this study.

Entrepreneurship

Ferreira (2018) stated that Entrepreneurship is the creation of a business or

business while it is being developed and scaled to generate a profit. However, as a

basic definition of entrepreneurship, it is a bit limited. The more modern definition of

entrepreneurship is also about transforming the world by solving major problems.

Like initiating social change, creating an innovative product or a new way of life.

What the definition of entrepreneurship does not tell you is that entrepreneurship is

what people do to take their careers and dreams into their own hands and lead them in

their own direction. It's about building your own life. There are no bosses. No

limitation of schedules. And nobody holds you back. Entrepreneurs can make the

world a better place for everybody in it the first step.

In addition, Hisrich, et. Oh, al. (2008) stated that the term entrepreneurship, as

demonstrated by the many different definitions, means different things to different

people and can be seen from different concepts. There are, however, some common

aspects despite the differences: risk-taking, creativity, independence and rewards.

These commonalities will remain the driving force behind the future concept of

entrepreneurship. Moreover, the role of entrepreneurship in economic development

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involves not only increasing capital output and income, but also initiating and

changing the structure of business and society.

As Greene (2013) said, however, entrepreneurship is not for all. Some people

lack the necessary qualities to be successful entrepreneurs.Others don't have the

qualities to run a business. For other people, entrepreneurial advantages do not

outweigh the disadvantages. In order to determine whether entrepreneurship is right

for you, you must first evaluate yourself. A self-evaluation is an assessment of your

strengths and weaknesses.

Entrepreneur

According to Kenton (2018) An entrepreneur is an individual who, instead of

working as an employee, establishes and runs a small company and assumes all the

risks and rewards of the company. The entrepreneur is often regarded as an innovator,

a source of new ideas, goods, services and businesses. Entrepreneurs have a crucial

role to play in any economy. These people have the skills and the necessary initiative

to anticipate current and future needs and to bring good new ideas to the market.

Entrepreneurs who prove successful in taking on the risks of a startup are rewarded

with profits, reputation and continued growth. Those who fail suffer losses and are

less common on the markets.

In contrast to traditional professions, where there is often a defined path to

follow, most people find the path to entrepreneurship mystifying. What works for a

businessman may not work for the next businessman and vice versa. That said,

Kenton (2018) has taken five general steps, followed by most, if not all, successful

entrepreneurs:

1. Ensure Financial Stability – This first step is not a strict requirement, but is

definitely recommended. While entrepreneurs have built successful

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companies while being less than financially flush, they start with an

adequate cash supply and ensure continued financing and can only help an

aspiring entrepreneur increase his or her personal path and give him or

her more time to build a successful business rather than worry about

making money quickly.

2. Build a Diverse Skill Set – Once a person has strong financial resources, it is

important to build a variety of skills and apply them in the real world. The

beauty of step two is that it can be done at the same time as step one. The

development of a set of skills can be achieved by learning and testing new

tasks in real world settings. For example, if an aspiring entrepreneur has a

financial background, he can play a sales role in his existing company to learn

the soft skills needed to succeed. Once a diverse set of skills is built, an

entrepreneur can rely on a toolkit when faced with the inevitability of tough

situations.

3. Consume Content Across Multiple Channels – Just as it is important to build a

diverse set of skills, it is equally important to consume a variety of content.

This may be in podcasts, books, articles or lectures. The important thing is that

the content should be varied in what it covers, regardless of the channel. An

aspiring entrepreneur should always become acquainted with the world around

him so that he can look at industries with a fresh perspective, giving him the

ability to build a business in a particular sector.

4. Identify a Problem to Solve – A aspiring entrepreneur can identify different

problems by consuming content across multiple channels. One business adage

states that the product or service of a company must solve a particular

problem–either for another company or a consumer group. By identifying a

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problem, an aspiring entrepreneur can build a company to solve this problem.

It is important that steps three and four be combined so that a problem can be

solved by looking at different industries as an outsider. This often gives an

aspiring entrepreneur the ability to see other problems.

5. Solve That Problem – It is important that steps three and four be combined so

that a problem can be solved by looking at different industries as an outsider.

This often gives an aspiring entrepreneur the ability to see other problems.

Say, for example, you identify the procedure for appointing a dentist is

complicated for patients and as a result dentists lose customers. The value

could be to create an online appointment system which makes booking

appointments easier.

Opportunities: Business Degree

Zhelev (2018) said that the degree has as many uses as there are students who

decide to pursue it, but the program's three main objectives are career specialization,

career change and academic career. With so many higher education programmes, it is

often hard to find an option. After all, an advanced degree after a bachelor's degree

sets you on a career path that defines a lifetime of professional commitment in most

cases. To make the right choice, it is important to understand what the degree is and

what is unique about it.

In addition, Business Administration is a broad degree program that prepares

students for a variety of careers, according to Delaware Valley University (2016) in

Pennsylvania, USA. Whether you are an aspiring entrepreneur or you are looking at a

corner office, a degree in business administration gives students the tools they need

for a dynamic and successful career. Business management is a comprehensive and

challenging program that opens the doors to dozens of career paths. Here are four
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advantages of a degree in business administration. Company management is a

comprehensive degree combining art, science, planning and analysis. With a broad

range of skills, graduates are in demand in a variety of industries, including finance,

marketing, public relations, advertising and insurance. The job market today is always

changing and highly competitive, but degrees in business administration are very

much in demand. It shows that job applicants are intelligent, competitive and flexible,

which can give you a foothold over other candidates. The needs of today's economy

constantly evolve. When you graduate in business administration, you will learn skills

you will use throughout your career, regardless of the economy or the job market.

The Role Of Education In Creating Entrepreneurs

According to Abun, Foronda, Belandres, Agoot & Magallanez, (2015), when

we think of entrepreneurial thinking, it will be difficult to reconcile with the

traditional education we have. This is a challenge to transform classroom into

entrepreneurial thinking. It is a fact that traditional education teaches students casual

thinking or predictive thinking in the sense that students are taught how to get into

business. She further says that when someone go to business, the first thing he/she

should do is to scan the environment, envision the business, then establish the mission

and objectives, determine key result areas, performance indicators and strategies.

Students are taught that when they are following those standards of operating

procedures, they would be successful. Such a method may not work with those who

have entrepreneurial thinking and behaviors, who rely on creative thinking. Creativity

is learned not by sitting in the classroom, but by experiencing and applying creative

thinking processes. Robinson (n.d) challenges traditional education of this kind. He

argues that we learn to be innovative and entrepreneurial by exploring, questioning

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assumptions, using imagination and synthesizing information. Robinson argues that

the emphasis of traditional education on conformity, compliance and a linear path

stifles this. Entrepreneurs are inherently effective reasoning. They do not begin with a

specific goal, mission or objective. Instead, it begins with a certain set of means and

allows goals to emerge contingently over time from the diverse imagination and

aspirations of the founders and the people with whom they interact.

Kto12

(Gene Coulson, 2014) stated that Kto12 program is a benefit to every student

and every community in establishing entrepreneurial culture. Here are four reasons

why we should begin now:

1. Entrepreneurship Education benefits all students by offering them an

alternative career in their lives at any time. There are students in every

graduating class who want to start business immediately. Some people

consider it after college or several years of work. Some graduates don't think

about it now, but at some point in their lives. There are even those who have

thought about it and, with more knowledge about what it takes for

entrepreneurial success, decide not to do it and do not put personal or family

start-up funds at risk. There are even those who have thought about it and,

with more knowledge about what it takes for entrepreneurial success, decide

not to do it and do not put personal or family start-up funds at risk. Finally,

there is the student who has no interest in entrepreneurship now and who will

never be interested in it, but who will be a better employee because she now

knows what is important to her employer. She knows how companies make

money. Each student should have the opportunity to make an informed

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decision about entrepreneurship as a career path now or later in life. The

foundation for that decision should begin in the k-12 system.

2. Entrepreneurship Education also provides a background for the teaching of

academic subjects, giving these studies a foundation in the real world.

Entrepreneurship can be the answer to, " Why do I have to study this? "

Mathematics, science, writing and communication, history, geography and

even the arts can be connected to the world of today through a connection to

entrepreneurship. How is a scientist going to turn a discovery into income?

How will an artist turn that talent into a family-friendly career? Every career

and technical student with an ability to sell on the market should consider the

difference between finding a job and doing their own job.

3. Research shows that the most creative students in theK-12 system are in

kindergarten and in the first grade. When they move through the system,

creative thinking is discouraged in favor of learning the " right " answer and

being able to enter it on a test answer sheet. We need to nurture the creativity

that our youngest students bring to their first days and years of school.The

consideration of entrepreneurial opportunities preserves the innovative and

creative thinking skills that exist in early grades, but disappear as students

move towards high school graduation. There are many appropriate activities of

age and grade that introduce entrepreneurship to young children. Middle

school is when most students start to think about career choices.

Entrepreneurship should be part of that consideration. There is a compete

spectrum of curriculum materials available to help every teacher integrate

entrepreneurship education into their instruction and teach their state standards
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with a common sense connection to the real world around them and a way to

preserve the creative-thinking abilities of their students. There are many

pathways to entrepreneurial success and they are all accomplished by

innovative and creative thinking, not by rote memorization. Looking for the

alternative answer, the highly personalized answer, the innovative idea, keeps

the creative thinking muscles strong as students move through the K-12

system.

4. Rural and urban communities suffer from brain drain. Sharp, young people

who are forced to leave the area to find a good job and make a career. Students

who do leave their communities frequently want to come back at some point

in their lives, but alas, they can’t land a good job opportunity back home.

Those same communities have needs unmet by businesses in their area. Young

people who are creative, entrepreneurial thinkers can turn these unmet needs

into business opportunities and stay in or return to their communities, create

jobs and broaden the local tax base.

5. In this age of educational accountability through standards and assessments

with only one right answer and success measured by test scores, we need to

keep young minds open for alternative ways of thinking, allow innovative

ideas to spark and grow, to create an entrepreneurial culture that will grow

great people and great communities. Their communities, create jobs and

broaden the local tax base.

We need entrepreneurship education for every student, every year.

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According to Dahl (2014), there are many roles in a successful career as an

entrepreneur. In fact, several successful businessmen and women have never even

received a college degree; they simply had a brilliant idea that they could follow

through. However, those who want a solid educational foundation to inform their

success have a few good options. This leaves many students wondering, what’s the

best degree for becoming an entrepreneur? Here are some of the best degrees to

pursue before starting an entrepreneurial path.

Business Degree

For most entrepreneurs, a business degree is the obvious choice. A degree in

business deals with many aspects of being an entrepreneur. It teaches the student how

to communicate effectively, how to see and meet market needs and how to find and

pursue opportunities. Business degree programs deal with aspects of finance,

psychology and other relevant fields. MarketingWhile a business bachelor's degree

can be somewhat vague on each subject, an MBA forces students to delve deeply into

the issues and develop their skills. Many people are dead in choosing a business

degree or MBA before becoming an entrepreneur, because it provides such a well-

rounded preparation.

A marketing degree or other creative degree could definitely be helpful to a budding

entrepreneur. Since so much success as an entrepreneur depends on how you present

yourself, creative students have a say in the competition.Entrepreneurs with marketing

degrees can promote their products and services more effectively and will receive

more attention from the beginning than some of their other cohorts. Since there are so

many budding entrepreneurs these days, many good ideas go unnoticed.When

marketing or arts students effectively package their ideas, they can quickly gain

recognition.
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Psychology

A major part of becoming a successful entrepreneur is understanding people.

For this reason, a degree in psychology could be useful for a hopeful entrepreneur. An

entrepreneur meets many people every day, including clients, potential partners,

employees and others with whom he or she must work. An entrepreneur must be

persuasive and persuade others to follow his ideas. An entrepreneur must also win

over people; the path to success is much shorter when others look after you and

actively try to help you. Psychology degrees can therefore be helpful. Courses in

decision- making, personality psychology and business or industrial psychology can

be particularly helpful.You may especially want to choose a degree program in

industrial / organizational psychology, which offers entrepreneurs a good deal of

insight into how to run and organize an effective business model with all the human

complications that occur.

Finance

Clearly, money is an important part of an entrepreneur's life. There is no one

to account for the financial success of an entrepreneur except himself or herself. If an

entrepreneur is knowledgeable about managing the finances of a project, cutting

corners where necessary and expanding the budget in areas that have proved

profitable, the business can go much further.Therefore, those who are great at

analyzing numbers and patterns are successful entrepreneurs. A degree in finance can

help you to master this aspect of running a project. While this degree may miss some

of the other important aspects of becoming an entrepreneur, it certainly gives you a

solid background in dealing with one of the most notoriously difficult aspects of

creating entrepreneurial success.

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Communications

A degree in communications is an excellent choice for an entrepreneur. The

nature of this work demands that you communicate effectively with people from all

walks of life. Since you will be the one coming up with the big ideas, you won’t be

able to convey these effectively to others unless you have the necessary aptitude for

communication. Getting others on the same page as you will be key in making sure

your project develops in the direction that you want it to go. Specific skills that you

may gain in a communications degree program include public speaking, negotiation,

reconciling miscommunications, and the effective use of various communication

platforms including social media.

IT Degrees

With an ever increasing reliance on computers to get our work done, an

entrepreneur with an IT degree will be ahead of the game. Many of the most

profitable and successful new business ideas revolve around the technology industry,

so an individual with a strong background in computing and IT will have an

advantage in coming up with useful new services and products. There are plenty of

internet tools and technologies that can make the life of an entrepreneur easier, from

social networking platforms to accounting software. An entrepreneur with a strong IT

background can best take advantage of these technologies to make life easier. Aside

from this, an IT degree is one of the most solid degrees to fall back on in case an

entrepreneurial idea doesn’t work out.

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