Business Research FINAL REVISED

CHAPTER 1
THE PROBLEM AND ITS SETTING
A. RESEARCH PROBLEM
Nowadays, the involvement of Muslim and Chinese in the entrepreneurial
activities has increased. Several reasons have been attributed for their involvement
among which include the seeking for the better income, to make better use of their
abilities, to do something beneficial to the society and so on. However, regardless of
any factors, indicated that most entrepreneurs especially in the developing countries are
facing the challenging of long term survival of small and medium enterprises (SMEs).
In developing countries, small and medium enterprises comprise the largest part
of the industrial fabric and are among the most important development agents in
society. SMEs offer many millions of poor people around the world the possibility of
earning money, training, work experience and employment.
Each nation state’s specific cultural environment inevitably creates the
parameters within which the systems or practices adopt by a firm should be formulated
and carried out in a fashion that they will not upset the stakeholders and, in particular,
the local workforce as it comprises the human resources deployed to execute the firms’
strategies and performance plans. Therefore, it is important for foreign firms to know
whether and how any of the Chinese and Muslim cultural characteristics may impose
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any impact on the way their business practices should be formulated to ensure that the
local employees can perform according to the firms’ expectations and objectives.
The objective of this paper is to assess the business practices of the two of the
most competitive, successful, significant and influential alien interracial merchants in
Manila, the Muslim and Chinese entrepreneurs who runs and operates a micro
enterprise business.
B. STATEMENT OF THE PROBLEM
The purpose of this study is to determine if there a significant difference on the
business practices of Muslim and Chinese entrepreneurs in running a successful micro
enterprise in Manila.
C. OBJECTIVES
In order to thoroughly explore this idea, the following supporting sub-questions
are developed to be used as a guideline for the research design.
1. What are the demographic profiles of the Muslim and Chinese entrepreneurs?
 Sex
 Age Group
 Educational Attainment
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2. What are the business profiles of the Muslim and Chinese entrepreneurs?
 Business Age
 Nature of the Business
3. What are the determinants considered of Muslim and Chinese business practices in
terms of?
 Organizational Culture
o Path to Ownership
o Legal Structure
o Business Size and Age
o Teamwork
 Organizational Strategy
o Risk Management Practices
o Marketing Practices
o Strategic Planning Practices
o Human Resource Management Practices
o Performance Management Practices
4. Is there a significant difference on the business practices of the Muslim and Chinese
entrepreneurs in running a micro enterprise?
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D. THEORETICAL AND CONCEPTUAL FRAMEWORK
Muslim Chinese
Entrepreneurs Entrepreneurs
Demographic Profile Determinants of Business

Practices
Business Profile  Organizational Culture
o Path to Ownership
o Legal Structure
o Business Size and Age
o Teamwork
 Organizational Strategies
o Risk Management Practices
o Marketing Practices
o Strategic Planning Practices
o Human Resource
Management Practices
o Performance Management
Practices
Successful
Micro-Enterprise
Figure 1: Conceptual Framework on Business Practices of Muslim and Chinese
Entrepreneurs in Running a Successful Micro-Enterprise in Tutuban, Manila.
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In the conceptual framework, the independent variables, which will be observed
by the researchers, are the Muslim and Chinese entrepreneurs in Tutuban, Manila.
The determinants will be the successful micro enterprises owners under this
determinant are the variables that would answer the questions about the Organizational
Culture; Path to Ownership, Legal Structure, Business age and size and Teamwork
then the Organizational Strategy; Risk Management Practices, Marketing Practices,
Strategic Planning Practices, Human Resource Management Practices and
Performance Management Practices.
These variables can either strengthen or weaken the dependent and
independent variables. The dependent variable would be the successful micro
enterprise business. It will be the outcome of the business practices attributes based on
the success of micro enterprise in the direction of the arrow in the framework.
E. HYPOTHESIS
Null Hypothesis:
 There is no significant difference on the business practices of the Muslim and
Chinese entrepreneurs in running a successful micro enterprise.
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F. SIGNIFICANCE OF THE STUDY
The primary purpose of the study is to determine the business practices of
Muslim and Chinese entrepreneurs in running a successful micro enterprise in Tutuban,
Manila. This study will benefit the entrepreneurs, the company, the industry, and the
future researchers that have the same nature in line with this study.
It can help the entrepreneurs through the information provided by the business
practices of Muslim and Chinese in running a business. This study can also help the
company as this serve them as a guide to develop new strategies and tools that can
maintain the company’s position in the market.
This study can also help the industry as it serves as a basis in developing new
trends that would be helpful to the people and society. Furthermore, this study can also
be a guide for future studies which has the same nature and industry. Future
researchers will be provided of ideas and facts that can serve as a guide study on a
respective time and usability.
G. SCOPE AND DELIMITATIONS OF THE STUDY
The scope of the study focused on determining if there is a significant difference
between the business practices of Muslim and Chinese entrepreneurs in running a
micro enterprise using the comparative analysis. The scope of the study is
geographically limited to Tutuban, Manila. The respondents of this research are
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individuals that are Muslim and Chinese who owns and runs a micro business both
male and female ages from below 20-80 years old.
The researchers engage all activities and procedures on first week of July 2015
up to last week of August 2015 as the time frame of the study. Collection of data is
through survey and questionnaires. Confidentiality and fair treatment will be reflected to
the respondents. Any study exceeding the limit of the given information as a subject of
this research is not a part of this study and is not considered by the researchers.
Additionally, it had to be done within a limited time period.
H. DEFINITION OF TERMS
Business Practices – It is a method, procedure, process, or rule employed or followed
by a company in pursuit of its objectives.
Chinese – Are the various individuals or groups of people associated with China, either
by reason of ancestry or heredity, nationality, citizenship, place of residence, or other
affiliations.
Human Resource Management – It is a function in organizations designed to
maximize employee performance of an employer's strategic objectives. HR is primarily
concerned with the management of people within organizations, focusing on policies
and systems.
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Legal Structure – It is one of the first things an entrepreneur does when starting a
business. Choices include LLCs, partnerships, sole proprietorships, corporations, non-
profits and co-operatives.
Marketing Practices – The action or business of promoting and selling products or
services, including market research and advertising.
Muslim – It relates to a person who follows the religion of Islam, a monotheistic and
Abrahamic religion based on the Quran. Muslims consider the Quran to be the verbatim
word of God as revealed to the Islamic prophet Muhammad.
Organizational Culture – It is a system of shared assumptions, values, and beliefs,
which governs how people behave in organizations. These shared values have a strong
influence on the people in the organization and dictate how they dress, act, and perform
their jobs.
Organizational Strategy – An organizational strategy is the sum of the actions a
company intends to take to achieve long-term goals. Together, these actions make up a
company's strategic plan. Strategic plans take at least a year to complete, requiring
involvement from all company levels.
Ownership – The ultimate and exclusive right conferred by a lawful claim or title, and
subject to certain restrictions to enjoy, occupy, possess, rent, sell, use, give away, or
even destroy an item of property.
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Performance Management – It is a process by which managers and employees work
together to plan, monitor and review an employee's work objectives and overall
contribution to the organization.
Risk Management – The process of identification, analysis and either acceptance or
mitigation of uncertainty in investment decision-making.
Small and Medium Enterprise (SME) – The Magna Carta for Small Enterprise (R.A.
6977) defines Small and Medium Enterprise (SME) as any business activity or
enterprise engage in industry, agribusiness, and/or services, whether single
proprietorship, cooperative, partnership, or corporation whose total assets are inclusive
of those arising from loan, but exclusive of the land on which the particular business
entity’s office, plant and equipment are situated, must have value feeling under the
following categories.
 Micro Less than 50,000
 Cottage 50,001 – 500,000
 Small 500,001 – 5,000,000
 Medium 5,000,001 – 20,000,00
Strategic Planning – It is an organization's process of defining its strategy, or direction,
and making decisions on allocating its resources to pursue this strategy.
Teamwork – A cooperative or coordinated effort on the part of a group of persons
acting together as a team or in the interests of a common cause.
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CHAPTER 2
RELATED LITERATURE AND STUDIES
A. Related Literature
Local Literature
Chinese entrepreneurs are known for their good business practices which help
them succeed in any industry. During the colonial era when the Spanish people ruled
the Philippines for 333 years, our archipelago was a very feudal agrarian economy with
virtually no trade, commerce or real industry. The Spaniards monopolized political and
religious power, plus vast landholdings called haciendas, while the local Tagalogs,
Cebuanos, Ilocanos and other peoples were mostly either farmers or fishermen. The
Chinese sojourners were outsiders to this feudal setup. The Chinese were called called
“Intsik” in Tagalog. It originated from the Hokkien term “In-Tsyak,” or “uncle,” thus the
Cojuangcos’ revered clan founder was called “Intsik Jose” by locals and “Inkong” Jose
by family members (“Ingkong” being the Hokkien word for “grandfather”). The early
Chinese were also called “Sangleyes” by the Spaniards.
The Chinese who came could not go into farming because local peoples were
already the farmers, and they were not allowed to own land; they were also for
generations barred from becoming lawyers or professionals, so many of the Chinese
started out as laborers, craftsmen, artisans and later became traders who pioneered the
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beginnings of Philippine capitalism, according to economist Dr. Bernardo Villegas in his
essay in the Ayala family history book.
Like the Jewish minorities of medieval-era Europe, who often acted as
middlemen traders and moneylenders between the landed aristocracy and the general
public, the Chinese minority in the colonial Philippine society often acted as apolitical
middlemen traders and financiers, too.
There are many age-old Chinese business practices, some of them written down
thousands of years ago by ancient taipan Tao Zhu Gong. One favourite Chinese
business principle is the strategy of being content with low profit margins and aiming for
high sales volumes. This requires infinite patience, perseverance and dexterity. Look at
the popular 168 Mall in the heart of Divisoria, Manila — low profit margins for high sales
volumes.
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Foreign Literature
Islamic Business Practices
According to Rafiki and Kalsom (2013), Islamic business practices can be
categorized into two which are firstly, the religious practices of the Muslim
entrepreneurs such as prayers, donations, fasting in Ramadhan and networking.
Secondly, the Shariah compliance such as Islamic finance, permissible product and
service production, paying tithe or zakat and use of Islamic values in business. Muslims
believe that the implementation of these two practices will bring them to success either
in this world or Hereafter which is known in Islam as al-falah.
Shuhairimi (2013) also agreed that the conditions of al-falah of Muslim business
people is to follow the life-styles of Muslims (special religious rituals), to comply Shariah
principles in business (free from oppression, injustice and discrimination) and to
appreciate Islamic values in business (generosity, sincere, trustworthy, tawadu’ (piously:
Al-Quran, 29:59), tawakkal, siddiq (truthful), itqan (hardworking), responsible,
cooperative and to possess specific values as entrepreneurs (creative, innovative,
motivated, capable and futuristic).
Ahmad and Abdul Kadir (2013) discussed about the Islamic business practices
that are successful for the Muslims entrepreneurs such as hard work and execute
business according to Islamic ethics, the entrepreneurs should always put the customer
with appealing words, sweet, mutual respect, and gentleness and consider the interests
of all parties. Entrepreneurs should always open-minded and strive to meet the
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“consumer expectation” by emphasizing on creativity, innovation, confidence, courage
and diligence.
According to Ilhaamie and Ibrahim (2013), among Islamic entrepreneurship
practices are to sell only permissible products or services (free from alcohol, pigs or
swine, dogs and animal corpses with fangs and claws or animals with two natures (Al-
Quran, 16:115 & 5:3) and doubtful products or services whereby their production
processes are doubtful (Al-Quran, 1:173) and sinful activities such as prostitution or any
element of them (Al-Quran, 24:33). The products or services must be good quality
(ingredients and sources, Al-Quran, 27:2) and quantity, Al-Quran, 82:1-3), beneficial
and nutritious (free from gambling, drugs, tobacco, Al-Quran 4:92 and hazardous
chemical ingredients: Al-Quran, 4:85), in possession (not flying birds in the air or unripe
fruit on the trees) and not stolen from others (Al-Quran, 1:188). The business must be
based on profit and loss sharing and not based on usury (Al-Quran: 1:275) and must be
completed as agreed by both parties (Al-Quran, 5:1, & 23:8). The price must be fixed
according to the market rate but not too high in order to prevent entrepreneurs from
gaining exorbitant profits and the advertising activities should be free from fraud
(Riwayat Bukhari). The entrepreneur also must treat their employees nicely such as
giving adequate salary and providing other facilities to their workers (Al-Quran, 11:85).
They also must treat their competitor (not to hoard goods or monopolize the business:
Al-Quran, 5: 2) and environment appropriately (not to cause pollution or wildlife
extinction: Al-Quran, 28:77, & 30:41; Siti Akmar et al. 2011).
These practices have to be done continuously (istiqamah) as Allah SWT loves
diligent Muslims (Al-Quran, 10:89). Soon after the practices, the Muslim entrepreneurs
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have to evaluate themselves to ensure whether their practices will be accepted by their
Creator i.e. Allah SWT. If they feel and think that there are some flaws in the practices
such as they do not follow certain procedures or processes or they do not fulfill or
comply to some matters, they have to continuously update their practices (Al-Quran,
16:128). Pertaining to this matter, Muslims have to be aware that the devil loves to
entice and to put doubts in human’s mind and thus, Muslim entrepreneurs have to be
confident of their deeds by checking whether their practices are done in the proper
manner or not (Nursi, nd).
There are various benefits of implementing Islamic business practices. Among
them are the products or services can be used by Muslims without any doubts. This is
important as most of Malaysian products or services are produced by non-Muslims. This
has initiated the Malaysian government to come up with a halal accreditation system
whereby all products or services should possess halal certificate in order for them to
market their products or services and to ensure high acceptance among Muslims.
Furthermore, the relationship between the Muslims can be strengthening as the
Islamic business is based on Islamic values, principles and ethics. There will be
harmony and peace in the community as with the business, community will be
employed and their basic needs will be fulfilled. Furthermore, the basic infrastructure
within the community will be upgraded and enhanced. Specifically, the customers will be
loyal which is very important for the survival of a business. On top of that, Muslim
entrepreneurs are responsible to pay business tithe or zakat to the needy (Al-Quran:
1:267). Thus, there will be no chaos or conflicts among the Muslims as cooperation or
Islamic brotherhood is the foundation of Islamic business.
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Moreover, they will gain barakah (Allah’s blessings) in their business and life.
Barakah is defined as no limitation in expenses whereby the Muslim entrepreneurs will
enjoy profits obtained without facing any big problems and they will feel peaceful and
happy (Ahmad et al., 2008). In short, they will not only gain profits in this world but also
benefits and rewards in the Hereafter whenever they give priority to Allah SWT’s
blessing as their main objective in doing or running their business. (Al-Quran, 92:17-21).
Islamic business practices are assumed as paid-up capital as once they are
implemented, the entrepreneurs will gain benefits and rewards not only in this worldly
affairs but also in the Hereafter.
B. Related Studies
Foreign Studies
Business Practices by Brownhilder Ngek NENEH
Dove and Hartman (1996) maintain that business practices “are the way we do
things and why we do them that way”. They consist of ways of transforming business
values into practice (Gamini de Alwis and Senathiraja, 2003). Business value formation
is influence by socio-cultural and personal background factors (age, ethnicity, religion
and education). An entrepreneur’s day-to-day business practices are directly related to
his organisational performance, and as such differ from that of other entrepreneurs and
business sectors (Nezlek, and Hidding, 2000). According to Sharma (1999) the term
business practices is used to express different aspects of business and management
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practices such as total quality management, quality circles, gain sharing, self-managing
work teams and empowerment.
Business practices facilitate information strategies and could potentially ensure
quality and improvement in organisational performance (Mandal, Venta and El-Houbi,
2009). A research by Hipsher (2010) showed that breaking down business practices
into their strategic, tactical, and operational levels might provide a useful guide for
setting up initial operations in a foreign environment. Hispsher looked at business
practices within a political, cultural, economic and religious context, while Gamini de
Alwis and Senathiraja (2003) concluded that most countries are now adopting common
business practices because of their interactions at globalised and technological levels.
Similarly, Philipsen (1998) identified six critical dimensions of business practice that are
used in distinguishing entrepreneurship and administratively oriented management,
namely: strategic orientation; the commitment to opportunity; the resource commitment
process; the concept of control over resources; the concept of management; and
compensation policy.
Abringer’s (2006) research on business practices in Latin America demonstrated
that business practices were related to management practices such as leadership and
teamwork. His studies further stipulated that business practices are culturally
determined. Abdullah (n.d) through his conducted research also revealed that
management practices such as teamwork, counselling, performance feedback;
negotiation, leadership and motivation were seen to influence performance
assessments and foster achievement. Furthermore, Shuying and Hui (2006) on
exploring the effects of Chinese business management practices on business
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performance concluded that business leaders should adopt certain management
practices to enable the strong performance of their businesses. These practices are
role-specific and differ in terms of environment analysis, operations planning, control
and follow-up as well as the entrepreneur‟s personality and cultural background. These
management practices include defining the vision and mission of the business, setting
strategic goals and operational objectives, assessing the business structure and size
and selecting strategies that competitively position the business in its environment (at
the business level) (Blackman, 2003: 29). Additional research conducted by Jayakody
and Sanjeewani (2005) on the best business practices of Sri Lankan firms confirmed
that firms best business practices fit into four key performance areas, which are;
external market orientation, internal organisational process, current business
performance, and internal customer orientation.
Story (1994) reckons that six factors, which are, legal structure, business size,
age, industry sector and market, location and ownership, greatly affects the
performance of businesses. Davidsson, Kirchhoff, Hatemi-J and Gustavsson (2002)
observe that factors such as business age, beginning size, ownership form, industrial
sectors and legal forms are seen as important factors related to a firms growth. Mandal,
Venta and El-Houb (2008) in their study also explain that there exist several ways
through which business practice can be established in specific areas, which can lead to
outstanding performance. The implementation of business practices based on the use
of quality management principles and tools in business management, will lead to a
systematic improvement in business performance, especially where key practices in
business excellence are applicable to all functional areas in an enterprise.
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Organizational Culture
Williams, Dobson and Walters (1994) define organisational culture as “the way
we do things around here” or “the way we think about things around here”.
Organisational culture refers to “the pattern of beliefs, values and learned ways of
coping with experience that have developed during the course of an organisation’s
history, and which tends to be manifested in its material arrangements and in the
behaviours of its members” (Brown, 1998). Therefore in order to become an efficient
organisation, the importance of culture should not be neglected (Schneider and
Barsoux, 1997). This is because culture influences the way people behave and thinks
(Hofstede, 1997) in that it creates the feeling of identity among personnel and
commitment to the organisation (Martins, 2000).
Each organisation has its own distinctive culture or set of values, so for the
purpose of this study Path to ownership; legal structure; teamwork; business size and
age will be the focus on organisational culture.
 Path to Ownership
Birley and Westhead (1990) assert that ownership structure affects performance
in SMEs, both in terms of profitability and growth of employee’s. Firms with a diluted
ownership structure would perform in a different way as oppose to those with a few
private owners with the same concept of the business. Kirchmaier and Grant (2005)
with reference to their findings on corporate ownership structure and performance in
Europe specified that ownership has a significant impact on firm performance. They
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believe ownership structures in Europe are not consistent with value maximisation
principles.
Brockhaus (cited in Blackman, 2003:29), stipulates that individuals start-up
businesses because they are either dissatisfied with their previous work experience or
because they are unemployed. In his view, business owners come to ownership by any
of the five ways, which are: starting a business from scratch, purchasing it from another
owner, inheriting it from parents or other relatives, acquiring promotion into an
ownership position or through transfer from another organisation by existing owners.
Rogoff and Lee (1996) categorised business owners/entrepreneurs path to ownership
into three the groups as seen in table 1;
Table 1: Business owners/entrepreneurs path to ownership
Creators are defined as those who have

Creators initiated a new venture with the dream of
creating a new product or services.
This group includes those who have
inherited a business from a family member
Inheritors
or who were brought into a business
through a family connection.
Operators are those who purchase a
business or a franchise. They are motivated
Operators by financial goals, lack of options or a desire
to buy an existing business or to franchise a
proven formula as a way to minimize risk.
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Business owners could be either passive or active in their approach to
management of their businesses. Passive owners play no part in the day-to-day running
and management of their businesses, while active owners are fully engaged in the day-
to-day running and management of their business (Blackman, 2003: 29).
 Legal Structure
The legal structure of a business can take three basic forms: Sole Proprietorship,
Partnership or Corporation (StLaurM, 2002:1). The legal structure is most likely
influenced by the perceived risk of failure, the business age, the industry, the path to
ownership and lastly the readiness of the owner(s) to be exposed to risk. Blackman
(2003:30) observes that the more formal the legal structure of the business is, the more
structured and serious the business will be, and this will in turn lead to a superior
performance of the business. According to Roudaut (2006), informal firms
(entrepreneurial firms) are all sole proprietorships, while formal firms (managerial firms)
may either be sole proprietorships or have a more complex organisational form and can
give rise to different problems of monitoring (for example agency costs), which can then
be linked to efficiency.
 Business Size and Business Age
The effects of a firm’s age and size on business performance have been
extensively studied with diverse results (Davidsson, 1991). Lots of concerns have been
raised in theoretical and empirical research in the economics, management and
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sociology disciplines on whether larger firms are superior in performance to smaller
firms; or whether smaller firms are superior in performance to larger firms; and whether
older firms are superior in performance to younger firms, or younger firms are superior
in performance to older firms (Majumdar, 1997). Bhattacharyya and Saxena (2009)
found out that several alternative measures of a firm’s performance are related to size
of a business and that a firm’s size and profitability were inversely related. Likewise,
Punnose (2008) confirmed a positive relationship between firm size and profitability. A
firm’s age is therefore greatly correlated with both its growth and survival, but there is no
correlation between a firm’s size and business performance (Birley and Westhead,
1990). According to Ramasamy, Ong and Yeung (2005), a firm‟s size is negatively
related to performance.
With regards to the impact of age, Majumdar (1997) suggested that older firms
enjoy superior performance since they are more experienced, and are not faced with
the problems of newness. He believed older firms are prone to slowness since they are
not likely to have the flexibility to make rapid alterations to unstable circumstances, but
more likely to lose out in the performance. Meanwhile, Loderer and Waelchli (2009) hold
on to a perspective which indicates a negative relation between performance and firm
age, stating that as a firm‟s age increased, the reliance on administrative concentration
decreased.
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 Teamwork
Employees may regard teamwork as any type of collaboration with colleagues or
a clearer idea of a team that works towards a common goal, by means of joint decision
making and taking responsibility for the task. Studies by O’Leary-Kelly, Martocchio and
Frink (1994) revealed that when the goal of teamwork is to improve the production
process, then, group teamwork should be made of complexity, communication and
integrative work. Alternatively, when the goal of teamwork is to improve an assembly
line, successive work actions should be directed towards the assembling of different
parts of a product. The advantages of teamwork are to help improve a company’s
performance and to boost employees‟ well-being (Hayes, 2005); to reduce fluctuations
in performance and improve work morale (Hayes, 2005) and to create an environment
that facilitates knowledge, information exchange and so-called knowledge sharing.
Other advantages of teamwork are to encourage more job autonomy, greater
responsibility and higher job satisfaction (OECD, 2000), improve productivity and
company efficiency and to direct employee participation in organisational change
(Cohen and Ledford, 1994).
However, Guest (1995) reckons that teamwork is not always an answer to all a
company’s problem but rather a form of enterprise intervention required within all levels
of organisational changes. He further observed that in order to ensure that teamwork
does not become ineffective, there is the need for it not only to be integrated into the
entire organisational structure of the enterprise, but also to ensure that the structure
adapts to the new model. Based on Guest views, teamwork should then be regarded as
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an important component of high performance work organisation‟ (HPWO) and as one
element of the new forms of work organisation.
Organizational Strategy
Chandler (1990) defines strategy as “the determination of the basic long term
goals and objectives of an enterprise and the adoption of courses of action and the
allocation of resources necessary for carrying out these goals”. Strategy means the
combination of activities and creating a connection between the activities from the
strategy of a company (Porter, 1996). Companies that pursue a clear and consistent
strategy perform better than companies without such a strategy (Gibcus and Kemp,
2003; Baum, Locke and Smith, 2001).
However, every organisation has its own unique scope of activities that can
enable them realize a competitive advantage. Therefore, for the purpose of this study,
risk management practices; marketing practices; Strategic planning practices; human
resource management practices and performance management practices will be the
focus on organisational strategy.
 Risk management practices
A risk management system includes the various policies, procedures and
practices that work in agreement to identify, analyse, evaluate, address and monitor
risk. According to Tchankova (2002), risk management includes all aspects of the
organisation’s activities and it covers all level of management, thus helping other
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management activities to reach the organisation’s aim directly and efficiently. He further
stated that risk exists as an element of the environment in which organisations operate
and should be adopted as risk management practices, so as to avoid the probability of
high failure rates of businesses in future. Examples of risk management practices
include purchasing insurance; installing security systems; maintaining cash reserves
and diversification; recruiting; safety; training; coaching; policy and procedure
development; employee complaints of harassment or discrimination, and uniform
termination procedures.
Accordingly, Macko and Tyszka (2009) underscore that the risk connected with
running a business venture is related to the skills of the entrepreneur. Shapira (1995)
after conducting an interview with top managers stressed the difference between risk
taking in business and risk associated with chance. This is because the risk managers
or entrepreneurs deal with is linked with their own control and skills. According to Aaker
and Jacobson (1987) risk has a positive influence on performance. In examining the
relationship between risk and performance, Wiseman and Catanach (1997) highlight
that risk has both a negative and positive effect on performance in certain
circumstances. A study by Ow (2007) further emphasised that in order to enhance
business results, risk management practices should be simplified and embedded into
normal business operations, planning and budgeting processes, and organisational
culture.
Another related stream of research revealed a strong relationship between the
willingness to take risks (risk tolerance) and entrepreneurial business success, which
stresses the need for including risk in entrepreneurship education and training
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programmes (Nieuwenhuizen and Kroon, 2002). Hanoch, Johnson, and Wilke (2006)
focused on specific subsamples of risk takers and found that individuals who exhibit
high levels of risk-taking behaviour in one content area (e.g bungee jumpers taking
recreational risks) can display moderate (or low) levels in other risky domains (e.g.,
financial). However, Janney and Dess (2006) argue that high risk-taking decisions are
more apparent in the new venture-creation process and they make a conclusion with
regards to three dimensions of the risk construct - risk as a variance; risk as a downside
loss and bankruptcy; and risk as an opportunity.
“Without risk-taking, the prospects for business growth wane” (Ward, 1997: 323).
It is therefore imperative for entrepreneurial firms to be willing to take risk. In order to
survive and be successful in their business operations, entrepreneurs should not just
assume the risk of a business venture but must learn to actively manage the risk by
incorporating risk management into their planning and operational processes. So before
entrepreneurs analyse the risk, they need to determine what degree of risk exist and
before identifying the risk, they need to understand at a detailed level, how the business
will operate, as well as their competitive and economic environment surrounding them.
This practice enables entrepreneurs to gain a broader picture of their business systems
by understanding all of the difficulties; interrelationships; feedback devices; internal and
external intrinsic risks in any business organisation.
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 Strategic Planning Practices
Every organisation has to make some sort of decisions that addresses the
biggest and most important issues facing the business, which might affect the entire
destiny of the business for years into the future. This big decision into the future is what
is termed planning. Planning is the foundation of every business because without
planning, a business will never know where it is heading to and more or less never
knows if it will ever get there. Ennis (1998:54) argues that enterprises “must actively
plan for the future” to compete effectively and survive. SMEs that engage in strategic
planning are more likely to; reach higher sales growth, higher returns on assets, and
higher margins on profits and higher employee growth than those that do not (Berman
et al. 1997; Carland and Carland 2003; Gibson and Casser, 2005). Thus, SMEs that
engage in strategic planning experience increase the firm’s performance and are less
likely to fail (Gaskill, van Auken and Manning 1993; Perry 2001). According to Rue and
Ibrahim (1998), a greater planning sophistication is positively related to sales growth,
though there is no significant relationship between planning and return on investment.
Schwenk and Shrader (1993) further highlighted that though the size of the effects of
strategic planning for specific studies is not that large, the overall relationship between
formal planning and performance is significant and positive.
Other research by (Berman, Gordon and Sussman 1997; Orser, Hogarth-Scott
and Riding 2000; Sandberg, Robinson and Pearce 2001; Beaver, 2003) has constantly
shown that SMEs do not engage in strategic planning. The reasons why some SMEs do
not engage in strategic planning is not well understood (O'Regan and Ghobadian 2002).
Berry (1998) affirms that SMEs that neglect strategic planning will not attain their full
26
performance and growth potentials, and their survival could as well be placed at risk. As
a result, “there is little or no empirical research demonstrating the principal activities
which includes the planning practices of selected groups of small businesses that plan”
(Ongunmokun, 1996: 2003). In line with this contention, Odame (2007) in his study on
the relevance of strategic planning for entrepreneurial businesses in South Africa assert
that in terms of planning practices, small businesses in South Africa plan both formally
and informally, while other businesses do not plan at all. He further demonstrated that
there exists a high prevalence of emergent strategies than prescriptive strategies in
South Africa small businesses, of which the small businesses that had business plans
increased in their level of formalisation and used the business plans as management
tools.
To facilitate business survival therefore, entrepreneurs should ensure that major
strategic issues are addressed; they should evaluate to ensure that they do not violate
any constraints and rate the strategic options against the objectives. This can be
achieved by carrying out the SPADE principles, which stipulate that the following:
START - Organizing to plan, engaging affected parties; PURPOSE - Sizing up the
strategic challenge, setting targets; ANALYSE – Strengths, Weaknesses, Opportunities,
Threats, and generate options; DECIDE – Devising Strategies from the options looked
at; EXECUTE – Evaluating and actioning strategies, should be taken into consideration.
27
 Marketing Practices:
Keefe (2004: 17) defines marketing as “the performance of business activities
that direct the flow of goods and services from producers to consumers”. Over the
years, the concept of marketing has evolved through three main different frameworks;
transactional marketing, relationship marketing, and induction marketing. According to
Blackman (2003:36), at the business/management practice level, marketing involves
“the selection, the distribution, the pricing and promotion of products and services”. The
transactional marketing gave birth to the marketing mix paradigm, developed by
McCarthy in 1960 and referred to as the 4Ps (Product, Price, Promotion, and Place).
This paradigm is useful in pursuing certain marketing responses and requires that
managers make decisions based on the number and types of products to produce, their
number and type of distribution channels and the positioning of their products with
respect to substitutes and related/similar offerings from their competitors.
A research by Siu, Fang and Lin (2004) on the strategic marketing practices and
the performance of Chinese SMEs in Taiwan revealed that their SMEs marketing
practices such as cultural value orientations and mediating environmental factors played
an important role in shaping the attitudes and behaviour of Taiwanese owner-managers
and, in turn, the marketing practices of Taiwanese. Also evident was the fact that SMEs
marketing practices were different from those of their Western counterparts. Another
study by Radder (1996) on the marketing practices of independent fashion retailers in
South Africa, looking particularly at how these retailers apply aspects of the basic
principles of the marketing mix, revealed that 81% had no training in marketing, while
28
67% were not trained in management. This consequently confirms the need for training
among small and independent retailers.
Furthermore, another influence on the marketing practices is the degree of rivalry
existing in the industry in which the business operates. The Porter’s Five Forces model
can be used to support the strategic understanding of where power rests in a business
situation and helps in understanding the strength of a firm’s current competitive position,
and the strength of a position a company is looking to get into (Wheelen and Hunger,
1998). As seen in figure 3.2 (below), a firm’s rivalry is influenced by the interplay
between the bargaining power of buyers and suppliers, the threat of substitute products,
the threat of new entrants and lastly, the industry competitive rivalry.
From Sasikala’s (2007:2) perspective, the industry structure plays a significant
role in determining the performance of individual firms and the average industry
profitability can be considered an important analysis of a firm’s performance. He further
states that when analysing the industry structure of the firm using the Porter’s Five
forces, 3 critical questions need to be asked, namely;
 In which structure of the industry does the firm operates in?
 How should the firm exploit the structure?
 What shapes the basis of competitive advantage?
According to Blackman (2003:37), Porter stipulates that an industry's structure
and its intrinsic competitive dynamics have a significant impact on a firm's performance
potential, but such impacts is also seen to differ considerably among industries.
Economists repeatedly have confirmed differences between a firm’s performance
29
potentials and industry performance potentials, based on the industry in question. A
firm’s effects in the manufacturing sector seem to be much more important than industry
effects. In the service industries, an industry effects seems to determine at least half of
the variance in firms' profitability. Based on this researcher’s viewpoint, when a firm’s
effects dominate, an internally focused „resource-based‟ strategy should be most
appropriate to use, but where industry effects dominate, a “positioning” approach should
be the most appropriate strategy to use.
 Human Resource Management (HRM) Practices:
Previous studies by (Huselid, 1995; Chang and Huang, 2005; Khatri, 2000; Park,
Mitsuhahi, Feg and Bjorkman, 2003) have looked at the relationship between HRM
practices and firm performance and found that a firm performance is influenced by HRM
practices. An organisation’s HRM policies and practices supported by the management
of the firm create a climate of confidence and trust for the employees, as this climate is
consistent with employee productivity (Schuler, 1990). According to Aliouat and Nekka
(1999), the presence HRM practices in SMEs, has proved to be related to the
characteristics of businesses and is thus a prime cause of competitive advantage. Sang
(2005) states that most HRM practices can better improve performance when they are
combined together consistently and correctly, since they have a reciprocal effect on one
another. Kotler (2001) points out that HRM practices such as tactical practices can be
used to align the organisation towards achieving its goals and objectives, which also
would result in superior performance of the business. Huang (2000) study on
Taiwanese firms revealed that companies that formulated their owned HRM policies
30
through explicit and formal planning procedures, performed better than other companies
that did not.
Other researchers, Paul and Anantharaman (2003) identified 9 HRM practices
such as (selection, induction, training, job design, work environment, performance
appraisal, compensation, career development and incentives) which had an influenced
on a firm’s performance indirectly through one or more intervening variables. Sang
(2005) established that skills play a great role in boosting a firms performance and
provided an example that good incentive plans help improve employees productivity
level, but if no training is provided to improve their skills, the firm’s productivity level will
only rise to some limited level. Ulrich (1998) affirms that individuals are being trained
with the objectives of developing interpersonal skills and that the training types have a
positive impact on innovation because it facilitates the interactions of the employees
with their colleagues and encourages the flow of new ideas and perspectives within
work groups. Guest (1997) agrees that a good fit between HRM practices within an
organisational context can lead to superior performance.
In order for entrepreneurs to survive in their business operations, they must
ensure that the core importance and role of every individual in the organisation are
properly understood and encouraged deliberately. This is because it is the only way of
continuous organisational development through achievement of larger profit, higher
quality, lower costs and higher productivity (Đurković, 2009).
31
 Performance Management (PM) practices:
Performance management is the process of defining goals, selecting strategies
to attain those goals, allocating decision rights, and measuring and rewarding
performance (Heinrich, 2002; Ittner and Larcker, 2001; Otley, 1999). Performance
management permit organisations to attain their goals by aligning the right information
and resources to strategic objectives and helping managers create strategies for profit
growth (Chenhall and Langfield-Smith, 1998), align strategies with organisational plans,
and actively examine the organisation‟s day-to-day operations (Garengo and Bernardi,
2007). Performance management practices include identifying which goals to achieve,
assigning decision rights, and measuring and evaluating performance. PM practices
contribute to firm’s performance and are critical to the profitability and long-term
success of SMEs (Wiesner, Poole and Banham, 2007). According to research by (Van
Helden, 2005; Cavalluzzo and Ittner, 2004; Van Thiel and Leeuw, 2002), it was realised
that most western countries were/are promoting numerous programs to encourage the
use of performance management practices in public sector organisations to serve in
political and managerial purposes( De Bruijn, 2002, Kloot and Martin, 2000).
Studies by (Wood and Menezes, 1998; Osterman, 1994) identified Forty-seven
HRM practices that affect performance. These includes; high commitment/involvement
and quality practices, selection, range of training and development practices,
performance appraisal, change practices in relation to numerical and functional flexibility
and one item on flexi-place; participative and individual compensation practices;
employment relations practices, team and quality practices; communication practices,
electronic practices relating to recruitment and Human Resource Information Systems
32
(HRIS), employee management policies and procedures. Verbeeten (2006) investigated
if the use of PM-practices in public sector organisations affects the performance of
those organisations and uncovered that a specification of clear and measurable goals
provides focus in operations and improves quantity performance (efficiency, production
targets), as well as quality performance (accuracy, innovation, employee morale). He
also acknowledged that the use of incentives positively relates to quantity performance
but does not relate to quality performance.
SMEs differ from larger businesses such as number of employees, capital, and
management knowledge. In order for entrepreneurs to survive in their business
operations, they must continuously improve and develop their performance by ensuring
they maintain adequate resources such as information, employees, and instruments
and use them to generate the greater benefit for their businesses (Vichitdhanabadee,
Wilmshurst and Clift, 2009).
The above mentioned literature adopted an assumption that organisational
culture and organisational strategies enhanced by entrepreneurial/managerial
capabilities make up the business practices. The first part of this framework linked
organisational culture and organisational strategies to business practices. Several
books on general business management each promote some of these practices.
However, for SMEs, good business practices are often a matter of using common sense
to determine what works in their particular situations. Every business must therefore
ensure that its business practices evolve and change to continue meeting the needs of
33
its organisation. This entails re-examining the operations of a number of businesses and
determines which operations are most successful. This will help set standards against
which similar businesses are measured, to ensure that the plans for progress are
directed towards achieving similar goals.
34
CHAPTER 3
RESEARCH METHODOLOGY
This chapter presents the research design and procedures used in this study. It
describes how the study was conducted. Interprets how the researchers equipped
themselves with the right techniques adopted in order for them to gather meaningful
information needed in the study. This covers the research design and research
instruments and procedures.
A. Research Design
Descriptive Method
The study utilized descriptive method, non-experimental, quantitative type of
research. Non-experimental research is the study in which the researchers will collect
data without introducing treatments or changes. The researchers will utilize this type of
design in order to determine the business practices of Muslim and Chinese
entrepreneurs in running a successful micro enterprise. A descriptive method is one in
which information is collected without changing the environment (i.e., nothing is
manipulated).
Descriptive research on the other hand is a type of research that is mainly
concerned with describing the nature or condition and the degree in detail of the present
situation. This method is used to describe the nature of a situation, as it exists as the
time of the study and to explore the cause/s of particular a phenomenon. The aim of
35
descriptive research is to obtain an accurate profile of the people, events or situations.
The researcher used this kind of research to obtain first hand data from the respondents
so as to formulate rational and sound conclusions and recommendations for the study.
B. Research Instrument and Procedures
Research instrument is one of the most important components of research design.
These instrument or tools are ways of gathering data. In studying this research, the
researchers used primary and secondary sources below in order to collect information
needed:
 Survey Questionnaire
The survey Questionnaire was used as the main data-gathering instrument for this
study. The researchers will use Administrative Method of surveying the respondents. It
is the most common instrument of research for gathering information from the
respondents. This would help the researchers to be able to reach the respondents in
quick, inexpensive, and direct way.
The questionnaire was divided into two main sections: the profile and the survey
proper. The profile contains socio-demographic characteristics of the respondents such
as sex, age group and educational attainment while on the other hand contains the
business profile such as age and nature of the business. The survey proper section
contains questions regarding the business practices of the respondents to know how to
maintain a successful micro enterprise. The questions were structured using the Likert
scale format.
36
In this survey type, five choices are provided for every question statement. The
choices represent the degree of agreement each respondent has on the given question.
The scale below was used to interpret the total responses of all the respondents for
every survey question by computing the weighted mean:
1 – Strongly Agree
2 – Agree
3 – Neutral
4 – Disagree
5 – Strongly Disagree
 Interview
Getting information by interview can help researchers to have an access to a wealth
of information. The researchers have decided to gather the data from the respondents
using face to face interview for the last question of the survey.
 Sampling Design
The researchers used Non Probability sampling technique for the research, which is
convenient sampling. It is a form of sampling where subjects are selected because of
their convenient accessibility and proximity to the researcher. When sample of units
where the selected units in the sample have an unknown probability of being selected
and where some units of the target population may even have no chance at all being in
the sample. The researchers decided to have 50 respondents for Muslim entrepreneurs
and 50 respondents for Chinese entrepreneurs as a sample size used in this study.
37
 Statistical Approach
The researcher used statistical treatment to simply analyze and determined the
different problems stated in the study. The data gathered will be processed using tables
and graphs to add the transparency of the data presented. Through this figures, the
consistency and accuracy of the findings would be guaranteed.
After gathering all the completed questionnaires from the respondents, total
responses for each item were obtained and tabulated. In order to use the Likert-scale
for interpretation, weighted mean to represent each question was computed. Weighted
mean is the average wherein every quantity to be averages has corresponding weight.
These weights represent the significance of each quantity to the average. The formula
for weighted mean is:
x1 + x2 + x3 + x4 ... + xn
(X) =
n
Where: (X) = weighted mean
xn = frequency
n = number of terms
38
CHAPTER 4
ANALYSIS AND PRESENTATION OF DATA
This chapter presents the analysis of the gathered data. It contains statistical
presentation of data gathered during survey. The presentation follows the sequence of
the specific question sought to be answered. Data presented in tabular form are
analyzed and interpreted. The interpretation is stated below in each table. The
researchers ranked the data in accordance with their percentage. Some of the data
were interpreted in the same manner to avoid redundancy of explanations.
Part I: Demographic and Business Profile
1. Gender
Cumulative
Frequency Percent Valid Percent
Percent
Male 26 52.0 52.0 52.0
Valid Female 24 48.0 48.0 100.0
Total 50 100.0 100.0
Table 2: Gender of the Respondents (Chinese)
39
Cumulative
Percent
Male 28 56.0 56.0 56.0
Valid Female 22 44.0 44.0 100.0
Total 50 100.0 100.0
Table 3: Gender of the Respondents (Muslim)
Table 2 and 3 shows the number of respondents of Chinese and Muslim with regards to
their gender. In Chinese, out of 50 entrepreneurs 52% or 26 respondents are male and
for the female it has 48% or 24 respondents. While in the Muslim, out of the 50
entrepreneurs 56% or 28 respondents are male and 44% or 22 respondents are female.
Figure 2: Gender of Muslim and Chinese Respondents
40
2. Age
Cumulative
Percent
21 - 30 years 11 22.0 22.0 22.0
31 - 40 years 19 38.0 38.0 60.0
Valid 41 - 50 years 14 28.0 28.0 88.0
More than 50 years 6 12.0 12.0 100.0
Total 50 100.0 100.0
Table 4: Ages of the Respondents (Chinese)
Cumulative
Percent
21 - 30 years 16 32.0 32.0 32.0
31 - 40 years 24 48.0 48.0 80.0

Valid
41 - 50 years 10 20.0 20.0 100.0
Total 50 100.0 100.0
Table 5: Ages of the Respondents (Chinese)
Table 4 and 5 shows the ages of the respondent of Chinese and Muslim entrepreneurs.
In Chinese, the age of 21 to 30 has 22% or 11 respondents, 31-40 with 38% or 19
respondents having the highest percentage. 41-50 with 28% or 14 respondents and for
the ages of 50 and above, there are 12% or 6 respondents. While in Muslim, 32% or 16
respondents for the ages of 21-30 years. Next is 31-40 with 48% or 24 respondents
41
having the highest number of respondents. For the ages 20% or 10 respondents
answered that they are 41-50 years old.
Figure 3: Ages of the Muslim and Chinese Respondents
42
3. Educational Attainment
Cumulative
Percent
Secondary 25 50.0 50.0 50.0
College Degree 24 48.0 48.0 98.0

Valid
Masters 1 2.0 2.0 100.0
Total 50 100.0 100.0
Table 6: Educational Attainment of the Respondents (Chinese)
Cumulative
Percent
Secondary 17 34.0 34.0 34.0
College Degree 32 64.0 64.0 98.0

Valid
Masters 1 2.0 2.0 100.0
Total 50 100.0 100.0
Table 7: Educational Attainment of the Respondents (Muslim)
Table 6 and 7 shows the educational attainment of the Chinese and Muslim
respondents. For the Chinese, 50% or 25 respondents for secondary and for college
degree has 48% or 24 respondents. In the masters, 2% or 1 respondents. While in the
Muslim, there are 34% or 17 respondents who finished secondary level. For college
degree has 64% or 32 respondents having the highest percentage and for the masters
with 2% or 1 respondent.
43
Figure 4: Educational Attainment of Muslim and Chinese Respondents
44
Business Profile
1. Age of the Business
Cumulative
Percent
Less than 1 year 5 10.0 10.0 10.0
1 - 3 years 7 14.0 14.0 24.0
3 - 5 years 8 16.0 16.0 40.0

Valid
6 - 10 years 16 32.0 32.0 72.0
More than 10 years 14 28.0 28.0 100.0
Total 50 100.0 100.0
Table 8: Age of the Business (Chinese)
Cumulative
Percent
Less than 1 year 4 8.0 8.0 8.0
1 - 3 years 11 22.0 22.0 30.0
3 - 5 years 12 24.0 24.0 54.0

Valid
6 - 10 years 12 24.0 24.0 78.0
More than 10 years 11 22.0 22.0 100.0
Total 50 100.0 100.0
Table 9: Age of the Business (Muslim)
45
Table 8 and 9 shows the ages of the business of Chinese and Muslim respondents. For
the Chinese, there are 10% or 5 respondents with less than 1 year. 14% or 7
respondents for 1-3 years. For 16% or 8 respondents for 3-5 years. In the 6-10 years
has 32% or 16 respondents and for more than 10 years it has 28% or 14 respondents.
While for the Muslim, there are 8% or 4 respondents for less than 1 year. 1-3 years with
22% or 11 respondents and for 3-5 years with 24% or 12 respondents. For 6-10 years it
has 24% or 12 respondents and also 22% or 11 respondents for more than 10 years.
Figure 5: Age of the Business of Muslim and Chinese Respondents
46
2. Type of Business
Cumulative
Percent
Technology 15 30.0 30.0 30.0
Wholesales 5 10.0 10.0 40.0
Manufacturing 3 6.0 6.0 46.0
Valid Retailing 9 18.0 18.0 64.0
Health Care 8 16.0 16.0 80.0
Marketer (sector) 10 20.0 20.0 100.0
Total 50 100.0 100.0
Table 10: Type of Business (Chinese)
Cumulative
Percent
Technology 42 84.0 84.0 84.0
Wholesales 3 6.0 6.0 90.0
Valid Retailing 1 2.0 2.0 92.0
Marketer (sector) 4 8.0 8.0 100.0
Total 50 100.0 100.0
Table 11: Type of Business (Muslim)
47
Table 10 and 11 shows the type of business of Muslim and Chinese entrepreneurs. For
the Chinese, 30% or 15 respondents are technology. 10% or 5 respondents for
wholesales. 6% or 3 respondents for manufacturing. 18% or 9 respondents for retailing.
16% or 8 respondents for healthcare. Marketer (sector) 20% or 10 respondents. For the
Muslim, 84% or 32 respondents for technology. 8% or 3 respondents for wholesales.
2% or 1 respondent for retailing. Marketer (sector) 8% or 4 respondents.
Figure 6: Type of Business Industry of Muslim and Chinese Respondents
48
3. Marketer (sector)
Frequency Percent Valid Percent Cumulative

Percent
40 80.0 80.0 80.0
Accessories 2 4.0 4.0 84.0
Valid Apparel 1 2.0 2.0 86.0
Clothing 7 14.0 14.0 100.0
Total 50 100.0 100.0
Table 12: Marketer (sector) – Chinese
Frequency Percent Valid Percent Cumulative

Percent
46 92.0 92.0 92.0
Accessories 3 6.0 6.0 98.0

Valid
Apparels 1 2.0 2.0 100.0
Total 50 100.0 100.0
Table 13: Marketer (sector) – Muslim
Table 12 and 13 shows the Marketer (sector) of Chinese and Muslim entrepreneurs. For
the Chinese, 4% or 2 respondents for accessories. 2% or 1 respondent for apparel.
49
14% or 7 respondents for clothing. For the Muslim, 6% or 3 respondents for accessories
and 2% or 1 respondent for apparel.
Figure 7: Marketer (sector) – Muslim and Chinese Respondents
50
4. Capital
Cumulative
Percent
Personal Savings 38 76.0 76.0 76.0
Family and Friends 8 16.0 16.0 92.0

Valid
Inheritance 4 8.0 8.0 100.0
Total 50 100.0 100.0
Table 14: Capital (Chinese)
Cumulative
Percent
Personal Savings 43 86.0 86.0 86.0
Family and Friends 6 12.0 12.0 98.0

Valid
Banks and Other Financial Institutions 1 2.0 2.0 100.0
Total 50 100.0 100.0
Figure 15: Capital (Muslim)
Table 14 and 15 shows the Capital of Chinese and Muslim respondents. For the
Chinese, 76% or 38 respondents for personal savings. 16% or 8 respondents for family
and friends. 8% or 4 respondents for inheritance. For the Muslim, 86% or 43
51
respondents for personal savings, 12% or 6 respondents for family and friends and 2%
or 1 respondent for banks and other financial institutions.
Figure 8: Source of Capital of Muslim and Chinese Respondents
52
Part II: Business Practices
Organizational Culture
1. Path to Ownership
Cumulative
Percent
From Scratch (Commission) 37 74.0 74.0 74.0
Family Inheritance 12 24.0 24.0 98.0

Valid
Purchase 1 2.0 2.0 100.0
Total 50 100.0 100.0
Table 16: Path to Ownership (Chinese)
Cumulative
Percent
From Scratch
34 68.0 68.0 68.0
(Commission)
Family Inheritance 7 14.0 14.0 82.0
Valid
Purchase 4 8.0 8.0 90.0
Financial Institutions 5 10.0 10.0 100.0
Total 50 100.0 100.0
Table 17: Path to Ownership (Muslim)
53
Table 16 and 17 shows the path to ownership of Chinese and Muslim entrepreneurs.
For the Chinese, 74% or 37 respondents from scratch. 24% or 12 respondents for
family inheritance and 2% or 1 respondent for purchase. For the Muslim, 68% or 34
respondents from scratch. 14% or 7 respondents for family inheritance, 8% or 4
respondents for purchase and 10% or 5 respondents for financial institutions.
Figure 9: Path to Ownership of Muslim and Chinese Respondents
54
2. Legal Structure
Cumulative
Percent
Sole Trader 48 96.0 96.0 96.0
Valid Partnership 2 4.0 4.0 100.0
Total 50 100.0 100.0
Table 18: Legal Structure (Chinese)
Cumulative
Percent
Sole Trader 45 90.0 90.0 90.0
Valid Partnership 5 10.0 10.0 100.0
Total 50 100.0 100.0
Table 19: Legal Structure (Muslim)
Table 18 and 19 shows the legal structure of Chinese and Muslim entrepreneurs. For
the Chinese, 96% or 48 respondents for sole trader and 4% or 2 respondents for
partnership. For the Muslim, 90% or 45 respondents for sole trader and 10% or 5
respondents for partnership.
55
Figure 10: Legal Structure of the Business of Muslim and Chinese Respondents
56
3. Teamwork
Teamwork 1: “Tumutulong at sumusuporta ang mga tauhan sa pagresolba ng
problema”
The members are mutually supportive and help each others in resolving the
problems.
Figure 11: Teamwork 1 (Chinese)
Figure 11 show that the members are mutually supportive and help each others in
resolving the problems with a weighted mean of 2.26 clearly illustrates that this item is
agreeable to the Chinese respondents.
57
Figure 12: Teamwork 1 (Muslim)
Figure 12 show that the members are mutually supportive and help each others in
resolving the problems with a weighted mean of 2.06 clearly illustrates that this item is
agreeable to the Muslim respondents.
58
Teamwork 2:
“Nag-aambag ng kaalaman at kakayahan ang tauhan upang lumago ang
negosyo”
The members share their knowledge and skills openly to grow the business.
Figure 13 shows that the members share their knowledge and skills openly to grow the
business with a weighted mean of 2.04 clearly illustrate that this item is agreeable to the
Chinese respondents.
59
Figure 14 shows that the members share their knowledge and skills openly to grow the
business with a weighted mean of 2.16 clearly illustrate that this item is agreeable to the
Muslim respondents.
60
Teamwork 3:
“Nakikinig ang mga tauhan sa opinyon at ideya ng bawat isa para sa maayos na
trabaho”
The members actively listen to each other striving to create a better working
environment.
Figure 15 shows that the members actively listen to each other striving to create a
better working environment with a weighted mean of 1.94 clearly illustrates that this item
is agreeable to the Chinese respondents.
61
Figure 16 shows that the members actively listen to each other striving to create a
better working environment with a weighted mean of 2.04 clearly illustrates that this item
is agreeable to the respondents.
62
Teamwork 4:
“Nagbibigayan ng payo at nagpapakita ng magandang asal ang tauhan upang
magaya ng iba”
The members actively affirm and encourage one another to build a high level of
morals.
Figure 17 shows that the members actively affirm and encourage one another to build a
high level of morals with a weighted mean of 1.68 clearly illustrates that this item is
63
Figure 18 shows that the members actively affirm and encourage one another to build a
high level of morals with a weighted mean of 1.92 clearly illustrates that this item is
64
Organizational Structure
1. Risk Management
Risk Management 1:
“Nagdudulot ng maayos at nauunawaan ng lahat ang pagsugal nyo sa negosyo
upang maabot ang paglago ng negosyo”
The Organization knows the risks relating to their aims and objectives.
Figure 19: Risk Management 1 (Chinese)
65
Figure 19 shows that the organization knows the risks relating to their aim and
objectives with a weighted mean of 2.2 clearly illustrates that this item is agreeable to
the Chinese respondents.
Figure 20: Risk Management 1 (Muslim)
Figure 20 shows that the organization knows the risks relating to their aim and
objectives with a weighted mean of 1.76 clearly illustrates that this item is agreeable to
the Muslims respondents.
66
Risk Management 2:
“Sinisiguro ang pagbabago ng ilan sa mga desisyong ginagawa na malaman ng
lahat ”
The Management ensures a more informed decision making.
Figure 21 shows that the management ensures a more informed decision making with a
weighted mean of 1.98 clearly illustrates that this item is agreeable to the Chinese
respondents.
67
Figure 22 shows that the management ensures a more informed decision making with a
weighted mean of 2 clearly illustrates that this item is strongly agreeable to the Muslims
respondents.
68
Risk Management 3:
“Sinisiguro ang mga materyales/makina sa negosyo ay nagagamit sa wasto at
paglago ng negosyo”
The Management ensures a better use of existing resources(machineries and
equipment) in focusing them on higher risks.
69
Figure 23 show that the management ensures a better use of existing resources
(machineries and equipment) in focusing them on higher risks with a weighted mean of
1.92 clearly illustrates that this item is agreeable to the Chinese respondents.
Figure 24 show that the management ensures a better use of existing resources
(machineries and equipment) in focusing them on higher risks with a weighted mean of
1.78 clearly illustrates that this item is strongly agreeable to the Muslim respondents.
70
Risk Management 4:
“Sinisiguro ang pagsugal sa pagbili at pag-gamit ng mga bagay na galing sa
bagong suplayer at ang kontrata sa mga ito”
The Management ensures that all relevant risk areas are considered including
those coming from the services of new external providers.
71
Figure 25 shows that the management ensure ensures that all relevant risk areas are
considered including those coming from the services of new external providers with a
respondents.
Figure 26 shows that the management ensure ensures that all relevant risk areas are
considered including those coming from the services of new external providers with a
weighted mean of 1.68 clearly illustrates that this item is strongly agreeable to the
Muslims respondents.
72
2. Strategic Planning
Strategic Planning 1:
“Kasama sa pagplano ang pag-abot sa quota, ang magkaroon ng mataas na kita
at benta ng negosyo”
Business can meet their quota.
Figure 27: Strategic Planning 1 (Chinese)
Figure 27 show that the business can meet their quota with a weighted mean of 1.82
clearly illustrates that this item is agreeable to the Chinese respondents.
73
Figure 28: Strategic Planning 1 (Muslim)
Figure 28 show that the business can meet their quota with a weighted mean of 1.58
clearly illustrates that this item is agreeable to the Muslim respondents.
74
“Pinapanatili ang silbi at misyon ng negosyo at inaalam ang mga lakas at
kahinaan nito”
My business makes use of vision and mission and knows its strengths and
weaknesses.
75
Figure 29 show that the business makes use of vision and mission and knows its
strengths and weaknesses with a weighted mean of 1.52 clearly illustrates that this item
is agreeable to the Chinese respondents.
Figure 30 show that the business makes use of vision and mission and knows its
strengths and weaknesses with a weighted mean of 1.62 clearly illustrates that this item
is agreeable to the Muslim respondents.
76
“Sinusubukan baguhin ang pagtrato sa paghubog ng kaalaman at kakayanan ng
mga mamimimili at pagkonsulta sa kanila”
I try to change my approach to building knowledge and skills: in technical
matters, knowledge of clients' business, consultation skills.
77
Figure 31 show that the business try to change my approach to building knowledge and
skills: in technical matters, knowledge of clients' business, consultation skills with a
respondents.
Figure 32 show that the business try to change my approach to building knowledge and
skills: in technical matters, knowledge of clients' business, consultation skills with a
weighted mean of 1.6 clearly illustrates that this item is agreeable to the Muslim
respondents.
78
“Nagbibigay ng bago at ibang pagtrato sa paghahanap at pagbibigay ng
pangangailan ng mamimimili”
The business tries to implement change in approaching customers.
Figure 33 show that the business tries to implement change in approaching customers
with a weighted mean of 1.82 clearly illustrates that this item is agreeable to the
79
Figure 34 show that the business tries to implement change in approaching customers
with a weighted mean of 1.78 clearly illustrates that this item is agreeable to the Muslim
respondents.
80
3. Marketing Practices
Marketing Practices 1:
“Nagbibigay ng magandang relasyon sa mamimimili”
Establish good relationships with our customers
Figure 35: Marketing Practices 1 (Chinese)
Figure 35 shows that the business establish good relationships with their customers
with a weighted mean of 1.42 clearly illustrates that this item is strongly agreeable to the
81
Figure 36: Marketing Practices 1 (Muslim)
Figure 36 shows that the business establish good relationships with their customers
respondents.
82
“Nagbibigay ng magandang relasyon sa mga suplayer at distibutor”
Establish good relationships with our suppliers and distributors
Figure 37 shows that the business establish good relationships with our suppliers and
distributors with a weighted mean of 1.42 clearly illustrates that this item is strongly
83
Figure 38 shows that the business establish good relationships with our suppliers and
distributors with a weighted mean of 1.56 clearly illustrates that this item is agreeable to
the Muslim respondents.
84
“Sinisiguro ang maganda at maayos na kalidad ng produkto sa mamimimili”
The business makes sure of the quality of the products being offered.
Figure 39 show that the business makes sure the quality of the product/s being offered
with a weighted mean of 1.7 clearly illustrates that this item is agreeable to the Chinese
respondents.
85
Figure 40 show that the business makes sure the quality of the product/s being offered
respondents.
86
“Handang pumasok sa mga posibleng kasosyo sa negosyo”
Enter into negotiations with potential partners
Figure 41 show that the business enters into negotiations with potential partners with a
respondents.
87
Figure 42 show that the business enters into negotiations with potential partners with a
weighted mean of 2.48 clearly illustrates that this item is neutral to the Muslim
respondents.
88
4. Human Resource Management
Human Resource Management 1:
“Sinasali ang mga tauhan sa desisyon sa negosyo”
The business involves its employees in decision making situations.
Figure 43: Human Resource Management 1 (Chinese)
Figure 43 show that the business involves its employees in decision making with a
respondents.
89
Figure 44: Human Resource Management 1 (Muslim)
Figure 44 show that the business involves its employees in decision making with a
weighted mean of 2.46 clearly illustrates that this item is neutral to the Muslim
respondents.
90
“Nagbibigay ng naaayong mga insentibo at parusa ang mga tauhan sa resulta ng

kanilang ginagawa"
The business gives proper incentives/bonuses/disciplinary actions accordingly to
workers.
Figure 45 show that the business gives proper incentives/disciplinary actions
accordingly with a weighted mean of 2.18 clearly illustrates that this item is agreeable to
91
Figure 46 show that the business gives proper incentives/disciplinary actions
accordingly with a weighted mean of 2.3 clearly illustrates that this item is neutral to the
Muslim respondents.
92
“Binibigyang pansin ang pagkakataong matuto ang mga tauhan sa mga bagong
kaalaman”
The business gives further consideration to its workers for new learning.
Figure 47 shows that the business gives further considerations to its employees for new
learning with a weighted mean of 2.1 clearly illustrates that this item is agreeable to the
93
Figure 48 shows that the business gives further considerations to its employees for new
learning with a weighted mean of 2.16 clearly illustrates that this item is agreeable to the
Muslim respondents.
94
“Binibigyang pansin ang mga kagamitan at pasilidad ng negosyo”
Emphasize on the provision of amenities and facilities
Figure 49 show that the business emphasize on the provision of amenities and facilities
with a weighted mean of 2 clearly illustrates that this item is agreeable to the Chinese
respondents.
95
Figure 50 show that the business emphasize on the provision of amenities and facilities
respondents.
96
5. Performance Management
Performance Management 1:
“Alam ng mga tauhan ang mga mahahalagang petsa tungkol sa negosyo”
Target dates are clearly communicated to employees
Figure 51: Performance Management 1 (Chinese)
Figure 51 show that the Target dates are clearly communicated to employees with a
weighted mean of 2.12 clearly illustrates that this item is neutral to the Chinese
respondents.
97
Figure 52: Performance Management 1 (Muslim)
Figure 52 show that the Target dates are clearly communicated to employees with a
weighted mean of 2 clearly illustrates that this item is strongly agreeable to the
respondents.
98
“Nakakatanggap ng mataas at mababang “feedback” ang negosyo galing sa

mamimimili”
Feedback is received on good and poor performance
Figure 53 show that the business Feedback is received on good and poor performance,
with a weighted mean of 2.94 clearly illustrates that this item is neutral to the Chinese
respondents.
99
Figure 54 show that the business Feedback is received on good and poor performance,
respondents.
100
“Nabibigyang pansin agad ang mga bagay na nangangailangan ng paglago at

pagbabago”
The business takes full action right away in certain problems experienced.
Figure 55 shows that the business takes full action right away in certain problems
experienced with a weighted mean of 2.18 clearly illustrates that this item is agreeable
to the Chinese respondents.
101
Figure 56 shows that the business takes full action right away in certain problems
experienced with a weighted mean of 1.96 clearly illustrates that this item is agreeable
to the respondents.
102
“Pinag-aaralang mabuti ang mga kalakasan at kahinaan ng negosyo at
binibigyang pansin ang paglago nito”
The business observes and analyzes its strengths and weaknesses for further
improvement.
Figure 57 shows that the business observes and analyze its strengths and weaknesses
for further improvement with a weighted mean of 2.22 clearly illustrates that this item is
103
Figure 58 shows that the business observes and analyze its strengths and weaknesses
for further improvement with a weighted mean of 1.8 clearly illustrates that this item is
agreeable to the respondents.
104
Business Practices of Muslim and Chinese
Figure 59: Business Practices of Muslim and Chinese Respondents
As a result of the interview conducted for the Muslim respondents as shown on Figure
59, 9 out of 50 respondents answered that they are using techniques in running a
business specially in pricing and customer relationship, 10 out of 50 respondents
answered that they are assuring the quality of their products being offered, 9 out of 50
respondents answered that they are different in managing the business because they
105
much more likely prefer to manage it alone or by family members than to hire workers, 7
out of 50 respondents answered that time is very important especially for the upcoming
opportunities, 9 out of 50 respondents answered that they not allowed to put ‘riba’ or
additional interest in the price of the products, 4 out of 50 respondents answered that
they strongly believe in their religious belief in doing good things, in return of more profit
for them and 2 out 50 respondents answered that they are the same in business
practices used.
While Chinese respondents, 2 out 50 respondents answered that they believe when
putting up their businesses they were content to begin modestly, 6 out of 50
respondents answered that when earning profit, they didn’t rush out to buy unnecessary
expenses but rather use back the money earned to grow their business, 8 out of 50
respondents answered that they seek low profit margins while aiming for high sales
volumes, 8 out of 50 respondents answered that they do believe in luck in running the
business, 5 out of 50 respondents answered that they are using different techniques in
running a business, 1 out of 50 respondents answered that they hire employees from
their family members, 1 out 50 respondents answered that selling is their hobby more
than an interest, 2 out of 50 respondents answered that the quality of the products are
the top priority of the owner, 2 out 50 respondents answered that they are using
techniques most in pricing and customer relationship, and 1 out of 50 respondents did
not answered.
106
CHAPTER 5
SUMMARY OF FINDINGS, CONCLUSION AND RECOMMENDATION
This chapter presents the summary of findings, conclusions and recommendation
of the study. The summary of findings section summarizes the results based on chapter
IV. Conclusions should dovetail with the findings of the study and recommendations are
based on conclusions.
I. Summary of Findings
 Table 2 and 3 shows the number of respondents of Chinese and Muslim with
regards to their gender. In Chinese, out of 50 entrepreneurs 52% or 26
respondents are male and for the female it has 48% or 24 respondents. While in
the Muslim, out of the 50 entrepreneurs 56% or 28 respondents are male and
44% or 22 respondents are female.
 Table 4 and 5 shows the ages of the respondent of Chinese and Muslim
entrepreneurs. In Chinese, the age of 21 to 30 has 22% or 11 respondents, 31-
40 with 38% or 19 respondents having the highest percentage. 41-50 with 28%
or 14 respondents and for the ages of 50 and above, there are 12% or 6
respondents. While in Muslim, 32% or 16 respondents for the ages of 21-30
years. Next is 31-40 with 48% or 24 respondents having the highest number of
107
respondents. For the ages 20% or 10 respondents answered that they are 41-50
years old.
 Table 6 and 7 shows the educational attainment of the Chinese and Muslim
respondents. For the Chinese, 50% or 25 respondents for secondary and for
college degree has 48% or 24 respondents. In the masters, 2% or 1
respondents. While in the Muslim, there are 34% or 17 respondents who finished
secondary level. For college degree has 64% or 32 respondents having the
highest percentage and for the masters with 2% or 1 respondent.
 Table 8 and 9 shows the ages of the business of Chinese and Muslim
respondents. For the Chinese, there are 10% or 5 respondents with less than 1
year. 14% or 7 respondents for 1-3 years. For 16% or 8 respondents for 3-5
years. In the 6-10 years has 32% or 16 respondents and for more than 10 years
it has 28% or 14 respondents. While for the Muslim, there are 8% or 4
respondents for less than 1 year. 1-3 years with 22% or 11 respondents and for
3-5 years with 24% or 12 respondents. For 6-10 years it has 24% or 12
respondents and also 22% or 11 respondents for more than 10 years.
 Table 10 and 11 shows the type of business of Muslim and Chinese
entrepreneurs. For the Chinese, 30% or 15 respondents are technology. 10% or
5 respondents for wholesales. 6% or 3 respondents for manufacturing. 18% or 9
respondents for retailing. 16% or 8 respondents for healthcare. Marketer (sector)
20% or 10 respondents. For the Muslim, 84% or 32 respondents for technology.
8% or 3 respondents for wholesales. 2% or 1 respondent for retailing. Marketer
(sector) 8% or 4 respondents.
108
 Table 12 and 13 shows the Marketer (sector) of Chinese and Muslim
entrepreneurs. For the Chinese, 4% or 2 respondents for accessories. 2% or 1
respondent for apparel. 14% or 7 respondents for clothing. For the Muslim, 6% or
3 respondents for accessories and 2% or 1 respondent for apparel.
 Table 14 and 15 shows the Capital of Chinese and Muslim respondents. For the
Chinese, 76% or 38 respondents for personal savings. 16% or 8 respondents for
family and friends. 8% or 4 respondents for inheritance. For the Muslim, 86% or
43 respondents for personal savings, 12% or 6 respondents for family and
friends and 2% or 1 respondent for banks and other financial institutions.
 Table 16 and 17 shows the path to ownership of Chinese and Muslim
entrepreneurs. For the Chinese, 74% or 37 respondents from scratch. 24% or 12
respondents for family inheritance and 2% or 1 respondent for purchase. For the
Muslim, 68% or 34 respondents from scratch. 14% or 7 respondents for family
inheritance, 8% or 4 respondents for purchase and 10% or 5 respondents for
financial institutions.
 Table 18 and 19 shows the legal structure of Chinese and Muslim entrepreneurs.
For the Chinese, 96% or 48 respondents for sole trader and 4% or 2 respondents
for partnership. For the Muslim, 90% or 45 respondents for sole trader and 10%
or 5 respondents for partnership.
 Figure 11 show that the members are mutually supportive and help each others
in resolving the problems with a weighted mean of 2.26 clearly illustrates that this
item is agreeable to the Chinese respondents.
109
 Figure 12 show that the members are mutually supportive and help each others
in resolving the problems with a weighted mean of 2.06 clearly illustrates that this
item is agreeable to the Muslim respondents.
 Figure 13 shows that the members share their knowledge and skills openly to
grow the business with a weighted mean of 2.04 clearly illustrate that this item is
 Figure 14 shows that the members share their knowledge and skills openly to
grow the business with a weighted mean of 2.16 clearly illustrate that this item is
 Figure 15 shows that the members actively listen to each other striving to create
a better working environment with a weighted mean of 1.94 clearly illustrates that
this item is agreeable to the Chinese respondents.
 Figure 16 shows that the members actively listen to each other striving to create
a better working environment with a weighted mean of 2.04 clearly illustrates that
this item is agreeable to the respondents.
 Figure 17 shows that the members actively affirm and encourage one another to
build a high level of morals with a weighted mean of 1.68 clearly illustrates that
 Figure 18 shows that the members actively affirm and encourage one another to
build a high level of morals with a weighted mean of 1.92 clearly illustrates that
this item is agreeable to the Muslim respondents.
110
 Figure 19 shows that the organization knows the risks relating to their aim and
objectives with a weighted mean of 2.2 clearly illustrates that this item is
 Figure 20 shows that the organization knows the risks relating to their aim and
objectives with a weighted mean of 1.76 clearly illustrates that this item is
agreeable to the Muslims respondents.
 Figure 21 shows that the management ensures a more informed decision making
 Figure 22 shows that the management ensures a more informed decision making
with a weighted mean of 2 clearly illustrates that this item is strongly agreeable to
the Muslims respondents.
 Figure 23 show that the management ensures a better use of existing resources
(machineries and equipment) in focusing them on higher risks with a weighted
mean of 1.92 clearly illustrates that this item is agreeable to the Chinese
respondents.
 Figure 24 show that the management ensures a better use of existing resources
(machineries and equipment) in focusing them on higher risks with a weighted
mean of 1.78 clearly illustrates that this item is strongly agreeable to the Muslim
respondents.
 Figure 25 shows that the management ensure ensures that all relevant risk areas
are considered including those coming from the services of new external
111
providers with a weighted mean of 1.86 clearly illustrates that this item is
 Figure 26 shows that the management ensure ensures that all relevant risk areas
are considered including those coming from the services of new external
providers with a weighted mean of 1.68 clearly illustrates that this item is strongly
agreeable to the Muslims respondents.
 Figure 27 show that the business can meet their quota with a weighted mean of
1.82 clearly illustrates that this item is agreeable to the Chinese respondents.
 Figure 28 show that the business can meet their quota with a weighted mean of
1.58 clearly illustrates that this item is agreeable to the Muslim respondents.
 Figure 29 show that the business makes use of vision and mission and knows its
strengths and weaknesses with a weighted mean of 1.52 clearly illustrates that
 Figure 30 show that the business makes use of vision and mission and knows its
strengths and weaknesses with a weighted mean of 1.62 clearly illustrates that
this item is agreeable to the Muslim respondents.
 Figure 31 show that the business try to change my approach to building
knowledge and skills: in technical matters, knowledge of clients' business,
consultation skills with a weighted mean of 1.68 clearly illustrates that this item is
 Figure 32 show that the business try to change my approach to building
knowledge and skills: in technical matters, knowledge of clients' business,
112
consultation skills with a weighted mean of 1.6 clearly illustrates that this item is
 Figure 33 show that the business tries to implement change in approaching
customers with a weighted mean of 1.82 clearly illustrates that this item is
 Figure 34 show that the business tries to implement change in approaching
 Figure 35 shows that the business establish good relationships with their
strongly agreeable to the Chinese respondents.
 Figure 36 shows that the business establish good relationships with their
 Figure 37 shows that the business establish good relationships with our suppliers
and distributors with a weighted mean of 1.42 clearly illustrates that this item is
strongly agreeable to the Chinese respondents.
 Figure 38 shows that the business establish good relationships with our suppliers
and distributors with a weighted mean of 1.56 clearly illustrates that this item is
 Figure 39 show that the business makes sure the quality of the product/s being
offered with a weighted mean of 1.7 clearly illustrates that this item is agreeable
to the Chinese respondents.
113
 Figure 40 show that the business makes sure the quality of the product/s being
offered with a weighted mean of 1.68 clearly illustrates that this item is agreeable
to the Muslim respondents.
 Figure 41 show that the business enters into negotiations with potential partners
 Figure 42 show that the business enters into negotiations with potential partners
with a weighted mean of 2.48 clearly illustrates that this item is neutral to the
Muslim respondents.
 Figure 43 show that the business involves its employees in decision making with
a weighted mean of 2.44 clearly illustrates that this item is agreeable to the
 Figure 44 show that the business involves its employees in decision making with
a weighted mean of 2.46 clearly illustrates that this item is neutral to the Muslim
respondents.
 Figure 45 show that the business gives proper incentives/disciplinary actions
accordingly with a weighted mean of 2.18 clearly illustrates that this item is
 Figure 46 show that the business gives proper incentives/disciplinary actions
accordingly with a weighted mean of 2.3 clearly illustrates that this item is neutral
to the Muslim respondents.
114
 Figure 47 shows that the business gives further considerations to its employees
for new learning with a weighted mean of 2.1 clearly illustrates that this item is
 Figure 48 shows that the business gives further considerations to its employees
for new learning with a weighted mean of 2.16 clearly illustrates that this item is
 Figure 49 show that the business emphasize on the provision of amenities and
facilities with a weighted mean of 2 clearly illustrates that this item is agreeable to
 Figure 50 show that the business emphasize on the provision of amenities and
facilities with a weighted mean of 1.82 clearly illustrates that this item is
 Figure 51 show that the Target dates are clearly communicated to employees
with a weighted mean of 2.12 clearly illustrates that this item is neutral to the
 Figure 52 show that the Target dates are clearly communicated to employees
with a weighted mean of 2 clearly illustrates that this item is strongly agreeable to
the respondents.
 Figure 53 show that the business Feedback is received on good and poor
performance, with a weighted mean of 2.94 clearly illustrates that this item is
neutral to the Chinese respondents.
115
 Figure 54 show that the business Feedback is received on good and poor
performance, with a weighted mean of 2.02 clearly illustrates that this item is
 Figure 55 shows that the business takes full action right away in certain problems
experienced with a weighted mean of 2.18 clearly illustrates that this item is
 Figure 56 shows that the business takes full action right away in certain problems
experienced with a weighted mean of 1.96 clearly illustrates that this item is
 Figure 57 shows that the business observes and analyze its strengths and
weaknesses for further improvement with a weighted mean of 2.22 clearly
illustrates that this item is agreeable to the Chinese respondents.
 Figure 58 shows that the business observes and analyze its strengths and
weaknesses for further improvement with a weighted mean of 1.8 clearly
illustrates that this item is agreeable to the respondents.
 Figure 59 for Muslim respondents, 9 out of 50 respondents answered that they
are using techniques in running a business specially in pricing and customer
relationship, 10 out of 50 respondents answered that they are assuring the
quality of their products being offered, 9 out of 50 respondents answered that
they are different in managing the business because they much more likely
prefer to manage it alone or by family members than to hire workers, 7 out of 50
respondents answered that time is very important especially for the upcoming
opportunities, 9 out of 50 respondents answered that they not allowed to put
116
‘riba’ or additional interest in the price of the products, 4 out of 50 respondents
answered that they strongly believe in their religious belief in doing good things,
in return of more profit for them and 2 out 50 respondents answered that they are
the same in business practices used.
 Figure 59 for Chinese respondents, 2 out 50 respondents answered that they
believe when putting up their businesses they were content to begin modestly, 6
out of 50 respondents answered that when earning profit, they didn’t rush out to
buy unnecessary expenses but rather use back the money earned to grow their
business, 8 out of 50 respondents answered that they seek low profit margins
while aiming for high sales volumes, 8 out of 50 respondents answered that they
do believe in luck in running the business, 5 out of 50 respondents answered that
they are using different techniques in running a business, 1 out of 50
respondents answered that they hire employees from their family members, 1 out
50 respondents answered that selling is their hobby more than an interest, 2 out
of 50 respondents answered that the quality of the products are the top priority of
the owner, 2 out 50 respondents answered that they are using techniques most
in pricing and customer relationship, and 1 out of 50 respondents did not
answered.
II. Conclusion
This study was conducted to determine if there is a significant difference between
Muslim and Chinese entrepreneurs in running a successful micro enterprise in
117
Tutuban, Manila. This was conducted during the First Semester of School Year
2015-2016. The descriptive method was applied by the researchers and designed
survey questionnaire as our primary instrument in gathering data. The respondents
of the study were composed of 50 respondents for Muslim and 50 respondents for
Chinese within the Tutuban Mall using the random sampling method. To ensure
impartially on presentation, analysis and interpretation of data, we used statistical
tools such as Frequency and Percentage Distribution, and Weighted Mean. Based
on the data gathered, the profile representation of the respondents state that the age
range was from below 20 – 80 years of age.
For this study, the researchers were able to conclude that there is a significant
difference in Muslim and Chinese entrepreneurs in running a successful micro
enterprise. Based on the data gathered, both Muslim and Chinese entrepreneurs have
different business practices used in running their business with the exception that both
are assuring the quality of the products, time is very important and they are using
different techniques in pricing and customer relationship.
III. Recommendation
Based on the findings and results of the survey made, the following
recommendations were constructed:
1. Since entrepreneurs cannot avoid facing problems in this kind of business, the
proponents recommend the entrepreneurs not to intimidate by the challenges
118
through analyzing and examining the problems that they’re going to take. For the
reason that business practices can lead to the success or failure of the business.
2. The researchers recommend the Muslim and Chinese entrepreneurs to continue
the entrepreneurial skills and business practices for the improvement of the
business.
3. The development of each entrepreneurial skill should not be taken for granted so
the researchers advise the entrepreneurs to attend seminars to be aware of the
keys and right attitude to business success to further enhance their skills
especially the business practices.
119
WORK CITED
A. Bibliography
Books
Al-Quran (Koran)
Ahmad, M., & Abdul Kadir, S. (2013). Characteristics of Entrepreneurs and the Practice
of Islamic Values in Influencing the Success of Small Medium Enterprises. (pp. 229-
235).
Ilhaamie, A.G.A., & Ibrahim, M.D. (2013). Islamic Perspective on Management:
Contemporary Issues (pp. 179-196). YaPEIM Management Academy.
Rafiki, A., & Kalsom, A.W. (2013). Influences of Islamic Practices on Small Firm
Performance. (pp. 64-82).
Shuhairimi, A. (2013). Pure Values Among Entrepreneurs: Islamic Management and
Business. (pp. 171-177).
Thesis
Brownhilder Ngek NENEH. (2011). The Impact of Entrepreneurial Characteristics and

Business Practices on the Long Term Survival of Small and Medium Enterprises
(SMEs). Bloemfontein - Republic of South Africa
Chong Wei, Y. (2012). Critical Success Factors for Small and Medium Enterprises:
Perceptions of Entrepreneurs in Urban Malaysia. Faculty of Business and Accountancy
- University of Malaya.
120
Hampel-Milagrosa, A. (2014). Micro and Small Enterprise Upgrading in the Philippines.
German Development Institute.
B. Webliography
Flores, W. 2010. Why are Chinese entrepreneurs successful? [online]. Retrieved from:
http://www.philstar.com/business-life/551406/why-are-chinese-entrepreneurs-successful
121
SARBEY – KWESTYONER
Kami po ang BS ENTREPRENEURSHIP ng Pamantasan ng Lungsod ng Maynila, nasa ika-apat na taon na

nagsasagawa ng pananaliksisk sa paksang "A Comparative Analysis on Business Practices of Muslim and
Chinese Entrepreneurs in Running a Successful Micro-Enterprise in Tutuban, Manila". Mangyari pong
sagutan nang buong katapatan ang mga sumusunod na aytem. Tinitiyak po naming magiging
kumpidensyal na impormasyon ang inyong mga kasagutan. Maraming Salamat po!
Pangalan (Opsyonal):
BAHAGI 1: PAGLALARAWAN NG IMPORMASYON NG NEGOSYO
Panuto: Bilugan ang numero na tumutugma sa iyong kasagutan.
A. Anyong Demograpiko B. Anyo ng Negosyo
1) Kasarian 4) Edad ng negosyo sa kasalukuyan?
Lalaki 1 Mas mababa sa 1 taon 1

Babae 2 1 -3 taon 2
3 -5 taon 3
2) Edad / Gulang 6 -10 taon 4
Higit sa 10 taon 5
Mas mababa sa/o 20 taon 1
21 – 30 taon 2
5) Sa anong industriya mo mabibilang ang
31 - 40 taon 3
41 - 50 taon 4
inyong negosyo?
Higit sa/o 50 taon 5 Teknolohiya 1
Maramihang pagbebenta (wholesales) 2
3) Pinaka-mataas na pinag-aralan Nagmamanupaktura 3
Patingi-tingi at malayang pagtinda 4
Elementarya 1
Gamot at Kosmetiks 5
Hayskul 2 Mangangalakal (anong sektor:) 6
Kolehiyo 3 Iba pa: 7
Masteral 4
Doktor 5
6) Paano ka nakapagsimula ng
kapital/puhunan?
Sariling ipon 1
Pamilya at Kaibigan 2
Mamumuhunan (Investors) 3
Namana (Inheritance) 4
Bangko at Pautangan 5
122
BAHAGI 2: KASANAYAN SA NEGOSYO
Kultura sa Negosyo (Organizational Culture)
1) Paano mo sinimulan ang negosyo mo? (Path to Ownership)
1 Nagsimula sa komisyon 2 Namana sa Pamilya 3 Binili 4 Umutang ng puhunan
2) Sa anong uri ng estraktura mo mabibilang ang negosyo mo? (Legal Structure)
1 Solong namuhunan 2 May kasosyo 3 Korporasyon
Panuto: Bilugan ang numero na tumutugma sa iyong kasagutan.

3) 1 = Higit na Sumasang-ayon 2 = Sang-ayon 3 = Medyo 4 = Hindi Sang-ayon
5 = Higit na Hindi Sumasang-ayon
PAGTUTULUNGAN SA NEGOSYO (TEAMWORK)

Tumutulong at sumusuporta ang mga tauhan sa pagresolba ng problema 1 2 3 4 5
Nag-aambag ng kaalaman at kakayahan ang tauhan upang lumago ang negosyo 1 2 3 4 5
Nakikinig ang mga tauhan sa opinyon at ideya ng bawat isa para sa maayos na trabaho 1 2 3 4 5
Nagbibigayan ng payo at nagpapakita ng magandang asal ang tauhan upang magaya ng iba 1 2 3 4 5
Istratehiya sa Negosyo (Organizational Strategy)
PAKIKIPAGSAPALARAN SA NEGOSYO (RISK MANAGEMENT)

Nagdudulot ng maayos at nauunawaan ng lahat ang pagsugal nyo sa negosyo upang maabot ang paglago ng negosyo 1 2 3 4 5
Sinisiguro ang pagbabago ng ilan sa mga desisyong ginagawa na malaman ng lahat 1 2 3 4 5
Sinisiguro ang mga materyales/makina sa negosyo ay nagagamit sa wasto at paglago ng negosyo 1 2 3 4 5
Sinisiguro ang pagsugal sa pagbili at pag-gamit ng mga bagay na galing sa bagong suplayer at ang kontrata sa mga ito 1 2 3 4 5
ISTRATEHIYANG PAGPAPLANO SA NEGOSYO (STRATEGIC PLANNING)
Kasama sa pagplano ang pag-abot sa quota, ang magkaroon ng mataas na kita at benta ng negosyo 1 2 3 4 5
Pinapanatili ang silbi at misyon ng negosyo at inaalam ang mga lakas at kahinaan nito 1 2 3 4 5
Sinusubukan baguhin ang pagtrato sa paghubog ng kaalaman at kakayanan ng mga mamimimili at pagkonsulta sa kanila 1 2 3 4 5
Nagbibigay ng bago at ibang pagtrato sa paghahanap at pagbibigay ng pangangailan ng mamimimili 1 2 3 4 5
PANGANGALAKAL SA NEGOSYO (MARKETING)
Nagbibigay ng magandang relasyon sa mamimimili 1 2 3 4 5
Nagbibigay ng magandang relasyon sa mga suplayer at distibutor 1 2 3 4 5
Sinisiguro ang maganda at maayos na kalidad ng produkto sa mamimimili 1 2 3 4 5
Handang pumapasok sa mga posibleng kasosyo sa negosyo 1 2 3 4 5
PANGANGASIWA SA LAKAS TAO SA NEGOSYO (HUMAN RESOURCE MANAGEMENT)
Sinasali ang mga tauhan sa desisyon sa negosyo 1 2 3 4 5
Nagbibigay ng naaayong mga insentibo at parusa ang mga tauhan sa resulta ng kanilang ginagawa 1 2 3 4 5
Binibigyang pansin ang pagkakataong matuto ang mga tauhan sa mga bagong kaalaman 1 2 3 4 5
Binibigyang pansin ang mga kagamitan at pasilidad ng negosyo 1 2 3 4 5
PAG-GANAP NG PAMAMAHALA SA NEGOSYO (PERFORMANCE MANAGEMENT)
Alam ng mga tauhan ang mga mahahalagang petsa tungkol sa negosyo 1 2 3 4 5
Mayroong magandang “feedback” ang negosyo galing sa mamimimili 1 2 3 4 5
Nabibigyang pansin agad ang mga bagay na nangangailangan ng paglago at pagbabago 1 2 3 4 5
Pinag-aaralang mabuti ang mga kalakasan at kahinaan ng negosyo at binibigyang pansin ang paglago nito 1 2 3 4 5
123
4) Paano mo maihahalintulad ang iyong pamamaraan sa pagnenegosyo sa iba pang negosyante
gaya ng Muslim/Tsino? Paliwanag.
SALAMAT PO!
124

Business Research FINAL REVISED

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Business Research FINAL REVISED

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CHAPTER 1

THE PROBLEM AND ITS SETTING

Nowadays, the involvement of Muslim and Chinese in the entrepreneurial

abilities, to do something beneficial to the society and so on. However, regardless of

earning money, training, work experience and employment.

Each nation state’s specific cultural environment inevitably creates the

most competitive, successful, significant and influential alien interracial merchants in

B. STATEMENT OF THE PROBLEM

The purpose of this study is to determine if there a significant difference on the

business practices of Muslim and Chinese entrepreneurs in running a successful micro

In order to thoroughly explore this idea, the following supporting sub-questions

are developed to be used as a guideline for the research design.

 Nature of the Business

o Business Size and Age

o Risk Management Practices

o Strategic Planning Practices

o Human Resource Management Practices

o Performance Management Practices

entrepreneurs in running a micro enterprise?

Demographic Profile Determinants of Business

Figure 1: Conceptual Framework on Business Practices of Muslim and Chinese

Entrepreneurs in Running a Successful Micro-Enterprise in Tutuban, Manila.

then the Organizational Strategy; Risk Management Practices, Marketing Practices,

Strategic Planning Practices, Human Resource Management Practices and

Performance Management Practices.

These variables can either strengthen or weaken the dependent and

independent variables. The dependent variable would be the successful micro

 There is no significant difference on the business practices of the Muslim and

Chinese entrepreneurs in running a successful micro enterprise.

The primary purpose of the study is to determine the business practices of

Muslim and Chinese entrepreneurs in running a successful micro enterprise in Tutuban,

maintain the company’s position in the market.

respective time and usability.

G. SCOPE AND DELIMITATIONS OF THE STUDY

The scope of the study focused on determining if there is a significant difference

between the business practices of Muslim and Chinese entrepreneurs in running a

geographically limited to Tutuban, Manila. The respondents of this research are

male and female ages from below 20-80 years old.

Additionally, it had to be done within a limited time period.

Business Practices – It is a method, procedure, process, or rule employed or followed

by a company in pursuit of its objectives.

by reason of ancestry or heredity, nationality, citizenship, place of residence, or other

Human Resource Management – It is a function in organizations designed to

maximize employee performance of an employer's strategic objectives. HR is primarily

concerned with the management of people within organizations, focusing on policies

business. Choices include LLCs, partnerships, sole proprietorships, corporations, non-

profits and co-operatives.

Marketing Practices – The action or business of promoting and selling products or

services, including market research and advertising.

word of God as revealed to the Islamic prophet Muhammad.

Organizational Culture – It is a system of shared assumptions, values, and beliefs,

Organizational Strategy – An organizational strategy is the sum of the actions a

involvement from all company levels.

even destroy an item of property.

contribution to the organization.

Risk Management – The process of identification, analysis and either acceptance or

mitigation of uncertainty in investment decision-making.

enterprise engage in industry, agribusiness, and/or services, whether single

proprietorship, cooperative, partnership, or corporation whose total assets are inclusive

 Micro Less than 50,000

 Cottage 50,001 – 500,000

 Small 500,001 – 5,000,000

 Medium 5,000,001 – 20,000,00

Strategic Planning – It is an organization's process of defining its strategy, or direction,