BUSINESS RESEARCH (BACC VII)

( Start-ups – a look into the issues that occur in starting and during a service type business in
Concepcion, Tarlac.)
DEFENDER GROUP ;
Chapter I
THE PROBLEM AND ITS BACKGROUND

Introduction
A start-up, represents a newly emerged business venture that has the intention of
developing a feasible business model in order to meet the needs of a society by creating a
virtuous cycle that derives constant improvement through innovative solutions. (Al-Mubaraki,
Hanadi, and Michael, Busler, July 2017) A start-up therefore, fits best in developing economies
whose main objective is to reduce poverty and generate sustainable wealth through innovative
solutions that are able to solve industry-wide problems. (Daso, Frederick, 2018).
According to Baumaschinen (2018) 90% of entrepreneurs fail in starting abusiness. Most people
fail because they make mistakes they could have prevented. Once individual has an aware of
those mistakes, it can pursue success by averting them. Preventing them will allow you to work
on things that create value. The Small Business Administration (SBA) points out, though, that
these are likely to be advantages only “for the right person”. It will only know if you are one of
them, if you are a self-starter, compatible to deal with different personalities, good at making
decisions, have a strong and physical stamina and, Planning and organizing well. It also supports
the idea of Diokno (2016) that it is a "survival of the fittest" experiencing failures, rejections, and
ups and downs, are part of the process. Just enjoy overcoming these struggles and it will surely
get closer to the business success.
Due to several reasons, these studies are of paramount importance. First, many start-ups
fail in the very early stages and less than one third of them turn into companies- “high rate of
failure” (e.g. See, Vesper, 1990). Second, failure occurs due to several reasons, such as
lack of finance, team management problems, lack of enough business knowledge,
technology lag, etc.-“start-up problems” (e.g. see, Núñez, 2007). Third, most of start-ups
that survive might turn into successful companies which play a significant role in economies-
“success stories” (e.g. see, Martinsons, 2002). Fifth, there is a black box called “valley of
death” which is more of a metaphor than a well-defined stage (Hudson & Khazragui, 2013).
Even if this black box is well studied, the start-up itself is ignored as the level of analysis- “start-
up stage” (e.g. see, Van de Ven et. al., 1984).
Therefore, this paper attempts to explain and conceptualize start-ups, and recognize the
challenges they might face in the valley. In starting a new business can be both exciting and
frightening. Because entering a world of business is not easy at all. It has seen time and again
that the road ahead for start-ups is not a smooth one. It has a lot of things that you must to
consider in starting of it like location, size, employees, quality control etc. This research is very
reliable to the beginner entrepreneur because it aims to answer the question "Why do business
start-up fail in the first place?” "What are the issues occurring in the business start-up?” and
“How businessmen or women cope with those issue”? So that these beginner entrepreneurs will
help to ensure their business success. Also, the research reported in this paper the reasons of
failures in the early years of starting-up a business. Hence, the goal of this study is to give
knowledge and information about starting up a business to the readers of this study. Thus, the
paper deals with explanation and not all the mentioned reasons why confirm that start-up
research is important.

Conceptual Framework

What services people needs

Beginner entrepreneur / old

Business start-ups
entrepreneur

Issues / problems

Persist
 Quit
In this figure, it shows the relation of independent Growth
and dependent variable. The dependent
variable in the diagram was the beginner entrepreneur and old entrepreneur while the
independent variable was the issues occurring in the business start-up. Having an idea about
issues occurring in the business start-up is really significance in all aspect of business especially
to the one whom handling the business which is the owner. It gives preparedness on how they
need to deal with that variety of issues. Also, these issues are one of the most reason why
business start-up failed but sometimes it is a reason why start up persisting and keep growing in
the environment of business.

Statement of the Problem

The main concern of this present study is to aim to find out the issues that occur during
service type business start-up.
1. Why do business start-up fail in the first place?
2. What are the issues occurring in the business start-up?
3. How businessmen or women cope with those issue?
Significance of the study
The study is created to benefit different people. The first beneficiary of this study is the
beginner entrepreneurs. It will be helpful for them because it gives information about the
possible risks that they encounter in running a business. It will serves as a guideline in terms of
starting up a business. The second beneficiary is the Business Ads students. This study may
serve as a guide and consultation for the student undertaking similar studies via getting ideas
about issues in business start-ups. The third beneficiary is Business Ads teachers. This study will
help them to their discussions about those related lessons. Lastly, the future researchers, because
it will be helpful reference would plan to make any related study precisely for this research.
The primary significance of this study is to give people who want to start a service type
business an information on how to prevent failures in terms of running a service type business
Because nowadays new business failed quickly due to lack of awareness and information of
beginner entrepreneur about starting-up a business.
Scope and Limitation
 This study is focused only on the issue occurring in business start-up. Researchers do not
focus on the broad ideas about business. Only focused on the new generation of business that
opens last year. Researchers choose this year because it is compatible time where business starts
in early years of their business. From this moment, researchers will find out what are the risks
that they face during business start-up and researcher will go to deal with this research until the
end of second semester. And to fulfil this research, the respondents should be a beginner
entrepreneur and consumer of that business in the Concepcion, Tarlac area only.
Definition of Terms
Business Administration- The courses can vary in different institutes, but the
major courses in business administration include business management, communication
methodologies, marketing management, strategic management, business policies, trade and
commerce, human resource management, financial management, and effective team
development. (excite.education).
Business start-up- are all new venture and new firms that wanted to give the needs and wants of
market. (Garcia, 2008)
Dependent variable- Is the variable being tested and measured in a scientific method.
(Helmenstine, 2018).
Independent variable- Is a variable believed to affect the dependent variable. This is the variable
that you, the researcher, will manipulate to see if it makes the dependent variable change.
(Helmenstine, 2018).
Perspective- is a view of a three-dimensional image that portrays height, width, depth, for a
more realistic image or graphic. (Emberton, 1998).
Small Business Administration (SBA) –is designed to enhance small business access (Dilger,
2018).
Subaltern- is classes that may include in a limit. (Mambro, 2016)
Aspiring Entrepreneurs – in providing actual experiences and strategies adopted by entrepreneurs
before them. These may guide them to develop a “philosophy” that could be deeply embedded in
their respective organizations.
The Business Students – in exposing them to the discipline of case study research and in
providing actual and more relevant business experiences.
 CHAPTER II
REVIEW OF RELATED LITERATURE
Local Literature
According to Rene Meily (2017), the Philippines is a country brimming with
entrepreneurial potential. We have the talent, the motivation, the drive, and the optimism of a
young population. And yet, start-ups are a facet of a local economy that, up until recently, have
largely gone unnoticed. As a consequence, their potential remains largely untapped. Now
however, more and more, millennial are choosing to take a different path to establish their own
companies, using new technologies that have the potential for regional and even global
application. An entire new industry is born. By supporting start-ups, we can unleash the potential
of our fellow Filipinos, and the Philippines can take its place as a player in the new innovation-
driven, tech-centric world economy.
According to Diane D. Eustaquio (2017), the start-up ecosystem in the Philippines is like
our geology and geography- young and fragmented. Unlike geology and geography where things
are pretty fixed, the great thing about an ecosystem is its dynamic and the power people can do
to change its condition. Grant (2019), stated that the factors involves in are business start-up. A
start-up is a company that is in the first stage of its operations. These companies often initially
bankrolled by their entrepreneurial founders as they attempt to capitalize on developing a
product or service for which they believe there is a demand.
Alexander Cabrera (2017), claimed that providing online and technological solutions to
disrupting design and traditional industries, our start-ups understand the value of continuous
innovation and delivering the right customer experience or the experience that customers really
want.
According to Kuehland Lambing (1997), failure rate of new products even by large
corporations is proof that there is no easy way to determine if a product is going to be successful.
Although many attempts have been made by companies and academics to improve the success
rate, no magic formula has yet been discovered. One study of new products tried to identify some
of the essential factors that led to success or failure. They found that if only one or two key
factors were wrongs, it could lead to product failure. Some of the key factors are; satisfy a need
and get quality and pricing right the first time.
Rise (2011), stated that to avoid failures there are five principles of business start-ups that
entrepreneurial need to know. These are; “Entrepreneurs are everywhere” To be in a start-up,
you don't have to work in a garage. Anyone working with in my department includes the notion
of entrepreneurship! Start-up nation: a human institution intended to produce fresh products and
services under extreme uncertainty conditions. This implies that entrepreneurs are every-where
and the start-ups strategy can operate in any size, including a very big company.
“Entrepreneurship is management" Start-up is an institution, not just a product, and therefore
needs a fresh type of management specifically tailored to its extreme uncertainty context. In fact,
entrepreneur should be considered a job title in all modern companies that depend on innovation
for their future growth. “Validating Learning” There is start-ups not only for making things,
making cash, or even serving clients. To learn how to construct a sustainable business, they exist.
This learning can be scientifically validated by conducting frequent experiments that enable
entrepreneurs to test each element of their vision. “Build-measure-Learn” The fundamental
activity of a start-up is to turn ideas into products, measure how customers respond, and then
learn to pivot or preserve. To accelerate this feedback loop, all effective start-up processes
should be oriented. “Innovation accounting”.
In order to enhance business outcomes and hold innovators responsible, businessman
need to concentrate on boring stuff: how to evaluate progress, how to set milestone, and how to
prioritize jobs. This requires a new type of accounting designed for start-ups-and the individuals
who hold them accountable. Unfortunately, whenever we look, why do start-ups fail so badly?
The first issue is the attractiveness of a successful plan, a sound strategy and thorough market
research. These things were indicators of possible success in previous eras. The overwhelming
temptation is to apply them to start-ups too, but this does not mean work as start-ups are
operating too much uncertainty. Start-ups still do not know who their customer is or who their
customer is or what product should be. As the world becomes more uncertain, it gets harder and
harder to predict the future. The second problem is that after seeing traditional management fail
to solve this problem, some entrepreneurs and investors have thrown up their hands and adopted
the ‘Just do it’.
 
Foreign Literature
 Skripak (2016), discussed in his book why some business fails and where to get help. It
analyses the reasons of failures of business start-ups. It tackles that starting a business, small or
large is risky, and through many businesses succeed. The goal of this study is to give explanation
of business start-ups tend to faster innovation and need to be more effective business. Also, to
give information why business start-ups is important, what are the advantages and disadvantages
of entering world of business?
  Kanchana (2013), discussed in his book, the challenges being faced by entrepreneurs and
to analyses the measures to overcome them. It tackles that entrepreneurs must face numerous
challenges on the road to success, about access to finance. It also discussed the responsibilities
that fall on their shoulders. The common challenges faced by entrepreneurs are overestimating
success, Misplaced purpose etc.
The study is based on secondary data. The secondary data required for the studies were
collected from various books and publications related to the topic under study. They tackle new
entrepreneurs face so many difficulties, i.e. lack of patience in solving issues, absence of
sustained motivation, inability to dream and use subconscious, etc. Other difficulties include:
developing vision and thoughts, raising capital, setting up a team, finding the correct place,
finding the correct staff, finding excellent clients, overcoming competition, unforeseen
challenges and expenses, keeping up with industrial changes and trends and exiting the business.
 The management theory that espouses the “one best way” of management suggests a
universal solution to business problems. There are countless stories of business failure that
resulted from the blind application of business solutions that were currently in vogue. Such fads
as diversification, quality circles, restructuring, rightsizing, sub-contracting, outsourcing,
reengineering, TQM, sticking to core competence, empowerment, and strategic renewal are said
to have caused more failure than success (Acar & Winfrey, 1994; Haines, 1995; Hussey, 1997a,
1997b; Leavy, 1997; Volberda, 1998). Success resulted however when the prevalent strategy was
appropriate for the company considering both the internal configuration and industry dynamism.
Thus, the varying results on “universal” solutions has led to the conclusion that there may not be
a general prescription that may apply to all possible strategic situations (Haines, 1995; Leavy,
1997; Mascarenhas & Aaker, 1989; Stacey, 1993). Consequently, the “one best way” theory
evolved into the contingency theory that stresses two words--it depends.
Besides the differing realities that an organization faces thereby negating a universal set
of success and failure factors, the added dimension of change has complicated the issue of
business longevity. While internal changes may be managed because it can be anticipated, the
harsher, more dynamic and unpredictable changes in the external environment requires more
than reacting (Chakravarthy, 1982; Ruhli, 1997; Volberda, 1998). Thus, it may be even more
difficult to find universal solutions.
According to him prior research on challenges of start-ups addresses severalcommon
challenges among different start-ups (Shepherd, 2000). However, there are some common
challenges, most of the challenges are unique, and the extent to which they affect start-ups
differs. Some of the main common challenges are as follows: Financial challenges, human
resources, support mechanism and environmental elements.
The work of leadership, organization, and entrepreneurship researchers and others who
may pursue this challenge will have an impaction the heavy lifting of implementing theories to
provide a clear image of these organizations (Salamzadeh, 2015). These studies are of paramount
significance for several reasons. First, in the very early phases, many start-ups fail and less than a
third of them transform into companies “high rate of failure” (Vesper, 1990). Second, failure
occurs due to several reasons, such as lack of finance, team management issues, lack of sufficient
business knowledge, technology lag, etc.-"start-up issues "(Núñez, 2007). Third, most surviving
start-ups could transform into successful businesses that play an important part in economies
"success tales" Fifth, there is a call from the black box called “valley of death” which is more of
a metaphor than a well-defined stage (Hudson & Khazragui, 2013). Even if this black box is well
studied, the start-up itself is ignored as the level of analysis-“start-up stage” (Van de Ven, 1984).
This document therefore tries to clarify and conceptualize start-ups and acknowledge the
difficulties they may encounter in the valley. The document therefore deals with explanation and
not all the reasons for confirming the importance of start-up studies. Three primary problems are
addressed for this purpose: (i) determining the primary management theories, organization and
entrepreneurship in this domain, (ii) explaining the lifecycle of start-ups, and last but not least
(iii) the start-up problems. Finally, the paper concludes with some concluding remarks.
Local studies
According to De Geus (1997), the bottom line to business survival is recognizing that a
company is not merely concerned with the production of goods and services. In his book, “The
Living Company”, he asserts that organizations are primarily a “community of humans” and
must thus work for the preservation of the community rather than focus on economic activity. In
a similar light, Collins and Porras (1998) discovered that living through a core ideology has
spelled the difference for 18 highly visionary century-old businesses.
Evers (2013) sets to examine the process and problems encountered by new business
start-ups. A didactic overview, based on past and current literature in the field, identifies the
most common theoretical frameworks frequenting the academic literature and assesses their
contribution to explaining and understanding the process and problems of new venture creation.
 Also, this study deals with the problems facing entrepreneurs in new venturecreation.
Many start-ups never reach establishment and the majority close up within one year after they
have become established. Embarking on a new business is one of adventure and challenge but it
brings with it high risk and uncertainty. This paper does not seek to detail each and every
industry-specific problem that start-ups experience but aims to identify and examine the most
common difficulties encountered by Start-ups in the early stages of establishment, irrespective of
sector or industry. Start-up companies are intrinsically open organizations, necessarily engaged
in innovation processes. Research at the intersection between the themes of OI and start-ups is
gaining momentum. This review of the literature represents the first attempt to organize the
scientific knowledge related to the intersection between the start-ups and OI phenomena
systematically.
Maina (2016) conducted a study that has objective to determine the factors that influence
success of youth business start-ups. Specific objective for the study were; the extent to
entrepreneurship training influence the success youth business start-ups; how access to finance
influence the success of youth business start-ups, and how business development services
enhance success of youth business start-ups. The findings on the influence of entrepreneurship
training on success of youth business start-ups revealed the existence of a positive relationship
between entrepreneurship training and success of youth entrepreneurship. The relationship was
statistically significant.
Levin (2019) stated that teens of today have incredible benefit over past generations.
More resources to build knowledge and skills are available than ever before. If they have the
courage and persistence to take the advantage it is not simple to start a new business, but it will
alter their life for the better. Teenage learn to think on their feet, to overcome difficulties, to be
creative.
 Foreign Studies
 Schick, Marxen & Freimann, (2016) study about start-up processes. They try to answer
‘What conditions support business start-ups? “Why do individuals decide to become
entrepreneurs?”, “How entrepreneur cope with those conditions”? The author tried to achieve a
detailed description of start-up-processes and the differences within these processes between the
two types of firms. Researcher carried out personal interviews with two groups involved in the
start-up process: the entrepreneurs themselves and business advisers who offer a consulting
service for start-ups. In order to obtain a thorough insight into the start-up processes, they carried
out 11 interviews with business advisers and 10 interviews with start-up entrepreneurs. The
interviewees were located throughout Germany.
The search for key success factors that may account for the longevity of business
endeavours has been the subject of many research studies. There are researchers who have
focused their efforts on the small enterprises while there are those who concentrated on the
larger, even older, corporations. Proponents of small business management research (Acs &
Audretsch, 1992; Barringer & Greening, 1998; Buckley, Covin & Slevin, 1989; Fiegenbaum &
Karnani, 1991; Gaskill, Van Auken, & Manning, 1993; Vesper, 1980; Watson & Everett, 1996)
posit that the entrepreneurs are the lifeblood of any economy. While they are small in size, their
sheer quantity is said to account for the majority of activity in the economy. On the other hand,
other researchers (Collins & Porras, 1998; De Geus, 1997) prefer the larger organizations for the
lessons they can provide. After all, the handful of large businesses, most of which have grown
into conglomerates and who have survived for decades, readily influence the GNP of a country.
There have been many approaches to determine what the key success factors to business
survivability are. It has been found that the entrepreneur’s characteristics play a significant role
in business success or failure. Their innovative spirit, their persistence, and their risk-taking
attitude are said to differentiate the successful from the unsuccessful entrepreneur. On the other
end, studies that looked at business failure had noted that the entrepreneur’s education and
management ability accounted for business failure. Again, the focus was on the entrepreneur.
Kalya Nasundaram, (2018) conducted a study about phenomenon leads to higher costs of
failure for the entrepreneurs in the ecosystem. According to him failed start-up shave many
lessons to offer to the ecosystem and offer guidance to the potential entrepreneur, and this area is
not fully explored compared to the literature on successful start-ups. Researcher use a case-based
method distinguishing a failed start-up and a successful start-up, studying the entrepreneurial
characteristics and firm level factors which cause the failures, in the technology start-up
ecosystem of Bangalore. Researcher study one of the modes of exit adopted by failed start-up
entrepreneurs and draw key lessons on causes that culminate in failures. Researcher have
identified that factors such as the time to minimum viable product cycle, time for revenue
realization, founders’ complementary skillsets, age of founders with their domain expertise,
personality type of founders, attitude towards financial independence and willingness to avail
mentorship at critical stages, will decisively differentiate failed start-ups from the successful
ones.
 The failure of start-ups impacts entrepreneurs as well as the firm established by them.
The repercussions of entrepreneurial failure go beyond the firm and impact employment and
economy. The entrepreneurs who meet with failures are high in number and the lessons they
have learned when shared will help potential entrepreneurs in the ecosystem to craft their path to
success. The ecosystem should ensure that the cost of failure is small, and the founders should be
allowed to innovate (Subrahmanya, 2015). Entrepreneurial learning is a fundamental requirement
for an entrepreneur as it drives the start-up to success (Start-up Genome Report, 2017) and it will
benefit the ecosystem. (Watson, 1998)
Watson and Scott, “Small business start-ups: success factors and support implications
1994”. This research reported in this paper relates to an empirical study of business start-ups and
survival and growth or, conversely, their failure (exit) in the early years following start-up. The
focus of this study is to provide information concerning the start-up, development and growth of
new small businesses and the factors associated with various outcomes (ceased trading) and
survival (continued trading).

Synthesis
Researchers on Related Literature present different studies and literatures that found
inside and outside the country. The purpose of the literature review on issues in business start-
ups is to identify the related facts in the research work that were determined by the authors
through their research in the similar field of work and to know the outcome of the research. The
literature reviews that being mentioned above points out the issues occur during business start-
ups. Those issues tackle the different challenges that being face by the entrepreneur. Challenges
in business start-up are discussed by these authors; Scripak, Shepherd, Evers, Kanchana, Vesper,
& Salamzadeh in different year. To sum up those challenges these are, Fierce Competition,
Unrealistic Expectations, hiring suitable team member, Decision Making, Financial
management, Cyber Security and Winning trust of customers. Another factor that being
discussed in literature review is on how beginner entrepreneur cope with those challenges.
According to Kuehl& Lambing, Rise, Schick, Marxen & Freimann in order to avoid
failures in business start-ups, they must deal with different challenges and cope with it with all
their souls, they must to consider the reasons of failure of business start-ups. And considering the
other factors that affects business start-up growth and exits. It is important to know especially to
the beneficiary of this study because it means a lot for them in terms of involvements in business
start-ups. All related literatures and studies discussed the risks, challenges, reasons of failures,
ways to avoid failures, background of start-ups because it only has one target, which is to know
how to reach success in business start-ups.

Chapter III
METHODOLOGY
Research Design
This study applies Quantitative research where in produces “numerical data” or
information that can be into numbers. Simply put, quantitative research is all about numbers and
figures. This research used descriptive quantitative research to quantify opinions, attitudes,
behaviors, and other defined variables with the goal to support or refute hypotheses about a
specific phenomenon, and potentially contextualize the results from the study sample in a wider
population (or specific groups). Farnsworth (2019) Stated that the methods will be highly
structured and consistent during data collection, most likely using an interview with closed-
ended questions. Also, researchers will have survey form to know the consumer’s perception
towards in particular business which is this instrument can play a part in the outcomes because it
will serve as validation on the data provided by the first participant of this study. The actual
behavior of the participant has the potential to be different from what those individuals might
report if they were asked (Bernard, 2012).
The results will provide numerical data that can be analyzed statistically as the researcher
looks for a description of variables. Quantitative methodology would best apply to this research
problem. A quantitative approach allows the researcher to examine the two variables of business
start-ups and issues occur. The data can be used to find what this study wants to answer.

Research Locale
The study will be conducted in the Barangay San Nicolas Poblacion. Wherein this
barangay is located in Cocepcion, Tarlac, Philippines. This barangay is mix of industrial and
residential area which means there was a lot of population here that makes business man or
woman decide to put their business in this area. The researchers chose the place of
implementation because it will give the researchers the needed information that will help them to
accomplish the study.

Respondent
Riders is the first respondents of this study where in will be interviewed in their work
place or in their houses or any comfortable place that respondent will be choose to. The
researchers select this respondent because there are the one that know how service type business
in food industry operate. These respondents will be interviewed via face-to-face. The study will
be conducted in the second semester of the academic year 2020-2021.
Food business was chosen by researchers because food industry is a permanent fixture in
the economy all over the world. Since it was one of the most primary needs of market, it takes
high market demand that more and more people are choosing to eat out. Consumer finds that the
time they save is CLASSIFICATION NUMBER OF worth spending the
money to consume OF RESPONDENCE RESPONDENCE in eating in food
business(Rogan, RIDER 20 2009).
The second COSTUMER 20 respondents are the
costumers. Researchers
TOTAL 40
conducts survey to the customers.
Customers were chosen in this study
as another type of participant because it serves as validation to the previous information that the
researcher will get to the owner.

This table show the number of the respondents that the researcher need to conduct this
study. the researchers choose 20 riders that work as a food delivery riders in barangay San
Nicolas Población. The researcher also choose (1) one of the costumers of every riders in total of
20 costumers that lived or stay in the barangay San Nicolas Poblacion. All over 40 respondents
in this study.

Instrumentation
The researchers will use triangulation instrument to have the validity of data. These
instruments consist of: First, using face-to-face interview which is used when the researchers
have a list of broad questions that must be addressed in the interview. Researchers will conduct
interview to the owner of business to know the issues that the business face during business start-
ups and how owners cope with those issues. The researchers will use a written interview guide to
make sure that every question areas are covered. Furthermore, the researcher will use pen and
paper to note in detail the respondents non-verbal gestures; an audio recorder will be utilized to
record spontaneous responses, along with the use of camera and the actual verbatim since
interviews may develop unexpected responses. Second, researchers will conduct survey to the
costumer of that food business. The type of questionnaire that the researcher will use was paper
and pencil test where in the respondent which the customer is will read questions and respond the
answer in writing. Researchers will conduct survey to the customers to avoid wrong information
and to support the given information that the owner gives to the researchers (Bernard, 2012).

Sampling and Sampling Technique

Judgment sampling procedure was used for selecting participants in this study. This type
of Non-probability sampling technique where not anyone has a chance to be participants. This
type of sampling technique is also known as purposive sampling and authoritative sampling. It is
used in cases where an authority’s specialty can select a sample that is more representative than
using other sampling techniques. The process includes the purposeful selection of participants
from the population based on a researcher’s knowledge and judgment. (Hancock, 2016) Another
type of Non-probability sampling technique that being used in this study was the convenience
sampling or Accidental sampling. This sampling technique is where you include people who are
easy to reach. According to Sommer, (2019) it could be a matter of taking what you can get. It is
one of the methods that the researchers can use when researchers cannot get a list of all members
of a population. Since researchers cannot select all customers of that business, researchers use
accidental sampling to have participants in customers. And for the analysis of this study,
researchers will use descriptive statistics analysis. According to Lund, (2018) descriptive
statistics is the term given to data analysis that helps to describe, show or summarize data in a
meaningful manner so that patterns can emerge from the data. Descriptive statistics, however, do
not allow us to make judgments about any hypotheses we might have created beyond the
information that the researcher analyzed and reached conclusions. It is just a way of describing
data.

Data gathering procedure

INPUT
PROCESS OUTPUT
-Conduct interview
Profile of
-Descriptive analysis
respondent - Issues occurring in
-Evaluation service type
- owner
-create conclusion business start-ups
-customer

This figure describes the data gathering procedure of this study wherein the input consisting of
knowing the respondent, about their: Age, Gender, Location and Position (work). And for
selecting and finalizing the tools for data collection, the researcher visited the barangay San
Nicolas Poblacion to conduct an interview and survey with selected participants. Subsequently,
the researcher discussed in detail about study that they conducted. And for collecting data the
necessary data and the subjects were explained about the nature and purpose of the study. The
possibility results of conducting an interview and survey is getting answers to what this study
wants to answer. Also, the table shows how the researchers researched, gather data to solve the
problems of this study.
 Chapter IV
PRESENTATION, ANALYSIS AND INTERPRETATION OF DATA

1. Why do business start-up fail in the first place?

The most common reasons of why the business start-up fails is lack of funding or lack of capital
that they can used in running their business . If you don't have capital, your business won't be
very attractive to potential investors and financial lenders. The inability to get funding will
inhibit your business's ability to purchase assets and resources needed for expansion. Your
business depends heavily on its ability to sell products, get paid and meet obligations in order to
reload your inventories, expand and grow your business. Within this interdependent chain are
factors, which by themselves, threaten your ability to meet future obligations as well as lead to
business failure. To build up your working capital, your current assets must be greater than your
current liabilities.
Unfortunately, a component of your current assets is your accounts receivable. When you work
with customers who are slow payers or out of cycle with your accounts payable or bills you pay,
you wind up with a cash flow situation that is unsustainable over time. Having several months of
cash available to you to fund those gaps in funding would be ideal for most businesses. When
you lack the ability to access funding resources like those traditionally provided by banks, your
business suffers.

2. What are the issues occurring in the business start-up?

Sales

Financial Problem Competitors Getting Trust Costumers Attitude

As seen in table above, it shows that competitor got a highest percent which is fifty five percent
(55%). followed by Getting trust that got a twenty five percent (25%). Financial Problems Got
fifteen percent (15%) and last is Costumers Attitude got five percent (5%).
To analyze, the most three problems/challenges of start-ups are : first, having competitor.
Second, getting the trust of customers. Third, having financial problem that has a total of ninety
percent (90%), which want to emphasizes that competitors is part of a start-ups that all
businesses need to win the trust of the customers. One of the ways to compete to other
competitors is having a big capital. (McCormick, 2016)
3. How businessmen or women cope with those issue?
In gathering data researchers shows that business will going to innovates managing to cope
poor management problems in business. To analyze, poor management can impact a business's
ability to continue operations that will lead to business failure but if a business had a innovative
ideas about managing business it surely get them in success. (Deeb, 2019)
Researchers shows that Budgeting the capital of a business is the way to cope financial
problem in business start-ups. To analyzes, operating a successful company comes with a whole
list of challenges, not least of which is maintaining a healthy level of financial stability. After all,
any business that is dealing with cash flow and budgeting problems will eventually go under if
these issues aren’t rectified in a timely manner. (Batchelor, 2018)
Friendly competition is most common way to compete to other competitors, fifty percent
(50%) of respondents agreed with it. Next is knowing the weakness of competitors and make it
strength of yours, it got twenty five percent (25%) of the respondent. To analyzes, businesses
should compete to others competitors in trough friendly competition and use it as bridged to
know other business weakness and serve it as your strength
Having a freebie and be the best version of product is the way to cope
problems/challenges about getting the trust of customers. Sixty seven percent (67%) of
respondent says giving freebies and Thirty three percent (33%) of the respondent also say to be
the best version of product.
Having a marketing plan and be a risk-taker are the way to cope problems about being a
sole proprietorship. Fifty percent (50%) of respondent says having a marketing plan, also fifty
percent (50%) says that be a risk-taker a total of one hundred percent (100%)
Problems or challenges that related towards customer’s attitude and as seen in table one
of the way to cope it is just being friendly with them. The customer is always right because as a
business you want your customers to return as well as feel welcomed and appreciated. Many
businesses lose sight of this fact when they become wealthy, not realizing that they can still lose
everything without the love and loyalty of their customers that leads to failure of business start-
ups. (Masterson, 2019)