CHAPTER I

INTRODUCTION

A. Background of the Study

In the course of making a start-up business, a lot of problems may arise. You need

to consider how your business will stand out amongst its competitors and whether your

business product is marketable or not.

With the Philippines being a developing country, small businesses are part of the

most important agents in society. Millions of people earn their daily living. Through

small enterprises, however, not all businesses continue to grow through time. A lot of

factors are to be entrepreneur; you need to examine the macro and micro environment

of your business.

One of the most popular businesses in the locality of Balamban is Dirty Ice Cream

business. A home-made ice cream usually sold on the streets and is served in small

wafer or sugar cones. The ice cream comes in flavors such as mango, chocolate, ube,

cheese and buko that every child would love. This type of business existed for how

many years and it is still present up until now.

This paper aims to identify and determine the processes and problems encountered

by dirty ice cream businesses. It does not seek to detail each specific problem that

small businesses such as dirty ice cream businesses experienced.

A. Statement of the Problem

General Problem: The overall purpose of this study is to assess the

processes and problems of a startup business, specifically dirty ice cream

business.

Specific Problems:

 What are the processes in starting up business?

 What are the possible problems encountered in starting up

business?

 What are the effects in the said processes and problems in starting

up a Dirty Ice Cream business?

B. Significance of the Study

This study would benefit the future businessmen as this will serve as their

guide on how to start a business. They will also be aware of the problems that

may arise and come up with rational decisions.

This study would help the students’ researchers to be aware and

knowledgeable of the processes involved in making dirty ice cream. It would help

them to be a better analyst and it can be a help as a future reference for more

students in the future.

This study would help those families also who will start a business for the

purpose of earning income and for making it a livelihood of the family.

C. Scopes and Limitations

This study is conducted basically for the purpose of identifying the

competitive edge of chosen dirty ice cream business in Balamban as well as its

processes and problems in starting up a business. This will provide guidance to

entrepreneurs who are planning to enter into business. They will be able to

understand the considerations to be made before taking up a decision and

limitations that need to be faced and managed.

This study is limited on actual date, records and interviews of the

respondents’ performance from their business. The researchers will interview

number of dirty ice cream business operators for getting the total number of owners

that to be needed in the study. A limitation of this study will be the respondents who

would agree to contribute knowledge sharing based on the researchers’ interview

and the time that may be provided.

The study is delimited only for the dirty ice cream business operators in

Balamban. The purpose of this is to point out the processes and problems affect the

successful business start-up. The researcher may encounter possible challenges

such as minimum number of dirty ice cream operators who would agree to

participate, availability of data provided by the respondents and where the

respondents are located.

 E. Theoretical Framework

Complexity Theory

involving
interconnectivity

not
unpredictable
arbitrary

Complexity
Theory

involving
sensitivity involving
to an initial dynamicity
change

Figure 1. Complexity Theory: An Ideological Look

The present study is anchored in this theory which is Complexity Theory. The

researcher uses complexity theory to evaluate the processes and struggles of business

startups since small enterprise like Dirty Ice Cream Business has a complex system.

The study from University of Groningen, complex systems show emergent

behavior at the level of the system as a whole due to the interactions between the

individual elements in the system. Complex systems also show non-linear dynamics

which means that the behavior of the system may change to another regime and also
adds to unpredictability. The behavior of complex system cannot be predicted that even

small changes may affect the condition of the system as a whole.

The study of Stephen D.H. Tsai and Tzu-Tang Lan about the Development of a

Startup Business — A Complexity Theory Perspective describes Complexity theory as an

individual viewpoint, are dissipative structures, and are therefore always in a state of

imbalance.

Chaos theory is what is defined as complexity theory in this study. In addition,

since the development of a startup must begin with an initial event, as soon as this

event occurs, the startup's development is in a dynamic state of co-evolution with

management (Mckelvey, 2002), and it never achieves the type of equilibrium point seen

in biological evolution. Furthermore, the development of a startup can be seen as the

"creation of order" (Mckelvey, 2004); the use of complexity theory to study a startup's

development allows us to observe how a new startup constantly creates new order.
 CHAPTER II

REVIEW OF RELATED LITERATURE

The purpose for writing this literature review is to further discuss the processes

and problems of business startups specifically Dirty Ice Cream Business Startup. This

chapter includes related literatures significant to the present study. This chapter also

shows the gap bridged of the study as well as the theoretical and conceptual

framework. The researcher has gone through intensive readings of materials selecting

related studies that use observational design. The literature review is organized based

on a theme.

Literature Review of the Process of Business Start Ups

Several academic materials have shown frameworks about the characteristics of

Business Start Ups. The summary of the frameworks of Gartner (1985), Gartner and

Katz (1988) is presented below.

Gartner (1985) formulates the four dimension that are to be considered while

studying a business: 1) the individuals involved in the creation of the new start-up,

2)the activities undertaken by those individuals during the new venture creation

process, 3)the organizational processes structure and strategy of the new venture,

4)and the environment factors under which it must operate.

Van de Ven et al (1989) proposed the series of stages that researchers must

take account of: 1)how a business idea emerges over time, 2)when and how different
functional competencies are formed to develop and commercialize the first market

offering, 3)when and how these functional competencies are redeployed to create

subsequent new line products believed to sustain and grow the business, finally 4)how

these efforts for business development are both influenced and constrained by

organization and industry factors (N.M. Carter et al, 1995: 153).

Tyler Tafelsky (2016) formulated the essential components of a business start up

to ensure future success and sustainability. 1) Write a Clearly Defined Business Plan,

2)Understand the Basics about Taxes, 3)Invest in the Right Business Insurance, 4)Be

Mindful of Financing & Cash Flow and 5)Determine Labour, Land & Other Resources

The Integrated Framework aim to provide a more comprehensive model to

understanding the phenomenon and have attempted to encapsulate the key

characteristics and variables describing the process of new enterprise formation in their

proposed frameworks (Natasha Evers, 2003)

Embarking on a new business is both a risk and failure. Although some start-ups

survive and become profitable, empirical evidence has shown that there are important

issues common to all new start-ups, regardless of the level of innovation in their new

product, sources of finance, business experience, knowledge and networking. Many

entrepreneurs, who have the initiative and the motivation to start their own business,

often lack business experience in the industry in which they wish to compete. However

inexperienced entrepreneurs have established several successful businesses (Natasha

Evers, 2003).
 Start-ups face disadvantages as they have a non-trading track record and may

not have sufficient information to make risk assessments (Deakins & Whittam, 2000).

The inability to raise sufficient capital can lead to a negative ‘knock-on’ effect

throughout the start-up process such as constraining expansion, problems with

attracting clients and building alliances, and establishing credibility (Natasha Evers,

2006).

According to Mitchell Grant (2019) a startup requires a comprehensive business

plan outlining mission statement, future visions, and goals as well as management and

marketing strategies. An entrepreneur must need to plan for the things he/she can’t

plan for. Planning for the possible outcomes to reduce the risk that might be

encountered. An organization must therefore possess different management skills,

make different decisions, and have a different structure during each stage (Adizes,

1989; Greiner, 1972; Kazanjian, 1988; Miller and Friesen, 1984).

The researcher’s attempts to find some related literature reviews about the study

to analyze the proposal for the respondents. The results of this study can greatly

provide the respondents, specifically to the future entrepreneurs in knowing the

different processes and problems in starting up business.

 CHAPTER III

METHODOLOGY

Introduction

This chapter discusses the methodology and procedures applied to achieve the

objectives of the study. This chapter includes: Research design, research participants,

research data, and research procedure.

Research Design

This study applies non-experimental and observational research design under

qualitative method using a correlation approach with an explanatory design. The

researcher utilized the information provided by the respondents of the study through

observation and interviews in order to validate the findings.

Research Participants

Dirty Ice Cream Business owners in the locality of Balamban are the primary or

first respondent of this study where the researcher will interview on their business area

or in their houses. The researchers interviewed the respondents on their business area.

These respondents will be of great help in supporting the claims of the present study.

Research Data

The research data contains all information gathered from the interviews and

observation. It discusses the process of the business start-ups undergone to start a

particular business and the challenges or problems faced by the small entrepreneurs

struggling to make the business successful.

Research Procedure

Gathering of Data

The researchers sent a letter to the Office of the Principal in Saint Francis

Academy Balamban, Cebu and to the Barangay Officials where the Dirty Ice Cream

business owners are located, to request a permission to conduct an interview making

the study possible.

The researchers formulated questionnaires for the respondents to be guided on

what to respond/answer. Moreover, the researchers assured the respondents that all

information gathered will remain confidential.

Treatment of Data

The responses made by the respondents describing the processes they undergo

and the problems encountered were compiled and arranged. All the gathered

information is analyzed carefully for the purpose of arriving into reasonable/rational

conclusion. The data will be arranged using tabular presentation.

 Saint Francis Academy

Balamban, Cebu

S.Y. 2020-2021

In Partial Fulfillment for the Requirement in

Practical Research 1

The Processes and Problems of Dirty Ice Cream Business Start-up

in Balamban

Researchers:

Baliguat, Jessie Joy

Garbo, Danielle

Ondoy, Joyce Lyn

Recaῆa, Kyla Mae

Submitted To:

Mrs. Gretl Mahipos

 F. Definition of Terms

Balamban- a town which is located in the Province of Cebu, Philippines

Business- an activity that is part and parcel of human society or an entity in which

economic resources or inputs such as material and labor

Competitor- the one that competes

Dirty Ice Cream- a home-made ice cream usually sold on the streets

Embark-to make a start

Empirical-base on observation

Enterprise-readiness for daring action

Entrepreneur-one who organizes and assumes the risk of a business or enterprise

Factor-something that actively contributes to a result

Loss- an amount by which the cost exceeds the selling price

Marketable-to go to a market to buy or sell

Phase- a particular appearance in a recurring series of changes

Probability- a measure of how often a particular event will occur

Processes- a natural phenomenon marked by gradual changes that lead toward a

particular result
Profit- the excess of the selling price of goods over their cost

Venture- an understanding involving chance or risk