2 - Sample Chap. 4 5

POLYTECHNICUNIVERSITY OF THE PHILIPPINES 1
Chapter 4
RESULTS AND DISCUSSIONS
This chapter presents, analyzes and interprets the data obtained from the research
instrument.
1. Profile of the Respondents
Table 1
Frequency and Percentage Distribution of the MSME Entrepreneurs
in Region III in terms of Age
Age Frequency Percentage (%)

30-39 years old 29 58.0
40-49 years old 5 10.0
50 and above 16 32.0
Total 50 100.0
Table 1 presents the frequency and percentage distribution of the MSME
employees in Region III. In terms of age, majority of the respondents were 30 to 39 years
old with 58.0%. The former is succeded by respondents whose age belonged to 50 and
above with 32.0%. The result infers that most of MSME employees are middle aged
individuals.
Table 2
in Region III in terms of Sex
Sex Frequency Percentage (%)
Male 19 38.0
Female 31 62.0
Total 50 100.0
Table 2 shows that majority of the respondents were female with a percentage of
62.0%; while 38.0% were male. The result implies that most employees of MSMEs are
female.
Table 3
in Region III in Terms of Family Size
Family Size Frequency Percentage (%)

Below 5 household members 13 26.0
5 to 10 household members 25 50.0
More than 10 household members 12 24.0
Total 50 100.0
Table 3 also exhibits the frequency and percent distribution of the respondents by
family size. It can be gleaned from the table that 50% of the respondents belong to a
household consisting of 5 to 10 family members. The former is succeeded by those that
belonged to a household with no more than 5 household members with 26.0%. Least in its
frequency and percentage distribution were respondents whose household comprise of
more than 10 members.
Table 4
Frequency and Percentage Distribution of the MSMEs
in Region III in terms of Annual Income
Annual Income Frequency Percentage (%)

No response 2 4.0
₱250,000 and below 11 22.0
₱250,000 – 400,000 2 4.0
₱400,000 – ₱800,000 7 14.0
₱800,000 – 2,000,000 4 8.0
₱2,000,000 - ₱8,000,000 10 20.0
₱8,000,000 and above 14 28.0
Total 50 100.0
Exhibited in Table 4 is the frequency and percentage distribution of the MSME
entrepreneurs in Region III in terms of annual income. It shows that 28% of MSMEs in
which they are employed are earning an annual income of no less than ₱8,000,000. The
former is succeeded by micro businesses earning ₱250,000 and below with 22%. Least in
frequency and percentage is that of income range ₱250,000 – 400,000 with only 4.0%.
Table 5
in Region III in terms of the Type of Industry
Type of Industry Frequency Percentage (%)

No Response 5 10.0
Trading, Merchandising & Retail 6 12.0
Food Business 14 28.0
On-line or web-based Business 4 8.0
Travel & Transportation 2 4.0
Franchised Business 4 8.0
Education-related 3 6.0
Graphic & Design 3 6.0
Graphic & Design 1 2.0
Arts & Crafts 1 2.0
Money & Finance 5 10.0
Licensed Professional Services 2 4.0
Total 50 100.0
Table 5 represents the the frequency and percentage distribution of the MSME
entrepreneurs in Region III in terms of the type of industry. The highest percentage
obtained is that of “food business” with 28%. It is further observed that “trading,
merchandising, and retail” obtained 12%, second to food business. The overall results is in
congruence with 2018 MSMEs Statistics Report by the Department of Trade and Industry,
which substantiates that among the top five (5) industry sectors according to the number
of MSMEs in 2018 were: (1) Wholesale and Retail Trade; Repair of Motor Vehicles and
Motorcycles (461,765); (2) Accommodation and Food Service Activities (144,535); (3)
Manufacturing (116,335); (4) Other Service Activities (66,162); and (5) Financial and
Insurance Activities (46,033). These industries accounted for about 83.62% of the total
number of MSME establishments.

Table 6
in Region III in terms of the Type of Employment
Type of Employment Frequency Percentage (%)

Full Time 27 54.0
Part Time 21 42.0
Seasonal 2 4.0
Total 50 100.0
Table 6 presents the frequency and percentage distribution of the MSME
entrepreneurs in Region III in terms of type of employment. The most number in terms of
frequency and percentage garnered is “full-time employment” with 54.0%. It is a
substantiation of the type of employment preferred by MSMEs. The results are
substantiated by McCourtie (2013). The former emphasized the importance of MSMEs as
the largest employers in many low-income countries.
Table 7
in Region III in terms of the Highest Level of Education
Type of Employment Frequency Percentage (%)

No Response 2 4.0
High School Graduate 30 60.0
Graduate or Professional Degree 12 24.0
College or Associate Degree 6 12.0
Total 50 100.0
Exhibited in Table 7 is the frequency and percentage distribution of the MSME
entrepreneurs in Region III in terms of the highest level of education. It can be observed
that 60.0% of MSME employees are high school graduates. This is supported by the
research conducted by Gunaseelan (2015) as published by Shodhganga India, which
asserted that in Telangana and AP alone, more than 2 million MSME units are looking for
fresh talent, at the same time 1.5 million youth are looking for new job opportunities. To
logically infer, fresh talents include high school graduates.
2. Level of leadership traits of MSME entrepreneurs that enable them to influence
productivity in terms of technical, conceptual, interpersonal, emotional intelligence
and social intelligence skills.
Table 8
Employees’ Assessment on Technical Skills Relative to
Leadership Traits MSME Entrepreneurs
Verbal
Technical Skills Mean
Interpretation
Effective with the detailed aspects of work. 4.4 Somewhat True
Effective with managing people and
3.8 Somewhat True
resources.
Gives actionable feedback that helps
3.8 Somewhat True
improve team performance.
Enjoys responding to customer's requests
4 Somewhat True
and concerns
Obtains and allocates resources and treats
them as a challenging aspect of the running 2.8 Occasionally True
a business.
Keeps the team focused on the priority
3 Occasionally True
results/deliverables.
Grand Mean 3.63 Somewhat True
Legend: “Not True (1.00 – 1.50)”, “Seldom True (1.51 – 2.50)”, “Occasionally True (2.51 –
3.50)”, “Somewhat True (3.51 – 4.50)”, “Very True (4.51 – 5.00)”
Based on the table above, the results reveal that in the aspect of technical skills
manifested by MSME entrepreneurs, being “effective with the detailed aspects of work”
obtained the highest mean score. The latter is ensued by both being “effective with
managing people and resources” and “gives actionable feedback that helps improve team
performance” with the same computed mean score of 3.8. Contrastingly, the lowest mean
score is assigned to “obtains and allocates resources and treats them as a challenging
aspect of the running a business” with 2.8 computed mean score. The same concept of a
leader possessing technical skills is explicated by Du Val (2019). The former stressd the
best way to guide a team in the right direction in terms of business, is to give direct
feedback and criticism.
Table 9
Employees’ Assessment on Conceptual Skills Relative to
Leadership Traits of MSME Entrepreneurs
Verbal
Conceptual Skills Mean
Interpretation
Solves problems relative to operations
2.2 Seldom True
effectively
Addresses problems immediately when they Occasionally
3.2
arise True
Sees the big picture easily especially when Occasionally
2.6
forecasting probable outcomes. True
Creates and implements strategic plans for Occasionally
3
better performance and productivity. True
Discusses the values and philosophy of the Occasionally
3.2
business True
Flexible about making changes in the business Occasionally
3.4
True
Occasionally
Grand Mean 2.93
True
Legend: “Not True (1.00 – 1.50)”, “Seldom True (1.51 – 2.50)”, “Occasionally True (2.51 – 3.50)”,
“Somewhat True (3.51 – 4.50)”, “Very True (4.51 – 5.00)”
From the above table, majority of the respondents assessed the conceptual skill of a
leader which states being “flexible about making changes in the business” obtained the
highest computed mean score of 3.4. This was verbally interpreted as “ocassionally true”.
What remains observable is the conceptual skill of a leader being able to “solve problems
relative to operations effectively”. This latter skill is equally true with that of the De Mers
(2017), as published in the online article of The Entrepreneur Asia Pacific. De Mers (2017)
mentioned that it takes time to solve problems effectively due to identification of key
problems before devising viable solutions.

Table 10
Employees’ Assessment on Interpersonal Skills Relative to
Verbal
Interpersonal Skills Mean Interpretatio
n
Recognizes ahead of time how others Somewhat
3.6
respond to a new idea or proposal True
Understands the social fabric of the Occasionally
3.4
people within a business organization True
Able to sense the emotional undercurrents Somewhat
3.8
in a group True
Somewhat
Uses emotional energy to motivate others 3.8
True
Respects the opponent and sees it as a Somewhat
4.0
key to successful conflict resolution True
Works hard to find consensus in conflict
2.2 Seldom True
situations
Occasionally
Grand Mean 3.46
True
Based on the analysis above, the fifth interpersonal skill which is “respects the
opponent and sees it as a key to successful conflict resolution” obtained the highest
computed mean score with 4.0. Second to the highest computed mean score are the third
and fourth interpersonal skills namely: “understands the social fabric of the people within a
business organization”; and “able to sense the emotional undercurrents in a group”. Both
skills are equal in mean scores.
McCormick (2016) asserted that opponents, otherwise known as competitors are
inevitably part of the business world. It is not a necessary evil, but rather an important part
of the business ecosystem. In fact, competition can be an effective tool for growing and
improving your business. To declare war against it is not advisable, respect by capitalizing
own strengths is a common courtesy and a positive trait.

Table 11
Employees’ Assessment on Emotional Intelligence Skills Relative to
Verbal
Emotional Intelligence Skills Mean
Interpretation
Controls strong emotions at work and
3 Occasionally True
examines why these are experienced.
Refrains from verbally attacking others, making
rushed or emotional decisions, stereotype 3.4 Occasionally True
people, or compromise their values.
Works consistently toward their goals, and they
have extremely high standards for the quality of 3.4 Occasionally True
their work
Exudes the ability to put themselves in
3 Occasionally True
someone else's situation.
Develops the people on their team, challenges
others who are acting unfairly, gives
2.6 Occasionally True
constructive feedback, and listens to those who
need it.
Grand Mean 3.08 Occasionally True
It can be seen from Table 11 that emotional intelligence skill being able to “work
consistently toward their goals, and have extremely high standards for the quality of their
work” have obtained the higest computed mean score of 3.4. The interpersonal skill which
scored the lowest is to “develop the people on their team, challenge others who are acting
unfairly, give constructive feedback, and listen to those who need it”, it only garnered 2.6.
The overall results are interpreted as “occasionally true” as supported by Gosnell (2020)
who delineated the role of an entrepreneur that resembles to that of a “player-coach”. A In
sports, there is a position called “player-coach.” The title designates a player who also
serves in the role of a coach because of their experience, influence and ability to play their
sport with a coach’s mindset. In reality, it would be beneficial for every team to have every
player performing as a player-coach. It should be the goal of every leader to develop their
team to do their work and perform their tasks with an owner’s perspective.
Table 12
Employees’ Assessment on Social Intelligence Skills Relative to
Social Intelligence Skills Mean Verbal Interpretation

Knows how to resolve conflicts between their
3.6 Somewhat True
team members, customers, or vendors.
Inspires the productivity of a team simply by
4.2 Somewhat True
giving praise when it is earned.
Cares about others and their wellbeing. 4.2 Somewhat True
Listens closely to a team member's when
discussing a vision, and try to incorporate
4.4 Somewhat True
their ideas into the plan so that it becomes a
common vision.
Predicts how a team will react to change, and
understands what is important to them and 4.2 Somewhat True
what motivates them.
Grand Mean 4.12 Somewhat True
From the findings depicted in Table 12, the fourth social intelligence skill which
identifies a leader as one who “listens closely to a team member's when discussing a
vision, and try to incorporate their ideas into the plan so that it becomes a common vision”
obtained the highest computed mean score of 4.4.
Nevertheless, the lowest computed mean of 3.4 is obtained by the first social
intelligence skill, which expresses that a leader “knows how to resolve conflicts between
their team members, customers, or vendors”. This is due to the period spent in finding
ways to transform their teams’ conflict climate and their conflict culture (Runde & Fianagan,
2012). In addition, creating a climate involves enhancing emotional intelligence of a team
by discussing issues openly and honestly.
In its entirety, the aforementioned skills enlisted in the table above were verbally
interpreted as “somewhat true” with 4.12 computed mean.

Table 13
Employees’ Assessment on Work Output by Objectives Relative to Productivity
Verbal
Work Output Mean
Interpretation
The employee contributes to company’s goals
3.4 Sometimes
and targets
The employee devises tools and information
3.6 Often
needed to help the enterprise meet its goals.
The employee takes initiative to find solutions
to customer problems on a consistent basis to 3.4 Sometimes
prevent barriers to goal attainment.
The employee has a good understanding of
3.4 Sometimes
the enterprise’s short and long-tern goals.
Grand Mean 3.45 Sometimes
Legend: “Never (1.00 – 1.50)”, “Rarely (1.51 – 2.50)”, “Sometimes (2.51 – 3.50)”,
“Often (3.51 – 4.50)”, “Always (4.51 – 5.00)”
Table 13 presents the results of employees’ assessment on work output by
objectives relative to productivity. The work output indicator which specifies “the employee
devises tools and information needed to help the enterprise meet its goals” obtained the
highest computed mean with 3.6. The remaining indicators were observed as having equal
computed mean scores at 3.4.
In terms of work output objectives, evidences prove that these results are in
congruence with that of Wright (2019). The latter discussed that the employees or peole
are the biggest asset of a business, and can give a competitive edge to help it grow. They
may also help strategize and devise tools needed for the concretization of a business plan,
which should contain both short-term and long-term goals for the company.
Table 14
Employees’ Assessment on Work Accomplished Relative to
Productivity
Verbal
Work Accomplished Mean Interpretatio
n
The employee meets the target number of
products expected to be produced or 3.6 Often
services expected to be performed.
The employee exceeds the target number of
products expected to be produced or 3.8 Often
services expected to be performed.
The employee reports with his supervisor at
regular intervals to discuss his progress and 4 Often
to solve problems as they occur.
The employee spends less hours for non-
work-related conversations or activities to 4 Often
that delay accomplishment of tasks.
Grand Mean 3.85 Often
“Often (3.51 – 4.50)”, “Always (4.51 – 5.00)”
Table 14 presents the employees’ assessment on work accomplished relative to
productivity. It can be gleaned from the results shown above that the second indicator
which is “the employee exceeds the target number of products expected to be produced or
services expected to be performed” obtained the highest mean.
To further substantiate the foregoing results, Willot (2019) asserted that employees
know exactly what they are expected to achieve, encouraging them to determine the best
way to deliver what is required. The former also added that the goals established (i.e.,
target number of a products) should be related to the overall business goals and
objectives.
Goals which do not make a positive contribution to the primary business objectives
would not be relevant.

Table 15
Employee’s Assessment on Work Unit Effectiveness Relative to
Productivity
Work Unit Effectiveness Mean Verbal Interpretation

Positive feedbacks are often received by the
3.4 Sometimes
employee.
Necessary resources made available to the
employee are utilized which in turn evidently 3.4 Sometimes
manifest effective performance of work.
Criticisms are accepted by the employee
constructively and meticulously apply
4.0 Often
corrections for improvement of work
performance.
Errors and mistakes are handled appropriately
2.0 Rarely
so as not to affect the image of the business.
Grand Mean 3.2 Sometimes
“Often (3.51 – 4.50)”, “Always (4.51 – 5.00)”
The results in Table 15 show the employee’s assessment on work unit effectiveness
relative to productivity. The third indicator of work unit effectiveness which details “criti-
cisms are accepted by the employee constructively and meticulously apply corrections for
improvement of work performance” obtained the highest computed mean with 4.0. Criti-
cisms are accepted constructively because these are regarded as having a goal of improv-
ing some areas of another person’s life of work (Zhang et al., 2011).
However, the last indicator specifically, “errors and mistakes are handled appropri-
ately so as not to affect the image of the business” obtained the lowest computed mean
with merely 2.0.

Table 16
Employee’s Assessment on Work Quality Relative to Productivity
Work Quality Mean Verbal Interpretation
Less customer complaints are observed due to
3.0 Sometimes
the quality of products/services provided
Increase in number of customers gained are
observed due to the quality of products/services 4.4 Often
provided
The work (service/product) is accurate, credible
4.4 Often
and free of errors/mistakes.
The work (service/product) is prepared with
4.4 Often
careful and persistent effort.
Grand Mean 4.05 Often
Legend: “Never (1.00 – 1.50)”, “Rarely (1.51 – 2.50)”, “Sometimes (2.51 – 3.50)”, “Often (3.51 –
4.50)”, “Always (4.51 – 5.00)”
Referring to the table above, the score of second, third and fourth indicators are
equalled to 4.4. On another note, the lowest score is assigned to the first indicator “less
customer complaints are observed due to the quality of products/services provided” with
3.0 computed mean.
4. Test of Difference on Leadership Traits of MSME Entrepreneurs in the Region III
when Grouped According to Profile
Table 17
Mann Whitney U – Test: Comparison on the Employees’ Assessment on the
Leadership Traits of MSME Entrepreneurs’ in Region III when Grouped
According to Sex
Mean U- p-
Indicators Sex Decision Remarks
Rank statistic value
Male 18.97 Retain Not
Technical Skills 170.50 0.006
Female 29.50 Ho Significant
Conceptual Skills 276.00 0.696
Interpersonal Male 21.32 Retain Not
215.00 0.079
Skills Female 28.06 Ho Significant
Emotional Male 24.00 Retain Not
266.00 0.523
Intelligence Skills Female 26.42 Ho Significant
Social Male 18.08 153.50 0.003 Reject Significant
Intelligence Skills Female 30.05 Ho

Note: “If p value is less than or equal to the level of significance (0.05) reject H 0, otherwise retain Ho.”
The results in Table 17 show the Mann Whitney U – Test on the comparison on the
MSME employees’ assessment on the leadership traits in the region iii when grouped
according to sex.
With reference to “technical skills” as the first indicator, there is no significant
relationship between sex and technical skills of MSME entrepreneurs as substantiated by
the computed p-value .006. Thus, retain the null hypothesis (H0).
In terms of “conceptual skills” as the second indicator, there is no significant
relationship between sex and conceptual skills of MSME entrepreneurs as substantiated
by the computed p-value 0.696. As a result, the decision is to retain the null hypothesis
(H0).
With regard to “interpersonal skills” as the third indicator, there is no significant
relationship between sex and interpersonal relationship of MSME entrepreneurs as
substantiated by the computed p-value .079. Thus, retain the null hypothesis (H0).
With reference to “emotional intelligence skills” as the fourth indicator, there is no
signifcant relationship between sex and emotional intelligence skills of MSME
entrepreneurs as corroborated by the computed p-value .523. Hence, retain the null
hypothesis (H0).
In the case of “social intelligence skills” as the fifth indicator, there is a significant
relationship between sex and social intelligence skills of MSME entrepreneurs as validated
by the computed p-value .003. Thus, reject the null hypothesis.
Nuspl (2016) also attested that the world today needs good leaders who are aware of
their masculine and feminine sides regardless to their gender and know how to benefit
from those competencies that are – in an orthodox approach – linked to a certain gender.
Table 18
Kruskal – Wallis H – Test: Comparison on the Employees’ Assessment on the
According to Age
Mean K- p-
Indicators Age Decision Remarks
30 – 39 28.05
Technical Retain Not
Skills
40 – 49 30.80 5.52 0.063
Ho Significant
50 and above 19.22
30 – 39 24.86
Conceptual Retain Not
Skills
40 – 49 33.00 1.65 0.437
Ho Significant
50 and above 24.31
30 – 39 26.28
Interpersonal Retain Not
Skills
40 – 49 24.80 0.244 0.885
Ho Significant
50 and above 24.31
Emotional 30 – 39 25.55
Retain Not
Intelligence 40 – 49 29.00 0.496 0.780
Ho Significant
Skills 50 and above 24.31
Social 30 – 39 23.33
2.441 0.295 Retain Not
Intelligence 40 – 49 24.00 Ho Significant
Skills 50 and above 29.91
The comparison on employees’ assessment on the leadership traits of MSME
entrepreneurs’ in Region III when grouped according to age is shown in Table 18. To
specifically delineate, the first indicator which is “technical skills” when correlated with
“age” shows no significant relationship. This is substantiated by the computed
p-value 0.063. A decision to retain the null hypothesis (H0) is clear and definite.
With reference to “conceptual skills” as the second indicator, there is no significant
relationship between age and conceptual skills as proven by the computed p-value 0.437.
As a result, retain the null hypothesis (H0).
In terms of “interpersonal skills” as the third indicator, there is no significant
relationship between age and interpersonal skills of MSME entrepreneurs as corroborated
by the computed p-value 0.244. As a result, the decision is to retain the null hypothesis
(H0).
Apropos to “emotional intelligence skills” as the fourth indicator, there is no significant
relationship between age and emotional intelligence skills of MSME entrepreneurs as
substantiated by the computed p-value 0.780. Hence, retain the null hypothesis (H0).
As for “social intelligence skills” as the fifth indicator, there is no significant
relationship between age and social intelligence skills of MSME entrepreneurs as validated
by the computed p-value 0.295. Therefore, retain the null hypothesis (H0).
With relevance to the relationship between age and leadership traits, Coleman Jr.
(2011) explained that most people view a “leader” as someone who is capable of guiding,
directing and facilitating others because of their previously successful experiences.
Conversely, there really is no “perfect” age to be the most successful leader. It is
impossible to pinpoint the age at which someone can perform best in any given role.
Natural born leaders tend to exhibit leadership abilities from an early age, going from
strength to strength faster and earlier than their peers. In point of fact, modern research
confirms that the foundations of leadership are established early in life, as cognitive
abilities of children strongly influence their likelihood of becoming successful in corporate
life.
Table 19
According to Family Size
Mean K- p-
Indicators Family Size Decision Remarks
Below 5 household 22.38
members
Technical 5 to 10 household 26.34 0.60 Retain Not
Skills members
1.009
4 Ho Significant
More than 10 27.13
household members
members
Conceptual 5 to 10 household 26.96 0.72 Retain Not
Skills members
0.651
2 Ho Significant
More than 10 23.17
household members
members
Interpersonal 5 to 10 household 29.38 0.08 Retain Not
Skills members
4.993
2 Ho Significant
More than 10 19.38
household members
members
Emotional
5 to 10 household 27.92 0.35 Retain Not
Intelligence
members
2.073
Skills 5 Ho Significant
More than 10 21.50
household members
members 0.00
Social 9.420 Retain Not
Intelligence
5 to 10 household 31.32 9
members Ho Significant
Skills
More than 10 21.50
household members
The comparison on the employees’ assessment on the leadership traits of MSME
entrepreneurs’ in Region III when grouped according to family size is revealed in Table 19.
To exactly delineate, the first indicator which is “technical skills” when correlated with
“family size” shows no significant relationship. This is substantiated by the computed p-
value 0.604. A decision to retain the null hypothesis (H0) is clear and definite.
relationship between family size and conceptual skills of MSME entrepreneurs as
substantiated by the computed p-value 0.722. As a result, retain the null hypothesis (H0).
In terms of “interpersonal skills” as the third indicator, there is no significant
relationship between family size and interpersonal skills of MSME entrepreneurs as
verified by the computed p-value 0.722. As a result, the decision is to retain the null
hypothesis (H0).
Concerning “emotional intelligence skills” as the fourth indicator, there is no significant
relationship between family size and emotional intelligence skills of MSME entrepreneurs
as substantiated by the computed p-value 0.355. Hence, retain the null hypothesis (H0).
As for “social intelligence skills” as the fifth indicator, there is no significant relationship
between family size and social intelligence skills of MSME entrepreneurs as validated by
the computed p-value 0.009. Therefore, retain the null hypothesis (H0).
To encapsulate, all indicators relative to leadership traits exuded by MSME
entrepreneurs have no significant relationship to family size.
Table 20
Kruskal – Wallis H – Test: Comparison of the Employees’ Assessment on the
According to Annual Income
Mean K-
Indicators Annual Income p-value Decision Remarks
Rank statistic
₱250,000 below 38.00
₱250,000 – 400,000 26.50
Technical ₱400,000 – ₱800,000 10.29
22.472 0.000 Reject Ho Significant
Skills ₱800,000 – 2,000,000 26.50
₱2,000,000 - ₱8,000,000 24.10
₱8,000,000 and above 20.43
₱250,000 below 24.18
₱250,000 – 400,000 33.00
Conceptual ₱400,000 – ₱800,000 16.14 Not
4.482 0.482 Retain Ho
Skills ₱800,000 – 2,000,000 29.75 Significant
₱2,000,000 - ₱8,000,000 24.80
₱8,000,000 and above 26.00
₱250,000 below 32.73
₱250,000 – 400,000 29.50
Interpersonal ₱400,000 – ₱800,000 12.36
Skills ₱800,000 – 2,000,000 17.75
₱2,000,000 - ₱8,000,000 23.75
₱8,000,000 and above 25.86
₱250,000 below 25.45
Emotional
₱250,000 – 400,000 Not
Intelligence 29.00 3.455 0.630 Retain Ho
Significant
Skills ₱400,000 – ₱800,000 28.43
₱800,000 – 2,000,000 29.00

₱2,000,000 - ₱8,000,000 19.30
₱8,000,000 and above 23.57
₱250,000 below 37.91
₱250,000 – 400,000 7.50
Social ₱400,000 – ₱800,000 19.43
Intelligence 18.214 0.003 Reject Ho Significant
₱800,000 – 2,000,000 15.75
Skills
₱2,000,000 - ₱8,000,000 24.10
₱8,000,000 and above 21.71
Table 20 exhibits the comparison of the employees’ assessment on the leadership
traits of MSME entrepreneurs’ in Region III when grouped according to annual income
using Kruskal – Wallis H – Test.
In terms of “technical skills” as the first indicator, there is a significant relationship
between technical skills and annual income of MSME entrepreneurs’. This is substantiated
by the computed p-0.000 value. A decision to reject the null hypothesis (H0) is determined.
relationship between conceptual skills and annual income of MSME entrepreneurs’ as
In conjunction with “interpersonal skills” as the third indicator, there is a significant
relationship between interpersonal skills and annual income of MSME entrepreneurs’ as
evidenced by the computed p-value 0.023. Henceforth, the decision is to reject the null
hypothesis (H0).
Apropos to “emotional intelligence skills” as the fourth indicator, there is no significant
relationship between emotional intelligence skills and annual income of MSME
entrepreneurs’ as substantiated by the computed p-value 0.630. Therefore, retain the null
hypothesis (H0).
As for “social intelligence skills” as the fifth indicator, there is a significant relationship
between social intelligence skills and annual income of MSME entrepreneurs’ as validated
by the computed p-value 0.003. Hence, reject the null hypothesis (H0).
To attest the aforementioned findings, Rode et al. (2017) found out that among the
skills or traits of a leader, emotional intelligence has a significant yet positive effect on
subsequent salary levels.

Table 21
Kruskal – Wallis H – Test: Comparison on the Employees’Assessment on the
According to Type of Industry
Mean K- p-
Indicators Type of Industry Decision Remarks
Trading,
Merchandising & 18.50
Retail
Food Business 32.79
On-line or web-based
Business
15.75
Travel &
Transportation
7.50
Technical Reject
Skills
Franchised Business 22.25 24.165 0.007 Significant
Ho
Education-related 24.00
Graphic & Design 18.50
Arts & Crafts 24.00
Money & Finance 27.00
Licensed Professional
Services
2.00
Trading,
Retail
Food Business 23.57
Business
28.00
Travel &
Transportation
1.50
Skills
Franchised Business 24.75 17.264 0.069
Ho Significant
Arts & Crafts 28.00
Services
7.50
Trading,
Retail
Food Business 29.29
On-line or web-based 11.028 0.355
Skills
Business
26.00 Ho Significant
Travel &
Transportation
26.00
Franchised Business 14.38
Arts & Crafts 26.00
Services
26.00
Indicators Type of Industry Mean K- p- Decision Remarks
Trading,
Retail
Food Business 25.86
Business
16.50
Travel &
Transportation
26.00
Emotional
Retain Not
Intelligence Franchised Business 21.25 8.475 0.583
Skills Ho Significant
Arts & Crafts 26.00
Services
7.00
Trading,
Retail
Food Business 35.68
Business
7.50
Travel &
Transportation
23.50
Social
Reject
Intelligence Franchised Business 19.50 33.758 0.000 Significant
Skills Ho
Arts & Crafts 23.50
Services
7.50
Table 21 displays the Kruskal – Wallis H – Test: Comparison on the
employees’assessment on the leadership traits of MSME entrepreneurs’ in Region III when
grouped according to type of industry.
With relevance to “technical skills” as the first indicator, there is a significant
relationship between technical skills and type of industry of MSME entrepreneurs. This is
evidenced by the computed p-value 0.007. Hence, reject the null hypothesis (H0). The
result is supported by the conclusion of Germano (2010) which delineates that leaders
shape institutional strategies including their execution and effectiveness. It bears noting
that not all leaders are created equal, and leadership quality may vary enormously across
industries or simply within an organization.
In terms of “conceptual skills” as the second indicator, there is no significant
relationship between technical skills and type of industry of MSME entrepreneurs.
In consonance with “interpersonal skills” as the third indicator, there is no significant
relationship between interpersonal skills and type of industry of MSME entrepreneurs as
corroborated by the computed p-value 0.355. Hence, the decision is to retain the null
hypothesis (H0).
In relation to the aspect of “emotional intelligence skills” as the fourth indicator, there
is no significant relationship between emotional intelligence skills and type of industry of
MSME entrepreneurs as supported by the computed p-value 0.583. For that reason, retain
the null hypothesis (H0).
As for “social intelligence skills” as the fifth indicator, there is a significant relationship
between social intelligence skills and type of industry of MSME entrepreneurs as
evidenced by the computed p-value 0.000. Hence, reject the null hypothesis (H0).
Table 22
Leadership Traits of MSME Entrepreneurs in Region III when Grouped
According to Highest Level of Education
Highest Level of Mean K- p-

Indicators Decision Remarks
Education Rank statistic value
High School
Graduate
25.10
Graduate or
Technical Retain Not
Skills Professional 24.00 0.243 0.886
Ho Significant
Degree
College or
Associate Degree
22.50
High School
Graduate
21.70
Graduate or
Ho Significant
Degree
College or
Associate Degree
28.83
High School
Graduate
26.32
Graduate or
Ho Significant
Degree
College or
Associate Degree
19.00
High School
Graduate
23.07
Emotional Graduate or
Retain Not
Intelligence Professional 25.83 1.353 0.508
Ho Significant
Skills Degree
College or
Associate Degree
29.00
High School
Graduate
25.28
Social Graduate or
Retain Not
Intelligence Professional 19.96 2.462 0.292
Ho Significant
Skills Degree
College or
Associate Degree
29.67
Table 22 summarizes the Kruskal – Wallis H – Test: comparison on the employees’
assessment on the leadership traits of MSME entrepreneurs in Region III when grouped
according to highest level of education.
With relevance to “technical skills” as the first indicator, there is no significant
relationship between technical skills and highest level of education of MSME entrepreneurs
in Region III. This is evidenced by the computed p-value 0.886. Hence, retain the null
hypothesis (H0).
In view of “conceptual skills” as the second indicator, there is no significant
relationship between conceptual skills and highest level of education of MSME
entrepreneurs in Region III as verified by the computed p-value 0.167. As a result, retain
the null hypothesis (H0).
Appertaining to “interpersonal skills” as the third indicator, there is no significant
relationship between interpersonal skills and highest level of education of MSME
entrepreneurs in Region III as corroborated by the computed p-value 0.360 Therefore, the
decision is to retain the null hypothesis (H0).
In regard to “emotional intelligence skills” as the fourth indicator, there is no
significant relationship between emotional intelligence skills and highest level of education
of MSME entrepreneurs in Region III as supported by the computed p-value 0.508. As a
result, retain the null hypothesis (H0).
As for “social intelligence skills” as the fifth indicator, there is no significant relationship
between social intelligence skills and highest level of education of MSME entrepreneurs in
Region III as evidenced by the computed p-value 0.292. Therefore, retain the null
hypothesis (H0).
The aforementioned results contradict the findings in the study of Pihie et al. (2018)
which indicated the existence of significant and strong relationship between
entrepreneurial leadership practice and school effectiveness (p < 0.05), also accelerator
behavior appeared to be the highest predictor of school effectiveness among secondary
schools in Zamfara State (β= .335, t = 6.265, p< .01). This implies that entrepreneurial
leadership dimension (accelerator behavior) facilitates school effectiveness of secondary
school leaders in the study area and efforts should be made towards increasing its level
through motivating the teachers.
5. Test of Difference on Employee Productivity of MSMEs in Region III when
Grouped According to Profile
Table 23
Mann Whitney U – Test: Comparison on the Assessment on the Employee
Productivity in the Region III when Grouped According to Sex
Mean U- p-
Indicators Sex Decision Remarks
Work Output by Male 19.79 Reject
186.00 0.022 Significant
Objectives Female 29.00 Ho
Work Male 23.32 Retain Not
253.00 0.388
Accomplished Female 26.84 Ho Significant
Work Unit Male 17.89 Reject
150.00 0.003 Significant
Effectiveness Female 30.16 Ho
Work Quality 211.00 0.079
Table 23 encapsulates the comparison on the assessment on the employee
productivity in the Region III when grouped according to sex using Mann Whitney U – Test.
With relevance to “work output by objectives” as the first indicator, there is a
significant relationship between sex and work output by objectives. This is evidenced by
the computed p-value 0.022. Hence, reject the null hypothesis (H0).
In view of “work accomplished” as the second indicator, there is no significant
relationship between sex and work accomplished as verified by the computed p-value
0.388. As a result, retain the null hypothesis (H0).
Appertaining to “work unit effectiveness” as the third indicator, there is a significant
relationship between sex and work unit effectiveness as corroborated by the computed p-
value 0.003. Therefore, the decision is to reject the null hypothesis (H0).
With regard to “work quality” as the fourth indicator, there is no significant relationship
between sex and work quality as supported by the computed p-value 0.079. As a result,
retain the null hypothesis (H0).
To provide substantial evidence to the results obtained, the findings of Luanglath
(2019) indicated a positive effect of gender diversity on employee productivity and a strong
positive TMT (top management team) gender diversity–employee productivity relationship
in organizations with a low level of board gender diversity.
Table 24
Kruskal-Wallis H – Test: Comparison on the Assessment on the Employee
Productivity in Region III when Grouped According to Age
Mean K- p-
Indicators Age Decision Remarks
30 – 39 25.64
Work Output Retain Not
by Objectives
40 – 49 35.80 3.818 0.148
Ho Significant
50 and above 22.03
30 – 39 25.91
Work Retain Not
Accomplished
40 – 49 30.10 0.957 0.620
Ho Significant
50 and above 23.31
Work Unit 30 – 39 21.59 5.448 0.066 Retain Not
40 – 49 32.40
Effectiveness Ho Significant
50 and above 30.44
Indicators Age Mean K- p- Decision Remarks

30 – 39 27.05
Retain Not
Work Quality 40 – 49 30.80 2.768 0.251
Ho Significant
50 and above 21.03
Table 24 displays the comparison using Kruskal – Wallis H – Test on the assessment
on the employee productivity in the Region III when grouped according to age.
Relevant to “work output by objectives” as the first indicator, there is no significant
relationship between age and work output by objectives. This is evidenced by the
computed p-value 0.148. Thus, retain the null hypothesis (H0).
With reference to “work accomplished” as the second indicator, there is no significant
relationship between age and work accomplished as verified by the computed p-value
In connection to “work unit effectiveness” as the second indicator, there is no significant
relationship between age and work unit effectiveness as verified by the computed p-value
In conjunction with “work quality” as the third indicator, there is no significant relationship
between age and work quality as corroborated by the computed p-value 0.251. Then, the
decision is to retain the null hypothesis (H0).
Contrastingly, the results of the study conducted by Pahos (2019) show significant
positive effects of age on employee performance and a negative moderating effect of age
on the abovementioned relationship.

Table 25
Kruskal – Wallis H – Test: Comparison on the Assessment on the Employee
Productivity in the Region III when Grouped According to Family Size
Mean K- p-
Indicators Family Size Decision Remarks
Below 5 household
16.08
members
Work Output 5 to 10 household
28.94 8.238 0.016 Reject Ho Significant
by Objectives members
More than 10
28.54
household members
Below 5 household
25.88
members
Work 5 to 10 household Not
27.52 1.842 0.398 Retain Ho
Accomplished members Significant
More than 10
20.88
household members
Mean K- p-
Indicators Family Size Rank statistic value Decision Remarks
Below 5 household
14.23
members
Work Unit 5 to 10 household
33.44 17.53 0.000 Reject Ho Significant
Effectiveness members
More than 10
21.17
household members
Below 5 household
27.65
members
5 to 10 household Not
Work Quality 27.60 3.713 0.156 Retain Ho
members Significant
More than 10
18.79
household members
Table 25 discloses the comparison using Kruskal – Wallis H – Test on the assessment
on the employee productivity in the Region III when grouped according to family size.
Relevant to “work output by objectives” as the first indicator, there is a significant
relationship between family size and work output by objectives. This is evidenced by the
computed p-value 0.016. Thus, reject the null hypothesis (H0).

In connection to “work unit effectiveness” as the second indicator, there is a significant
relationship between family size and work unit effectiveness as verified by the computed p-
value 0.000. As a result, reject the null hypothesis (H 0). In conjunction with “work quality”
as the third indicator, there is no significant relationship between family size and work
quality as corroborated by the computed p-value 0.156. Then, the decision is to retain the
null hypothesis (H0).
Relative to the results presented above, Cools (2017) also concurred that having
additional children reduces their probability of being the top earner at the workplace.
Table 26
Productivity in Region III when Grouped According to Annual Income
Mean K- p-
Indicators Annual Income Decision Remarks
₱250,000 below 30.00
₱250,000 – 400,000 7.50
Work Output ₱400,000 – ₱800,000 17.86 Not
7.300 0.199 Retain Ho
by Objectives ₱800,000 – 2,000,000 22.75 Significant
₱2,000,000 - ₱8,000,000 25.65
₱8,000,000 and above 25.61
₱250,000 below 26.59
₱250,000 – 400,000 30.50
Work ₱400,000 – ₱800,000 15.79 Not
Accomplished
4.443 0.488 Retain Ho
₱800,000 – 2,000,000 20.88 Significant
₱2,000,000 - ₱8,000,000 27.35
₱8,000,000 and above 25.36
₱250,000 below 31.09
₱250,000 – 400,000 15.00
Work Unit ₱400,000 – ₱800,000 21.14 Not
5.525 0.355 Retain Ho
Effectiveness ₱800,000 – 2,000,000 20.50 Significant
₱2,000,000 - ₱8,000,000 27.20
₱8,000,000 and above 21.57
₱250,000 below 31.68
₱250,000 – 400,000 44.00
Work Quality ₱400,000 – ₱800,000 28.79 18.947 0.002 Reject Ho Significant
₱800,000 – 2,000,000 20.50
₱2,000,000 - ₱8,000,000 27.15
₱8,000,000 and above 13.18

Table 26 exhibits the comparison on the Assessment on the Employee Productivity
in Region III when Grouped According to Annual Income using Kruskal – Wallis H – Test.
In relation to “work output by objectives” as the first indicator, there is no significant
relationship between annual income and work output by objectives. This is evidenced by
the computed p-value 0.199. Thus, retain the null hypothesis (H0).
In terms of “work accomplished” as the second indicator, there is no significant
relationship between annual income and work accomplished as verified by the computed
p-value 0.488. As a result, retain the null hypothesis (H0).
With relevance to “work unit effectiveness” as the third indicator, there is no
significant relationship between between annual income and work unit effectiveness as
corroborated by the computed p-value 0.355. Due to this, the decision is to retain the null
hypothesis (H0).
In terms of “work quality” as the fourth indicator, there is a significant relationship
between annual income and work quality as supported by the computed p-value 0.002. On
account of this, retain the null hypothesis (H0).
Considering this, Popovici (2019) discussed that earnings and labor productivity are
important economic indicators, the relationship between them being analyzed by
economists, employers and policy makers. The relationship between earnings and labor
productivity is important for each region or economic sector, because it influences the
living standard and the distribution of income between labor and capital. The results of the
analysis show that there is a positive, but moderate correlation between gross average
earning and labor productivity.

Table 27
Productivity in Region III when Grouped According to Type of Industry
Mean K- p-
Indicators Type of Industry Decision Remarks
Trading,
Retail
Food Business 25.29
26.50
Business
Travel &
15.00
Transportation
Work Output Not
Franchised Business 28.38 14.434 0.154 Retain Ho
by Objectives Significant
Arts & Crafts 26.50
Licensed
8.50
Professional Services
Trading,
Retail
Food Business 25.25
27.00
Business
Travel &
5.00
Transportation
Work Not
Franchised Business 10.38 12.809 0.235 Retain Ho
Accomplished Significant
Arts & Crafts 27.00
Licensed
27.00
Trading,
Work Unit Merchandising & 19.50
Retail 29.066 0.001 Reject Ho Significant
Effectiveness
Food Business 31.39
5.00
Business
Travel &
28.50
Transportation
Franchised Business 12.50
Arts & Crafts 39.00
Licensed
5.00
Indicators Type of Industry Mean K- p- Decision Remarks
Trading,
Retail
Food Business 29.57
11.75
Business
Travel &
21.50
Transportation
Work Quality Franchised Business 9.38 22.782 0.012 Reject Ho Significant
Arts & Crafts 7.00
Licensed
21.50
Table 27 divulges the comparison on the assessment on the employee productivity in
Region III when grouped according to type of industry using Kruskal – Wallis H – Test.
In reference with to “work output by objectives” as the first indicator, there is no
significant relationship between the type of industry and work output by objectives. This is
evidenced by the computed p-value 0.154. Therefore, retain the null hypothesis (H0).
In terms of “work accomplished” as the second indicator, there is no significant
relationship between the type of industry and work accomplished as verified by the
computed p-value 0.235. As a result, retain the null hypothesis (H0).

With reference to “work unit effectiveness” as the third indicator, there is a significant
relationship between the type of industry and work unit effectiveness as substantiated by
the computed p-value 0.001. As a result, the decision is to reject the null hypothesis (H0).
As for “work quality” as the fourth indicator, there is a significant relationship between
between the type of industry and work quality as supported by the computed p-value
0.012. Due to the aforementioned, reject the null hypothesis (H0).
Taking everything in cognizance, Muro (2016) attested that advanced industries help
drive productivity gains. The former has underlain the Metropolitan Policy Program’s focus
on high-productivity advanced industries and runs through recent publications from the
Organisation for Economic Co-operation and Development (OECD) and the Information
Technology & Innovation Foundation, which focus on the “diffusion” of productivity. Overall,
this work notes that not all of the nation’s economy is adrift. Rather, it notes that certain
industries and firms are clocking significant productivity growth.
Table 28
Kruskal – Wallis H – Test: Comparison on the Employees’Assessment
on the Employee Productivity in Region III when Grouped
According to Highest Level of Education
Highest Level of Mean K- p-

Indicators Decision Remarks
High School
22.53
Graduate
Work Output Graduate or Not
26.38 2.208 0.332 Retain Ho
by Objectives Professional Degree Significant
College or
30.58
Associate Degree
High School
22.65
Graduate
Work Graduate or Not
29.63 2.373 0.305 Retain Ho
Accomplished Professional Degree Significant
College or
23.50
Associate Degree
High School
25.23
Graduate
Work Unit Graduate or Not
21.42 0.932 0.627 Retain Ho
Effectiveness Professional Degree Significant
College or
27.00
Associate Degree
Indicators Highest Level of Mean K- p- Decision Remarks
High School
Work Quality 28.72 8.680 0.013 Reject Ho Significant
Graduate
Graduate or
19.08
Professional Degree
College or
14.25
Associate Degree
Table 28 shows the comparison on the employees’assessment on the employee
productivity in Region III when grouped according to highest level of education using
Kruskal – Wallis H – Test.
To specifically delineate, the first indicator which is “work output by objectives” when
correlated with the “highest level of education” shows no significant relationship. This is
substantiated by the computed p-value 0.332. A decision to retain the null hypothesis (H0)
is clear and definite.
With reference to “work accomplished” as the second indicator, there is no significant
relationship between work accomplished and highest level of education as substantiated
by the computed p-value 0.305. As a result, retain the null hypothesis (H0).
In terms of “work unit effectiveness” as the third indicator, there is no significant
relationship between work unit effectiveness and highest level of education as
substantiated by the computed p-value 0.627. As a result, the decision is to retain the null
hypothesis (H0).
Apropos to “work quality” as the fourth indicator, there is a significant relationship
between work quality and highest level of education as substantiated by the computed p-
value 0.013. Hence, reject the null hypothesis (H0).
With regard to relationship of productivity to highest level of education, the findngs of
Kasika (2015) bear substantial evidence. Overall, the latter confirmed that educational
qualifications have a significant bearing on job performance. The higher the education
level. the more are the effects of education and skill on job performance. As such people’s
ability to understand and use advanced technology is determined by the level of their
education. The educated workers tend to be more responsive in receiving instructions and
doing new tasks and easily adopt new technology. which increases their ability to innovate
and improve their job performance. However, the main factors considered to limit the
positive effect of educational qualifications on job performance at the workplace include the
quality of the work environment, organisational structure and processes.
1. Test of Difference on MSME Entrepreneurs’ Leadership Traits and Employee
Productivity Based on Their Demographic Profile
Table 29
Partial Rank Correlation: Significant Relationship Between MSME
Entrepreneurs’ Leadership Traits and Employee Productivity
Based on Their Demographic Profile
Leadership Traits
Demographic Correlation
Interpretation p-value Decision Remarks
Profile Coefficient
Moderately
Sex 0.438 Strong 0.002 Reject Ho Significant
Correlation
Moderately
Age 0.459 Strong 0.001 Reject Ho Significant
Correlation
Moderately
Family Size 0.458 Strong 0.000 Reject Ho Significant
Correlation
Moderately
Annual Income 0.468 Strong 0.001 Reject Ho Significant
Correlation
Moderately
Strong
Type of Industry 0.468 0.001 Reject Ho Significant
Correlation
Demographic Correlation Interpretation p-value Decision Remarks

Profile Coefficient
Moderately
Type of
0.467 Strong 0.001 Reject Ho Significant
Employment
Correlation
Moderately Reject Ho Significant
Highest Level of
0.483 Strong 0.000
Education
Correlation
Note: “If p value is less than or equal to the level of significance (0.05) reject Ho, otherwise retain Ho.”
The partial rank correlation showing the significant relationship between MSME
entrepreneurs’ leadership traits and employee productivity based on their demographic
profile is exhibited in Table 29.
Overall, the results confirmed that there is significant relationship between
demographic profile and leadership traits of MSME entrepreneurs’. This is substantiated by
the computed p-values.
Productivity
Table 30
Spearman Rank: Significant Relationship Between MSME Entrepreneurs’ Leadership
Traits and Employee Productivity
Employee Productivity
Leadership Correlation
Interpretation p-value Decision Remarks
Traits Coefficient
Moderate
Technical
0.644 Positive 0.000 Reject Ho Significant
Skills
Correlation
Conceptual Negligible Not
0.221 0.123 Retain Ho
Skills Correlation Significant
Interpersonal Low Positive

Skills Correlation
Emotional Negligible
Not
Intelligence 0.073 Correlation 0.616 Retain Ho
Significant
Skills
Social High Positive
Intelligence 0.702 Correlation 0.000 Reject Ho Significant
Skills
Note: “If p value is less than or equal to the level of significance (0.05) reject Ho, otherwise retain Ho.”
Table 30 summarizes the significant relationship between leadership traits of MSME
entrepreneurs and employee productivity. Overall, the results imply that there is no
significant relationship between demographic profile and leadership traits in terms of
conceptual skills (p=0.123) and emotional intelligence skills (p=0.616). Therefore, the null
hypothesis (H0) is retained.
Conversely, both “technical” and “social intelligence” MSME entrepreneurs resulted into
p= 0.000 and has elicited a significant relationship with employee productivity. For that
reason, the null hypothesis (H0) is rejected.

Chapter 5
SUMMARY OF FINDINGS, CONCLUSIONS AND RECOMMENDATIONS
This chapter presents the summary of findings, conclusions and recommendations of
the research study. Important findings of the researcher were put together and discussed
and conclusions were drawn based on the findings derived and hence recommendations
were formulated.
Summary
This study is aimed at examining the characteristics of MSME owners or
entrepreneurs that enable them to influence employee productivity. The research has been
conducted in Region III. A review was done on leadership theories, models and past
literature done by other researchers to adopt the various determinants that impact the
attainment of sustainable employee productivity. A conceptual framework was established
with an independent variable which consists of leadership traits and a dependent variable,
which comprises of sustainable employee productivity and its aspects. This study utilized
the descriptive method of research. A set of questionnaire with structured questions was
generated and measured using 5-point Likert Scale. The questionnaire is divided into three
parts, Part I appertains to the profile of respondents; while Part II bear relevance to
leadership traits manifested by the MSME entrepreneurs relative to employee productivity.

The final part of the instrument comprises of the aspects of employee productivity. The
primary data was collected from the employees of MSMEs. The sample size consists of
____ respondents who are full and part-time employees of 50 MSMEs in Region III.
Findings
1. Profile of the Respondents
There were 62% female and 38% male respondents who willfully participated in the
conduct of the study. As for the age group, most respondents are in their mid-thirties with
58 percent out of a 100.
With regard to family size, the average family of an MSME employee consisted of 5 to
10 household members. This is equivalent to 50 percent. With regard to annual income, 28
percent of respondents claimed that their earnings belong to the highest income bracket.
In terms of the type of industry where employees are engaged in, majority of MSMEs in
operation are in the food business with 28%, while others are engaged in money and
finance. Concurrently, the type of employment preferred by most MSMEs was full time
employment as evidenced by 54 percent, the remaining number represents employees
working part-time and seasonal.
Educational attainment of MSME employees were generally higher for high school
completion with 60.0 %. Contrastingly, only 6% have completed their college or associate
degree.
2. Respondents’ assessment on the level of leadership traits manifested by the
MSME entrepreneurs that enable them to influence employee productivity in terms

of the following skills: technical, conceptual, interpersonal, emotional intelligence,
and social intelligence.
The technical skills of MSME entrepreneurs were assessed by their employee-
respondents. Respondents concurred that entrepreneurs’ technical skill relative to their
effectiveness with the detailed aspects of work is somewhat true with 4.4. The remaining
indicators like, managing people and efforts to give actionable feedback were rated 3.4
and also interpreted as somewhat true. On the other hand, forecasting ability only
garnered 2.6. Both of the aforementioned were interpreted as “occasionally true”.
In the aspect of conceptual skills of an entrepreneur as a leadership trait,
respondents rated flexibility in making changes in the business with 3.4. Among the
interpersonal skills of entrepreneur, the indicator that seemed to be protruding is being
respectful to one’s opponent otherwise known as competitors. The latter obtained 4.0
computed mean, and verbally interpreted as “somewhat true”. Unfortunately,
entrepreneurs, according to respondents were not that keen to find consensus in conflict
situations with 2.2 computed mean.
Leaders, in general also possess social intelligence skills. In the case of MSME
entrepreneurs, respondents rated “listens closely to team members and incorporates ideas
into the plan” with 4.4. However, “resolving conflicts with team members, customers and
vendors” obrained the lowest score of 3.6.

3. Respondents’ assessment on the level of employee productivity in terms of: work
output by objectives, work accomplished, work unit effectiveness and work quality
Respondents rated the initiative of the employee to devise tools to help the
enterprise meet its goals with 3.6. Conversely, the remaining work output indicators ended
up in a tie at 3.4 and verbally interpreted as “sometimes true” .
Entrepreneurs expect their employees to accomplish their tasks. Relative to the
aforementioned expectation, respondents rated the initiative of the employee to report with
their supervisors and discuss progress as well as solutions with 4.0. Likewise, the indicator
that specifies “employee spends less hours for non-work-related conversations or activities
to that delay accomplishment of tasks” obtained the same. The lowest computed mean of
3.6 was assigned to “meeting the target number of products expected to be produced or
services expected to be performed”.
Employees are also considered effective in the performance of their task if they are
capable of taking criticisms in a constructive manner and applying these corrections
afterwards. The previously mentioned characteristic of work unit effectiveness obtained the
highest mean score of 4.0. Dismally, the indicator which specifies “errors and mistakes are
handled appropriately so as not to affect the image of the business” got the lowest
computed mean.
As per work quality, respondents rated having less customer complaints with 3.0,
being the lowest computed mean score. Since, customers are usually difficult to please
and demanding at times. This justification is written by one of the many respondents in the
questionnaire distributed.
4. Test of Difference on Leadership Traits of MSME Entrepreneurs in the Region III
when Grouped According to Profile

Mann Whitney –U Test was employed to test the difference between leadership traits
of MSME entrepreneurs and demographic profile based on the assessment of the
respondents. The exact test and the normal approximation give similar results to indicators
one to four, namely: technical, conceptual, interpersonal, and emotional intelligence.
Conclusively, there is no real evidence that the leadership traits at diagnosis is different for
males and females, although the results are borderline and the lack of statistical
significance in this case may just be due to the very small sample. In this case it would be
advisable to conduct a larger study.
As per age, the exact test and the normal approximation yield similar results to all
leadership traits indicators. Evidently, there is no real evidence that the leadership traits at
diagnosis is different for three age groups, specifically: 30-39, 40-49, and 50 and above.
Thus, it lacked significance.
In terms of family size, all family size categories lacked significance when compared
with leadership traits. However, when it comes to annual income, technical and social
intelligence skills manifest significance when compared with annual income categories.
By the same token, the analysis also revealed that technical and social intelligence
skills were different between the type of industries they are engaged in. As per leadership
traits, all five skills were found without significance between differing levels of highest
education.
5. Test of Difference on Employee Productivity of MSMEs in Region III when
Grouped According to Profile
Employee productivity when compared to sex, more specifically work output by
objectives and work unit effectiveness were significant. In effect, the null hypothesis is
rejected. As per age, all indicators of employee productivity turned out to be lacking in
significance, with respective p-values > 0.05. With family size, work output by objectives
and work unit effectiveness were significant with respective p-values<0.05 (p=.016;
p=0.000).
The annual income categories were also tested and compared with employee
productivity indicators. However, work quality was found to be significant when compared
between annual income categories. When comparing employee productivity between the
types of industry, work unit effectiveness and work exhibited significance at respective p-
values p=0.001; and p=0.012.
The indicators of employee productivity were also compared with the highest level of
education attained. All indicators lacked significance, except for work quality with p=0.013.
Productivity Based on Demographic Profile
The leadership traits were also tested and compared with demographic profile. All
demographic characteristics, specifically: age, sex, family size, annual income, type of
employment, type of industry, and highest level of education were found to be significantly
different with p-values not exceeding 0.05. In addition, the relationship between two
variables is generally considered moderately strong when their r value is lower than 0.6.
Productivity
The magnitude of correlation between the leadership traits and employee
productivity as calculated by the correlation coefficient were of different r values (0.073 –
0.702). Interestingly, the technical, interpersonal, and social intelligence skills indicated p
values less than 0.05. These traits or skills possessed by MSME entrepreneurs manifested
significant correlation when compared with employee productivity variables (work output,
work accomplished, work unit effectiveness and work quality). Thus, the null hypothesis is
rejected.
Conclusion
Based on the aforementioned findings, the following conclusions were derived:
1. The findings revealed that most respondents were female (62%). According to an
interview conducted with respondent number 20, women are more likely to
accommodate work and regard themselves as being flexible so as to provide
money for their family. Respondents are in their mid-thirties, since building one’s
destiny and experience take time. Respondents also claimed that they are earning
most amount money, which belonged to the highest income bracket. They also
justified that the amount of earnings is dependent on the type of industry one
engages himself in. Besides the income, respondents considered themselves full-
time due to the number of hours they render for the enterprise.
2. Respondents regarded technical skills as one important leadership trait. It stood
amongst other skills. Technical skills which involved being effective in the detailed
aspects of work was lauded by the respondents. The former is evidenced by its
computed mean score. Their ability to forecast or predict obtained the lowest
computed mean. Entrepreneurs are also expected to forecast and react faster to
market shifts to win deals. Technical skills are insubstantial if forecasting is not
evident. Conceptual skills, on the other hand, enable entrepreneurs comprehend

the overall functioning of the business. Interpersonal skills of entrepreneurs, in
general, were also found “somewhat true”, since entrepreneurs were able to
observe respect their opponents, otherwise known as “competitors”. Entrepreneurs,
however, were not that keen in finding consensus in conflict situations.
Interpersonal skill is the most critical skill. Entrepreneurs regarded as leaders are
presumed to listen with genuine interest so as to gain understanding of every
aspect of the business and its people. Entrepreneurs, in general, possess social
intelligence skills. An entrepreneurial leadership trait which is suppose to
encourage entrepreneurial attitudes and behaviors in employees. However, the
ability to resolve conflicts with team members, customers and vendors was not
rated highly.
3. Employee productivity was evaluated in terms of the output of an employee in a
specific period of time. Much of the success of any given business relies upon the
productivity of its workforce. The aforementioned is true and evidenced by the
respondents’ concurrence of work output indicators as “sometimes true” only if
applicability is at a turning point. Entrepreneurs are also expectant of employee
initiative to discuss progress and solutions to problems those relative to daily
operations. Performance-wise, employee-respondents gave the lowest rating to
“meeting the target number of products expected to be produced or services
expected to be performed”. This is when the entrepreneur customarily ensures that
they are working effectively and efficiently as they can everyday. Finally,
respondents also assigned the lowest computed mean for having less customers
complaints and errors being handled appropriately. Complaints seem inevitable,

primarily due to customers who happen to be difficult to please and demanding at
times.
4. All leadership traits, specifically: technical, conceptual, interpersonal, and emotional
intelligence did not exhibit any evidence of relationship with sex. Similarly,
leadership traits was also compared to age and famly size. Both did not manifest
significance. However, when it comes to annual income, technical and social
intelligence skills manifest significance when compared with annual income
categories. In actual fact, a specialized leadership skill is often equated to the
amount of income earned. Likewise, the analysis also revealed that technical and
social intelligence skills were different between the type of industries they are
engaged in. What is more, performing any job requires the use of
multiple skill sets. In the case of MSME entrepreneurs, technical
and social intelligence skills vary significantly and widely across
industries in Region III.
5. With relevance to demographic profile and productivity, sex was found significant
when compared with work output by objectives. Many explanations can be
attributed to the aforementioned, such like differences in skills and preferences;
and competition and time constraints. As per work unit effectiveness, there is a
significant relationship when compared to sex. This is due to the type of task
assigned to both sexes. There are some difficult tasks that take time to complete,
but employees still manage to do them. Also, there are extra tasks that do not hold
an employee back, since he/she manages to produce more than others.

There is a statistical significant relationship between work output by
objectives and family size. A married respondent with a family size of 5 to 10
members, explained that she does not want to work late or too many on a
weekend, so when she’s in the store, she gets everything done. She also added,
her productivity at work serves as motivation. It allows her to spend quality time
with family at home while being complacent that she never leaves the store with
unfinished task. The same can be applied to work unit effectiveness and family
size. Both are statistically significant to one another. As per type of industry and
work quality, both were significantly related. There are industries that overhaul
themselves and keep apace to cope up with the competitive environment. Work
quality is one example of doing right the first time, and employees capable of
meeting such earn an income that matches their capabilities.
6. The leadership traits were also tested and compared with demographic profile.
Both were found to be significantly different to one another, considering their
computed p-values. This clearly meant that leader-entrepreneurs have in common
set of demographical characteristics that support their ability to mobilize follower-
employees toward a shared vision. This in turn differentiates leaders from non-
leaders.
7. Leadership traits possessed by MSME entrepreneurs such as technical,
interpersonal, and social intelligence skills manifested a significant correlation when
compared with employee productivity variables (work output, work accomplished,
work unit effectiveness and work quality). Incontestably, raising and sustaining
employee productivity is an essential element of a business operation. Thus, a

leader plays a vital role in ensuring work performance levels with regard to
increased output and high quality.
Recommendations
The following recommendations for research are based on the study findings:
1. Most MSMEs hire female employees due to their flexibility and motivation to
provide money for their family. This also is an indication that MSMEs are
characterized by the predominant presence of female employees. For this reason,
gender-gap should be abrogated, since not all MSMEs are women-owned and
women-led. Personal characteristics should not be considered a default option for
employment, on the grounds of having diverse cultural and socio-economic
background. MSMEs should also consider hiring employees on a part-time work
schedule basis. Part-time employees may also help in operational agility. Tasks are
varied and interchangeable at times, a full-timer may not be as efficient as two-part-
timer employees. This, however, may prevent work interruption. It is also advisable
for newly-established businesses to hire part-timers. A recognized benefit of hiring
part-time employees is lower payroll costs.
2. According to the results delineated in the aforementioned findings, forecasting
ability obtained the lowest computed mean. MSMEs need a direction. Forging
ahead while lacking clearly defined goals ha the potential for dire negative
consequences. Goals and direction are conceivably most important when it comes
to the life blood of a business which is money. Entrepreneurs should be able to
map future uncertainties by looking at possible changes or possibilities. Conceptual
skills of an entrepreneur must be subject to continuous development. Conceptual
skills should not be limited to merely a comprehension of the overall functioning of

the business. It is highly recommended for entrepreneurs to work on developing
their analytical and cognitive abilities. They should enagage themselves to enrolling
on short courses other than seminars/ training on business management and
network with people from within and outside industry to further hone conceptual
skills. With relevance to interpersonal skills, it is suggested for entrepreneurs to
practice active listening skills during all conversations with employees, appreciate
employees through recognition of their contribution to the smooth operation of the
business, and promote a positive work environment. Entrepreneurs should realize
that conflict resolution is a daily occurrence at any business operation. It can either
propel and disrupt the momentum of both the leader (entrepreneur) and his team
(employees). An entrepreneur should practice his role in conflict resolution. A
feasible recommendation is to employ conflict resolution strategies (avoidance,
competition, accommodation, compromise, and collaboration). Guidelines may also
be established to train employees on handling conflicts. A smooth flow of business
operations commences with giving clear instructions and ensuring that all
employees understand what is expected of them.
3. Work quality, work unit effectiveness and work output were only evaluated as
“sometimes true”. An entrepreneur should certainly implement strategies to improve
work quality and output of employees. These may include but not limited to: (a)
elimination of processes that are of little or no value; (b) invest on employee
orientation and training; (c) establish appropriate level of sustainable productivity
and quality goals; and (d) implement changes. Work unit effectiveness will likely
commensurate with desired level of productivity once all these are put into practice.
4. Based on the results obtained, social intelligence skills of an entrepreneur is
significantly related to sex. The “female” entrepreneurs scored higher in social
intelligence skills. In this case, it is highly recommended for male entrepreneurs to
spend time with his employees and invest in developing better working
relationships with them. This is the key to encourage employees to work towards
the same goal and function effectively in a particular work unit. With reference to
annual income, technical, interpersonal and social intelligence skills manifest
significance when compared with annual income categories. Acquisition of soft
skills is not limited to engineers, mathematicians and IT experts. An entrepreneur
should be well-versed in soft skills/technical skills due to the rise of technology that
makes it relevant to nearly every industry. A good example is that of a point-of-sale
(POS) software, a skill that is of great importance for entrepreneurs in monitoring
retail transactions. Entrepreneurs should consider enrolling in short courses on any
of the following: computer programming, data analysis, content marketing,
employee management software and technical writing. Similarly, the analysis also
revealed that technical and social intelligence skills were different between the type
of industries they are engaged in. An entrepreneur should master bought
interpersonal and social intelligence skills, especially those coreferent to verbal and
nonverbal communication, listening, negotiation and problem solving. On the other
hand, relationship management (which includes influence, coaching/mentoring,
conflict management, inspirational leadership and teamwork) should be the central
point of interpersonal and social intelligence skills development.
5. With reference to productivity, sex was found significant when compared with work
output by objectives and work unit effectiveness. Gender gaps should no longer be
an issue, since there is increasing jobs brought about by the growth of MSMEs.
Implementation of strategies on work output and work unit effectiveness (i.e.,
identification of priorities and goals, time management/productivity through activity
logsheet, continuous training & development) should be the main focus of
entrepreneurs. There is also a statistical significant relationship between work
output by objectives, work unit effectiveness and family size. As per type of
industry, work unit effectiveness and work quality were significantly related to
industry. In any given industry, policies have to be in place to ensure quality and
high productivity standards are met. Policy implementation alone may not be
sufficient, if the employee is not in an environment where productivity is promoted.
Work quality is also significantly related to income and educational attainment. The
aforementioned is an actual fact. Entrepreneurs should provide employees a
reasonable income coupled with benefits. While pay and benefits may not always
be among the chief motivators for employees, they certainly are advantageous to a
business owner. The fact is that higher salaries tend to incentivize a culture of high
output. As for educational attainment and its relation to work quality, the results
served as evidence that educated employees may perform more effectively in
meeting work quality standards. With reasonable income that commensurates
educational attainment, employees are driven to perform well, and demonstrate the
desire to complete tasks. Thus, it is recommended for entrepreneurs to hire
educated employees for a highly probable, yet significant boost in productivity.
6. Leadership traits and demographic profile were found to be significantly different to
one another, considering their computed p-values. In this regard, entrepreneurs are
highly encouraged to invest in personal professional growth and development.

They may also set aside an amount dedicated for the continuous training and
growth of employees. This in turn will help sustain productivity vis-a-vis work unit
effectiveness, work output by objectives, work accomplished and work quality.
7. Leadership traits possessed by MSME entrepreneurs (i.e., technical, interpersonal
and social intelligence skills) manifested significant correlation when compared with
employee productivity variables. In respect of the aforesaid skills, an entrepreneur’s
leadership traits in general would further empower employees by developing their
capabilities according to some measure of authority and influence. An entrepreneur
may also apply a combination of leadership traits or skills to ignite employee’s
potential and perform maximally towards sustainable productivity of MSMEs.
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POLYTECHNICUNIVERSITY OF THE PHILIPPINES 1

RESULTS AND DISCUSSIONS

1. Profile of the Respondents

Age Frequency Percentage (%)

Table 1 presents the frequency and percentage distribution of the MSME

Family Size Frequency Percentage (%)

household consisting of 5 to 10 family members. The former is succeeded by those that

frequency and percentage distribution were respondents whose household comprise of

more than 10 members.

Annual Income Frequency Percentage (%)

Exhibited in Table 4 is the frequency and percentage distribution of the MSME

Type of Industry Frequency Percentage (%)

number of MSME establishments.

Type of Employment Frequency Percentage (%)

Table 6 presents the frequency and percentage distribution of the MSME

frequency and percentage garnered is “full-time employment” with 54.0%. It is a

substantiation of the type of employment preferred by MSMEs. The results are

substantiated by McCourtie (2013). The former emphasized the importance of MSMEs as

the largest employers in many low-income countries.

Type of Employment Frequency Percentage (%)

Exhibited in Table 7 is the frequency and percentage distribution of the MSME

research conducted by Gunaseelan (2015) as published by Shodhganga India, which

logically infer, fresh talents include high school graduates.

2. Level of leadership traits of MSME entrepreneurs that enable them to influence

productivity in terms of technical, conceptual, interpersonal, emotional intelligence

and social intelligence skills.

feedback and criticism.

problems before devising viable solutions.

skills are equal in mean scores.

McCormick (2016) asserted that opponents, otherwise known as competitors are

own strengths is a common courtesy and a positive trait.

who delineated the role of an entrepreneur that resembles to that of a “player-coach”. A In

Social Intelligence Skills Mean Verbal Interpretation

obtained the highest computed mean score of 4.4.

2012). In addition, creating a climate involves enhancing emotional intelligence of a team

by discussing issues openly and honestly.

interpreted as “somewhat true” with 4.12 computed mean.

Table 13 presents the results of employees’ assessment on work output by

computed mean scores at 3.4.

Table 14 presents the employees’ assessment on work accomplished relative to

services expected to be performed” obtained the highest mean.

would not be relevant.

Work Unit Effectiveness Mean Verbal Interpretation

with merely 2.0.

3.0 computed mean.

4. Test of Difference on Leadership Traits of MSME Entrepreneurs in the Region III

when Grouped According to Profile

Intelligence Skills Female 30.05 Ho

With reference to “technical skills” as the first indicator, there is no significant

relationship between sex and technical skills of MSME entrepreneurs as substantiated by

In terms of “conceptual skills” as the second indicator, there is no significant

relationship between sex and conceptual skills of MSME entrepreneurs as substantiated

With regard to “interpersonal skills” as the third indicator, there is no significant

relationship between sex and interpersonal relationship of MSME entrepreneurs as

With reference to “emotional intelligence skills” as the fourth indicator, there is no

signifcant relationship between sex and emotional intelligence skills of MSME

by the computed p-value .003. Thus, reject the null hypothesis.

The comparison on employees’ assessment on the leadership traits of MSME

“age” shows no significant relationship. This is substantiated by the computed

With reference to “conceptual skills” as the second indicator, there is no significant

As a result, retain the null hypothesis (H0).

In terms of “interpersonal skills” as the third indicator, there is no significant