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Surviving to Thriving: Unveiling the Secrets of the Business Owners started

from Rags to Riches

A Qualitative Research Paper

Presented to the Senior High School Faculty

of Tarlac National High School

Tarlac City

In Partial Fulfillment

Of the Requirements for the Subject

Practical Research 1

Eliah Nicole Gayas

Irish Pascua

Cielo Marnel Ruar

Keisha Mae Sapasap

Kenneth Glen Tolentino

11-Acountability

July 2023
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Chapter 1

THE PROBLEM AND ITS BACKGROUND

Introduction

Entrepreneurship is often associated with taking risks and pursuing new

opportunities, but it is not easy, especially when starting from humble beginnings.

Successful entrepreneurs often face significant challenges to reach their goals, such as

financial instability, lack of resources, and fierce competition. However, some

entrepreneurs have managed to overcome these challenges and go from surviving to

thriving.

There are four types of entrepreneurship: small business, scalable startups, large

companies, and social entrepreneurship. Small Businesses are open businesses without

becoming large conglomerates or chains. They are also defined as privately-owned

corporations, partnerships, or sole proprietorships with fewer employees and less annual

revenue than a corporation or regular-sized business. Scalable Startups too often receive

funding from venture capitalists and hire specialized employees to seek rapid expansion

and profit returns. Technology-focused businesses also seek rapid expansion and profit

returns. Large Companies often create new products and services based on consumer

preferences to meet market demand. Social Entrepreneurs pursue solutions to

community-based problems, willing to take on risk and effort to create positive changes.

Financial criteria are usually considered to be the most appropriate measure of

business success, yet many small business owners are motivated to start a business on the
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basis of lifestyle or personal factors. Non-financial goals could lead to alternative

imeasures of success, particularly in the small business sector. Which they used to judge

their business success. Findings suggest that both financial and non-financial lifestyle

criteria are used to judge business success, with the latter being more important. Personal

satisfaction and achievement, pride in the job and a flexible lifestyle are generally valued

higher than wealth creation. Personal factors such as age and also business characteristics

influenced perceptions on the importance of these factors.

This research examines how social classes influence entrepreneurial and business

owners' endeavors. It hypothesizes that lower-class entrepreneurs' businesses perform

better when they are resourceful with a specific resource, and that cognitive schemas

imprinted on entrepreneurs by their social class origins have an impact on how

resourcefully they use their time. The empirical study of 8663 Chinese private

entrepreneurs between 2006 and 2010 backs up these conclusions. This research

contributes to the body of knowledge on social classes and entrepreneurial

resourcefulness and has important implications for understanding and knowing the art of

persistence.

There are many business owners in Tarlac who have started from humble

beginnings and gone on to achieve great success. A total of 20 micro entrepreneurs in

Tarlac currently undergo capability building under the Kapatid Mentor Micro

Enterprises (KMME) program of Department of Trade and Industry (DTI). These

individuals have demonstrated hard work, determination, and entrepreneurial spirit to

build their businesses from the ground up.

One such example is Joel's Gotohan located in River Walk Barangay Mabini,

Tarlac City. He also had other businesses such as Caño's Bakery, Caño's Resort, and

Caño's Carwash found in San Isidro Zone 5, Tarlac City. Joel P. Caño, who was born and

raised in Arayat, Pampanga, started his first business in Tarlac.

There are also many other successful business owners in Tarlac who have started

from humble beginnings, such as the owners of small retail shops, construction

companies, and agricultural businesses. These individuals serve as inspirations to others

who aspire to achieve success in the business world through hard work and

determination.

A key factor in the success of business owners who have gone from rags to riches

is their ability to build and maintain strong relationships. This includes building a

network of contacts and mentors who can offer guidance and support, as well as

cultivating strong relationships with customers, suppliers, and employees.

Finally, successful business owners who have gone from rags to riches understand

the importance of perseverance. Building a successful business takes time, and setbacks
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and failures are inevitable along the way. However, those who are able to stay the course

and remain focused on their goals are often the ones who achieve the greatest success.

This research paper delves into the narratives of successful business owners who

started from rags and went on to achieve great heights. Through in-depth interviews, the

study seeks to uncover the secrets of their success, including the experiences, challenges,

and strategies that helped them reach their goals.

Research Questions

1. Why did the business owners chose to start their business in this

industry?

2. What hardships did the business owners before becoming wealthy

due to their limited resources?

3. What are the funding strategies and risk management approaches

that the business owners used?

4. What are the changes in the business owners' lives after becoming

successful?

5. What advice do successful business owners have for aspiring

entrepreneurs facing similar challenges?

By exploring these questions, this study aims to provide a deeper understanding

of the experiences and perspectives of successful business owners and identify strategies

that can support and encourage entrepreneurship.

Significance of the Study

To the Society: Successful entrepreneurship can have a positive impact on

society, such as job creation and economic growth, and this study can contribute to

promoting and encouraging entrepreneurship for the benefit of society as a whole.

To the Entrepreneurs: The study provides valuable insights and inspiration for

entrepreneurs, especially those who are starting from humble beginnings.

To the Business educators: The findings of this research can be used to develop

entrepreneurship courses and programs that prepare students for the challenges of starting

and running a business.

To the Policy makers: The study can inform policy decisions that support and

encourage entrepreneurship, such as access to funding and mentorship programs.

To the Future investors: Future investors can benefit from the insights provided

by this study in identifying potential successful entrepreneurs to invest in.

Scope and Delimitation

This research paper will focus on the stories and experiences of successful

business owners who started from humble beginnings and have achieved significant

success in Tarlac City, Philippines. The study will aim to uncover the factors that

contributed to their success, including their strategies, challenges, and experiences. The
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business owners who have started from humble beginnings and gone on to achieve great

success.

This research paper will not cover the experiences of business owners who have

not achieved significant success. Additionally, the study will be limited to business

owners operating in Tarlac City, Philippines and it will not include those operating in

other cities or regions. Finally, the study will not cover the broader economic or social

context in which these businesses operate. It is also not covered the business owners

started from rags but their business is just inherited from the family.

Definition of Terms.

Challenges. Difficulties or obstacles that an entrepreneur may face in the process

of starting or running a business, such as financial constraints, competition, market

volatility, legal and regulatory issues, and staffing problems.

Rags to riches. from a state of having very little money to a state of having a lot

of money. It refers to successful business owners who have overcome significant

challenges to achieve their goals. Rags are the entrepreneur’s started from nothing or

humble beginnings and Riches are the entrepreneur’s who making a lot of money after

the many challenges and struggles.

Strategies. It refers to the specific strategies employed by successful business

owners to overcome challenges and achieve their goals. Businesses are entities that

produce and sell goods and services for profit. Uncover a business owner's story to gain

insights that can be applied to your own business or career.

Successful business owner. A person who has established and managed a

profitable and sustainable business, overcoming challenges and maintaining a

competitive advantage. They have created value for their customers, employees, and

stakeholders, and have achieved financial stability and personal fulfillment through their

entrepreneurial journey.

Thriving. It refers to the successful operation and expansion of a business over

time, as well as the personal and professional growth of the entrepreneurs. It describe a

person’s success in life through effort at work and doing well.

Chapter 2

REVIEW OF RELATED LITERATURE AND STUDIES

This chapter presents the relevant literature and studies that the researcher

considered in strengthening the importance of the present study. It also presents the

synthesis of the art to fully understand the research for better comprehension of the study.

It is a closer look at the struggles and secrets of the business owners before they reach

their goals.
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Related Literature

Simon Stephens, Christopher McLaughlin, and Katrina McLaughlin, (2021) have

reported that the implications that a crisis such as that created by COVID-19 has for the

psychological well-being of small business owners. The review of the literature indicates

that although there are critics of a stage based approach there are also advocates for the

use of stages to help us frame and understand the manifestations of grief. Data was

collected from forty small business owners based in Ireland.

Data was collected five times over a period of six months (March–September,

2020). The outcome is a five-stage model of business grief. The findings provide insights

into the emotional relationship between an owner and their small business. We propose

that a business closure can cause small business owners to grieve in a manner that aligns

with a series of stages and that these stages can be modeled and illustrated.

In Terry L Howard, Gregory W Ulferts, John Hannon, (2019) article to

understand small business owners' management and leadership styles, an

analytical examination of the different elements of the organization is useful.

Although each owner manages a company differently, some fundamental

principles are more successful, and yield higher opportunities for achievement,

growth, and enhanced productivity over the long term. Business planning is vital.

One essential step in planning is to develop a vision for the organization that

conveys meaning. Effective management and leadership styles that promote an

optimistic vision shared with all members of the organization, especially

customers and the general community, yield a higher point of accomplishment for

business owners

According to Ronald H Humphrey, (2013) Sara Blakely, founder of Spanx, is an

excellent example of a young leader who used her original and innovative ideas to build a

successful business. This case illustrates the various components of Blakely's leadership

style gained throughout her personal history and asks which of these skills contributed

most to her success.

Robert W. Fairlie,(2020) have reported that Social distancing restrictions and

demand shifts from COVID-19 are expected to shutter many small businesses, but there

is very little early evidence on impacts. The number of active business owners in the

United States plummeted by 3.3 million or 22 percent over the crucial two-month

window from February to April 2020.

The drop in business owners was the largest on record, and losses were felt across

nearly all industries and even for incorporated businesses. African-American businesses

were hit especially hard experiencing a 41 percent drop. Latinx business owners fell by

32 percent, and Asian business owners dropped by 26 percent. Simulations indicate that

industry compositions partly placed these groups at a higher risk of losses.

Immigrant business owners experienced substantial losses of 36 percent. Female-

owned businesses were also disproportionately hit by 25 percent. These findings of early-

stage losses to small businesses have important policy implications and may portend

longer-term ramifications for job losses and economic inequality.

The upheaval caused by the spread of COVID-19 is having a devastating effect on

small businesses. Eric W Liguori, Thomas G Pittz, (2020) report that A review of the data
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on COVID-19’s impact on micro-, small, and medium-sized enterprises suggests the

economic fallout from this pandemic will get worse for small businesses and their

employees before it gets better. To help combat the negative effects, this article offers

practical and tactical strategies for navigating the uncertainty and risk especially

prevalent in today’s pandemic-filled business environment.

According to Tijdschrift voor economische en sociale geografie, (2014) By

emphasising that businesses attract offenders or generate ‘eyes on the street’ discouraging

potential offenders, previous studies have largely neglected the active role of local

business owners. As neighbourhood business owners have both individual and

professional local stakes, they may take responsibility for a place and its immediate

surroundings.

Using a dataset of 895 residents and 385 entrepreneurs nested within 161

residential neighbourhoods, we show that local business owners are more willing to

intervene in disorderly situations than unemployed residents. The findings suggest that

this is caused by them having both higher expectations about intervention by others and

greater belief in their own problem‐solving capabilities.

We speculate that although entrepreneurs only report higher willingness than

unemployed residents but not employed residents, their presence may nevertheless

influence neighbourhood order because they spend much time locally and thus have

many opportunities to turn their willingness into action on behalf of the neighbourhood.

According to Theresa Jennifer H Mendoza, Marie Nella S Abacan, Gleriza E

Basoy, Ella Joan M Deslate, Jan Nicole J Diaz, Cyvill N Duran, Mariel Jezyle M Verde,
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(2017). A business organization experiences ups and downs in their operations. This

study presented the stories and challenges of the Peanut entrepreneurs in San Carlos City.

It highlights the downside that the Peanut entrepreneurs faced while running their

business as well as their success.

The researchers conducted the study using a series of interviews by the use of the

audio recorder. The study revealed the stories on how the entrepreneurs overcome the

challenges in managing their enterprise. Three (3) themes emerged, which are a)

Aspirations of an Entrepreneurs, b) Challenges encountered by the Entrepreneurs, and c)

Economic Impacts. The narratives of the peanut entrepreneurs revealed the benefits and

distinctiveness of selling peanuts, not just for their purposes, but also on how peanut as a

delicacy has enhanced the quality of life of entrepreneurs in San Carlos City.

Related Studies

Local

In Aimee Hampel-Milagrosa Studies, (2014) developing countries, micro and

small enterprises (MSEs) comprise the largest part of the industrial fabric – offering

millions of people worldwide the chance to be employed and earn livelihoods. However,

empirical evidence suggests that a large majority of MSEs never manage to upgrade

significantly. Defining upgrading as “growth through innovation” and using the

Philippines as a country case, this study evaluates the constraints and success factors for

Filipino-owned MSEs to upgrade.

It finds that the entrepreneurs’ characteristics and strategies for coping with a

range of structural and sectoral constraints are the most important factors for success:

entrepreneurs singlehandedly upgrade their firms by ingeniously substituting or

complementing factors of production. However, such super entrepreneurs are born into

lives of privilege and opportunity. For this reason, now more than ever, creating a level

playing field for all should be a priority for both policymakers and donors.

A study conducted by Raymond D Paderna, Philip Gabriel C Bravo, Alfonzo

Gabriel H Ramirez, Randy Alejandro A Reyes, Joyce V Villanueva, (2020) Scholarly

discourse on business sustainability suggests that certain individual values held by

employees can bolster a firm’s efforts to maximize wealth for all its stakeholders while

managing the company’s social and environmental footprint. This study is an attempt to

further galvanize the role of individual values in fostering small business sustainability

using employee demographics as a moderator.

To perform this task, 152 employees of a rapidly expanding agribusiness firm in

San Ildefonso, Bulacan were polled and 4 expert respondents were thereafter invited to

cross-validate observed data. Survey results subsequently confirmed a priori knowledge

on the significant influence of all individual value dimensions on sustainability. But of

the four demographic variables used as moderators, only age and educational attainment

altered the dynamics between the values-sustainability linkage.

Expert respondents invited to reflect on the survey results were by and large

unsurprised at the outcome, suggesting that data obtained a posteriori corroborated with

most of their perspectives on sustainability. Key recommendations included (a) hiring

more females primarily for their values which are known to be sustainability drivers, and
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(b) using an expanded, multiple-bottom line approach to assess business sustainability as

the firm expands.

A study by John Paul Flaminiano, Jamil Paolo Francisco, (2021) Access to

finance is critical to support the growth of small and medium-sized enterprises (SMEs).

However, lack of access to adequate financing is one of the biggest obstacles that SMEs

face. This paper analyzed the relationship between firm characteristics and credit

constraints among SMEs in the Philippines.

The researchers determined which firm characteristics are correlated to the

prediceted probability of being credit-constrained or “quasiconstrained”—ie, able to

borrow from informal sources. Estimates of marginal effects at the means (MEMs) from

logistic regressions provide some suggestive evidence that increased firm size, previous

purchase of fixed assets, and increased use of digital technologies for accounting and

financial management are associated with a lower predicted probability of being credit-

constrained. The use of digital technologies in accounting and financial management is

also associated with a lower probability of credit constraint in informal financial markets.

A study from Cebu, Philippines by J Anoos, Judy Ann O Ferrater-Gimena,

Jonathan O Etcuban, Aahron M Dinauanao, PJD Macugay, Lolita V Velita, (2020) article

called The Micro, Small, and Medium Enterprises (MSMEs) play a significant role in

developing the Philippine economy by reducing poverty and creating jobs for the

country’s growing labor force. This study aimed to unveil the financial management

practices and challenges confronting the MSMEs in Danao City, Philippines. This

research applied the descriptive correlational research method and conducted among the

MSMEs that are operating in Danao City, Cebu.

The respondents were the 354 owners and employees of MSMEs. They are

chosen using the cluster-sampling technique. This investigation further utilized a

researcher-made survey tool to gather vital information on the profile, financial

management practices, and challenges faced by the MSMEs. Frequency, simple

percentage, weighted mean, Chi-square test of independence, and ANOVA were used to

treat the gathered data.

The study revealed that the financial management system was moderately

practiced. It was concluded that the MSMEs management does not practice the generally

accepted standards on the financial management and control of the business, which poses

some threats on its sustainability considering that their predominant size, the volume of

assets, and revenue earned is low. The researchers strongly recommend that the local

government officials enact city ordinance on the vital role of MSMEs in complying with

the governmental regulations to improve business transactions in regional offices use the

proposed position paper.

Foreign

According to the article of Lewis, (2019) called "Sovereign entrepreneurs:

Cherokee small-business owners and the making of economic sovereignty"

reverberations of economic crisis spread from the United States around the globe. As

corporations across the United States folded, however, small businesses on the Qualla

Boundary of the Eastern Band of Cherokee Indians (EBCI) continued to thrive.

In this rich ethnographic study, Courtney Lewis reveals the critical roles small

businesses such as these play for Indigenous nations. The EBCI has an especially long
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history of incorporated, citizen-owned businesses located on their lands. When many

people think of Indigenous-owned

In the article called "Success versus failure prediction model for small businesses

in Ghana" by Prince Gyimah, Kingsley O Appiah, and Robert N Lussier,( 2020). This

study tests the validity of the Lussier model in predicting success or failure of small

businesses in Ghana, Africa. The study uses logistic regression to analyze 101 failed and

107 successful small businesses. The results of the study support the model validity in

Ghana and three variables (capital, economic timing, and marketing skills) were

significant in predicting small businesses success or failure.

The model also predicted 86.5% of the businesses accurately with a high R-square

value. This study is the first to test the Lussier model in Africa and reinforces the validity

of the Lussier model as a global success or failure prediction model that contributes to

theory and practice. Implications for future and current entrepreneurs; government

agencies that train, advice and assist small business owners; public policy makers;

educators; suppliers; lenders; and consultants are presented.

Since the 1980s, small business owners and entrepreneurs have been receiving

greater recognition as drivers of economic growth. Recently, several studies McKeever,

Anderson, Gem and Jack, (2014) have reported that long-term economic growth and

prosperity require participation from entrepreneurs. Both experts and governmental

authorities opt for fostering entrepreneurship as ‘an appropriate mechanism to face the

impacts of the economic crisis.

Social classes shape entrepreneurial pursuits in that entrepreneurs from lower

social class groups face more resource deficiencies compared to those from higher social
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class groups. In this study, Jian Hua Ge, Joanna Mingxuan Li, Eric Yanfei Zhao, Fan

Yang, (2022) theorize that being resourceful with a particular resource—time—helps

ventures run by lower-class entrepreneurs achieve better performance. However, we

further argue that the extent to which entrepreneurs use time resourcefully is affected by

the cognitive schemas stamped on them by their social class backgrounds.

Our empirical analysis of 8663 Chinese private entrepreneurs between 2006 and 2010

lends robust support to these arguments. By revealing both material and cognitive

constraints stemming from entrepreneurs' socConceptual Framework

ial classes, our study contributes to research on social classes and entrepreneurial

resourcefulness and has important implications for understanding the persistence of

inequality in entrepreneurship.

In the article of Challenges and issues facing ethnic minority small business

owners: The Scottish experience by Md Zillur Rahman, Farid Ullah, Piers Thompson,

(2018). Studies investigating the challenges and barriers faced by ethnic minority
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entrepreneurs have often concentrated on areas where there is a large supportive ethnic

minority community. Less work has been conducted on the experience of those

entrepreneurs operating in cities where such ethnic resources may be less widely

available.

Considered from the perspective of mixed embeddedness framework, this study

uses face-to-face interviews with 25 ethnic minority entrepreneurs to gain a greater

understanding of the constraints experienced by the starting and running businesses in

one such location, the Scottish city of Aberdeen in the United Kingdom. Although issues

found by previous studies such as access to funding remain an issue, the entrepreneurs

indicated problems with access to labour as United Kingdom Border Agency’s

immigration rules and tightening of the Post Study Work visa have had a profound effect

on these entrepreneurs.

The results imply that the weakening of the ethnic resource microsphere has not

opened up opportunities which are exploited by the entrepreneurs, but they have still been

exposed to external forces from the regulatory macrosphere. Both entrepreneurs and

policymakers need to think carefully about the retention, training and recruitment of staff.

In particular, the wider ramifications of immigration rule changes need to be considered,

but also whether entrepreneurs need to be more open to the potential of recruiting non-

ethnic employees and if so what support is required to achieve this.

Figure 1.0 Paradigm of the Study

Figure 1. presents the conceptual framework of the study. It contains of two

variables surviving to thriving as an independent variables and business owners from rags

to riches as an dependent variables.

Figure 1. has 3 variables There's a constant pull for your time.As you grow, so

will your circle of influence. Many more people will be in your world and want some of

your time. They will send social media messages, emails and even texts. If you are like

me, you want to help whenever you can and in whatever way you can. It's very hard to

say "no.''

You battle extreme highs and lows.There's an assumption that once you reach a

certain metric that everything will be peaches and cream, all the time. It could be a

certain money goal or place in your life, but even at that level, you will still experience

lows. That's the reality of life. You will have times when you feel like you're on cloud

nine and times when you don't even want to get out of bed, thinking about all that you

have to do. Learn yourself. Learn your moods and how to address what you're feeling. Be

the master of your emotions.

You have to work even harder. Success doesn't mean you can coast. It means you

might have more responsibility, and that means working harder.

Theoretical Framework

Dragan Z Milosevic, Sabin Srivannaboon, (2016) This study addresses

two aspects of a topic under-researched in the strategic management literature:

the alignment of project management and business strategy. Two areas of this

alignment were studied: (1) The reciprocal influence between project

management and business strategy, which we call the nature of the project

management/business strategy alignment; and (2) the process used to align

project management and business strategy. Then an empirically based

theoretical framework, which highlights the impact of business strategy on project

management—and the impact of project management on business strategy—as

well as the mechanisms used to strengthen these alignments, was developed.

This study expands on the previous, mostly anecdotal work, by using a rigorous

theoretical approach to develop the proposed framework. This framework is

contingent upon the type of business strategy—simple to understand and use—

developed through numerous projects that are typology-free and not restricted to

any particular business strategy typology, through projects that are empirically

based on real-world data.