Factors Affecting Entrepreneurial Intention and Behavior among the Indigenous Farming Community in Bun-ayan, Sabangan, Mountain Province

Date

5-2019

Degree

Bachelor of Science in Agribusiness Management

College

College of Economics and Management (CEM)

Adviser/Committee Chair

Jeanette Angeline B. Madamba

Committee Member

Agnes T. Banzon, Normito R. Zapata, Jr., James Roldan S. Reyes, Normito R. Zapata, Jr.

Abstract

With the shift of direction of the Philippine economy towards being an agribusiness- driven sector from agricultural farming, the indigenous people were encouraged to engage themselves through entrepreneurship that would rebuild their community and improve their socio-economic status not only in the field of agriculture, but also in the agribusiness sector due to its increasing importance in the country, as these indigenous people are one of the main players that should be focused on.

The study assessed the factors affecting the entrepreneurial intention and behavior among the indigenous farmers in Bun-ayan, Sabangan, Mountain Province. Hence, this study analyzed the entrepreneurial indicators and predictors through correlation analysis and multiple regression analysis among the seventy-four (74) indigenous farmers who were selected through simple random sampling. The main reason for selecting this study area is the area is devoted to farming and their preservation of indigenous farming practices.

The socio-demographic factors and the farm profile of Bun-ayan’s indigenous farmers were presented. The youngest indigenous farmer is 25 years of age, while the oldest is 91 years of age. The female population (68%) was more dominant in doing agricultural activities while the male population accounts for only 32% of the population. Farming within the indigenous community in Bun-ayan cannot sustain the needs of every member in the household. Among the 74 indigenous farmers, who speak Ilokano and Kankana-ey, sixty-four (64) percent were farm owners. The indigenous farmers in Bun- ayan are cultivating lands that are less than one hectare.

The traditional farming methods of the indigenous people of Bun-ayan still exist to this day and even nowadays, they still practice and maintain their rituals and cultures. The traditional farming methods include tengao, pakde, begnas, and tengao di leppas. However, the majority of the rituals requires the barangay to be closed to visitors and for the community members to go outside. From an entrepreneurial context, this might hinder the opportunities that might come, for instance, when investors or consumers would visit them for negotiation but the prohibition of visitors at a certain time exists. Furthermore, the indigenous farmers were found to have a high willingness to adopt modern farming practices as long as these would not interfere with their culture and rituals.

Through descriptive statistics, the entrepreneurial antecedents were individually analyzed based on the perception of the indigenous farmers. The research found out that the indigenous farmers have a high level of personal attitude towards entrepreneurship, perceived subjective norm, entrepreneurial inclination and entrepreneurial intention which implies that they have the attitude, motivation, aspiration, and willingness to create their own business and engage themselves in entrepreneurship.

Among all the entrepreneurship predictors in this research, age, educational attainment, years in farming, the occupation of the father and mother, entrepreneurial inclination, entrepreneurial role model, entrepreneurial education, personal attitude, subjective norm, and perceived behavioral control were significantly related to entrepreneurial intention. On the other hand, sex, household size, household monthly income, tenure, nature of the farm, location of the farm, farm size, and career goals were found to be insignificantly related to entrepreneurial intention. The level of entrepreneurial intention of the farmers has found to have no relationship with farm characteristics. In addition, it can be concluded that entrepreneurial intention has a positive relationship with socio- demographic factors except for age and years in farming, with the indicators of entrepreneurial inclination and the antecedents of Theory of Planned Behavior. Indeed, the indigenous farmers’ entrepreneurial intention can be said to be due to their characteristics, the motivation they get from others, and the perception of their ability to engage in entrepreneurial behavior.

Among the significant variables extracted from the correlation analysis, the factors that have an effect on the willingness of the indigenous farmers in Bun-ayan to create their own business and venture in entrepreneurial activities are age, father’s occupation, and entrepreneurial inclination. Meanwhile, educational attainment, years in farming, mother’s occupation, the antecedents of entrepreneurial inclination (role model and education), and the antecedents of the Theory of Planned Behavior were found to have no sufficient evidence that these affect entrepreneurial intention.

Age of indigenous farmers significantly but negatively affects the farmer’s willingness to create his/her own business. This implies that for every one year increase in the age of the indigenous farmers, their desire to run their own business would decrease by 0.019, holding the effect of other predictors in the model constant. Moreover, the younger indigenous farmers have greater willingness to become self-employed; while as the indigenous farmers get older, their intention to do business decreases. The father’s occupation showed a significant and positive relationship on the intention of indigenous farmers towards entrepreneurship with a value of coefficient 0.33 for the ‘deceased’ variable, and 0.53 for the ‘occupation other than agriculture and entrepreneurship’. Entrepreneurial inclination also showed a significant and positive effect on the desire of the indigenous farmers to participate in entrepreneurial activities, a one level increase on the inclination of the farmers brought by their vision of owning a business, their intention towards entrepreneurship increases by 0.61, holding the effect of other predictors in the model constant. This indicates that the occupation of the father motivates the indigenous farmer to venture in entrepreneurship. Since the indigenous farmers were already inclined to entrepreneurship, this will inevitably lead to their desire and willingness to engage in entrepreneurial behavior.

Furthermore, this study concluded that socio-demographic factors and entrepreneurial inclination are enough to determine the intention of the indigenous farmers to engage themselves in entrepreneurial activities. The Theory of Planned Behavior becomes insignificant when other predictors are incorporated with it. Since this is a study that contributes to the extant literature, further improvement of the measurement of the level of entrepreneurship intention should be employed to intensively determine the will of an individual to engage in entrepreneurship.

Language

English

LC Subject

Indegenous labor, Entrepreneurship--Economic aspects

Location

UPLB College of Economics and Management (CEM)

Call Number

LG 993 2019 M17 C36

Notes

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Document Type

Thesis

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