BUSINESS PERFORMANCE OF MICRO-ENTERPRISES IN NORTHERN MINDANAO, PHILIPPINES: A MULTINOMIAL LOGISTIC REGRESSION ANALYSIS

Abstract

This study investigated the factors that influence the business performance of micro-enterprises in Northern Mindanao. Specifically, it examined the profile, marketing practices, entrepreneurial orientation, access to finance, and business performance of these enterprises. The study used responses from 417 micro-enterprises selected through stratified random sampling from the provinces of Bukidnon, Camiguin, Lanao del Norte, Misamis Occidental and Misamis Oriental. A descriptivecorrelational research design was employed to attain the objectives of the study. More than half of micro-enterprises employed 1-4 employees and undertook their business for not more than five years. Marketing practices are implemented most of the time. Their entrepreneurial orientation was high, access to finance was moderate to great, and their business performance for the last three years was average to good. The aggregate multinomial logistic regression analysis reveals that among the variables used in the study, business age, marketing practices, entrepreneurial orientation, and access to finance significantly influence the business performance of micro-enterprises. The multinomial logistic regression per industry analysis yields a different result. In merchandising industry sector, marketing practices, business age, and access to finance influence substantially business performance. In the service industry sector, entrepreneurial orientation, business age, and access to finance significantly influence business performance.