Development of entrepreneurial management framework for sustainability of multipurpose cooperatives in the province of Marinduque / Verna Liza L. Capiña. 6

Thesis (Ph.D.)-- Pamantasan ng Lungsod ng Maynila, 2014.;A dissertation presented to the Graduate School of Management, Pamantasan ng Lungsod ng Maynila, in partial fulfillment of the requirements for the degree Doctor of Business Administration. 56

5

ABSTRACT: The study aimed to evaluate the level of performance of the multipurpose cooperatives in the Province of Marinduque as contributors to local economic development including the entrepreneurial management competencies of the key players in order to come up with an entrepreneurial management framework to survive and sustain the growth of multipurpose cooperative (MPCs) in the province. Specifically, it sought answers to the following questions: 1.

What is the profile of the multipurpose cooperatives in the Province of Marinduque with regard to: 1.1

Entity: capitalization, nature of business, years in operation, financial component, scope of operations, and number of members; 1.2

Key players: educational attainment, work experience, trainings attended, and tenure of membership? 2.

How do the respondents evaluate the level of performance of the multipurpose cooperatives in terms of: 2.1

Contribution of entity to economic development: employment generation, capital formation, revenue generation, and community involvement; 2.2

Entrepreneurial management competencies of key players: strategic awareness, leadership, communicating, task orientation, and members focus? 3.

Is there a significant difference in the average opinion of the respondents about the cooperative's level of performance in terms of economic development and the entrepreneurial management competencies as cited in Problem No. 2 when grouped according to the profile of the multipurpose cooperatives? 4.

What are the multipurpose cooperatives' potentials and opportunities that would help enhance and sustain their performance? 6.

What entrepreneurial management framework can be developed to enhance the performance of the multipurpose cooperatives in the province of Marinduque? This study utilized the descriptive method of research. It was conducted in Marinduque, one of the island provinces in the MIMAROPA Region. The study is both quantitative and qualitative in nature. A total of nineteen (19) multipurpose cooperatives participated in this study. Purposive type of non probability sampling test was used in the selection of subject cooperative entities. The key informants or individual participants from the operating multipurpose cooperatives were represented by the key players composed of the executive officers (Board of Directors and manager), and the employees. The members were also asked to give their individual assessments considering that they are the ones directly benefitted or adversely affected by the performance outcome of the cooperatives. Proportional allocation sampling technique was used to compute for the sample size for members from each of the participant cooperative. To determine the level of performance of the cooperatives, the questionnaire instrument was used coupled with personal interviews, ocular visit and actual observation of the cooperatives' operations, and intensive documentary analysis. While in establishing the financial profile and performance of the cooperatives, the Profitability, Institutional Strength, Structure of Assets, and Operational Strength (PISO) Instrument of the Cooperative Development Authority was adopted and applied. Interviews were also conducted with the Barangay Chairman of the localities where the cooperatives are situated to determine their opinions as to the economic contributions of the cooperatives to the community. The study found out that the poor financial performance of the multipurpose cooperatives resulting from poor financial management exhibited by the key players made the cooperatives become susceptible to losses and risks of possible failure. Also, market has become limited as a result of the stiff competition among the MPCs with similar nature of business and target market. Likewise, sources of capital have been restricted because of limited number and quality of members. It was further found out that there is unavailability of a concrete guide and an appropriate approach that will give direction to the cooperatives' management in their daily business undertakings that will subsequently promote both social empowerment and economic goals. Yet in spite of the aforementioned, the MPCs have shown capacity to contribute to the economic development of the local communities in terms of employment and revenue generation, community development, and capital formation of the members. The current level of competencies of the key players in entrepreneurial management also affirms their potentials to improve and develop further given deliberate intensive trainings and viable institutional interventions. Further, the MPCs are endowed with great arrays of opportunities to take advantage of that will help them enhance and sustain their business operations, thus, they have the potential to grow. Also, their capacity to exist for five years and beyond is a manifestation of their pursuit to stay in the industry amid difficulties that constantly defy the cooperatives' full capacity to grow. Based on the foregoing, the following were recommended: 1)The multipurpose cooperative (MPCs) in the Province of Marinduque, with intervention from CDA, should strengthen and professionalize their financial and auditing systems; 2)The CDA should encourage the MPCs to engage in merger or consolidation; 3)The CDA should strengthen the capabilities of both cooperative sector and Marinduque Union of Cooperatives through the establishment of an enhanced and continuing non-formal education programs, with interventions from Marinduque State College and collaborations with concerned government agencies in the province. The programs should be directed toward improving members' understanding about the true nature and purposes of a cooperative enterprise, and improving the overall entrepreneurial and financial amangement capabilities of managers, key personnel, and directors of the cooperatives; 4)The CDA, in collaboration with the Marinduque State College, the Marinduque Union of Cooperatives, and concerned government and non-government agencies, should establish a Center for Research and Cooperative Development steadfast to Cooperatives Promotion in the Province of Marinduque; 5)The MPCs should expand the scope of cooperative business through new products and market diversification; and 6)The CDA, in collaboration with the Marinduque State College and other concerned government and non-government agencies, should initiate the development of a framework for growth and sustainability, and strictly implement its adoption by the cooperatives. The study further forwards the adoption and firm implementation of the proposed Entrepreneurial Management Framework which will not only promote growth and sustainability in the multipurpose cooperatives in the Province of Marinduque but would endeavor as well towards a sustainable and competitive cooperative industry.

5