Introduction • Adversities are part of our everyday life, and does happen unexpectedly – Has three levels: • Societal • Workplace, and • Individual • Most papers on entrepreneurship deal with processes • Papers on the entrepreneurs are scant • The researcher attempts to answer how adversity plays a significant role in modeling a successful entrepreneur and its effects on the budding entrepreneur set in the Philippine context
The Problem • How does adversity play a significant role in modelling a successful entrepreneur and its effects on the budding entrepreneur set in the Philippine context? • Stoltz’ Adversity Quotient theory has been tested and validated for several years already across the globe.
Review of RelatedLiterature ‘Great Person’ schoolEntrepreneurship Classical and Intrapreneurship Neoclassical Economics Entrepreneurship Management Psychological Sociological
Review of Related LiteratureEntrepreneurship • There is “[no] universal theory on entrepreneurship because of different assumptions of various disciplines and the difficulty of explaining and predicting the behavior of entrepreneurs” » Virtranen, “The Role of Different Theories in Explaining Entrepreneurship”
Review of Related LiteratureEntrepreneurship Criss, Pettit, Bates, Shepherd Hayes Fr John J. Caroll, SJ Dodge and Lapp • Learning is not • Strong need for • Overall • Relationship automatic and having acceptance of between depends in grief psychological peers and entrepreneurship and grief perspective on extensivity of and factors such recovery economic network as educational behavior of contribute to attainment, entrepreneurs resilience proximity to cities, and exposure to influence of foreign companies
Review of Related LiteratureEntrepreneurship Levine and Jack Schuster Brooks D. Kitch Greene • Clarity of • Contends • Notes the • Focusing on purpose is findings of characteristics adversity "can highly Levine and of US General impede desirable for Greene Ulysses S. growth, stifle institutions • Focused Grant as he self-reflection, searching for mission went on to inhibit opportunities statements become one innovation, provide "no of the most and invite more than a influential internal partial figures despite dissension." remedy, and adversities probably not the most critical part at that."
Review of Related LiteratureSystems Analysis and Thinking Theory of Frantzen Patel Senge Constraints • Used a superset • Importance of • An assumption • Author puts model approach Personal Critical that every system forward the idea that recognizes Framework or has at least one that systems are “the constant PCF constraint inevitably factors that allow • Reflection on limiting it from incomprehensible for the creation knowledge and getting more of and the earlier of a superset of practice as what it strives for. one realizes this, activities that can important tools If this were not the better one be gathered for the function true, then the can sift through together in a of Information system would complex systems process model systems design produce infinite and used as a output generic model of the development process.”
Review of Related LiteratureSystems Analysis and Thinking McNamara Silver Sterman Shelly • viewing systems as • System • Author writes on • Designing systems interrelated parts development has advanced topics in are composed of (i.e. viewing a five phases: modeling in a five phases: company as having • Planning business • Planning interrelated • Analysis environment • Analysis connections and perspective • Design • Design relationships among its divisions) • Development • Implementation give managers a • Implementation • Operation and superior Support perspective • Integrates Operations Management tools such as PERT and CPM in system development
The Theoretical FrameworkThe Adversity Quotient• Authored by Dr. Paul Stoltz, a result of 19 years of rigorous research• Stoltz puts forward that by improving response to adversity vis-à-vis understanding, measuring, and raising one’s AQ, one can improve his ability to overcome it and persevere in the long run.
The Theoretical FrameworkThe Adversity Quotient• He furthers the idea that a person’s success in his work and in life is largely determined by his own AQ by: – telling how well one can withstand adversity and his ability to surmount it; – predicting who will overcome adversity and who will be crushed; – predicting who will exceed expectations of their performance and potential and who will fall short; and – predicting who will give up and who will prevail.
The Theoretical FrameworkThe Adversity Quotient• Stoltz writes that AQ takes three forms: Cognitive – First, it is a new conceptual framework for Psychology understanding and enhancing all facets of success as it redefines what it takes to succeed. – Second, how one responds to adversity can be measured, understood and changed. – Lastly, it is a scientifically-grounded set of tools for improving how to respond to adversity while Neurophysiology looking into the personal and professional effectiveness as a result• AQ can be learned and is formed through AQ influences of parents, teachers, peers, among others, during childhood• There is a dearth of literature focusing on the entrepreneurs, and even less on the theory’s Psychoneuroimm applicability to Philippine context unology
The Theoretical FrameworkFramework for Analysis • A system is – any organized collection of parts united by prescribed interactions and designed for the accomplishment of specific goals or general purposes. • Systems theory views an organization as a complex set of dynamically intertwined and interconnected elements • Systems theorists see organizations as always- changing processes of interactions among organizational and environmental elements
The Theoretical FrameworkFramework for Analysis • Reasearcher will adopt Robert Wiener’s model of an organization, from the book Cybernetics – actions by the system or organization cause change in the system’s environment, and that change is communicated back to the system, consequently allowing the system to change its behavior
The Theoretical FrameworkFramework for Analysis INPUT PROCESS OUTPUT Adversities Adversity Success [Societal] Quotient Growth in [Workplace] Revenues [Individual] Net Income Other Total Assets Factors Net Worth Failure Re- evaluation
The Design Methods and ProceduresResearch Design • Measure success of entrepreneur in terms of growth in following: Survey • Sales revenue, Net Income, Total Assets, and ROI of the business(es) • Stoltz’ AQ Measurement Instrument • Case study of three to four entrepreneurs • Possible selection criteria: • Size of business • Number of years as an entrepreneur • Age bracket Interviews • Geographical location • Gender • Educational attainment and/or special training • Form and amount of capitalization and/or support system during business start-up
Results and AnalysisAmount of Increase in AQCapitalization Correlation Coefficient -.433* Sig. (2-tailed) 0.12 N 0.33Assets Correlation Coefficient -.187 Sig. (2-tailed) 0.298 N 33 At 95% confidence level,Revenues Correlation Coefficient -.264 there is a moderate negative Sig. (2-tailed) 0.132 correlation between the N 34 increase in capitalization, NetNet Income Correlation Coefficient -.377* Sig. (2-tailed) 0.031 income, and ROI and AQ N 33Return on Investment Correlation Coefficient -.385* Sig. (2-tailed) 0.27 N 33Market Share Correlation Coefficient -.181 Sig. (2-tailed) 0.314 N 33
Conclusion • Based on initial results: – Moderate correlation between Adversity Quotient (AQ) and performance of the business or businesses an entrepreneur owns and manages. – entrepreneurs with low adversity quotients tend to have businesses with lower growth in capitalization, net income and return on investment .
Conclusion • As it is hypothesized, increase in capitalization, assets, revenues, net income, return on investments, and market share have a very strong positive correlation among each other, and is significant at the 0.01 level. This may indicate that a business that has increase in capitalization may also have increase in other success indicators.
Educational Significance • JG School of Management – Declared as Center of Excellence in Entrepreneurship by Philippines’ Commission on Higher Education – Requires our students to set up a business venture project • in teams, • formulate their business concept, • business model and strategies and • implement their business plans within the school year.