Entrepreneurial Activities of First and Second Class Municipalities in Batangas, Philippines

The study aimed to determine the extent of entrepreneurial activities performed by newlyregistered businesses in first and second class municipalities in Batangas Province. Also, this shows if there is significant difference on the assessments of entrepreneurs on the extent of entrepreneurial activities in first and second class municipalities. The study used descriptive research and researcherconstructed questionnaire. Respondents were 363 newly-registered businesses in 11 firstand 5 second-class municipalities in Batangas. Entrepreneurs of first class municipalities perform moderate extent of entrepreneurial activity in terms of enterprising human activity, leveraging creativity, innovation and identifying opportunity, and creation of value. Similarly, entrepreneurs of second class municipalities performed moderate extent of enterprising human activity and leveraging creativity, innovation and identifying opportunity. Meanwhile, they performed high extent of activities which create value. It was found that there was no significant difference on the extent of entrepreneurial activities performed in the first and second-class municipality.


Introduction
It is a common knowledge among entrepreneurs that when it comes to starting a new business, affiliations and money matter. Before launching the business, they research on the target market and analyze feasible products and services. In today's competitive business environment, entrepreneurs give particular attention on what viable and innovative product or service to offer in the market in addition to its strategic location. A variety of features may affect the suitability and non-suitability of location for a business, and the wise entrepreneur may examine these features carefully before deciding to move forward with a venture.
Entrepreneurship is a way of life. Being entrepreneurial means being able to identify, start, and maintain a viable and profitable business, particularly a small enterprise. Further, more entrepreneurial activities signify growth in the location. In addition, entrepreneurial activity is a pillar of economic growth. It boosts the economy and increases local, regional and national competitiveness. Entrepreneurship is considered as the strongest element of the national economy and essential for the continued dynamism of the modern market economy because a higher entry rate of new businesses can foster competition and innovation (Klapper & Love, 2010). The entry of new firms into an economy creates jobs that contribute to the development and economic growth of the private sector. Entrepreneurship is a necessary ingredient for stimulating economic growth and employment opportunities in all societies.
Batangas is known as a first class province and is identified as an industrial growth center in the region. And being the focal point of the Region IVA-CALABARZON, government programs resulted to the increasing number of business establishments in the country's Central Business District (CBD) as well as numerous industries operating at the province's industrial parks. Batangas City, capital of the province, has Business-One-Stop-Shop (BOSS) which assists entrepreneurs to register their business conveniently. Entrepreneurial activities support the growth and improvement not only of businesses, but also of local government unit of cities and municipalities. In Batangas, there are eleven first-class municipalities such as Balayan, Bauan, Calaca, Lemery, Mabini, Nasugbu, Rosario, San Jose, San Juan, San Pascual, and Santo Tomas. In addition, there is five second-municipalities such as Calatagan, Ibaan, Malvar, Padre Garcia and Taysan. These two municipality classes performed and started more number of businesses registered each year, aside from the cities.
The study aimed to determine the extent of the entrepreneurial activities performed by newlyregistered businesses in terms of enterprising human activity, leveraging creativity, innovation and identifying opportunity, and creation of value. Also, it aimed to determine if there was significant difference on the extent of entrepreneurial activities between first-and second-class municipalities. These municipalities were selected due to their potential of business growth next to the three cities in the province. Furthermore, with the findings and potential output of the study, the researcher aims to assist entrepreneurs, local government units and national government agencies by providing necessary and strategic economic and business information and research assistance.

Literature Review
The study used the framework of Ahmad & Seymour (2008), which sets out the definitions of the entrepreneur, entrepreneurship and entrepreneurial activity for the purpose of supporting the development of related indicators. OECD recognized the long history in this area and the contention and differences that have existed, and that continue to exist, between academics who have confronted this issue over the last two centuries. It deliberately adopts a more pragmatic approach based on two principles: relevance and measurability -resulting in definitions that are developed from both a bottom-up and top-down approach. Importantly, the definitions emphasize the dynamic nature of entrepreneurial activity and focus attention on action rather than intentions or supply/demand conditions. Moreover, many definitions have their genesis in a philosophical perspective (top-down approach) with little concern for measurement. This approach continues today, even in policy-oriented papers that discuss a concept of entrepreneurship without attempting to represent or measure it using concretely defined statistics or indicators. Other papers bypass the discussion of entrepreneurship definitions altogether, and simply equate entrepreneurship to a specific empirical measure (bottomup approach). Further, the three determinants of top-down approach are enterprising human activity; leveraging creativity, innovation and identifying opportunity; and creation of value. Hence, the study utilized top-down approach to measure entrepreneurial activity and applied its three determinants. Entrepreneurial activity refers to a set of activities and practices by which individuals at multiple levels autonomously generate and use innovative resource combinations to identify and pursue opportunities. Innovation, autonomy, and opportunities are defining elements of entrepreneurship (Ahmad & Seymour, 2008).
In addition, first-class municipalities refer to the municipalities that are divided into income classification of 55 million or more during the last four fiscal years, and have eight councilors (Republic Act No. 2368Sec 2170. Also, second-class municipalities refer to the municipalities that are divided into income classification of 45 million to less than 55 million during the last four fiscal years, and have eight councilors (Republic Act No. 2368Sec 2170.

Methodology
This study used the descriptive research method. The respondents of the study are the newlyregistered businesses in 2015, primarily the entrepreneurs who processed the actual business registration and other permits, in first and second class municipalities in Batangas Province. The study covered the eleven first class municipalities which include Balayan, Bauan, Calaca, Lemery, Mabini, Nasugbu, Rosario, San Jose, San Juan, San Pascual, and Santo Tomas. The five second class municipalities include Calatagan, Ibaan, Malvar, Padre Garcia, and Taysan. Initially, the study determined the total number of newly-registered businesses in each of the first and second class municipalities and computed the sample size using the Slovin's formula. There are 3,976 newlyregistered businesses in 2015 in two municipalities as reported by DILG-Batangas. With this, a total of 363 newly-registered businesses/entrepreneurs as respondents were computed. Stratified proportional sampling was applied in determining the actual number of newly-registered businesses per municipality as respondent.
The research used a self-constructed instrument in gathering the needed data for the study. It contained the three indicators of entrepreneurial activity in terms of enterprising human activity (5 items); leveraging creativity, innovation and identifying opportunities (9 items); and creation of value (7 items). Gathered data were tabulated, summarized and tallied for analysis and interpretation. In addition, all the entries were rechecked to ensure the precision and consistency of the result. For the first objective, the study used weighted mean to assess the extent of entrepreneurial activities. For the second objective, independent t-test was used to know if there are significant differences between the assessments of respondents on the entrepreneurial activity in first class and second class municipalities.

Results and Discussion
Enterprising Human Activity: This enterprising human action implies indicators of entrepreneurial activity that considers the significance of activity rather than attitudes or intentions. Entrepreneurs create new organizations through a dynamic process that involves such activities as obtaining equipment, establishing production processes, attracting employees and setting up legal entities (Ahmad & Seymour, 2008). Table 1 presents the extent of respondents' entrepreneurial activity in terms of enterprising human activity. Entrepreneurs in first-class municipalities performed moderate extent of enterprising human activity as it scored all indicators with the weighted mean of between 3.22 to 3.44. However, it can be seen from the table that among the determinants, the one that got the highest weighted mean of 3.44 and interpreted as 'moderate extent' was 'Establish the production/operation processes as benchmark from the best in the industry or technically approved by an expert'. The determinants of enterprising human activity in second-class municipalities got weighted mean of between 3.29 (moderate extent) to 3.63 (great extent).
Similarly, entrepreneurs in second-class municipalities found that 'Establish the production/operation processes as benchmark from the best in the industry or technically approved by an expert' gave the highest weighted mean of 3.63 and interpreted as 'great extent'. This reveals that entrepreneurs are really the people who apply energy and passion toward the creation and implementation of new ideas and creative solutions. They understand that organizing process is one of the necessary conditions of entrepreneurship. Since entrepreneurs are new in the business, they probably ensure the development and implementation of most appropriate operation practices in the business. In contrary, Salazar (2015) found out that the micro-entrepreneurs' sustainability of ventures in Batangas indicate that based from the indicators, income diversification appears to have the highest weighted mean and effective planning has the lowest weighted mean.
Other determinant that resulted to high weighted mean was 'Search and compare all tools and equipment before the actual purchase' with a value of 3.40 and interpreted as 'moderate extent' in first-class municipalities. In second-class municipalities, determinant with another high weighted mean was 'Attract, search and hire the most competent employees for them to perform the tasks' with a value of 3.56 and interpreted as 'great extent'. This implies that entrepreneurs tend to possess a number of skills and abilities to succeed when they are searching for materials and people needed in their operations. They may add value through time, effort, money or skills and assume the risks of the competitive marketplace. Since they are new, they tend to search for other possible materials and equipments that can be of use in the business.
Also, shown on the table are the determinants that showed low weighted mean. 'Acquire the most new and innovative materials from a reliable supplier' got a weighted mean value of 3.22 and interpreted as 'moderate extent' in first class municipalities. Perhaps, entrepreneurs are still seeking for more economical materials since they are still start-ups and new and innovative materials may require them additional funds. Guillao (2010) discussed that majority of the SMEs in La Trinidad are in the service industry, relatively young in the business thus, could be considered to be in the startup stage and normally access to capital is normally a challenge.
In addition, 'Ensure legal requirements of my business are complete before the opening' is the determinant that got lowest weighted mean value of 3.29 and interpreted as 'moderate extent' in second class municipalities. Entrepreneurs started operating their businesses as they are also completing business registration requirements as they are allowed by LGUs provided that they initiated to comply with the requirements and finding ways to complete.
Moreover, the composite mean of enterprising human activity were 3.32 in first class municipalities and 3.43 in second class municipalities both having a verbal interpretation of 'moderate extent'. It shows that since respondents just registered their businesses, perhaps they still short of entrepreneurial actions and risk taking and aggressive strategies although they recognized the intention to execute necessary activities needed for the success of their business as compared to those who spent years already with their businesses.
Similarly, according to Seymour (2012) enterprising human action has long been recognized as a key aspect of entrepreneurship. In addition, the study of Parilla (2013) discussed that microentrepreneurs in Ilocos Norte observe moderate level of management practices while small business owners observe high level of management practices. Both micro and small business owners have the capability to handle and manage businesses as revealed by their level in the personal entrepreneurial competencies survey.
Leveraging creativity, innovation and identifying opportunity. Entrepreneurial activity with regards to the leveraging of creativity can be indicated by property rights, research and development expenditures, patent and other intellectual property registrations, and labor market structures. The process of innovation and dynamic capabilities is indicated by education expenditures and outcomes, logistic capabilities, and business advisory networks and market opportunities by access to markets and communications infrastructure (Ahmad & Seymour, 2008). Table 2 presents the extent of the respondents' entrepreneurial activity in terms of leveraging creativity, innovation and identifying opportunity. Similarly, those determinants also got the top three (3) highest weighted mean in second class municipalities. The statement 'Orient my employees to show unique and expert skills' also ranked 1 with a weighted mean of 3.67 and also interpreted as 'great extent. This clearly shows that the entrepreneurs possess capabilities and expertise needed in the operation of their business. Capabilities include their human and social expertise required to leverage firm's resources such as their employees. Moreover, entrepreneurs keep motivated employees. The statement Strategize and monitor the flow of things in my business from the point of origin to the point of sales to meet customer requirements' ranked 2 with a weighted mean of 3.60 in second class municipalities and still interpreted as 'great extent'. It states that entrepreneurs show active involvement in the operation of their new business as a start-up really demands more of time and detailed conscious assessment. 'Develop networks for future access to markets' ranked 3 with a weighted mean value of 3.52 and is interpreted as 'great extent'. Some of the entrepreneurs are creating networks by launching and keeping active social media accounts for they believe with the power and influence of social media in their business nowadays. Stel, Carree & Thurik (2005) found out that entrepreneurial activity by nascent entrepreneurs and owner/managers of young businesses affects economic growth and entrepreneurship plays a different role in countries with different stages of economic development. In contrary, Sarreal (2005)] added that formal assistance, including training and consulting, did not have any significant impact on firm growth due to lack of empirical validation and the government's inability to understand how external factors and constraints impacted firm growth.

The determinants 'Take initiative of intellectual property registration' and 'Have available business card with complete contact information and an attractive signage for my business
Furthermore, the composite mean of this determinant are 3.36 for first class municipalities and 3.25 for second class municipalities in terms of leveraging creativity, innovation and identifying opportunity, and they got the verbal interpretation of 'moderate extent'. It implies that entrepreneurs may blend imaginative and creative thinking with a systematic and logical process ability. This combination is a key to successful innovation. In addition, entrepreneurs probably look for unique opportunities to fill the needs or wants of their customers.
The present study has relation to the study of Gianetti & Simonov (2007) which reported that in social groups where entrepreneurship is more widespread, individuals are more likely to become entrepreneurs and invest more in their own businesses even though their entrepreneurial profits are lower. In contrary, Gomez, Que, Surbano & Tan (2013) revealed that individuals at the bottom of social pyramid employ only a certain extent of economic, environmental, and social sustainable business practices in CALABARZON.
Creation of value. Value cannot be possessed by a thing, it is only acquired the moment the thing appears in public, as "valued things are relative but not absolute" (Seymour, 2012). Table 3 presents the extent of the respondents' entrepreneurial activity in terms of creation of value. The determinants that got the three (3) highest weighted mean were: 'Develop and maintain stable and harmonious relationship with my employees, business partners, suppliers and clients', 'Ensure the productive use of our inputs to produce/render our product/service' and 'Develop and contribute to creative and cultural awareness in our community' in first class municipalities. They got weighted mean values of 3.71, 3.64 and 3.63 respectively, and all were interpreted as 'great extent'. Entrepreneurs possibly believe that maintaining harmonious relationship with their stakeholders will result to business growth. Moreover, entrepreneurs may put value to efficient use of resources. They may constantly monitor the consistency of proportion of input to output. Since they are new, they are still learning for any improvement of the operations. In addition, entrepreneurs may also show visibility in their municipality. They probably participate and support activities of the LGU.
Similarly, the determinants that achieved the highest weighted mean in second class municipalities were: 'Create better jobs as evidenced by the morale of my employees', 'Develop and maintain stable and harmonious relationship with my employees, business partners, suppliers and clients', and 'Develop and contribute to creative and cultural awareness in our community'. They got weighted mean values of 3.63 and 3.60 and were interpreted as 'great extent'. Employees could believe that they are a part of a good management since their employers are paying for their contributions to PhilHealth, SSS and PAG-IBIG.
The statement that obtained the lowest weighted mean is 'Reduce poverty in our community'. It got weighted mean values of 3.51 (great extent) and 3.33 (moderate extent) in first and second class municipalities. This indicator probably got the lowest rank as entrepreneurs assumed that since they just started-up, they still have limited contribution in reducing poverty in their municipality. Others look at the size of their enterprise and since most are classified as micro, they believe that there is really a limitation on the contribution they impart in reducing poverty.
In first class municipalities, the composite mean of the variable was 3.60 in terms of creation of value and interpreted as 'great extent'. In addition, the composite mean in second class municipalities had a value of 3.49 and interpreted as 'moderate extent'. Entrepreneurs' intention is most likely to do valuable things that will be beneficial to them financially, create useful products for their market, and attend to the welfare of employees and the community. The entrepreneurs in first class municipalities may possibly realize that their efforts in businesses are contributing them and the municipality significant success and this is evident in growth of the business in their area.
Further, the study of Ani (2015) proposed inputs to policy which may increase the awareness of local government units of different economies on the simplification of the policies of the different components used in measuring doing business.

Difference on the Extent of Entrepreneurial Activity in First and Second Class Municipalities.
The study further looks at the difference on the assessments of first and second class municipalities on entrepreneurial activity such as enterprising human activity; leveraging creativity, innovation and identifying opportunity; and creation of value. The results are presented on Table 4.
[ It can be noticed that the assessment of entrepreneurs of first and second class municipalities as to enterprising human activity has a computed p-value of .21 that is found not significant at 0.05 level of significance. Thus, the study failed to reject the null hypothesis. These signify that regardless of the municipality that entrepreneurs put up their business, they have same extent of entrepreneurial activity. Probably, the entrepreneurs are still very excited on the generated business idea.
Further, no difference has been shown on the assessment of first and second class municipalities in terms of leveraging creativity, innovation and identifying opportunity. This could further confirmed by means of its p-value of .13 that is found to be not significant at 0.05 level of significance. This implies that entrepreneurs perform same level of entrepreneurial activity.
In addition, as shown on the table, the assessment of entrepreneurs between first and second class municipalities as to creation of value has a computed p-value of .12 that is found not significant at 0.05 level of significance. Thus, the study failed to reject the null hypothesis. These signify that regardless of the municipality that entrepreneurs put up their business, they have similar responses.
The findings is similar to Ani (2017) in which entrepreneurs of first and second class municipalities assessed that there is ease on regulations on starting a business in terms of procedure, time, and cost. Also, entrepreneurs showed no significant differences on their assessment on regulations on starting a business in first and second class municipalities.

Conclusion/Implications
Entrepreneurs of first class municipalities performed moderate extent of entrepreneurial activity in terms of enterprising human activity, leveraging creativity, innovation and identifying opportunity, and creation of value. Also, entrepreneurs of second class municipalities performed moderate extent of two determinants such as enterprising human activity and leveraging creativity, innovation and identifying opportunity. They performed high extent of activities that are creating value.
Entrepreneurs showed no significant differences on the extent of entrepreneurial activities performed in first and second class municipalities.
From the findings and conclusions of the study, the study could disseminate to government agencies such as Department of Trade and Industry-Batangas, Department of Interior and Local Government-Batangas and local government units the significant findings of the study to potential entrepreneurs in the province for information dissemination for the entrepreneurs to be informed on different potential entrepreneurial activities. Local government units may review their existing business regulations in starting a business and enhance through streamlining of procedures when necessary. They could verify their compliance to Business Permit and Licensing System Standards. Doing this, LGUs may encourage more number of new businesses to register in their locality. The increase in entrepreneurial activities may enhance the economic condition of the municipality.