Chapter III

Research Methodology

This empirical study investigates the challenges of startup businesses set up during a

period of economic recession by founders who had experienced various spells of unemployment

prior to start-up.

A major challenge in sustainable technology is to evaluate the business opportunities in

the fast-moving innovative global market (Lanza, 2014). The uncertainty or risk is considered as

the main barrier restricting an execution on an identified opportunity. We utilize opportunities as

a method to evaluate the challenges as these are the factors influences the success and failure of a

firm.

The purpose of this study is practical and conducted in order to examine how analysis and

evaluation of the challenges with the help of data can predict the future of an organization

success.

Research Design

This study employed a descriptive-correlational research design using a research-made

survey questionnaire and to determine the challenges encountered among startup businesses.

Descriptive research involves collecting the data in order to test hypothesis or answer questions

concerning the current status of the subject of the study. It is collected in detailed and factual

information to describe the existing phenomena. It allowed the researchers to carefully describe

and understand the behavior. On the other hand, the correlational research is an attempt to

determine whether and to what degree the relationship exists in two quantifiable variables. This

method was designed to look at the relationship between two or more variables.
 According to Jesus (2016), descriptive research involves some type of comparison or

contrast and may attempt to discover a cause-effect relationship that exists between non-

manipulated variables. Descriptive research is devoted to the gathering of information about

prevailing conditions or situations for the purpose of description and interpretation. For the

purpose of this study, descriptive research was used to obtain the challenges encountered by

startup businesses.

Locale of the Study

This study has been conducted in 400 startup businesses around Bacolod City, where the

startup business owners were assessed and evaluated.

Participants of the study

The participants of the study will be the 400 startup business owners coming from various sites

in Bacolod City. The business owners were requested to answer the questionnaire provided by

the researchers and expected to answer each items independently base on their experience and

observation on how the challenges in businesses operation affect the environment.

Sample Size

The sample size of this study were the 400 startup business owners resided in

Bacolod City.

Sampling Techniques

This study used the non-probability sampling technique, which is the quota purposive sampling.

Quota sampling is a sampling technique wherein the sample has the same proportions of

individuals as the entire population with respect to known characteristics, traits or focused
phenomena (Thurman, 2008). The researchers used the above mentioned variables due to the

large population to be researched.

Research Instrument

This study use the standardized survey questionnaire that has been made by the

researchers in gathering data. The Instrument was composed of thirty (30) questions. These

questions have been simplified for the respondents to answer it conveniently and independently

in a short period of time.

Part I – Solicited the respondents profile which includes Name, Status, Age, Sex, Educational

Attainment.

Part II – Conveyed the Challenges Encountered Among Start-up Business in terms of; a.)

Location, b.) Product, c.) Capital, d.) Man Power, e.) Managerial skills and f.) Competition.

Items on the questionnaire, checklist are answerable by the five-point scale.

SCALE

(5) Very High Adequate

(4) High Adequate

(3) Moderate Adequate

(2) Fair Adequate

(1) Poor Adequate

 Validity of Instrument

Validity of a research instrument assesses the extent to which the instrument measures

what is designed to measure (Robson, 2011). It is the degree to which the results are truthful. It

requires research instrument to correctly measure the concepts under the study (Pallant, 2011).

The questionnaire was checked by the two faculty from the College of Business, Management

and Accountancy, one in research and one expert on statistics. It used the five point scale of good

and scates as the basis for validation.

Reliability of the Instrument

To establish the reliability of the instrument, the researcher have conducted an adopted

questionnaire to be answered by four hundred (400) business owners in Bacolod City. The

reliability of the instrument was established through internal consistency using the Cronbach’s

Alpha Method. The reliability test resulted to a score of __ , which accepted as reliable.

Data Gathering Procedure

A random of 400 startup business owners were taken from the ____ record of supported

businesses. All 400 business owners were surveyed using the questionnaire made by the

researchers in accordance to the common challenges faced by an organization. The questionnaire

includes questions that can be answered using the scale provided. Quantitative data collection

methods can be useful in such cases as they often use structured questions that cannot be

changed, translated and reformulated more easily. Having structured questions on research

questionnaire facilitates participants to express freely their answer.

 Data analysis Procedure

The following statistics were used to the analyzed the data:

For Problem 1, the frequency and percentage of the profile of the business owner in terms of age,

sex, educational attainment and marital status.

For problem 2, the level of challenges encountered among start up business in terms of location,

Product, Capital, Manpower, Managerial skills and on Competition, the mean was applied.