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A Concept Paper
Presented to the
Undergraduate Faculty of Department of Business Administration
University of San Carlos
Cebu City, Philippines
In Partial Fulfillment
Of the requirement for the Course
Introduction to Social Entrepreneurship (SOEN 1)
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December 2019
ENDORSEMENT SHEET
This Concept paper entitled “Paknana Cue atbp.” prepared and submitted by Alfafara,
Patricia Althea; Allequir, Kristina Mae; Apolinaio, Vert Welman; Autentico, Crystelle
Perre; Bacacao, Karmel Joy; Bacali, Shane Therese; and Bacolod, Bracy Lei in partial
fulfillment of the requirements for the course on INTRODUCTION TO SOCIAL
ENTREPRENEURSHIP has been accepted for ORAL PRESENTATION.
We, Alfafara, Patricia Althea; Allequir, Kristina Mae; Apolinaio, Vert Welman; Autentico,
Crystelle Perre; Bacacao, Karmel Joy; Bacali, Shane Therese; and Bacolod, Bracy Lei ,
here submit our paper entitled “Paknana Cue atbp.” and truthfully declare that the
paper is a product of our original research investigation. To our best knowledge and
belief, it contains no material previously published or written by another person nor
does it include contents that are falsified or fabricated. We also sought permission from
the copyright owner to use text, illustrations and/or framework substantively used in
the paper. I understand that should the University of San Carlos, represented by its
Administrators and Faculty, eventually discover that my attestations herein are not so, I
accept the right of the University to impose the appropriate sanctions including the non-
granting of the degree, if so warranted.
Signed (input date) at the University of San Carlos, Cebu City, Philippines.
Attested by:
The researchers wish to express their most profound gratitude to those whom they are
indebted for the completion of this work.
First and foremost, to the Almighty God, for the blessing the researchers with
wisdom, courage, strength, and teamwork to finish this emotionally and mentally
exhausting work and showering them with blessings that inspired them in one way or
another.
To Dr. Liberato Reyes, MBA their research advisor, for this expertise in guiding the
researchers towards the realization of this study and for this professional assistance in
editing the manuscript,
To their parents for their moral and financial support that brought the researchers
convenience in conducting this study,
And lastly, to the respondents for letting us conduct a survey and for its cooperation
in answering the questions comprehensively and honestly.
TABLE OF CONTENTS
Title Page i
Endorsement Sheet ii
Executive Summary iii
Acknowledgement iv
Table of Content v
List of Tables vi
List of Figures vii
1 Introduction
The rationale of the Study
Profile of the Community
Significance of the Study
2 NEED AND OPPORTUNITY ANALYSIS (NOA)
Overview of Social Problem
Current Trends (PESTEL)
Root Causes
Environmental Landscape
Barriers
Opportunity
3 THE SOCIAL ENTERPRISE
Vision, Mission, Opportunity Statement and Key
Strategies (Theory of Change)
The Logic Model
Social and Economic Impact Indicators (Metrics)
Operating Model
4 The Business Model
5 SUMMARY AND CONCLUSIONS
BIBLIOGRAPHY
APPENDICES
A Transmittal Letter
B Curriculum Vitae of all members
C Photo Gallery
LIST OF TABLES
LIST OF FIGURES
INTRODUCTION
b. Demography
Among the twenty-seven (27) barangays comprising Mandaue City,
Paknaan had the biggest population in 2015 with 26,943. The total population of
Barangay Paknaan accounted for about 7.43 percent of the Mandaue City
population in 2015.
In 2015, the median age of the population of Barangay Paknaan was 24.6
years, which means that half of the population was younger than 24.6 years.
Moreover, almost three in every 10 persons (29.4 percent) were under 15 years
old. Persons aged 20 to 24 years (10.9 percent) comprised the largest age
group, followed closely by those in the age groups of 15 to 19 years (10.7
percent) and 0 to 4 years (10.2 percent). Males outnumbered females in the age
group of 0 to 14
years. On the other hand, there were more females than males in the age groups
15 years and over.
On 2019, barangay Paknaan has increased its population to more than
33,000 wherein, 30% are male and 70% are female in the 7000 households of
their community. From the data of COMELEC in 2018, the total number of
registered voters are 24,129 in which 25% are male and 75% are female.
c. Economic Condition
The residents of barangay Paknaan are mostly employed by the
government and by different private sectors (mostly are factory workers), others
have businesses and others are overseas workers. The rate of employed
workers in barangay Paknaan is 95% while the unemployment rate is 5%.
The economic condition of barangay Paknaan is improving because of its
location which is easy to access and is ideal for business. But the economic
gains made so far are still outweighed by the same old problems like; traffic, lack
of drainage systems which cause flooding, malnutrition, lack of accessible
medical services and the rampant use of drugs in some areas of Paknaan.
Based on the Philippines Statistics Authority (PSA), as of 2015, this is the
dependency ratio of Barangay Paknaan, the young dependents (0 to 14 years)
comprised 29.4 percent of the household population while the old dependents
(65 years and over) posted a share of 3.9 percent. The working-age population
(15 to 64 years) accounted for the remaining 66.8 percent. The overall
dependency ratio was 50, which indicates that for every 100 working-age
population, there were about 50 dependents (44 young dependents and six old
dependents).
d. Education
According to the Philippine Statistics Office (2015), more females had
attained higher levels of education. Of the household population aged five years
and over, 27.8 percent had attended or completed elementary education, 33.4
percent had reached or finished high school, 13.7 percent were college
undergraduates, and 16.9 percent were academic degree holders. Among those
with an academic degree, the females (53.0 percent) outnumbered the males
(47.0 percent). Similarly, more females (55.0 percent) than males (45.0 percent)
had pursued post baccalaureate courses.
Generally, people in Barangay Paknaan are degree holder.
CHAPTER 2
SOCIAL PROBLEM
Social issues are those that concern the society and that are in need of change
in order to address the problems. In barangay Paknaan, the researchers have witnessed
a few disturbances despite the increasing level of performance in the area. These social
problems include (a) informal settling, (b) malnutrition, (b) lack of accessible medical
services, and (c) drug abuse.
The ways of living in barangay Paknaan is mostly the people are employed by
the government and also by different private sectors (mostly are factory workers), others
have businesses and others are overseas workers. The rate of employed workers in
barangay paknaan is 95% while the unemployment rate is 5%.
Based on the Philippines Statistics Authority, as of 2015, this is the dependency
ratio of Barangay Paknaan, the young dependents (0 to 14 years) comprised 29.4
percent of the household population while the old dependents (65 years and over)
posted a share of 3.9 percent. The working-age population (15 to 64 years) accounted
for the remaining 66.8 percent. The overall dependency ratio was 50, which indicates
that for every 100 working-age population, there were about 50 dependents (44 young
dependents and six old dependents).
With a population of 33,000 plus (30% male and 70% female – Registered
Barangay Inhabitants File 2019), the area has been facing continuous problems which
include the unstable measurement of population due to the number of informal settlers
or the number of people that has established housing on land without a legal claim.
According to the information from the barangay statistician, the percentage of the
informal settlers in the area is rapidly increasing through the years and up until recently,
the barangay is still looking for ways to formally and legally settle these people.
Consequently, malnutrition is another common problem in the barangay which is highly
evident in the children of Paknaan. The researchers have noticed the unhealthy
conditions of the children that could be caused by inadequate or unbalanced intake of
nutrients. Thus, at the time when the children get sick, this then would connect to
another social problem, which is the lack of accessible medical services. Every year, the
barangay conducts free check ups and vaccinations for the people. However, the
implementation is not enough to sustain the families since the facilities and services are
lacking. Moreover, drug abuse is also one factor that contributes to the problems of the
locality.
EXTERNAL ENVIRONMENT
PESTEL ANALYSIS
Political environment One factor that impacts the proposed business is the
government policy. Due to the clearing of vendors in
sidewalks, the strategy of the researchers is to sell the
goods by going around the community.
Economic environment The economic growth of barangay Paknaan is improving
because of its location which is ease of access and ideal
for businesses.
Social environment The socio-cultural factors to focus on are population
growth rate, safety emphasis, and health consciousness.
With the following factors, the researchers will provide
cheap but high-quality products to the consumers that
would also contribute to their health and nutrition.
Technological Paknana Cue atbp. is introduced to simple wares to be
environment used for the production of goods.
Environmental The proposed business practices concern for the
environment environment. In contribution to the preservation of the
planet, the goods will be put in a barbeque stick.
Legal environment Factors that impact the proposed business are;
employment laws, consumer protection laws, and health
and safety laws. The business’ ensure that it will not
violate any laws and regulations.
Table 2.1 PESTEL Analysis
CAUSE AND EFFECT DIAGRAM
Population
growth
Social Problem:
Economic vulnerability
Informal settling, malnutrition,
low-paid work lack of accessible medical
services, and drug abuse.
ENVIRONMENTAL LANDSCAPE
Mandaue city is one of the most industrious cities in the country; therefore, it is
expected that the city consists of a lot of manufacturing companies. One of the
barangays that is highly engaged in manufacturing is Paknaan. Examples of which are
CDO, Kings, Shemberg Marketing Corp., Twin-Bee and many more. These institutions,
as part of performing their corporate social responsibility, helps the barangay address
their problems through handling seminars, awareness programs, free vaccinations, free
health treatment, good routines, sponsoring for school events, and donating goods and
services to the citizens. As to when these activities started, it is uncertain. However, it is
a fact that companies and other groups perform such activities at most annually.
The problems faced by the barangay today was already expected to occur due to the
lack of preparation. It was not well-planned and not immediately implemented. However,
according to the barangay Secretary, the locality is currently in action to lessen all these
measures with the help of different institutions. With these problems in line, the proposed
business will help the children as well as the families who also want to engage in the
business for profitability and growth.
As the officials led for the changes in the area, their way of eradicating the social
issues was effective but not efficiently performed. One factor that contributes to this is
the lack of participation of the citizens. If the researchers are to rate (from 1-10) how
effective was their measures, the justifiable rate would be 8. This rate is based on the
implementation of seminars, free medical treatments, awareness programs, and many
more. According to a particular family in the locality, the solutions for such problems
were effective despite a few lapses and inadequacies.
Poverty will always be the source of every social problem. The study of social
entrepreneurship encourages social entrepreneurs to discover opportunity to implement
precise ideas to solve a social problem. The interest in social entrepreneurship
surpasses the phenomenon of popularity and profit maximization. Social
entrepreneurship steers the essence to drive social change and transformational benefit
to society.
their situation.
The Entrepreneur Support Model sells business support services directly to the
entrepreneurs in its target population. This type of Social Enterprise helps entrepreneurs
get their businesses off the ground. Support can come in the form of consulting services,
training micro financing or technical support. Organizations that belong to this category
may include economic development organizations, business development service
organizations and micro financers.
Figure 2.3 The Employment Model
On the other hand, Employment Model is a type of social enterprise that provides
their client with job opportunities and job training. Revenue generated by those job pays
for the Social Enterprise’s expenses and flows back into the services provided for those
in need.
The ultimate purpose of Paknana Cue Atbp is seeking for the balance between
social value and keeping sustainable development to meet the needs of the community
of Paknaan. The neighboring barangays will also benefit in the social enterprise because
these products will be distributed in the whole city of Mandaue and will inspire others to
create their own business as well.
CHAPTER 3
Mission:
Paknana Cue atbp. aims to provide sustainable livelihood for the community.
Vision:
Paknana Cue atbp. envisions to be a leading enterprise in Cebu that provides nutritious
and affordable Filipino snacks to the community by employing people from different
households for the preparation and marketing of the products.
Opportunity Statement:
Paknana Cue atbp. as a social enterprise stands to help not only the family but also the
community surrounding them by selling nutritious Filipino snacks and at the same time
filling the empty stomachs of the neighborhood. This social enterprise is not limited as a
source of income for the family, but it will help them develop more business ideas and
encourage other people to do the same.
Paknana Cue Atbp. Aims to eliminate or lessen various social problems that people
in the community of Paknaan are experiencing. The success of the social enterprise is
measured by determining the following:
1. Can the social enterprise employ more people? Will their employment help
alleviate their families from the poverty line?
2. Does the compensation of employees help them and their families afford a
healthier lifestyle reducing their reliance on canned goods?
3. Is the compensation enough to help the employees’ household save for
educational and medical expenses?
4. Does the social enterprise provide an affordable and healthier choice of snacks
for the people of the community?
Paknana Cue Atbp. uses the entrepreneur-support and market intermediary models.
Force (2017) defines the entrepreneur support model as a social enterprise model that
sells business support services directly to the entrepreneurs in its target population and
employee support model as a type of social enterprise that provides their clients with job
opportunities and job training. Paknana Cue Atbp. Will provide support to the respondent
in starting the business. It will also employ other residents.
CHAPTER 4
As the social enterprise sell nutritious foods, it will help answer the problem to
malnutrition. It aims to meet the maximization of profit, as what a social enterprise
should be and help eradicate the social problems faced by barangay Paknaan.
Furthermore, it aims to develop social transformation in the social and environmental
problem of the community.
A social entrepreneurship focuses on the impact it can do to the society and the
positive outcomes it can generate as operations begin and flourish. Paknana Cue atbp,
with the help of the mindful researchers who aim to see a better community for barangay
Paknaan wishes to be able to do just that. To be an instrument of change and to see a
better Paknaan is their main goal. Someone once said; “One day your life will flash
before your eyes. Make sure it is worth watching” and it is something social
entrepreneurs always remind themselves of, to produce a fruitful social enterprise.
BIBLIOGRAPHY
I understand that I will be part of their concept paper entitled: Paknana Cue
atbp. whose aim it to WRITE THE OBJECTIVES OF YOUR PAPER.
I also understand that the researchers may contact me for more information in
the future.I understand that I was selected to participate in the study because I have the
necessary knowledge and experience which are helpful for the realization of the paper.
My participation in the study is granted freely. I have been informed that participation in
the interviews is entirely voluntary and I can refuse to answer any specific question. I
have been told that my answers to questions will form part of the thesis. This study will
benefit the Labares Household.
I understand that the results of this research will be given to me if I ask for them
and that theresearcher is the person to contact if I have a question about the study or
about my rights as a study participant.
Sincerely yours,
_____________________________________________
Mayor, Municipality of Mandaue
Cebu, Philippines
Date signed:
APPENDIX B
COMMUNITY PROFILING SURVEY QUESTIONNAIRE
APPENDIX C
MAP OF THE RESEARCH INSTRUMENT