Risks in Operating a Micro Enterprise in Davao City

Seminar paper from the year 2018 in the subject Business economics - Business Management, Corporate Governance, University of Mindanao (Research Center), language: English, abstract: This study was conducted to identify the risk constructs and to determine the level of extracted risks in operating a micro enterprise in Davao City. A modified survey questionnaire was distributed to 104 respondents. The respondents of the study were the micro entrepreneurs who are in the business for the last three years operating within the area of Davao City. The study used quantitative exploratory research using exploratory factor analysis and Kaiser-meyer-olkin to determine the factors and the level of per extracted risks that were critical to the micro entrepreneurs in operating a micro enterprise. The results revealed that among the four risk factors perceived by micro entrepreneurs, only financial risk was considered the factor that greatly affect the operation of a micro enterprise. Furthermore, the study revealed that variables such as income, business type and type of business ownership were considered sensitive in operating a micro enterprise. The study is beneficial to the micro enterprise owners since it would give them a better understanding as to which factors are more significant to them. This would also enable them to prepare and protect their businesses from risks in order to survive the industry.