Ownership experience: its relevance to Philippine micro and small entrepreneurs

This study primarily investigated whether facets of an entrepreneur's human capital predict their ability to identify and eventually pursue an entrepreneurial opportunity. Based on a survey of 390 Philippine micro and small entrepreneurs, through a personally administered questionnaire, this study also probed on the reasons, which led them to business ownership. The regression results suggest that ownership experience is positively related to both entrepreneur's identification and eventual pursuit of such entrepreneurial opportunity. Moreover, the identification of entrepreneurial opportunity is positively driven by the entrepreneur's social welfare motive yet negatively related to an entrepreneur's financial motive. However, results showed that financial motive was the foremost reason that led them to business ownership. Finally, the findings of this study suggest that in economies where resources are limited, entrepreneurial programs may focus more on those with higher ownership experience as they can translate opportunities to actual business.