Chapter 1

THE PROBLEM AND ITS BACKGROUND

Introduction

Entrepreneurship has emerged as a significant driver of economic

growth, job creation, and innovation in many countries. In the Philippines,

promoting entrepreneurship has become a priority for the government, as it

offers a promising pathway towards reducing poverty and unemployment

rates. As a result, technical-vocational and livelihood (TVL) education

programs have gained attention as a means to equip learners with the

necessary skills and competencies to become successful entrepreneurs.

TVL education, which includes various vocational courses and training

programs, aims to provide learners with practical skills and knowledge

relevant to their chosen field. These programs focus on developing technical

expertise and industry-specific competencies to enhance employability and

entrepreneurial potential among individuals (TESDA, 2021). However, there is

a need to explore and understand the specific entrepreneurial skills,

competencies, and capabilities that TVL learners possess and the factors that

influence their success in entrepreneurship.

Entrepreneurial skills hold immense importance for individuals seeking

comprehensive success in the business world. This article aims to shed light

on the significance of entrepreneurial skills and their impact on

entrepreneurial performance. By drawing from four to five published journal

articles, this paper will provide a comprehensive exploration of

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entrepreneurial skills, showcasing their importance and relevance in today's

business landscape (Berglund, 2016).

In order to effectively navigate through the entrepreneurial landscape,

it is important to identify the essential skills, competencies, and capabilities

that contribute to entrepreneurial success among TVL learners. By doing so,

educational institutions and policymakers can design and implement targeted

interventions and programs to further enhance the entrepreneurial ecosystem

within the TVL sector.

Background of the Study

In today's rapidly changing and competitive global economy,

entrepreneurship plays a significant role in driving innovation, job creation,

and economic growth. Recognizing the importance of nurturing

entrepreneurial mindsets and fostering entrepreneurial skills among

individuals, educational institutions have started placing greater emphasis on

entrepreneurship education. Technical-Vocational and Livelihood (TVL)

learners, particularly, need to be equipped with not only technical skills but

also entrepreneurial competencies and capabilities to increase their chances

of success in the evolving job market (Smith and Johnson, 2018).

Entrepreneurial skills, comprising a combination of knowledge,

attitudes, and behaviors that enable individuals to identify and exploit

entrepreneurial opportunities, are recognized as vital assets for TVL learners.

These skills involve critical thinking, problem-solving, decision-making,

creativity, and risk-taking. The development of these skills among TVL

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learners can significantly enhance their ability to start their own businesses,

become self-employed, or contribute effectively to the growth of existing

enterprises.

This research aims to delve further into the entrepreneurial skill,

competencies, and capabilities of TVL learners, with a focus on their

navigation through the entrepreneurial landscape. By exploring the unique

challenges and opportunities faced by TVL learners within the context of

entrepreneurship, this study will contribute to a more comprehensive

understanding of their entrepreneurial development.

Theoretical Framework

Human Capital Theory

Human capital theory (HCT) is based on research in economics and

has served as a driving force behind education policy and reform (Holborow

2018). Economists view human capital as the human capabilities that workers

have learned, which enable them to be productive. Galunic and Anderson

(2000) define capital as the “know-how, information, relationships, and

general relationships, and general capabilities that individuals bring to bear on

behalf of the firm through the employment relation” (p. 3).

Marx (1990 as cited in Aziz 2015) argued labor itself is not capital, but

rather, the workers’ ability to use their capital in labor for production amounted

to capital. Human capital includes an individual’s productivity at the

microeconomic and macroeconomic aggregate production levels (Fuente and

Ciccone 2002). Human capital is possessed by the worker and not owned by
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the organization, and workers rent their capital (Ehrenberg and Smith 1997;

Armstrong and Baron 2007). The primary outcome of investing in people at

the individual level is improved performance and at the organizational level,

improved productivity, and profitability that benefits the entire society

(Nafukho et al. 2004).

Since the most valuable resource within knowledge economies is

human capital (Buta 2015), it would be wise to mobilize and translate human

resources into human capital. This is the purpose of Human Resource

Development (HRD), which is using organization development and personnel

training to develop human expertise to improve performance (Swanson and

Holton 2001). HRD “is based on the beliefs that organizations are human-

made entities that rely on human expertise in order to establish and achieve

their goals and that HRD professionals are advocates of individual and group,

work processes and organizational integrity” (Hassan 2007 p. 436). The HRD

approach to the development of human capital includes training and

development, career development, and organization development to invest in

its people (Vinesh 2014). Achoui (2009) suggests that the fundamental

challenge of human resource development is to attain an accord between the

content of education and the rapidly changing market requirements.

This theory proposes that individuals' education and skills development

contribute to their economic productivity and overall well-being. In the context

of TVL learners, this theory suggests that by acquiring relevant technical skills

and knowledge through vocational education, individuals enhance their

human capital, which can be utilized in entrepreneurial endeavors.

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Motivation and Social Cognitive Theory

Social cognitive theory is a psychological perspective on human

functioning that emphasizes the critical role played by the social environment

on motivation, learning, and self-regulation (Schunk & Usher, 2019). Because

there are different social cognitive theoretical perspectives, to focus this

article the discussion is limited to the social cognitive theory proposed by

Bandura (2001). This theory has seen wide applicability within psychological

disciplines, as well as in other fields such as education, business, and health.

The theory’s predictions have been tested in many research studies in

diverse contexts. Although the terms “social cognitive theory,” “Bandura’s

theory,” and “Bandura’s social cognitive theory” are used in this article, there

are other persons who have helped develop, test, and expand the theory in

significant ways including Zimmerman, Schunk, Pajares, and Usher.

Bandura’s social cognitive theory has much to offer to the field of

motivation. The theory predicts that motivation is internal comprising such

processes as self-efficacy, social comparisons, goals, outcome expectations,

values, and attributions. The theory also predicts that motivational processes

bear a reciprocal relation to behavioral, environmental, and self-regulatory

processes, and researchers have found support for these predictions

(Maddux & Kleiman, 2018; Schunk & Usher, 2019; Usher & Schunk, 2018).

Another comprehensive philosophical and educational theory that can

be applied to the entrepreneurial skills of TVL learners is the Social Cognitive

Theory (SCT). This theory, proposed by Bandura, emphasizes the importance

of observational learning and self-efficacy in individuals' skill development.

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According to SCT, TVL learners can enhance their entrepreneurial skills by

observing successful entrepreneurs, engaging in hands-on experiences, and

developing a belief in their own abilities to succeed as entrepreneurs.

Constructivist Theory

Constructivism is an approach to learning that holds that people

actively construct or make their own knowledge and that reality is determined

by the experiences of the learner’ (Elliott 2020). Constructivism is the theory

of knowledge which argues that humans generate interaction between their

experiences and their ideas. The essential core of constructivism is that

learners actively construct their own knowledge and meaning from their

experiences (Fosnot, 2016). Philosophically this core focuses on

subjectiveness and relativism. However, the concept that denotes reality may

exist separate from experiences. It can only be known thought experience

resulting in a personally unique reality. This core has roots that extend back

through many years and many philosophers like John Dewey.

Constructivist learning theories are based on the notion that “people

learn best through personally meaningful experiences that enable them to

connect new knowledge to what they already believe or understand” (Dashari

[Link], 2023). Learners reshape knowledge through the filters of their own real-

life experiences and values. Instructors on the other hand teach best by

supporting learners to find meaning in the newly acquired concepts through

the use of questions. To do this several strategies are usually followed. One

of which is group study and peer-to-peer evaluation.

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Constructivism is a philosophical and educational theory that can also

be relevant to the entrepreneurial skills of TVL learners. Constructivist theory,

rooted in Piaget's work, posits that learners actively construct their knowledge

and understanding through their experiences and interactions with the

environment. Applied to entrepreneurship, this theory suggests that TVL

learners can enhance their entrepreneurial skills by engaging in hands-on,

experiential learning activities that allow them to actively construct their

knowledge and understanding of the entrepreneurial process.

These three broad philosophical and educational theories provide

different lenses through which to understand and enhance the entrepreneurial

skills of TVL learners. The Human Capital Theory emphasizes the importance

of vocational education in enhancing individuals' human capital, while the

Social Cognitive Theory highlights the role of observational learning and self-

efficacy. Lastly, the Constructivism theory underscores the significance of

experiential and active learning in developing entrepreneurial skills.

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Conceptual Framework

The conceptual framework of this study is presented in the figure

below.

Independent Variable Dependent Variables

Learning Competencies
TVL Learners’ Entrepreneurial  Attitude
Skills  Knowledge
 Entrepreneurial Skills  Skills
 Customer Focus
 Financial Literacy Entrepreneurial Capabilities
 Communication Skills  Networking
 Tech Savvy  Marketing
 Innovative Thinking  Opportunity Recognition
 Work Standard

Figure 1. Research Paradigm

Figure 1 shows the research paradigm of the study, Frame 1 is

composed of independent variables that includes TVL learners’

entrepreneurial skills such as customer focus, financial literacy,

communication skills, tech savvy, and innovative thinking skills. On the other

hand, Frame 2 represents dependent variables which consists of the learning

competencies and the entrepreneurial capabilities such as attitude,

knowledge, and skills, networking, marketing, opportunity recognition and

work standard respectively.

Statement of the Problem

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This study aims to determine the relationship of entrepreneurial skills,

competencies and capabilities to technical-vocational and livelihood learners

at Magdalena Integrated National High School, Magdalena Sub-Office.

Specifically, it seeks to answer the following questions:

1. What is level of TVL learners’ entrepreneurial skills in terms of:

1.1. consumer focus;

1.2. financial literacy;

1.3. communication skills;

1.4. tech savvy; and

1.5. innovative thinking?

2. What is level of learning competencies of the TVL learners’ as to:

2.1 attitude;

2.2 knowledge; and

2.3 skills?

3. What is level of entrepreneurial capabilities of TVL learns referring to:

3.1 networking;

3.2 marketing;

3.3 opportunity recognition; and

3.4 work standard?

4. Is there a significant relationship between the TVL learners’

entrepreneurial skills and learning competencies?

5. Is there a significant relationship between the TVL learners’

entrepreneurial skills and capabilities?

Research Hypothesis
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In accordance with the research paradigm of the study, the research

hypothesis stated the following:

1. There is no significant relationship between the TVL learners’

entrepreneurial skills and learning competencies.

2. The is no significant relationship between the level of TVL learners’

entrepreneurial skills and the entrepreneurial capabilities.

Significance of the Study

The outcomes of this study will be most beneficial specifically to the

following:

Learners. The study will provide technical-vocational and livelihood learners

with insights into the entrepreneurial skills, competencies, and capabilities

they need to develop. It can help them understand the specific

entrepreneurial characteristics they should cultivate and equip themselves

with to succeed in their chosen fields. This knowledge will better prepare

them for the challenges and opportunities they may encounter in the ever-

changing job market, enabling them to become more competitive and self-

reliant.

Teachers. The study's findings can help teachers gain a deeper

understanding of the specific entrepreneurial skills, competencies, and

capabilities that they should focus on developing in their technical-vocational

and livelihood learners. It can provide them with guidance on the pedagogical

approaches, teaching methods, and resources necessary to effectively impart

these skills and capabilities. Ultimately, this will enhance the quality of
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education provided to students and enable teachers to better prepare them

for the demands of the entrepreneurial world.

School Administrators. The study can assist school administrators in

designing and implementing effective policies, programs, and initiatives aimed

at fostering entrepreneurial skills, competencies, and capabilities among

technical-vocational and livelihood learners. It can provide valuable insights

into developing a supportive ecosystem that encourages entrepreneurship

within educational institutions and create linkages with relevant industries and

communities. This can significantly enhance the educational experience and

outcomes for learners and contribute to their future success.

Curriculum Planner. The study's findings can inform curriculum planners

about the essential entrepreneurial skills, competencies, and capabilities that

should be integrated into technical-vocational and livelihood education

programs. This information can aid in the development or revision of relevant

curricula, ensuring that learners receive a comprehensive and up-to-date

education that aligns with the demands of the entrepreneurial world. As a

result, learners can acquire the necessary knowledge and skills to thrive in

their chosen fields and drive economic growth.

Policy Maker. The study can provide policy makers with evidence-based

insights into the specific entrepreneurial skills, competencies, and capabilities

that technical-vocational and livelihood learners need to succeed in the

dynamic labor market. This knowledge can help inform policies and initiatives

aimed at supporting entrepreneurship education, including funding allocation,

curriculum development, teacher training, and collaboration with industry

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stakeholders. By aligning policy interventions with research findings, policy

makers can create an enabling environment that facilitates the development

of entrepreneurs, contributing to economic growth and job creation.

Future Researcher(s). The study can serve as a valuable reference for

future researchers interested in exploring the topic of entrepreneurial skills,

competencies, and capabilities among technical-vocational and livelihood

learners. It can provide a foundation for further studies, allowing researchers

to build upon the existing knowledge and delve deeper into specific aspects of

entrepreneurship education. The study's findings can also inspire new

research questions and hypotheses to advance the understanding of how

entrepreneurship education can better serve technical-vocational and

livelihood learners in different contexts.

Scope and Limitation of the Study

This study will examine the relationship between entrepreneurial skills,

entrepreneurial competencies, and capabilities to technical-vocational and

livelihood learners at Magdalena Integrated National High School, Magdalena

Sub-Office in the Schools Division Office of Laguna for the School Year 2023-

2024. The study will include enrolled technical-vocational and livelihood

learners of MINHS and will serve as the respondents of the study. The

rationale for selecting the technical-vocational and livelihood learners is to

strengthen the reliability of the findings of this study.

Definition of Terms
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To establish a common frame between the researcher and the reader

and to provide consistency as well as for the better clarification and

understanding of the terminologies related to the study, the following terms

were defined conceptually and operationally.

Attitude. It refers to the individual's overall disposition, beliefs, and

feelings towards entrepreneurship, which may encompass positive attributes

such as passion, persistence, risk-taking, and adaptability.

Communication Skills. Generally referred to the ability of technical-

vocational and livelihood learners to effectively convey information, ideas, and

thoughts through verbal, non-verbal, and written means, while also

demonstrating active listening and comprehension skills.

Consumer Focusing. Referring to the entrepreneur's understanding

of and ability to meet the needs and expectations of their target consumer or

market, including identifying consumer preferences, understanding market

trends, and delivering products or services that cater to consumer demands.

Entrepreneurial Capabilities. It refers to the combination of skills,

knowledge, attitudes, and behaviors possessed by technical-vocational and

livelihood learners that enable them to successfully identify, create, and seize

entrepreneurial opportunities, while also managing risks and adapting to the

changing business environment.

Entrepreneurial Skills. Referred to the specific competencies and

abilities required by technical-vocational and livelihood learners in order to

effectively start, manage, and grow a business venture. These skills may
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include problem-solving, decision-making, financial management, leadership,

teamwork, resource allocation, and strategic planning.

Financial Literacy. It refers to the understanding and knowledge of

financial concepts and practices, including budgeting, cash flow management,

investment strategies, risk assessment, profit and loss analysis, and financial

decision-making. Technical-vocational and livelihood learners with financial

literacy are able to make informed financial choices and manage their

personal and business finances effectively.

Innovative Thinking. Referring to the ability of technical-vocational

and livelihood learners to generate creative and original ideas, approaches,

and solutions to problems, challenges, or opportunities, while also

demonstrating a willingness to experiment, embrace change, and adapt to

technological advancements.

Knowledge. It refers to the accumulation and understanding of

information, facts, concepts, theories, and principles relevant to

entrepreneurship, acquired through formal education, training, work

experiences, or self-directed learning.

Learning Competencies. Referring to the specific knowledge, skills,

attitudes, and values that technical-vocational and livelihood learners are

expected to acquire and demonstrate in order to achieve the desired learning

outcomes related to entrepreneurship. These competencies may vary based

on the specific training or educational program.

Marketing. Referred to the process of identifying, anticipating, and

satisfying customer needs and wants through the creation, promotion, and
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distribution of products, services, or ideas. This includes market research,

segmentation, targeting, branding, pricing, promotion, and communication

strategies.

Networking. Generally referred to the process of establishing and

maintaining relationships with individuals, organizations, and stakeholders in

order to create mutually beneficial connections, collaborations, and

opportunities. This involves building a professional network, engaging in

relationship-building activities, and leveraging connections to access

resources, information, and support.

Opportunity Recognition. It refers to the ability of technical-

vocational and livelihood learners to identify and assess potential business

opportunities within their respective industries or markets, including

recognizing gaps, unmet needs, emerging trends, or untapped markets.

Skills. Referring to the specific proficiencies, abilities, or expertise

possessed by technical-vocational and livelihood learners, which may be

acquired through training, education, or practical experiences. These skills

may include technical skills, managerial skills, problem-solving skills,

communication skills, interpersonal skills, and adaptability.

Tech Savvy. Referring to the knowledge, competence, and comfort

level of technical-vocational and livelihood learners in using technology,

digital tools, and online platforms in various aspects of entrepreneurial

activities, such as marketing, communication, e-commerce, data analysis,

and business management.

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Technical-Vocational and Livelihood Learners. It refers to the

senior high school TVL learners of Magdalena Integrated National High

School and individuals who are engaged in technical-vocational education

and training programs, which focus on equipping learners with specific

technical and practical skills required for employment or entrepreneurship in

various industries or trades. These learners may come from diverse

backgrounds and seek opportunities to develop their entrepreneurial abilities.

Work Standard. Referring to the level of quality, efficiency, precision,

and professionalism demonstrated by technical-vocational and livelihood

learners in carrying out tasks, projects, or assignments related to their chosen

field or occupation. This includes adherence to established standards,

protocols, regulations, and industry best practices.