The Entrepreneurial Mindset: Views and Perspectives of Cacao Entrepreneurs on Innovation and Entrepreneurship in Bicol Region, Philippines

Abstract

Innovation and entrepreneurship are fundamental drivers of economic growth. Oftentimes, sustainable development is equated with these two indices where untapped potential and emerging industries are available that present countless opportunities for the people. A research study was conducted composed of cacao farmers, farmers/processors and farmers/processors/traders residing in various towns in the Bicol region, Philippines aimed at determining their perception, innovation and entrepreneurial initiatives and strategies. A survey-questionnaire was designed and administered to 70 cacao farmers and entrepreneurs and qualitative data analysis techniques, such as thematic coding and content analysis was employed to analyze result of the interview and focus group discussions. Findings of the study showed that farming is the primary focus for the majority of respondents (67%), with only a minority involved in processing or trading activities. The most highly recommended innovative cacao-based products with potential market success are primarily in the food and confectionery categories, with substantial interest in beverages and skincare products. Ninety-one percent (91%) are willing to pay a premium for innovative cacao products because they value supporting local entrepreneurship and a good sign of a strong community support for local businesses with high level of willingness to invest in locally developed products. Job creation and empowerment of small-scale farmers are considered as top benefits of a community-based value-added cacao products enterprise. Limited financial investment/capital is the most significant problem faced, followed closely by unstable demand and low and unregulated farm gate price of agricultural commodities.