FROM passion to profit: the strategic and creative drivers of entrepreneurial efficacy among homegrown restaurants in Caraga REGION

Abstract

This study explores the critical relationship between entrepreneurial efficacy, entrepreneurial strategy, and entrepreneurial design thinking among homegrown restaurant owners in the Caraga Region, Philippines. Entrepreneurial efficacy, defined as an entrepreneur's confidence in executing business activities, is essential for individual business success and broader economic growth. However, entrepreneurs, especially in developing regions, face challenges such as limited access to mentoring, skills development programs, and professional networks, which hinder their ability to innovate and sustain their businesses. The study employs a descriptive correlational design to assess how entrepreneurial strategy and design thinking predict entrepreneurial efficacy. Utilizing a modified questionnaire, data were collected from 200 respondents, including owners and managers of homegrown restaurants. The results indicate that entrepreneurial efficacy is generally high, with the highest scores observed in building an innovative environment. Entrepreneurial strategy and design thinking were also rated highly, with creative capabilities and empathy as the most significant domains. Regression analysis revealed that both entrepreneurial strategy and design thinking significantly influence entrepreneurial efficacy, with design thinking emerging as the stronger predictor. These findings highlight the importance of integrating strategic planning and user-centered innovation to enhance entrepreneurial confidence and performance. The study provides actionable insights for local business owners, educators, and policymakers, recommending targeted training programs to foster strategic thinking and design thinking skills. Future research should explore other determinants of entrepreneurial efficacy and expand the scope to include various industries.