Performance and Profitability of Student-Led Enterprises in the BS Entrepreneurship Program of Cagayan State University

Abstract

This researched touched on the entrepreneurial capabilities of the BS Entrepreneurship students of Cagayan State University in starting and operating ventures.  The profile and profitability of the student-led enterprises which were conducted under the period of business plan implementation were analyzed. A descriptive research design was utilized, making use of the business documentation, financial records as well as a structured survey data from the 221 student-entrepreneurs.  A total of 15 student-led enterprises were assessed for their profile in terms of industry classification, capitalization, product offerings and business location.  Profitability was computed using standard financial indicators such as Return on Investment (ROI), Gross Profit Margin (GPM), Net Profit Margin (NPM), and Return on Assets (ROA). Results revealed that all the student-led ventures were operated as partnerships and were pre-dominantly classified under agriculture, manufacturing, food services, and administrative/support sectors.  Further, most of the students opted to operate within Tuguegarao City, Cagayan with majority having capitalizations ranging from 25,000.00-50,000.00.  Majority of the ventures offered mushroom based products while others also offered snack foods, baked goodies.  The profitability of the ventures varied widely across ventures with agriculture-based businesses, particularly mushroom production and processing showing greatest potential having recorded an average mean ROI (82.14%) and GPM (56.33%).  The variation also portrays the differences in entrepreneurial competencies, cost-management practices and market responsiveness experienced by the groups.  Challenges in terms of financial and operational aspects of running the business to include pricing difficulties, demand changes as well as resource constraints support present body of literature on beginning entrepreneurs.  Overall, the results highlight the effectiveness of experiential learning in developing practical entrepreneurial capabilities while emphasizing the need for improved instructional support particularly in financial planning, market analysis and strategic decision making.  The study recommends the creation of targeted curriculum interventions and reinforced incubation program to be able to strengthen venture sustainability.  This would also enhance graduate readiness for real-world entrepreneurship.