Assessing the Internal Environment of NGO-Assisted Grassroots Enterprises in the Provinces of Iloilo and Guimaras


by: Christine Mae D. Hernando, John Lorenz R. Belanio


The internal environment of a business organization is a source of competitive advantage and allows for sustained growth and viability amidst stiff competition from industry rivals. This paper presents the results of a study that described the internal environments of grassroots enterprises in Iloilo and Guimaras as perceived by the entrepreneurs themselves. A descriptive design was used and primary data was generated through key informant interviews with officers of the enterprises and analyzed using thematic analysis. Findings reveal major themes as follows: there is the formality and legitimacy of organization structures and business operations; final authority for decision-making is shared widely among the membership; the observance of the values of democratic management, active membership engagement in the activities of their enterprises, and volunteerism. Moreover, there is an established financial system in terms of fund generation, budgeting, recordkeeping, and regular auditing; and business performance assessed as “successful” since there is continuity of business operations and substantial payment of loans. The study recommends the use of community development interventions to buildup the social capital of the enterprises and conversion of the associations into cooperative enterprises in order to benefit from the preferential option given by the government to cooperatives and economies of scale in production and marketing.

Keywords: Internal environment, grassroots enterprises, structure, core values, financial
resources, business performance