2. Introduction
• Adversities are part of our everyday life, and does happen
unexpectedly
– Has three levels:
• Societal
• Workplace, and
• Individual
• Most papers on entrepreneurship deal with processes
• Papers on the entrepreneurs are scant
• The researcher attempts to answer how adversity plays a
significant role in modeling a successful entrepreneur and its
effects on the budding entrepreneur set in the Philippine
context

3. The Problem
• How does adversity play a significant role
in modelling a successful entrepreneur
and its effects on the budding
entrepreneur set in the Philippine context?
• Stoltz’ Adversity Quotient theory has been
tested and validated for several years
already across the globe.

4. Review of Related
Literature ‘Great Person’
school
Entrepreneurship
Classical and
Intrapreneurship Neoclassical
Economics
Entrepreneurship
Management Psychological
Sociological

5. Review of Related Literature
Entrepreneurship
• There is “[no] universal theory on
entrepreneurship because of different
assumptions of various disciplines and the
difficulty of explaining and predicting the
behavior of entrepreneurs”
» Virtranen, “The Role of Different Theories in
Explaining Entrepreneurship”

6. Review of Related Literature
Entrepreneurship
Criss, Pettit, Bates,
Shepherd Hayes Fr John J. Caroll, SJ
Dodge and Lapp
• Learning is not • Strong need for • Overall • Relationship
automatic and having acceptance of between
depends in grief psychological peers and entrepreneurship
and grief perspective on extensivity of and factors such
recovery economic network as educational
behavior of contribute to attainment,
entrepreneurs resilience proximity to
cities, and
exposure to
influence of
foreign
companies

7. Review of Related Literature
Entrepreneurship
Levine and
Jack Schuster Brooks D. Kitch
Greene
• Clarity of • Contends • Notes the • Focusing on
purpose is findings of characteristics adversity "can
highly Levine and of US General impede
desirable for Greene Ulysses S. growth, stifle
institutions • Focused Grant as he self-reflection,
searching for mission went on to inhibit
opportunities statements become one innovation,
provide "no of the most and invite
more than a influential internal
partial figures despite dissension."
remedy, and adversities
probably not
the most
critical part at
that."

8. Review of Related Literature
Systems Analysis and Thinking
Theory of
Frantzen Patel Senge
Constraints
• Used a superset • Importance of • An assumption • Author puts
model approach Personal Critical that every system forward the idea
that recognizes Framework or has at least one that systems are
“the constant PCF constraint inevitably
factors that allow • Reflection on limiting it from incomprehensible
for the creation knowledge and getting more of and the earlier
of a superset of practice as what it strives for. one realizes this,
activities that can important tools If this were not the better one
be gathered for the function true, then the can sift through
together in a of Information system would complex systems
process model systems design produce infinite
and used as a output
generic model of
the development
process.”

9. Review of Related Literature
Systems Analysis and Thinking
McNamara Silver Sterman Shelly
• viewing systems as • System • Author writes on • Designing systems
interrelated parts development has advanced topics in are composed of
(i.e. viewing a five phases: modeling in a five phases:
company as having • Planning business • Planning
interrelated • Analysis environment • Analysis
connections and perspective
• Design • Design
relationships
among its divisions) • Development • Implementation
give managers a • Implementation • Operation and
superior Support
perspective • Integrates
Operations
Management tools
such as PERT and
CPM in system
development

10. The Theoretical Framework
The Adversity Quotient
• Authored by Dr. Paul
Stoltz, a result of 19 years
of rigorous research
• Stoltz puts forward that by
improving response to
adversity vis-à-vis
understanding, measuring,
and raising one’s AQ, one
can improve his ability to
overcome it and persevere
in the long run.

11. The Theoretical Framework
The Adversity Quotient
• He furthers the idea that a person’s
success in his work and in life is
largely determined by his own AQ by:
– telling how well one can withstand
adversity and his ability to surmount
it;
– predicting who will overcome
adversity and who will be crushed;
– predicting who will exceed
expectations of their performance
and potential and who will fall short;
and
– predicting who will give up and who
will prevail.

12. The Theoretical Framework
The Adversity Quotient
• Stoltz writes that AQ takes three forms: Cognitive
– First, it is a new conceptual framework for Psychology
understanding and enhancing all facets of
success as it redefines what it takes to succeed.
– Second, how one responds to adversity can be
measured, understood and changed.
– Lastly, it is a scientifically-grounded set of tools for
improving how to respond to adversity while Neurophysiology
looking into the personal and professional
effectiveness as a result
• AQ can be learned and is formed through AQ
influences of parents, teachers, peers, among
others, during childhood
• There is a dearth of literature focusing on the
entrepreneurs, and even less on the theory’s Psychoneuroimm
applicability to Philippine context unology

13. The Theoretical Framework
Framework for Analysis
• A system is
– any organized collection of parts united by prescribed
interactions and designed for the accomplishment of
specific goals or general purposes.
• Systems theory views an organization as a
complex set of dynamically intertwined and
interconnected elements
• Systems theorists see organizations as always-
changing processes of interactions among
organizational and environmental elements

14. The Theoretical Framework
Framework for Analysis
• Reasearcher will adopt Robert Wiener’s
model of an organization, from the book
Cybernetics
– actions by the system or organization cause
change in the system’s environment, and that
change is communicated back to the system,
consequently allowing the system to change
its behavior

15. The Theoretical Framework
Framework for Analysis
INPUT PROCESS OUTPUT
Adversities Adversity Success
[Societal] Quotient Growth in
[Workplace] Revenues
[Individual] Net Income
Other Total Assets
Factors Net Worth
Failure
Re-
evaluation

16. The Design Methods and Procedures
Research Design
• Measure success of entrepreneur in terms
of growth in following:
Survey • Sales revenue, Net Income, Total Assets,
and ROI of the business(es)
• Stoltz’ AQ Measurement Instrument
• Case study of three to four entrepreneurs
• Possible selection criteria:
• Size of business
• Number of years as an entrepreneur
• Age bracket
Interviews • Geographical location
• Gender
• Educational attainment and/or special training
• Form and amount of capitalization and/or support system
during business start-up

17. Results and Analysis
Amount of Increase in AQ
Capitalization Correlation Coefficient -.433*
Sig. (2-tailed) 0.12
N 0.33
Assets Correlation Coefficient -.187
Sig. (2-tailed) 0.298
N 33 At 95% confidence level,
Revenues Correlation Coefficient -.264 there is a moderate negative
Sig. (2-tailed) 0.132 correlation between the
N 34
increase in capitalization, Net
Net Income Correlation Coefficient -.377*
Sig. (2-tailed) 0.031
income, and ROI and AQ
N 33
Return on Investment Correlation Coefficient -.385*
Sig. (2-tailed) 0.27
N 33
Market Share Correlation Coefficient -.181
Sig. (2-tailed) 0.314
N 33

18. Conclusion
• Based on initial results:
– Moderate correlation between Adversity
Quotient (AQ) and performance of the
business or businesses an entrepreneur owns
and manages.
– entrepreneurs with low adversity quotients
tend to have businesses with lower growth in
capitalization, net income and return on
investment .

19. Conclusion
• As it is hypothesized, increase in capitalization, assets,
revenues, net income, return on investments, and
market share have a very strong positive correlation
among each other, and is significant at the 0.01 level.
This may indicate that a business that has increase in
capitalization may also have increase in other success
indicators.

20. Educational Significance
• JG School of Management
– Declared as Center of Excellence in
Entrepreneurship by Philippines’ Commission
on Higher Education
– Requires our students to set up a business
venture project
• in teams,
• formulate their business concept,
• business model and strategies and
• implement their business plans within the school
year.