Advisers

Reynold R. Bangalisan, LPT

Discipline

Business

Abstract

This Study investigates the operational challenges among small family businesses in Saranay Road, Caloocan City, guided by Teece’s et. al (1997) Dynamic Capabilities Theory, which posits that businesses must posses higher-order dynamic capabilities, such as sensing opportunities and threats, seizing opportunities, and reconfiguring resources. Utilizing a descriptive-quantitative research design, the study surveyed 40 respondents composed of 10 business owners and 30 employees selected through purposive sampling. A validated questionnaire was employed to gather data on the difficulties faced by these enterprises in managing operations. The results revealed that most of the food stalls were relatively young enterprises, operated with a small number of employees, generated low to moderate monthly income, and were predominantly family-owned. In terms of operational challenges, operating hours, production, and product costing were rated as very challenging, while procedures and transactional processes were assessed as challenging. Product costing emerged as the most critical concern, particularly due to difficulties in calculating profits, rising raw material costs, and lack of cost monitoring practices. Production challenges such as limited supply of raw materials, manpower shortages, and high production costs also significantly affected business operations. The study concluded that small family-owned food stalls experience substantial operational difficulties primarily due to limited resources, informal systems, and weak financial and operational management practices. Guided by the Dynamic Capabilities Theory, the findings highlight the importance of adopting adaptive strategies that enhance cost control, improve production efficiency, standardize procedures, and strengthen transactional systems. The proposed adaptive strategies aim to help small family businesses become more resilient, efficient, and competitive, thereby supporting their long-term sustainability and contribution to local economic development.

Keywords

adaptive strategies, operational challenges, operating hours, production, procedures, product costing, transactional process