Factors Influencing Business Growth Among Micro, Small, and Medium-sized (MSMEs) Bakery Enterprises in Northern Mindanao Philippines

This study aimed to examine the factors influencing business growth among 113 micro, small, and medium-sized (MSMEs) bakery enterprises in Northern Mindanao, such as in Lanao del Norte and Misamis Oriental, Philippines. Using a descriptive-quantitative research design, business growth was assessed based on year-on-year changes in sales, income, assets, and employment. Data was collected through structured surveys and analyzed using multiple linear regression estimated through the Ordinary Least Squares (OLS) method. The results indicate that entrepreneurial human capital (β = 0.1392, p = 0.050) and distribution channels (β = 0.228, p = 0.045) exert statistically significant and positive effects on business growth. The adjusted R-squared value of 0.872 indicates that 87.2% of the variance in business growth is explained by the predictors included in the model, reflecting a strong model fit and high explanatory power. Descriptive findings further reveal that 100% of respondents operate physical brick-and-mortar stores, while only 10.6% utilize online platforms for sales and marketing. In addition, 34.5% of the bakery enterprises sell through alternative outlets, and only 20.4% distribute their products through third-party vendors. These results suggest a continued reliance on traditional direct-to-consumer sales methods, with limited integration of digital or e-commerce strategies. The entrepreneurial human capital yielded an overall mean score of 3.50 (SD = 0.73), indicating that bakery owners or managers possess a solid foundation of entrepreneurial skills and knowledge. Notably, key attributes such as prior experience, relevant education, family business exposure, agility, adaptability, and technological complementarity were strongly associated with business growth. These findings reinforce the vital role of entrepreneurial human capital in navigating business challenges and leveraging growth opportunities. Future research should consider employing longitudinal and comparative case study designs to examine causal relationships and temporal patterns in MSME growth. It is also recommended to explore the impact of digital transformation readiness, government support mechanisms, and innovation capacity, particularly in enhancing competitiveness and sustainability of bakery businesses in emerging economies. Such approaches will provide richer insights into how MSMEs can scale and thrive in a rapidly evolving market landscape.