Entrepreneurial Challenges in the Garments Industry: An Institutional Theory Perspective from Northern Surigao Del Sur, Philippines

The garment industry plays a vital role in employment and trade in developing economies, but micro and small enterprises face institutional barriers that hinder growth. This study applies Institutional Theory (Scott, 1995) to examine entrepreneurial challenges in Northern Surigao del Sur, Philippines. A descriptive survey was conducted with 30 garment entrepreneurs using a validated questionnaire on six categories: regulatory requirements, market competition, labor issues, financial constraints, supply chain disruptions, and technological barriers. Results showed all categories were significant, with supply chain disruptions, market competition, and technological barriers as the most critical. These challenges were found to be mutually reinforcing regulatory burdens worsened financial strain, market pressures discouraged innovation, and technological resistance heightened supply chain risks. The study contributes localized evidence on how regulative, normative, and cultural-cognitive pressures converge to constrain small garment enterprises. It also recommends streamlined regulations, broader financing, workforce training, and digital adoption programs to strengthen resilience and competitiveness.