Microbusinesses serve as vital catalysts for local economic growth, employment generation, and equitable income distribution. Despite their critical role, they often face persistent challenges stemming from environmental turbulence, limited dynamic capabilities, and threats to long-term sustainability. In San Pascual, Batangas, these enterprises operate within a volatile economic landscape influenced by shifting market demand, evolving regulations, and external shocks that disrupt operations and impede stability. This study explored the relationships among environmental turbulence, dynamic capabilities, organizational resilience, and business sustainability among microbusinesses in the municipality. Employing a descriptive-correlational design, data were collected from 106 microbusiness owners. Findings revealed that most enterprises had been operating for one to three years and employed one to three workers, underscoring their small-scale nature and limited employment capacity. The majority were engaged in merchandising, with average monthly profits ranging from PHP 10,001 to PHP 15,000, indicating modest yet meaningful contributions to household income and local economic activity. Results showed no significant differences in respondents’ assessments of the main variables when grouped by years of operation or number of employees. However, perceptions of environmental turbulence varied significantly by business type and income level, suggesting uneven impacts of external disruptions. Moreover, organizational resilience was found to mediate the relationship between dynamic capabilities and business sustainability, highlighting the importance of adaptability and internal strength in sustaining long-term operations. Conversely, dynamic capabilities did not mediate the link between environmental turbulence and resilience, implying that external shocks may override internal competencies. The study recommends implementing extension programs to enhance microbusiness resilience through improved financial access, training in sustainable business practices, and the adoption of modern management tools. Strengthening the adaptive capacity of microenterprises is essential for maintaining local employment, ensuring supply chain continuity, and fostering inclusive and sustainable economic development.
Bayno et al. (Wed,) studied this question.