Contemporary Dynamics of Angel Investment: A Comparative Analysis Between Traditional and IMC Proficient MSMEs of Metro Manila

Abstract

The rise of the MSMEs has started their competition and showed potential to the market as they take off and open possibilities for the angel investors to gain interest. This study aims to identify which underlying factors of IMC Engaged and Non-IMC Engaged MSMEs influence the angel investment decision. Specifically, determining MSMEs Marketing Effectiveness, comparing the current internal and external business performance factors between IMC Engaged and Non-IMC Engaged MSMEs, and the Angel Investor's Decision to Invest towards it. Exploratory sequential mixed method design and Descriptive statistics were used in this study. Coding and thematic analysis were used to categorize all the qualitative responses. Linear regression analysis determined the effect and linear relationship between the dependent variable and independent variables. The independent t-test was utilized to test significant differences within the hypotheses. As a result, IMC Engaged MSMEs imposed a significant relationship in Marketing Attractiveness, Internal, and External Business Performance factor with a score of 0.017, 0.022, and 0.030, respectively. Conversely, Non-IMC engaged MSMEs only have a significant difference with Internal Business Performance Factors with a score of 0.032, while External Factors and Marketing effectiveness failed to have significant differences. As per the Angel Investor's decision to invest, there was no significant relationship between the Marketing Attractiveness and the Angel Investor's decision to Invest with a score of 0.06. Meanwhile, Internal and External Business Performance Factors imposed significant relationships with a score of 0.045 and 0.005, respectively. It is recommended to the IMC Engaged MSMEs to upscale their marketing efforts to become a determining factor in Investment Decision. While Non-IMC Engaged MSMEs must improve their External Business Performance Factors. Lastly, Angel Investors must consider the marketing efforts in Investment Decisions.