This study examines the role of micro- and small-scale enterprises (MSEs) in promoting entrepreneurship-driven economic upliftment in Guiuan, Eastern Samar. Anchored on Schumpeter’s Theory of Innovation, the Endogenous Growth Theory, the Sustainable Livelihood Framework, and the Social Capital Theory, the research explores how innovation, human capital, social networks, and institutional support contribute to local economic development. Guided by a convergent parallel mixed-methods design, the study gathered data from 168 micro and small business owners through a structured survey and ten in-depth interviews. Quantitative data were analyzed using descriptive statistics, while qualitative responses underwent thematic analysis to reveal patterns of experience, motivation, and challenge among entrepreneurs.Findings revealed that MSEs significantly contribute to household income stability, personal development, and community resilience. However, their capacity for employment generation and expansion remains limited due to persistent constraints such as inadequate access to capital, weak institutional linkages, and insufficient government support. Respondents expressed strong willingness to expand their enterprises but identified the need for training, mentorship, and networking opportunities. The integration of quantitative and qualitative results confirmed that entrepreneurship enhances livelihood security yet requires stronger systemic and policy backing to achieve sustainable growth.The study concludes that strengthening local entrepreneurial ecosystems through targeted support programs, financial inclusion, and capacity-building initiatives can enhance MSE sustainability and inclusivity. Policy implications emphasize aligning municipal development strategies with Sustainable Development Goals (SDGs) 8 and 9, fostering decent work, innovation, and resilient industry.
Maludesa Machica-Pajarilla (Thu,) studied this question.