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This study was conducted to determine the best fit model of business performance among the informal sectors in Region 12, Philippines. A conceptual model comprising of managerial capabilities, psychological empowerment, and the entrepreneurial intention was studied to explore their relationship. The study was done in Region 12, utilizing a quantitative research approach, specifically structural equation modeling (SEM) to determine the best fit model. A total of 400 respondents participated in this study. Findings revealed that managerial capabilities, psychological empowerment, and entrepreneurial intentions significantly impact the business performance of the informal sector. Moreover, results suggested that hypothesized model 5 is the best fit model. It was also found that managerial capabilities and entrepreneurial intention significantly influence business performance. Thus, managerial capabilities and entrepreneurial intention are strong predictors of business performance among the informal sectors.

MANAGERIAL CAPABILITIES, PSYCHOLOGICAL EMPOWERMENT, ENTREPRENEURIAL INTENTION AND BUSINESS PERFORMANCE OF INFORMAL SECTOR: A STRUCTURAL EQUATION MODEL