Abstract. The research problem focuses on the challenges startups encounter in achieving long-term sustainability and success, including financial constraints, inadequate business models, and insufficient management skills. This study investigates the entrepreneurial motivation, capabilities, and challenges that startup owners face. Data were collected from 80 participants using purposive and quota sampling methods, with a descriptive-correlational design applied for analysis. Findings reveal that startup owners exhibit high motivation levels, primarily driven by intrinsic factors such as independence, personal fulfillment, and the desire for increased income. High school graduates display stronger push motivations due to external pressures than those with higher education, leading to lower overall motivation across all demographic groups. Financial security and professional recognition were identified as primary motivators, with intrinsic factors consistently outweighing external pressures. Startup owners demonstrated high entrepreneurial capabilities in innovation, opportunity recognition, strategy development, and networking, particularly in fostering a creative work environment. Despite challenges being considered minimal, whether this reflects a comprehensive assessment of potential obstacles is uncertain. The analysis also indicated significant differences in entrepreneurial competencies based on business size and industry type, emphasizing the need for tailored support strategies. Overall, this study enhances understanding of the entrepreneurial environment by highlighting the importance of positive motivation and strong entrepreneurial capabilities as key drivers of startup success. The findings suggest practical implications for developing targeted support programs that enhance entrepreneurs' motivation and capabilities, aiding their long-term sustainability.

Keywords: Entrepreneurial capabilities; Entrepreneurial motivation; Startup business; Philippines.