Financial Management of Micro, Small, and Medium Enterprises in Cebu, Philippines

Abstract

The Micro, Small, and Medium Enterprises (MSMEs) play a significant role in developing the Philippine economy by reducing poverty and creating jobs for the country's growing labor force.This study aimed to unveil the financial management practices and challenges confronting the MSMEs in Danao City, Philippines.This research applied the descriptive correlational research method and conducted among the MSMEs that are operating in Danao City, Cebu.The respondents were the 354 owners and employees of MSMEs.They are chosen using the cluster-sampling technique.This investigation further utilized a researcher-made survey tool to gather vital information on the profile, financial management practices, and challenges faced by the MSMEs.Frequency, simple percentage, weighted mean, Chi-square test of independence, and ANOVA were used to treat the gathered data.The study revealed that the financial management system was moderately practiced.It was concluded that the MSMEs management does not practice the generally accepted standards on the financial management and control of the business, which poses some threats on its sustainability considering that their predominant size, the volume of assets, and revenue earned is low.The researchers strongly recommend that the local government officials enact city ordinance on the vital role of MSMEs in complying with the governmental regulations to improve business transactions in regional offices use the proposed position paper.

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