Financial management practices of micro and small enterprises in Tanauan, Leyte, Philippines
Keywords:
Financial Management, Financial practices, Micro and Small Enterprises, (MSEs), MSE ManagementAbstract
Micro and Small Enterprises (MSEs) play a crucial role in the economic growth and further development in the Philippines especially in the municipality of Tanauan, Province of Leyte as they dominate the market of the town. They help in poverty alleviation and provide job opportunities. The study intended to determine the financial management practices of MSEs in Tanauan, Leyte, Philippines. A survey was conducted to the 146 owners and employees of MSEs using purposive sampling. The data gathered was analyzed using various descriptive measurements such as frequency, percentage, and mean to determine the financial management practices of MSEs. The survey questionnaire is composed of two parts, the profile of the respondents and the financial management practices. Results revealed that financial management practices such as costing and budgeting are often practiced by MSEs. However, internal control, working capital management, and long-term financing are rarely practiced. In general, financial management systems were present but were sometimes practiced with an average overall mean of 2.84. It was concluded that the management of MSEs does not follow generally accepted standards on financial management and control. It is recommended for the Department of Trade and Industry (DTI) in partnership with the Local Government Unit (LGU) of Tanauan to review programs and policies concerning the development of this sector. Further, strict implementation of programs and policies to address the issue of the lack of educational background and training on financial management systems and practices would be geared towards promoting the sustainability of these MSEs.
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