Financial management of micro, small, and medium-sized enterprises (MSMEs) in Danao City, Cebu : its implication to entrepreneurship / Jose Marie M. Anoos

A dissertation presented to the Faculty of the Graduate School of University of Cebu; In partial fulfillment of the requirements for the Degree Doctor in Business Administration

ABSTRACT
The Micro, Small and Medium Enterprises (MSMEs) plays a significant role in developing the Philippine economy by reducing poverty and creating jobs for the country’s growing labor force. This study aims to unveil the financial management practices and challenges confronting the MSMEs in Danao City, CY 2018. Results were basis for the baseline data in devising a proposed position paper.
This applied the descriptive correlational research method and conducted among the MSMEs that are operating in Danao City, Cebu. The respondents were the owners and employees of MSMEs. Using cluster sampling technique, there were three hundred fifty-four (354) respondents where each type of MSME was adequately represented. This investigation further utilized a researcher-made survey tool to gather the vital information on the profile, financial management practices and challenges faced by the MSMEs. The statistical treatments applied were frequency counts, simple percentage, weighted mean, chi-square test of independence, and one-way ANOVA.
Majority of the MSMEs were in the form of sole proprietorship, employed less than ten (10) people, and had an estimated capital of less than Php 3,000,000.00. There were more MSMEs engaged in trading or buying and selling of various commodities, had operated for one-three (1-3) years, located near the public market, with assets of more than Php 100,000.00 and had an average monthly income pf Php 15, 780.00- Php 31,560.00. Moreover, based on the answers of the owners and employees of the MSMEs, the financial management system regarding recording, budgeting, reporting, and inventory management were only moderately practiced. On the challenging experiences of the owners or management of the MSMEs, the aspects of internal management, competitors, promotions, and in dealing with government agencies were found as challenging in many instances.
Therefore, the owners and management of the MSMEs do 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, volume of assets and revenue earned is low.

English