FINANCIAL MANAGEMENT AND BUSINESS PERFORMANCE AMONG MICRO, SMALL AND MEDIUM ENTERPRISES (MSMEs) IN DAVAO REGION 

Abstract

FINANCIAL MANAGEMENT AND BUSINESS PERFORMANCE AMONG MICRO, SMALL AND MEDIUM ENTERPRISES (MSMEs)  IN DAVAO REGION

 

 

ALBISO, EDELYN S.

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Southern Philippines Agribusiness and Marine and Aquatic School of Technology

 

 

 

The study involved 402 randomly selected Micro, Small and Medium Enterprises (MSMEs) distributed among the six provinces of Davao region.  It  was conducted to describe the profile and their level of adoption to financial management practices, and explain its extent of influence to business performance. Descriptive statistics were used to described the business profile and level of adoption to financial management, whereas, Multiple Regression Analysis(MRA)  was done to determine factors that have significant influence on business performance.  The average age of the enterprises are 9.08, 14.51 and  15.88 years in operation, respectively, for micro, small and medium enterprises.   Most of them where classified as micro in terms of asset size and number of employees.  Most of them are sole proprietorships  and are engaged in merchandising.  Generally, they  have high adoption to financial management practices,  however, micro enterprises and sole proprietorships have significantly lower adoption  as compared  to the  other sizes and  forms of business organization.  They  have a high perceived level of business performance and  Multiple Regression Analysis explains that the level of adoption to financial management practices in terms of Working Capital Management, Financial Structure Management, Financial Planning and Budgeting,  Fixed Assets Management and Accounting Information System, and the business size significantly influence and explain 55.10% of the variation in business performance.