The Status and the Challenges Experienced by MSMEs in the Cities of the Quezon Province: An Inference on Strategic Management Plans

Authors

  • Maria Teresa Hidalgo

Keywords:

MSMEs, strategic management, strategic management plan, Financial Performance, organizational form, business type, asset size

Abstract

The MSME provides the largest share of employment after agriculture in the Philippines. The MSME sector is a founding pillar of its socio-economic framework. Although the SME sector has been growing at a faster rate than the overall industrial sector, they experience multiple constraints, which is hindering their growth. This research paper aims to discover what hinders and figure out the status and challenges being faced by the Micro Small and Medium Enterprises in Quezon Province. The study analyzed the financial performance of selected MSME using secondary data from financial statements for the past three years. Using correlation analysis, the results show a significant linear relationship between financial performance. Each of these measures has no significant relationship with profitability. Using t-tests, the results show no significant difference in financial performance and inventory turnover of the enterprises when grouped according to organizational form, business type, and asset size. A significant difference exists in receivable turnover, asset turnover, and debt ratios. The MSMEs should revisit their strategies for improving profitability and use financial performance information in making critical decisions. Firms should connect financial performance to the larger external environment of the business so they will continue to play an important role in the growth of the economy. Among many Filipino organizers, empowerment is tuklas-lakas, which means discovering power. In the process of discovering, the poor regain their humanity and critically re-discover that they are of value not for what they have or don’t have but for what they are. Their dignity is enhanced through the practice of their capacity to share their future. According to Espinar and Company (2001), empowerment signifies the awakening and utilization of the innate power and potential that belong naturally to persons and collectivities. Empowerment is equated with community organizing (CO). CO is organizing people for power, and it is a continuing process of empowering the people so that benefits consistent with their priorities and aspirations will sustainably accrue to them. The Lucena City with SMEs were empowered along with the aspects of material, perceptual and relational changes. The result of the study indicated that through SMEs the rural people experienced changes in their lives on the material aspect, the perceptual aspect, and the relational aspect.

Published

2019-12-18