Financial Management Practices of Shoe Manufacturers in Marikina City

Abstract

Marikina City is recognized as the “Shoe Capital of the Philippines” which composed of about 450,000 citizens. Marikina is the main gateway to Rizal and Quezon provinces. According to the Marikina City website, in 1960, it has been the producer of 80% of the shoes manufactured in the country. The challenge of the Marikina shoe manufacturers nowadays is the declining revenue due to the effect of globalization and patronization of certain European brands (Angeles, 2018). Thus, it is interesting to understand how these shoe manufacturers were able to sustain their operations despite the challenges in competition. This study assessed the financial management practices of the shoe manufacturers in Marikina City. Based on the responses of the current shoe manufacturers registered in the City Government of Marikina, this study assessed the segments of financial management that is deemed significantly affecting the sustainability of these businesses. These factors focused on inventory management, investment, financing and profitability. Based on the responses, this study was able to conclude that the current demographic of the shoe manufacturing: majority was sole proprietorship, aged 46 to 60 years old, operating for more than 16 years, male and married. Fortunately, the majority was the owners themselves and had bachelor's degree. This study concluded that the shoe manufacturing should focus on instilling controls, increasing awareness on alternative financing and investments.