Financial management Practices of Micro and Small Enterprises (MSE's) in the National Capital Region

Abstract

This study seeks to evaluate the effectiveness of financial management practices of Micro and Small Enterprises (MSEs) in the National Capital Region. The researcher employed the descriptive method. The respondents were 205 owners, business entrepreneurs, managers, accountants, accounting assistants and bookkeepers of training and consultancy firms distributed in different areas of Metro Manila, Philippines. The survey questionnaires were distributed to the target respondents. It was concluded that while most respondents across different profiles agreed that they were dominated by partnership operating for 6 years or more, employing 6 to 10 employees with a capitalization of Php1,000,000 to 1,500,000, serving local clients, and are engaged in training and consultancy business, which were categorized as MSE in the National Capital Region and practicing and implementing financial management. The financial management practices of MSEs disclosed some wrongdoings. The lack of intensive interview and personal observation tend to reject and neglect the fact that the actual practice had tremendous differences. Financial figures might not reflect the reality. It is worth taking time, effort, and resources to extend stronger support in terms of further developing the same employees’ competence and, specific to the culture they are assigned to deal with. Apparently, the respondents who belonged to the five categorical profiles stated above, expressly noted their higher level of financial management practices as they were able to develop a deeper understanding on the internal control measures to safeguard the firms’ resources.