Financial Management Practices of Businessman Member-borrowers of Multipurpose Cooperatives in Tanauan City Batangas

Abstract

A poor financial management may lead a business to lose profit and the worst scenario is to stop its operations. Member-borrowers of cooperatives in Tanauan City had been observed to have delinquencies on their livelihood loan repayments. Thus, the researcher investigated the phenomenon on member-borrowers who patronize livelihood loans, on four cooperatives, operating for more than five years, with a total population of 182. The researcher adopted the Slovin’s formula which resulted to have a minimum of 126 sample respondents. The researcher decided to have 150 samples and employed random sampling on the cooperatives. The researcher used a self-administered questionnaire to gather data. The gathered data had been tested using statistical tools such as Frequency and Percentage Distribution, Weighted Mean, One-way Analysis of Variance and t-Test. Majority of the respondents were aged 41 to 50 years old, were female, high school graduates, married, 2 to 3 years members of the cooperative and with only one livelihood loan. The results show that member-borrowers often practice debt management, risk management, working capital management, capital structure management and recording of financial transactions, while sometimes practice cash flow management. Furthermore, when grouped according to age, years of membership in the cooperative and number of availed loans within a year, the overall assessment was significantly different; by sex, civil status and highest educational attainment, their assessments were not different.