Financial Management Practices and Profitability of Micro And Small Medium Enterprises In The New Normal In The National Capital Region, Philippines

Abstract

Micro, Small, and Medium Enterprises (MSMEs) are an essential part of the global economy, acting as a catalyst for economic growth and development. This study aims to examine the financial management practices and profitability of Micro, Small, and Medium Enterprises (MSMEs) in the New Normal and the challenges affecting their operations. It also emphasizes the importance of Micro, Small, and Medium Enterprises (MSMEs) in the global economy, particularly in emerging economies, and the profitability of businesses during the Covid 19 pandemic. It also demonstrates the importance of making better financial management decisions based on effective financial management practices, which are crucial for MSMEs' survival, growth, and profitability in the New Normal. The researcher gathered secondary data from relevant literature, such as articles and annual reports from MSMEs that directly or indirectly contributed to the study. Financial management practices such as fixed asset management, capital structure management, financial planning, working capital management, financial reporting, and accounting information systems, according to the study, are mainly responsible for the success or failure of MSMEs. Smart financial management is essential given the difficulty of surviving in the COVID-19 Pandemic.