The Financial Management Practices of Micro Enterprises in Maragondon, Cavite

Abstract

The study was conducted to assess the level of effectiveness of financial management practices of micro enterprises in Maragondon, Cavite. It used the descriptive method of research and employed a structured questionnaire as a primary tool in gathering data. The total representative of the population of micro enterprises was 225 respondents who are considered valid upon computation of the sample size. Frequency, Percentage, Weighted Mean and One-way Analysis of Variance were employed as statistical tools. Based on the gathered data, the result showed the following: Majority of the respondents were aged 21-30 and 31-40 years old, mostly female, married, college degree holder, owners, employed from 1-5 years and 6-10 years, formed as sole proprietorship, where the nature of business is merchandising and capitalized up to P500, 000, has been operating for more than 2 years to 10 years employing 1 –5 employees. The respondent’s assessments on the level of the effectiveness of their financial management practices in terms of bookkeeping, working capital management, financing and loan management, and financial reporting and compliance were all Somewhat Effective. The respondents’ overall perception disagrees on the level of effectiveness of financialmanagement practices on the aspect of Bookkeeping, Working Capital Management, Financing and Loan Management, and Financial Reporting and Compliance when grouped according to form of business, nature of business, business capitalization, number of employees employed, age, civil status, highest educational attainment, job position level, and number of years employed in the business. Additionally, their perception agrees on the level of effectiveness of financial management practices when grouped by number of years in operation and by sex on all aspects as well as when grouped according to nature of business, number of years employed in the business and business capitalization, on the aspects of Financing and Loan Management and Financial Reporting and Compliance, respectively.