Financial Management Practices of Micro and Small Enterprises (MSEs) in the National Capital Region

Abstract

This study sought 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 engage in training and consultancy business which was categorized as MSE in the National Capital Region and practicing and implementing financial management. The financial management practices of MSEs disclosed some wrong doings. Lack of intensive interview and personal observation tendto reject and neglect the fact that 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’ multi-cultural competence, 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 ableto develop deeper understanding on the internal control measures to safeguard the firms’ resources.The findings imply the need of introducing adjustments and adaptations to firms’ management strategies and practices by considering any discrepancies that exist according to firm’s demographic characteristics. Further studies could investigate other features –like financial context within organizations and general community to understand how these features get factored in. Cultivate individual work sustainability in the Training and Consultancy industry through developing employees’ and entrepreneurs’ financial literacy by helping them to become successful and sustainable firms: (i) Acknowledge the immense influence of financial management; (2) Assess financial management literacy and know-how. That they should be vigilant concerning the dynamics on the results of its operations; (3) Expand their knowledge and incorporate this into firms’ everyday financial management practice; and (4) Adapt to diversity.Future studies can also centralize on topics beyond MSEs sustainability and progress like the promising model of industries development and satisfaction.