THE IMPACT OF THE MICROFINANCE LOAN PROGRAM OF ASA PHILIPPINES FOUNDATION, INC. ON THE FINANCIAL GROWTH OF ENTREPRENEURS IN TANDANG SORA, QUEZON CITY

Abstract

This study aims to evaluate the impact of ASA Philippines Foundation, Inc. loan programs on entrepreneurs in Tandang Sora, Quezon City, specifically examining how these loans have influenced business growth, income stability, and overall financial well-being. It also explores the challenges borrowers face in loan repayment and financial management. By gathering insights from entrepreneurs who have availed themselves of ASA Philippines Foundation, Inc. loan programs, the research seeks to provide valuable information for financial institutions, policymakers, and business owners. The study highlights the importance of financial support in helping small businesses grow and, by analyzing the effects of these loan programs, aims to deepen understanding of how microfinance assists entrepreneurs and strengthens local economies. A mixed-methods research strategy will be employed, combining qualitative methods such as interviews and case studies to gain insights into borrower experiences, with quantitative methods such as surveys to measure business performance. The study will be limited to firms that have borrowed exclusively from ASA Philippines Foundation, Inc., excluding those that have obtained financing from banks, other microfinance institutions, or informal sources. General economic conditions—such as inflation, government policies, and sector-wide financial trends—will not be considered. Data collection will rely primarily on self-reported financial statements and questionnaire responses, which may introduce potential biases. Furthermore, the study’s analysis will be confined to the designated research period and will not assess the long-term impacts of ASA’s microfinance program on entrepreneurs. The study surveyed 30 entrepreneurs, most of whom were aged 26–45, with 60% being women. A majority (87%) operated in the retail sector, and about half had businesses less than a year old, earning under ₱30,000 per month. Findings revealed that the ASA Philippines Foundation’s microfinance loan program significantly improved business performance and financial growth. Access to capital enabled entrepreneurs to expand their businesses, increase profits, and maintain steady cash flow. It also strengthened financial stability, allowing for further investments and cost reductions. While ASA Philippines’ loan program provides crucial capital to entrepreneurs, long-term success also depends on management skills, market conditions, and individual effort. Financial assistance should be complemented with training, mentorship, and a supportive business environment to promote sustained growth and business sustainability.