Assessment of Financial Management Practices of Small and Medium Enterprises (SMEs) in Nasugbu, Batangas

Authors

  • Marvin C. Hernandez College of Accountancy, Business, Economics and International Hospitality Management, Batangas State University ARASOF-Nasugbu, 4231, Nasugbu, Batangas
  • Corinna S. Balboa College of Accountancy, Business, Economics and International Hospitality Management, Batangas State University ARASOF-Nasugbu, 4231, Nasugbu, Batangas
  • Rommel C. Cuenca College of Accountancy, Business, Economics and International Hospitality Management, Batangas State University ARASOF-Nasugbu, 4231, Nasugbu, Batangas
  • Nik ki Dale G. Quilantang College of Accountancy, Business, Economics and International Hospitality Management, Batangas State University ARASOF-Nasugbu, 4231, Nasugbu, Batangas

DOI:

https://doi.org/10.31098/ijcbm.v1i2.5065

Keywords:

Investment, Financial Management, Financial Planning, Small and Medium Enterprises, and Working Capital Management

Abstract

The Small and Medium Enterprises have been identified as important contributors to economic development who are facing a range of challenges which work against their progress, one of which is financial management. This study aimed to assess the financial management practices of small and medium enterprises in Nasugbu, Batangas. The researchers used the descriptive method with a questionnaire as the main instrument in gathering data from 34 respondents. Frequency, percentage, and mean were used as statistical tools in the study, and analysis of variance was used to determine the significant differences between variables. The data gathered were tallied, analyzed and interpreted. The results of the study revealed that majority of the respondents implement financial management practices. Financial management practices such as financial planning, investment, and working capital management are highly applied by small and medium enterprises in Nasugbu, Batangas. It was also revealed that there is a significant difference in the application of financial management practices of small and medium enterprises when they are grouped according to business profile. The outcome of this study may be useful for the entrepreneurs to focus on financial management practices in order to enhance their business performance. 

References

Mendoza, R. U.,& Melchor, M. (2014) SMEs in the Philippines: Going beyond survival. Retrieved from https://amp.rappler.com/thought-leaders/74674-smes-philippines-asian-institute-management

Matabuena, J. (2017) What to do when you’re ready to expand your business. Retrieved from https://amp.rappler.com//brandrap/finance-and-industries/182916-what-to-do-expand-business-sme

Gregory, A. (2018) 5 Everyday Money Management Tips for Small Business Owners. Retrieved From https://www.thebalancesmb.com/money-management-small- wbusiness-owners-2951600

Mazzarol, T. (2014) The Importance of Good Financial Management. Retrieved From http://celtic-id.com/the-importance-of-good-financial-management-to-smes/

Timbang, F.L. (2015) Financial Management Part 1. C & E Publishing, Inc.

Royal London Mutual Insurance Society Limited (2014). Principles and Practices of Financial Management. Retrieved From http:// www.royallondongroup.co.uk/RL CIS/Investments/Platinum-Plus/Principles-and-Practices-of-Financial- Management/

Hill, B. (2018). Retrieved From http://smallbusiness.chron.com/business-financial-planning-2675.html

All Business Editors (2018) “Top 10 Reasons to Invest Your Money”. Retrieved From https://www.allbusiness.com/top-10-reasons-to-investmoney939161.htmlBusiness Coaching, Accounting and SME Consulting in Sydney (2018).

Feimster, S. (2017) “Best Practices in Working Capital Management”. Retrieved From https://www.kmco.com/resource-center/article/looking-forward/best-practices-in-working-capital-management/

Best (2018) Keys to Effectives Investment Diversification. Retrieved from www.-fg.com/blog/4-keys-effective-investment-diversidication

Mejorada, N.D. (2011) Business Finance and Philippine Business Firms (3rd ed.) Goodwill Trading, Inc

Maneval, E. (2018) Working Capital Management. Retrieved from http://www.studyfinance.com/lessons/workcap/

Downloads

Published

2021-08-31

Issue

Section

Articles