ABSTRACT

This study sought to assess the implementation of financial management strategies as well as the performance of micro and small enterprises (MSEs) in the City of Ilagan, Isabela. The financial management strategies emerged from three variables: investment, cash flow management, and risk management. The MSEs’ level of performance was assessed based on financial, operational, and innovation and growth. The study utilized a mixed research approach encompassing the quantitative and qualitative research methods. To obtain the accurate sample size of the population, the Slovin’s formula was used with a total of 364 participants who were owners/proprietors and managers of the MSEs. A self-made questionnaire was carefully developed and designed based on the specified variables. Results showed that there are significant relationships between the financial management strategies and the level of performance of MSEs. The study also revealed that the participants assessed the implementation of financial management strategies in terms of investment, cash flow management, and risk management to a great extent which denote strong capabilities of MSEs to employ such strategies that contribute to the firms’ overall development and growth. The level of performance of MSEs was also assessed as high along the areas of financial, operational, and innovation and growth which exhibits their capabilities to thrive and continue to grow in a complex but competitive business environment. The results of this study are deemed useful for MSE owners and managers as well as national and local policy makers to further develop the implementation of financial management strategies and enhance more the level of performance of MSEs.

Keywords:Financial management strategies, MSE performance, micro and small enterprises
https://doi.org/10.57180/vpoh3377