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

2021 ◽  
Vol 1 (2) ◽  
pp. 24
Author(s):  
Marvin C. Hernandez ◽  
Corinna S. Balboa ◽  
Rommel C. Cuenca ◽  
Nik Ki Dale G. Quilantang
Keyword(s):  
Financial Management ◽  
Business Performance ◽  
Management Practices ◽  
Small And Medium Enterprises ◽  
Working Capital Management ◽  
Significant Difference ◽  
Main Instrument ◽  
Medium Enterprises ◽  
Descriptive Method ◽  
Gathering Data

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. 

scholarly journals The Effect of Financial Management Practices on Performance of SMEs in Sri Lanka

2020 ◽  
Vol 8 (05) ◽  
pp. 1789-1803
Author(s):  
Somathilake HMDN ◽  
Pathirawasam C
Keyword(s):  
Sri Lanka ◽  
Capital Structure ◽  
Financial Management ◽  
Management Practices ◽  
Small And Medium Enterprises ◽  
Capital Management ◽  
Working Capital ◽  
Working Capital Management ◽  
Medium Enterprises ◽  
Positive Effect

Small and Medium Enterprises (SMEs) play an important role in every developing country contributing to the growth of the economy in many ways. The aim of this study is to identify the effect of financial management practices on performance of SMEs in Sri Lanka: Special Reference to North Central Province (NCP). Working capital management practices, Investment appraisal practices, Capital structure management practices, financial reporting & analysis practices and Accounting information system practices were identified as independent variables and Performance of SMEs was identified as the dependent variable of this study. All SMEs (nearly 2000 SMEs) operating in NCP during the year 2019 was identified as the population of this study. Out of that, 322 SMEs were selected as the sample based on disproportionate stratified random sampling method and final sample was 245 manufacturing, service and trade SMEs operating in NCP. Data was collected through a structured questionnaire distributed among SMEs functioning in NCP. Descriptive statistics and inferential statistics like Pearson correlation analysis and multiple regression analysis were used to analyze data using the SPSS package. Results of the study revealed that there is a positive effect of financial management practices on performance of SMEs. Among financial management practices, working capital management practices and capital structure management practices have a significant positive effect on SMEs performance. Keywords: Capital structure, Financial Management, Performance, Small and Medium Enterprises, Sri Lanka, Working capital.

scholarly journals The Impact of Internal, External and Enterprise Risk Management on the Performance of Micro, Small and Medium Enterprises

2019 ◽  
Vol 11 (7) ◽  
pp. 2172 ◽  
Author(s):  
Dewi Hanggraeni ◽  
Beata Ślusarczyk ◽  
Liyu Adhi Kasari Sulung ◽  
Athor Subroto
Keyword(s):  
Risk Management ◽  
Financial Management ◽  
Business Performance ◽  
Small And Medium Enterprises ◽  
West Sumatra ◽  
Management Factors ◽  
Managing Risk ◽  
Medium Enterprises ◽  
Additional Value ◽  
The Impact

This paper aims to develop the role of internal factors, external factors, and risk management variables on MSMEs’ business performance. This research was conducted in underdeveloped regions of five provinces, which includes 14 cities in Indonesia—East Java, West Sumatra, North Sumatra, West Nusa Tenggara, and East Nusa Tenggara. The Resource-based view and Market-based view methods were chosen to measure 1401 data of MSMEs. The data was collected using offline questionnaires then processed using SPSS. This paper demonstrates a remarkable outcome for MSMEs, showing the significant result of risk management factors that includes risk assessment of marketing and financial management. Other independent variables of internal, external, and risk management factors also show important outcomes on MSMEs performance. This paper offers additional value of the implementation of ERM in MSMEs, which are spread in underdeveloped regions in Indonesia. The findings shown that the activity of the enterprises in identifying and managing risk would bring up the significant effect on operational business performances.

scholarly journals Impact of Financial Management Practices on SMEs Profitability with Moderating Role of Agency Cost

2017 ◽  
Vol 9 (1) ◽  
pp. 23-30 ◽  
Author(s):  
Saqib Muneer ◽  
Rao Abrar Ahmad ◽  
Azhar Ali
Keyword(s):  
Financial Management ◽  
Structural Equation ◽  
Management Practices ◽  
Small And Medium Enterprises ◽  
Agency Cost ◽  
Partial Least Square ◽  
Least Square ◽  
Primary Data ◽  
Medium Enterprises ◽  
The Impact

The importance of Small and medium enterprises (SMEs) towards economic development and growth is considerable. Some SMEs are facing difficulties to their development due to the lack of financial resources and management experience. The objective of this study is to check the relationships of financial management practices on profitability of small and medium enterprises and also to check the impact of agency cost on this relationship. This study consists of data analysis of two hundred SMEs from Faisalabad Pakistan. The study used primary data predominantly. SPSS 23 is used for descriptive analysis and Structural Equation Model (SEM) through Partial Least Square (PLS) 3 for hypothesis testing. The findings of this study indicate the presence of positive relationship between financial management practices and SMEs profitability but agency cost as a moderator has no effect on this relationship. The study strongly recommends higher adherence to financial management practices. Policy makers, developments partners, owners, and managers of SMEs may use these findings for sustainability of their business in Pakistan.

scholarly journals Microfinance Credit Accessibility and Financial Performance of Small and Medium Enterprises in Machakos County, Kenya

2020 ◽  
Vol 4 (1) ◽  
pp. 71
Author(s):  
Muema Joseph Munguti ◽  
Lucy Wamugo
Keyword(s):  
Financial Performance ◽  
Financial Management ◽  
Management Practices ◽  
Banking Sector ◽  
Small And Medium Enterprises ◽  
Small Population ◽  
Financial Access ◽  
Income Ratio ◽  
Medium Enterprises ◽  
Positive Effect

SMEs in Machakos County have been characterized by poor financial performance which has been linked to financial access. Financial access is one of the keys that drive the development of SME in the country, particularly access to bank financing since banking sector plays a key role in serving this segment. This study specifically sought to determine the influence of collateral security, loan-income ratio and geographical branch penetration on financial performance of SMEs. Study adopted census survey due to small population size. Respondents were supplied with semi-structured questionnaires with aim of getting their views regarding financial accessibility and SME performance. Findings of the study indicated that collateral security, loan-income ratio, and geographical branch penetration has a significant positive effect on financial performance in Machakos County, Kenya. This research recommends that SME’s should improve their core capital, strengthen their financial management practices, foster financial innovation, and literacy within firms.

scholarly journals Impact of working capital management on the profitability of smes through cash operation cycles in Kumasi

2020 ◽  
Author(s):  
Genesis Gyasi Sah
Keyword(s):  
Management Practices ◽  
Business Processes ◽  
Small And Medium Enterprises ◽  
Capital Management ◽  
Working Capital ◽  
Working Capital Management ◽  
Managerial Skills ◽  
Key Factor ◽  
The Government ◽  
Medium Enterprises

A business ought to be able to breed an adequate amount of cash and cash equivalent to meet its short-term liabilities if it is to carry on and develop in business. For that reason, working capital management which helps an entity to, efficiently and effectively manage current assets and liabilities is a key factor in the company’s long-term success; without working capital, the non- current assets will not function. The better the degree to which current assets exceed current liability, the more solvent or liquid a company is likely to be. This paper observes the relationship between working capital management practices of small and medium enterprises (SMEs) and the performance and profitability of these businesses in the Kumasi Metropolis distinctively Asafo, to evaluate key ratios of industries of such working capital management policies in ensuring that current assets meets current liabilities, to assess the degree to which management of SMEs are dedicated to the effective and efficient management of working capital. The implication of the findings is that the government of Ghana should pursue policies aimed at encouraging training and improving the managerial skills of SME owner/managers as well as creating the enabling environment for the development of improved modern technologies to transform the business processes of these vital industries.

scholarly journals Financial management practices in successful Small and Medium Enterprises (SMEs)

2015 ◽  
Vol 7 (1) ◽  
pp. 88 ◽  
Author(s):  
Hendrik Petrus Wolmarans ◽  
Quentin Meintjes
Keyword(s):  
South African ◽  
Financial Management ◽  
Management Practices ◽  
Small And Medium Enterprises ◽  
Balance Sheet ◽  
Management Skills ◽  
Body Of Knowledge ◽  
Frequency Of Use ◽  
Medium Enterprises ◽  
Financial Practices

<p>Although the success of small, medium and micro enterprises (SMEs) is extremely important for the South African economy, their failure rate is amongst the highest in the world; some researchers estimate as high as 90 percent. Research has shown that the lack of financial management skills and application of financial management practices are some of the biggest factors contributing to SME failure. However, it is not clear from the literature which of these skills and practices are more important than others. This study aims to fill this gap by determining which financial management skills are relevant for successful SMEs. A survey was done on a sample of owner-managers of successful SMEs who had been asked, firstly, whether they performed different financial management practices and, secondly, how frequently they performed these in their companies. The study concludes that practices regarding working capital as well as profitability are much more relevant than those regarding a balance sheet or strategic finance. Similarly, financial practices related to cash flow and decision making are more relevant than those related to planning or analysing. It may be true, due to the high risk and volatile environment of SMEs, as well as the challenges that are often underestimated, that financial practices which academics regard as important are not always implemented by these companies.  This study contributes to the existing body of knowledge as it determines the relative relevance and frequency of use of financial management practices by successful SMEs.</p><p><strong>KEY WORDS </strong></p><p>Small and medium enterprises, Financial management practices, Successful SMEs, Entrepreneurship education</p>

scholarly journals THE USE OF FINANCIAL MANAGEMENT PRACTICE BY BATIK PEKALONGAN MSMEs

2020 ◽  
Keyword(s):  
Financial Management ◽  
Management Practices ◽  
Small And Medium Enterprises ◽  
Management Practice ◽  
Qualitative Approach ◽  
Structured Interviews ◽  
Medium Enterprises

Micro, Small, and Medium Enterprises (MSMEs) are recognized worldwide as the main source of dynamism, innovation, and flexibility. This study aims to analyze the financial management practices used by the Pekalongan batik craft SMEs. The method used is descriptive with a qualitative approach. Data were collected by structured interviews with a samples are 30 determined by snowballs sampling. The results show that the owner’s knowledge of financial management is still limited, did not prepared a financial budget regularly, and rarely compare the budget with the actual results. Most owners had check supplies once a week and did not evaluate the feasibility before started to invest. Range for ROA were 2% to 5%, and NPM 10% to 20%. All owners are satisfied with doing the business, and no one to thinks of moving to other businesses in other fields.

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