ABSTRACT

This study examined the financial management practices of Micro and Small Enterprises (MSEs) in Tuguegarao City, the challenges they face, and their recommendations for improvement. Using a descriptive research design, data were collected from MSE owners through surveys and interviews. Results revealed that MSEs generally implement financial management practices to a considerable extent, with an overall mean of 3.09 (“Great Extent”). Accounts payable management received the highest mean score of 3.51 (“Very Great Extent”), followed by cash management at 3.42, while long-term financing scored the lowest at 2.44 (“Moderate Extent”). Key challenges identified included limited access to banking due to low credibility, inadequate financial literacy, and inefficient cash management. Participants recommended strategic reinvestment of profits, improved financial record-keeping, and prioritizing financial planning to enhance operational efficiency, service quality, and long-term sustainability. These findings highlight the need for targeted interventions to strengthen financial management practices among MSEs, particularly in long-term financing, to promote growth, competitiveness, and financial stability.

Keywords: Micro and Small Enterprises, Financial Management Practices, Cash Management, Accounts Payable, Long-Term Financing, Tuguegarao City
https://doi.org/10.57180/baje3456