Financial literacy towards business performance among SME employees in Davao City

Abstract

Financial literacy is more than a set of skills or knowledge; it is the display of those skills in real-world situations. This study aimed to analyze the impact of Financial literacy Towards Business Performance in Davao City. To get results for the study, a survey was conducted among the SME’s Employees which participated by 100 respondents from industries/ companies form within the City undergone the purposive sampling method. The descriptive Correlation research method was employed in this study analysis of variance was utilized as the statistical tool. It was revealed in this study that every indicator of Financial Literacy among SME Employees shows there is a significant difference in the level of financial literacy profile. In terms of Cash Flow and Sales Revenue, all results and original hypotheses are rejected. The study, therefore, recommends that the Business owners shall investigate the effect of some other effective external factors on the business environment. It also recommends that the longitudinal study of the relationship between financial literacy and profitability should be conducted in Davao City under various Business Owners to have a comprehensive understanding of the relationship.