Risk management practices and investment decision among small-medium enterprises in Barangay Sto. Niño Panabo City

Abstract

The objective of the study aims to determine the level of risk management practices of investment decision of small-medium enterprises in Barangay Sto. Nino, Panabo City. This research is significant for investors and business owners to enhance their expertise and experiences to decide on investments in a risky situation by applying risk management practices as part of their organizational system. The study was conducted on the selected 79 business owners out of 98 registered small-medium enterprises in barangay. Sto. Nino, Panabo City using a standardized adapted questionnaire that was personally administered by the researchers. Results show that the level of risk management practices of small-medium enterprises in barangay Sto. Nino, Panabo City in terms of risk identification, risk management implementation, and risk management performance was very high and yielded an overall mean of 4.42. For the level of investment decision of small-medium enterprises in Panabo City, it garnered a very satisfactory result in terms of self-image/firm-image coincidence, accounting information, personal financial needs constituted a 4.32 overall mean. Furthermore, results found out that there was a significant relationship between risk management practices and investment decision in barangay Sto. Nino, Panabo City. The results yielded a r-value of 0.743 and p-value of 0.000 which was less than 0.05 level of significance, therefore, the null hypothesis (ho) is rejected.