Financial Management behavior of small and medium enterprises (SME's) in Davao City

Abstract

The purpose of the study is to determine the level of Financial Management Behavior of Small and Medium Enterprises in Davao City. Small and medium enterprises are businesses that maintain revenues, assets or a number of employees/personnel falls below certain limits. The respondents of this study were the selected thirty (30) small and medium enterprises in Davao City. Quantitative design using descriptive method and the statistical tools were the mean and the percentage was utilized in the study. The researcher conducts a survey to test if there is a significant relationship among small and medium entrepreneurs on their financial management behavior when analyzed according to their profile. The study concluded that capital cash management and technology inventory management has a high level of financial management behavior of small and medium enterprises. The findings reveal that there was no significant difference in the financial financial management behavior when analyzed according to their profile and there was a significant differences existing according to their duration of operation with inventory management and financing and accounting information system. Based on the conclusion, the following recommendations were offered. This is to recommend that that small and medium enterprises should improve their skills account receivables in order to update each account receivables from the customer in time. And improve their business operations that will satisfy their customers. And for the store manager, it is recommended that the store managers should analyzed the client/customers status to meet their long term financial objectives and setting-up a program to help the customers meet those goals. Additionally, it can be a motivational factors to the college students after pursuing their profession and work in an enterprise or let their self to be an entrepreneur. A newly graduates must be fully equipped with knowledge and skills to be competitive in the environment of business world. Lastly, for the future researchers that should proceed to get more information about the factors affecting small and medium enterprises and enhance more ideas presented in this study for the benefit of everybody particularly who are engaged in the business and small and medium enterprises.