Status of Financial Management Systems of Micro Businesses in Ilocos Sur

Abstract

This descriptive study assessed the profile, status of practices and challenges of micro businesses of Ilocos Sur along financial management. A survey questionnaire and unstructured interview were administered to One hundred eighty-two (182) business owners/managers, and one hundred seventy-eight (178) personnel/workers from the different cities and municipalities of Ilocos Sur. Findings of the study revealed that the status of financial management of micro businesses in Ilocos Sur is at Moderate, employing a few financial management practices on financial planning, budgeting, and accounts management, and there are pressing problems of the micro enterprises in Ilocos Sur along Financial Management. Maintaining a plan of action to be undertaken during loss, and evaluation of business operations are highly practiced by the microenterprises along financial planning. Budgeting activities ranging from planning, to allocating budget, and projecting financial risks are highly practiced by the micro enterprises. Under accounts management, inventory management activities are highly practiced by the micro enterprises, while cash and receivables management activities are moderately practiced. Recommendations were made along financial management focusing on the increase of capital, membership to organizations, participation to trainings and seminars, to curtail the existing problems of the micro businesses in Ilocos Sur.