Performanance of micro, small and medium enterprises (MSMEs) in selected cities of Cavite / Patricia Isabel M. Escobar.

Thesis (BS Economics Major in Business Economics) Cavite State University

Includes bibliographical references.

College of Economics, Management, and Development Studies (CEMDS)

ESCOBAR, PATRICIA ISABEL M. and RONCALES, MA. ARLENIE A. Performance of Micro, Small and Medium Enterprises (MSMEs) in Selected Cities of Cavite. Undergraduate. Thesis. Bachelor of Science in Economics major in Business Economics. Cavite State University, Indang, Cavite, April 2015. Adviser: Mr. Marlon A. Mojica
The study was conducted to determine and evaluate the performance of micro, small and medium enterprises (MSMEs) in selected cities of Cavite namely: Dasmarinas, Bacoor, and lmus from November 2014 to February 2015. Specifically, the study aimed to: describe the business characteristics of MSMEs in selected cities of Cavite in terms of: business category, number of employees and operating capital; identify the status of access to finance of MSMEs in selected cities of Cavite; determine the relationship between selected business characteristics and level of accessibility to finance of MSMEs in selected cities of Cavite; determine the relationship between level of accessibility to finance and performance indicators such as income and employment and identify the problems encountered by MSMEs in selected cities of Cavite.
Stratified proportional random sampling was used to determine the number of participants per city. Convenience sampling technique was used in selecting the participants that were surveyed. A total of 80 were surveyed.
In presenting the data, frequency counts, percentages, ranges, means and percentages were used. Chi-square was used in analyzing test in relationship in the study. Based on the result of the study, most of the businesses were micro, with 1 to 8 years of operation and with a mean of 10 and a monthly operating capital of P300, 000 and less. Majority of the businesses did not access to any external financing because they do not want to have financial obligations/debt and they only support their business through the retained earnings. Businesses that did access external financing had one number of loan, with an amount of loan applied and granted between P18, 000 to ₱345,332. Majority of the businesses were fully granted of their loans and the application process (in days) took between 1 to 20 days. Most of the businesses applied for loans for additional working/operating capital, the sources of their loans were private financial institution, the usual documents needed in applying for loans was personal financial statement, and some of the businesses encountered long application process as one of the problems. The result indicates that business category and age of the enterprise were found significantly related to level of accessibility in accessing finance but operating capital was not. The result shows the bigger the size of the enterprise, the higher is the possibility to be more accessible, same with age of the enterprise where the older the enterprise have more chances to be more accessible. Also, result shows that level of accessibility to finance is related to performance such income, the higher the level of accessibility in accessing finance, the higher is the possibility to have higher income. Also, employment is related to level of accessibility to finance, the higher the level of accessibility in accessing finance of the businesses, the higher is the chance to generate more employment. When it comes to problems encountered by the business as a whole, it shows that most of the businesses encountered problems like having low sales, negative attitude and limited number of customers and lack of supplies.

07/04/2016 T-6008 Submitted to the University Library