Mobile money transactions and financial performance of microenterprises in cities in Cavite / by Glysa Lyn A. Covero, Glysdi Aira D. Dogelio and Leilac Michenne C. Santos.

Thesis (Bachelor of Science in Business Management major in Financial Management) Cavite State University.

Includes bibliographical references.

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

COVERO, GLYSA LYN A., DOGELIO, GLYSDI AIRA D., SANTOS, LEILAC MICHENNE C. Mobile Money Transactions and Financial Performance of Microenterprises in Cities in Cavite. Undergraduate Thesis. Bachelor of Science in Business Management major in Financial Management. Cavite State University, Indang, Cavite. August 2022. Adviser: Ms. Danikka A. Cubillo.

Micro, small, and medium enterprises (MSMEs) are recognized as the backbone of many economies throughout the world, including the Philippines. Completing payments remotely via mobile money, MSMEs broaden their client base by providing goods and services to a much far-reaching audience, improve overall payment collection through increased transaction speed and lowered credit delays. The study was conducted from March to December 2021 in Cavite to assess the relationship of mobile money transactions (MMT) and financial performance of microenterprises in Cavite. Specifically, it aimed to: (1) determine the socio-economic profile of the microenterprise's representatives in selected cities in Cavite in terms of age, sex, educational attainment, and current position in the business; (2) determine the background of microenterprises in terms of form of business organization, number of years the business is established, number of employees, frequency of activity in the enterprise, and availability of credit facility; (3) determine the frequency by which microenterprises use mobile money to carry out their financial transactions in terms of payment, receipt, lending, borrowing and saving; (4) determine the financial performance of microenterprises in selected cities in Cavite in terms of net profit margin, quick ratio and return on assets (ROA); and (5) assess the relationship of MMT and the financial performance of microenterprises in selected cities in Cavite. Descriptive and correlational research approaches were used in this study. In order to assess those who are fit for the survey, quota and purposive sampling technique were employed. In this study, a sample size of one hundred (100) was found suitable. Using an adapted questionnaire, data were collected from microenterprises. representatives in selected cities in Cavite. Frequency, percentage, mean score, and Pearson product-moment correlation coefficient were used to analyze the data. Plenty of microenterprise's representatives in selected cities in Cavite were ages between 25-40 years old and were females. Better part (56%) of the participants attained a college degree, and more than (79%) were owners of the microenterprises. Almost all (91%) of the microenterprises in cities in Cavite were sole proprietorships, and half of them were in the early stages of business, specifically between 1-5 years, while they employed 4-6 workers in their establishment. On the other hand, greater number (48%) of microenterprises said that the frequency of activity in their businesses were often busy and that a great deal (88%) of them, offered a credit facility with a month-long grace period. Also, the study recognized that microenterprises used mobile phones often when making payments and receiving money. Consequently, they utilize mobile phones rarely when it comes to lending and borrowing money, while they sometimes use mobile phones terms of saving money. Furthermore, a large deal of microenterprises had a high net profit margin, much beyond the average, and more than half of them were within the normal 1-5:1 quick ratio. Whereas, huge number of microenterprises had a low ROA, that is less than 5% which is deemed low. Finally, using Pearson product moment correlation coefficient, it was acknowledged that MMT had a significant relationship with net profit margin, while MMT has no meaningful correlation with quick ratio and ROA.

Submitted to the University Library 11/07/2022 T-9054