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Abstract

The study investigates the impact of financial management strategies on the profitability of small businesses in Pasig City, highlighting challenges such as lack of managerial skills and financial knowledge. Through surveys of 120 small businesses, it finds that while internal control and capital management are important, financial literacy is the key factor significantly influencing profitability. The research emphasizes the need for enhanced financial practices to improve future performance.

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Fav Tangonan
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2 views2 pages

Abstract

The study investigates the impact of financial management strategies on the profitability of small businesses in Pasig City, highlighting challenges such as lack of managerial skills and financial knowledge. Through surveys of 120 small businesses, it finds that while internal control and capital management are important, financial literacy is the key factor significantly influencing profitability. The research emphasizes the need for enhanced financial practices to improve future performance.

Uploaded by

Fav Tangonan
Copyright
© All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd

Abstract

Businesses regardless of their sizes needed financial management as an ingredient in

sustaining the business and maintaining their profitability. However, most small

businesses struggle in operating the business for various reasons; lack of managerial

skills, registration problems, financial knowledge capability. Financial management

strategies are an essential part of managing and controlling these problems and in

contributing to the profitability of small businesses in Pasig City which the study

centralizes. To investigate, the study uses a simple random sampling and questionnaires

to gather information from one-hundred twenty (120) small businesses in four different

barangays in Pasig City: Brgy. San Miguel, Brgy. Manggahan, Brgy. Maybunga and Brgy.

Rosario. The researchers applied The weighted mean as statistical treatment to

determine the significant influence of the strategies to businesses and spearman rho is

used to investigate the relationship of each financial management strategies in

profitability. In terms of internal control, capital management and financial literacy

practices are strongly agreed to be performed by businesses. The results show that small

businesses strongly agree with the significance of financial management strategies in

different aspects such as forecasting, cash flows and sales to enhance profitability. In the

significant relationship of financial management strategies and the profitability of small

businesses only financial literacy is shown to have a significant relationship in forecasting

the profitability of small businesses. The research shows the importance of financial

management strategies to profitability may not directly depend on internal control and

capital management but underscored the significant relationship of financial literacy in


predicting future performance of small businesses which suggests actions of enhanced

practices and strategies to yield profitability.

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