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Financial Performance Of Micro, Small And Medium Enterprises (Msmes) In The Philippines

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  • Rufo R. Mendoza

Abstract

The study analyzed the financial performance of selected micro, small, and medium enterprises using secondary data from financial statements for the past three years. Results showed the enterprises performed favorably in liquidity, activity and leverage but suffered from a low-level profitability. Using correlation analysis, the results show a significant linear relationship between liquidity and activity, liquidity and leverage, and activity and leverage. However, each of these measures has no significant relationship with profitability. Using t-tests, the results show no significant difference in the liquidity, profitability, and inventory turnover of the enterprises when grouped according to organizational form, business type, and asset size. However, a significant difference exists in receivable turnover, asset turnover, and debt ratios. The study recommends the MSMEs should revisit their strategies for improving profitability and use financial performance information in making critical decisions. Firms should connect financial performance to the larger external environment of the business so they will continue to play an important role in the growth of the economy

Suggested Citation

  • Rufo R. Mendoza, 2015. "Financial Performance Of Micro, Small And Medium Enterprises (Msmes) In The Philippines," The International Journal of Business and Finance Research, The Institute for Business and Finance Research, vol. 9(4), pages 67-80.
    • Handle: RePEc:ibf:ijbfre:v:9:y:2015:i:4:p:67-80
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    References listed on IDEAS

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    5. Fabiola Baltar & Sonia de Coulon, 2014. "Dynamics Of The Entrepreneurial Process: The Innovative Entrepreneur And The Strategic Decisions," Review of Business and Finance Studies, The Institute for Business and Finance Research, vol. 5(1), pages 69-81.
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    Cited by:

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    More about this item

    Keywords

    Financial Performance; Organizational Form; Business Type; Asset Size;
    All these keywords.

    JEL classification:

    • M00 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - General - - - General
    • M40 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting - - - General

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