Profitability and efficiency evaluation of the financial management of a socio-economic intervention

The role of small businesses is critical in the growth of an economy, and in certain circumstances these necessitate financial aid for their sustainability. The main objective of the study is to evaluate the profitability and efficiency of the financial management of the intervention for the improvement of the socio-economic condition of the small businesses in Santol, La Union, Philippines. The article specifically addressed the functionality of the financial aid relative to the actions taken by the beneficiaries for their small businesses, the profitability and efficiency of financial management condition of the small businesses, and the impact on the socio-economic condition of the small business beneficiaries. The study utilized the descriptive type of research mixing qualitative and quantitative analysis by applying financial ratios. It covered the small businesses from three associations and their 127 members. It was found that the association-beneficiaries deposited the money in a bank before the loaning services. The small businesses became profitable and efficient in utilizing the financial aid. The overall socio-economic impact is good as reflected in the results of their financial management. The small businesses of the associations were able to continue operating and provided loaning services to their needy members. It is concluded that with close monitoring and evaluation, small businesses that were granted financial aid are profitable and efficient in their financial operations. It is then recommended that monitoring and evaluation as well as the provision of interventions for the small businesses be sustained to ensure contribution of small businesses to the economic growth of the society.