Abstract

Micro enterprises are now playing an important role to contribute economic growth and
poverty execution. However, numerous studies have revealed that the failure of
microenterprises were mainly caused from inadequate entrepreneurial skills. The
researchers, therefore, wanted to help owner-managers of microbusinesses to appreciate
and adopt basic accounting practices for the growth and success of their business. The
researchers used, quantitative design of research, particularly descriptive type. They
distributed survey to the registered micro businesses in Santiago city particularly in the
barangay of Centro East. . Random sampling technique was applied. Results showed that
owner-managers of microbusinesses we’re lacking of accounting expertise. However, they
strongly agreed that accounting practices helped them to improve their productivity and
stay in the right track of their business goals. Lack of accounting knowledge was the most
common issues encountered by microbusiness owners, therefore, they are unable to
display their company's financial health. The researchers recommend that micro
businesses owners should avail free program and courses over the government agencies
and higher educational institution that would enhance their accounting literacy. The
researchers urged the future researchers to have a broader scope of the study and consider
other sizes of businesses to have comparison between the accounting literacy of micro and
the small and medium enterprises.

Keywords: Micro enterprises, accounting practices, accounting literacy