FINANCIAL LITERACY AND BUSINESS PERFORMANCE AMONG

MICRO AND SMALL ENTERPRISES IN MANIKI, KAPALONG, DAVAO DEL NORTE

Authors: Eres Janire B. Baco, Rea G. Cascaño, Lirme P. Huquire, Archie Jan Pascual, Zia Adalyca M. Soriano

The majority of businesses must decide how to invest in and use new technologies, adopt whole new marketing chan-
nels, and compete on a global scale. This is due to the fact that our world is changing quickly, and as a firm expands,
different opportunities and difficulties necessitate different solutions. According to a study, micro and small enterprises
have certain issues with the way their businesses perform. To achieve their strategic goals, they must align their systems,
resources and staff. Many micro and small enterprises operate slowly or even improperly; at best, they do not perform as
well as they should. In the worst case, they might be unable to adapt to changes in technologies, market, or competitive
conditions (Carpi et al., 2018).

• The results and findings would provide information to business
students, aspiring entrepreneurs and establish a distinguished
substance that supported the foundation of business perfor-
mance.
• This study could provide valuable insights into how financial
knowledge and skills influence business outcomes, including
profitability, revenue growth, cash flow management, and debt
management.
• Since the current study is focused on examining a discourse fea-
ture that has not received enough attention within Maniki, Ka-
palong, Davao del Norte, it is necessary to continue this re-
Dual Process Theory
According to this theory, the cognitive processes and intui-
tion impact the financial decisions of persons with strong finan-
cial literacy and help them make better selections. person's fi-
nancial literacy affects predetermined decisions like investment
choices and company strategy that affect their success. By put-
ting their knowledge and abilities in risk management to use,
persons with financial literacy may benefit from the growing
competitiveness in the financial sector.
Kahneman (2018)

Independent Variable Dependent Variable

 Quantitative Research (Descriptive-Correlation Design)
Business Performance
Financial Literacy  The respondents were the 255 micro and small enterprises of Maniki,
Market Performance
Financial Education Kapalong, Davao del Norte using random sampling
Supplier Performance
Cash Forecasting  Quantitative Data Collection (Survey Questionnaire)
Process Performance
Bookkeeping
 Statistical Tool
People Performance
· Mean
· Pearson-r
Dawes (1999) Kim (2006)

Indicators Mean Description Indicators Mean Description

Market Performance 4.50 Very High

Financial Ed-
4.43 Very High
ucation Supplier Performance 4.56 Very High

Cash Fore-
4.42 Very High
casting Process Performance 4.44 Very High

Bookkeeping
4.44 Very High People Performance 4.42 Very High
Practice

Customer-Relationship
Overall 4.43 Very High 4.44 Very High
Performance

Overall 4.47 Very High

The overall correlation of the two variables showed no significant rela-

The data revealed that financial literacy as the independent variable and business performance
as dependent variable had an r – value of -0.17 and a p – value of 0.839. Since that the p – value
was greater than the level of significance a=0.05, this leads to the accepted null hypothesis
which states that there was no significant relationship between financial literacy and business
performance of micro and small enterprises in the Municipality of Kapalong, Davao del Norte.
tionship between the two variables which was the financial literacy and business
performance among micro and small enterprises in Maniki, Kapalong, Davao del
Norte. Not all measures of financial literacy used in this study have a high relation-
ship with business performance interpreted. Therefore, the two variables were not
significant to each other.

Decision
Variables Mean r- value p- value
@= 0.05
• Micro and small enterprises may try to find another area of potential growth to achieve
a high level of business performance and use their financial knowledge to help their
Financial Literacy 4.43 business thrive and be flexible in the dynamic market.
• It is recommended that in order to enable efficient cost control and make wise business
-.017 .839 Ho Accepted decisions and improve corporate communication, strategy, and processes.
• Owners of businesses may think about evaluating and improving their financial literacy,
Business Perfor- including cash forecasting, bookkeeping, and financial education, as a way to contribute
4.47
mance valuable resources and assets to their company.
• the employees the importance of responsible financial management behavior.