DEVELOPMENT OF WORKING

CAPITAL IN SMALL AND

MEDIUM
ENTERPRISE IN SELECTED
BARANGAY IN IMUS CAVITE

PRESENTED BY

Amar Denzel M.
Barbuco Adrian J.
Cabaruan Rhey Mar G.

Small and medium
enterprise needs helps from government
to provide them a good and welcome
the entrepreneurship when it comes to
small businesses and some of small
businesses has a potential to counter any
crisis that can happen in their business
and they can see through the problems
because the SMEs has a very low cost
base and it can operate quickly, when it
comes to problems they can easily find
an options to way out compared to any
big enterprises. You just need a lot of
patients and you small businesses has a
high chance to increase their income
and create more value, it's also helps the
SMEs when it can promote on the
transaction to digital future and it can
withstand any challenges like climate
change. The future of economies will be
by the hand of an entrepreneurship that
can help to increase the private sector.
INTRODUCTION
According to Mohamed
Allam, Amr Youssef,
Mohamed Ragheb, and
Rabab Abdou (2023) Small
and medium-sized businesses
contribute significantly to the
economic development of
any nation and endeavor to
enhance the business climate.
One of the main areas that
affect these small and
medium enterprises and their
profitability and
sustainability in the market is
working capital management.
According to Eliza Nicole
Robles Adviento, Charlene
Laine D.C Bumanlag, Shannen
Rose C. Fajarito and Peter Jeff
Chan Camaro (2022) study
delves into the role of Micro,
Small, and Medium Enterprises
(MSMEs) in the Philippines,
with a focus on evaluating their
influence on employment,
income inequality, and poverty
reduction. Despite numerous
studies suggesting a positive link
between MSMEs and these
outcomes, divergent findings
indicate potential negative
associations.
 GENERAL OBJECTIVE

The study aims to explore and understand how working capital evolves in small and
medium enterprises within selected barangays in Imus, Cavite. It likely investigates
factors influencing development and strategies for effective management.
 SPECIFIC OBJECTIVE
STATEMENT OF THE
OBJECTIVE 1
PROBLEM 1
1. Identify the profile of the selected
1. What is the profile of the
business in Imus City, Cavite in
selected business in Imus
terms of:
City, Cavite in terms of:
STATISTICAL
a. business name; TOOLS/TREATMENT
a. business name;
b. ownership; USED
b. ownership;
c. size;
c. size;
d. products and services;
d. products and services;
e. starting capital;
e. starting capital;
f. estimated monthly sales; and
f. estimated monthly sales; and
g. estimated monthly expenses.
g. estimated monthly expenses.
 SPECIFIC OBJECTIVE

STATEMENT OF THE OBJECTIVE 11

PROBLEM 11
11. Identify the source of working STATISTICAL
11. What is the source of working capital of different business. TOOLS/TREATMENT
capital of different businesses?
USED
a. Retained earnings; and
a. Retained earnings; and b. Bank Loans.
b. Bank Loans.
 SPECIFIC OBJECTIVE
STATEMENT OF THE
PROBLEM 111
111. What impact small and Medium
Enterprises in Imus, Cavite does have
on the local economy in terms of:
a. Employment opportunities;
and
b. Challenges and opportunities.
OBJECTIVE 111
111. Identify the impact small and Medium
Enterprises in Imus, Cavite does have on
STATISTICAL
the local economy in terms of:
TOOLS/TREATMENT
a. Employment opportunities; and USED
b. Challenges and opportunities.
 SPECIFIC OBJECTIVE

STATEMENT OF THE PROBLEM

OBJECTIVE IV
IV
IV. Identify the preferable models to be
1V. What are the preferable models to
used to develop the usage of Working STATISTICAL
be used to develop the usage of
Capital in terms of:
Working Capital in terms of: TOOLS/TREATMENT
a. Decision-making;
USED
a. Decision-making; XXXXXXXXXXXXXXXXX
b. Study area;
b. Study area; XXX
c. Growth;
c. Growth;
d. Potential; and
d. Potential; and
e. Chosen barangay.
e. Chosen barangay.
 SCOPE OF THE STUDY
SIGNIFICANCE OF THE STUDY
This Study will focus on how Small and Medium
The Study about the Development of Working Enterprises develop their working capital in selected
Capital in Small and Medium Enterprises in Selected areas/barangays in Imus City, Cavite. The goal of this
Barangay in Imus Cavite will help with the following study is to know how they manage their expenses,
values: increase their profit, and develop their working capital
to be used to fund operations and meet short-term
To Students. obligations. If a company has enough working capital,
To Teachers. it can continue to pay its employees and suppliers and
meet other obligations, such as interest payments and
To Small and Medium Enterprises Owners. taxes, even if it runs into cash flow challenges.
To Future Researchers.
THEORETICAL FRAMEWORK OF THE STUDY
FIGURE
CONCEPTUAL FRAMEWORK OF THE STUDY
FIGURE
 DEFINITION OF TERMS

Capital Management Expenses Private Sectors

Cash Flow Investment Risk Management

Enterprise Micro Enterprise Short term

Entrepreneurship Ownership Stakeholders

 REVIEW OF RELATED LITERATURE
Sustainable Impact
According to Bansal, Sanchita (2023),
This paper is about how social enterprises in
India can help achieve sustainable
development goals. The researchers did three
different studies to understand this better.
They found that social enterprises that have a
clear mission to help society, work with
others, come up with new ideas, make enough
money to keep going, and can grow bigger,
are more likely to contribute to sustainable
development. This means that social
enterprises have a good chance of helping
achieve the goals set by the United Nations.
The researchers also said that more research
should be done to learn more about this and
that other countries can learn from their
findings.
Challenge Faced
According to the Central European
Management Journal (2022) small and
medium-sized enterprises (SMEs) encounter
significant challenges in effectively managing
their working capital. The financial health of
these businesses is often hindered by poor
money-related administration. Inefficient
working capital management can lead to
setbacks, affecting overall growth. Research
suggests that balancing profit growth and
cash flow is crucial, and effective working
capital management can enhance profits. The
study emphasizes the importance of
minimizing receivable accounts and inventory
levels for value creation. Despite challenges,
implementing strategic financial planning can
positively impact SME profitability.
Driving Development
According to A. Yashoda (2017)
Small & medium enterprises play an
important role in the development of our
country in various ways by Creating
employment for rural & urban growing
labor forces, providing desirable
sustainability & innovation in the economy
as a whole. Small firms are giving a boost
to the low income group peoples. Working
capital management is essential not only
for a firm's profitability & risk but also in
its value. This paper is focusing on the
impact of working capital in small and
medium enterprises
 METHODOLOGY
Research Design
This Descriptive research design was
used in this study. Descriptive research design
is a fact-finding study that aims to
systematically obtain information to describe
a phenomenon, situation, or population.
Data Gathering Procedure
This study, titled "Development of Working
Capital in Small and Medium Enterprises in Selected Barangays
in Imus Cavite," employed both original and established
questionnaires to gather data from SME representatives. The
researchers, through their own analysis, will delve into the
collected information. To facilitate this analysis, the data will be
categorized, organized into tables, and coded. The study primarily
utilizes frequency distribution and percentage calculations to
interpret respondent answers concerning specific variables.
Hypothesis
The hypothesis of the study where the
following:
Participants of the Study
There are 30 participants in a selected
barangay in Imus City, Cavite, which includes
Palico IV, Bayang Luma II, and Tanzang
Luma I. From the Top 3 count of Small and
Medium Enterprises that are located near
Cavite State University Imus Campus.
Sources of Data
The primary data are the responses given by the
representatives of different SME’s in a Selected
barangay in Imus Cavite through the use of a
questionnaire provided by the researchers. The
researchers will contact the representative listed in the
Selected barangay in Imus Cavite to ask permission to
conduct an interview. The primary data will come from
the respondents and results from the questionnaires.
Statistical Treatment
The survey questionnaires were the main instrument of the study. The questionnaires consisted of (4) four parts: general information of
the respondents, profile of the business, working capital, and company operations. The survey questionnaires were distributed to SME’s any
representative of the store.
The questions in this study were treated by using descriptive methods. The following are the statistical tools used in this study together
with their corresponding formulas.
1. Frequency and Percentage. this shows the results in proportional percentage form. To measure the percentage of the profile of the
participants and business profile.
P = f/n x 100
P= Percentage
f = Frequency
n = sample size
SAMPLE QUESTIONNAIRES
FIGURE