Author
Shannen Joy C. Tadeo*
Kalinga State University
Bulanao, Tabuk City, Kalinga, Philippines
Abstract
Retail micro and small enterprises (MSEs) play a crucial role in supporting the local economy, but many of them struggle to move beyond simply getting by each day. In Tabuk City, this study looked closely at how small retail business owners manage their finances on a daily basis, focusing on how they handle cash, keep records, and use financial technology and how these habits affect their overall business performance. The goal was to develop a practical program that directly responds to the real challenges these entrepreneurs face. Using a quantitative and descriptive-correlational approach, the study gathered data from 218 registered retail business owners through structured survey questionnaires. The findings revealed that organized financial management is only practiced occasionally. Many business owners still depend on manual record-keeping and cash-based transactions instead of using digital tools or formal banking systems. Because of this, most businesses remain at a “just enough” level they earn enough to sustain daily operations but find it difficult to save for emergencies or grow their sales consistently. The analysis also showed a clear link: businesses that practice stronger financial discipline tends to perform better. Key factors that influenced both financial practices and business success included the owner’s level of education, participation in financial training, and the amount of starting capital. However, the study found that the biggest challenges are not about technology. Instead, they stem from gaps in basic financial knowledge (reported by 64.68% of respondents), frequent cash flow disruptions caused by the local pautang system (54.13%), and difficulty accessing bank loans due to poor financial records (50.00%). Overall, the study suggests that the main obstacles faced by provincial retail MSEs are rooted in informal financial habits and community credit practices. To help address these issues, the researcher proposes “Project SMART-MSE,” a localized initiative designed to strengthen financial literacy, improve daily cash flow management, enhance bookkeeping skills, and encourage the use of digital financial tools ultimately helping small business owners build more stable and sustainable enterprises.
Keywords: Financial management practices, financial performance, micro and small enterprises.
*Corresponding author / Email: shannenjoy04@gmail.com
DOI: http://doi.org/10.69651/AJHMS01024
Recommended citation:
Tadeo, S. J. C. (2026). Financial management practices and financial performance of micro and small-sized retailing enterprises in Tabuk City. ASEAN Journal of Humanities and Multidisciplinary Studies, 1(2), 45-61. http://doi.org/10.69651/AJHMS01024
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