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Financial Choices and Business Sustainability among Small and Medium Enterprise Owners
Subject area: Management and Commerce · Area of research: Business Management and Finance
Abstract
This study examined the relationship between financial choices and business sustainability among small and medium enterprises (SMEs) in the Fourth District of Laguna. A convergent parallel mixed-methods design involved a survey of 120 respondents and interviews with selected business owners in Siniloan, Pangil, Pakil, Paete, and Pagsanjan. The data covered cash flow management, financial literacy, access to capital, risk management, and business sustainability. Quantitative data were analyzed using descriptive statistics and Spearman’s rank correlation, while qualitative data underwent thematic analysis. Findings revealed that age was significantly associated with both financial choices and business sustainability. In contrast, sex, educational attainment, monthly business revenue, length of business operation, and nature of business were not significantly associated. Cash flow management, financial literacy, and risk management were strongly and significantly associated with business sustainability, while capital access was also significantly associated. Overall, stronger financial practices were positively associated with better business sustainability. These findings may guide SME owners in improving financial management practices and maintaining stable business operations.
Keywords
business sustainability, financial choices, cash flow management, small and medium enterprises (SMEs)
How to cite this paper
@article{1724987,
author = {Jeremy Xeus V. Asin, Allya Marrion R. Bañaga, Dezza Nicole V. Flores, Aleli I. Magtibay},
title = {Financial Choices and Business Sustainability among Small and Medium Enterprise Owners},
journal = {Iconic Research And Engineering Journals},
year = {2026},
volume = {10},
number = {5},
pages = {2133-2141},
issn = {2456-8880},
url = {https://www.irejournals.com/formatedpaper/1724987.pdf},
abstract = {This study examined the relationship between financial choices and business sustainability among small and medium enterprises (SMEs) in the Fourth District of Laguna. A convergent parallel mixed-methods design involved a survey of 120 respondents and interviews with selected business owners in Siniloan, Pangil, Pakil, Paete, and Pagsanjan. The data covered cash flow management, financial literacy, access to capital, risk management, and business sustainability. Quantitative data were analyzed using descriptive statistics and Spearman’s rank correlation, while qualitative data underwent thematic analysis. Findings revealed that age was significantly associated with both financial choices and business sustainability. In contrast, sex, educational attainment, monthly business revenue, length of business operation, and nature of business were not significantly associated. Cash flow management, financial literacy, and risk management were strongly and significantly associated with business sustainability, while capital access was also significantly associated. Overall, stronger financial practices were positively associated with better business sustainability. These findings may guide SME owners in improving financial management practices and maintaining stable business operations.},
keywords = {business sustainability, financial choices, cash flow management, small and medium enterprises (SMEs)},
month = {November},
}