Published April 14, 2021, 8:00 AM
Every financial decision a manager or business owner makes affects the success or failure of an institution. This involves choices in the aspect of utilization of finances acquisition, sales, expansion, etc. Hence, sound financial decisions are crucial in effectively managing a business, including MSMEs. We must acknowledge however, that not all MSMEs are equipped with the right knowledge and understanding of financial management.
According to Dr. Alvin Ang, an economics professor from the Ateneo de Manila University, regardless of the size of an enterprise, the need for financial management is just the same. “It means understanding how funds come in and go out of the firm in its operations. Financial management means that the firm knows how the company operates and understands what is/are needed to expand or stop or shift in order to sustain its profitability over time. It may involve raising more capital, borrowing, or simply cutting ex
P3 4 billion zero-interest loans to small businesses approved
visayandailystar.com - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from visayandailystar.com Daily Mail and Mail on Sunday newspapers.
BoI investment pledges reach P137 billion so far
bworldonline.com - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from bworldonline.com Daily Mail and Mail on Sunday newspapers.
We should never think small when we talk about micro, small, medium enterprises (MSMEs).
The implementation of stricter health lockdowns in the first quarter of 2020 to prevent the spread of COVID-19 had severely affected businesses, including Micro, Small, and Medium Enterprises (MSMEs).A National Economic and Development Authority (NEDA) survey conducted together with the World Bank (WB) revealed that around 60% of MSME respondents were forced to stop operations, reduce their working hours, or temporarily lay-off workers.
Fortunately, majority of the businesses interviewed did not permanently lay-off employees. This implies that businesses were absorbing whatever losses they had experienced to protect their workers. This is important to consider, given that as of 2018, MSMEs account for 99.5% of total businesses and employ 63.2% of the total workforce in the Philippines, or the equivalent to 5.7 million jobs.