THE IMPACT OF MICROFINANCE IN MICRO,SMALL AND MEDIUM ENTERPRISES'PERFORMANCE AT KORONADAL CITY

A significant contribution was made toward the expansion of economics in developing nations by the Micro, Small, and Medium-Sized Enterprises (MSME) sector. In a similar vein, the availability of microfinance facilities was vital to the financial performance of micro, small, and medium-sized enterprises (MSMES) since these facilities encourage the expansion and growth of MSMEs. This study. therefore, explored the impact that microfinance has on the performance of micro, small and medium-sized enterprises (MSMEs) in the city of Koronadal. In addition to this, an investigation on the relationship between microfinance and the performance of MSMEs were carried out. The research was designed using a correlational-descriptive approach, and the survey method was used. In order to choose the 177 MSMEs that would make up the studys sample size, procedures of simple random sampling were used as a selection method. The pertinent data that was used for the analysis was collected through the use of a self- made questionnaire. Tables of frequency and percentage were utilized to exhibit the data, and weighted mean and Pearson R were utilized to carry out the analysis. According to the findings of the study, there was a significant relationship between the microfinance and the performance of MSMEs. Microfinance also has a positive effect on the product or service innovation, profitability, and overall productivity of MSMEs. The research suggested that more people should be aware of the significance of microfinance in the process of business development. According to the findings of the study, the government of Koroandal City should develop and carry out policies that would make it simpler for micro, small, and medium-sized enterprises (MSMES) to obtain microfinance loans, particularly from micro, small, and medium-sized banks.