FINANCIAL MANAGEMENT PRACTICES AND THE FINANCIAL PERFORMANCE OF MICRO, SMALL, AND MEDIUM-SIZED RESTAURANTS IN GENERAL SANTOS CITY

This study aimed to examine the effects the financial management practices will have on the financial performance of MSMEs specifically, of restaurants in General Santos City. This study was descriptive and correlational. The data were gathered from 72 owners, managers, or their equivalent of micro, small, and medium-sized restaurants in General Santos City who were picked through a judgment or purposive sampling technique. Using Slovin's formula, the researcher computed a sample size of 88. Primary data were used and were obtained using a structured questionnaire adapted from previous studies. Of the total distributed questionnaires, only 72 were returned. Data collected regarding the profile of restaurants were analyzed through frequency distribution and percentage. Applying weighted mean and standard deviation, it is found out that the owners and managers agreed to the extent to which the Micro, Small, and Medium-sized restaurants in General Santos City adopt the following financial management practices in terms of working capital management practices (M=3.95, SD =1.03), investment decision (M=4.01, SD =0.85), and financing decision (M=3.85, SD =0.94). The owners and managers also agreed on the financial performance level (M=4.13, SD =0.83). Multiple linear regression analysis shows that there is a significant relationship between the level of financial management practices and the level of financial performance (F=29.173, F (.000) < 0.05. It means that financial management practices affect the financial performance of micro, small, and medium-sized restaurants in General Santos City.