The Cost Management Practices and the Financial Literacy Level of Micro Enterprise Owners in Santa Cruz, Laguna

• Author(s): Palero, Patricia May A. ; Labita, Leah Flor P.; Gonzales, Michelle P. ; Caballero, Chloe Mae R.; Gavino, Zarah A. ; Bautista, Jemma Rose R.; Corcuera, Marjorie T.; De Chavez, Gillyn Y. ; Garcia, Cristine Joy G.; Navarra, Aleabel Faye S.; Dr. Norayda M. Dimaculangan
• Paper ID: 1705749
• Page: 13-25
• Published Date: 06-05-2024
• Published In: Iconic Research And Engineering Journals
• Publisher: IRE Journals
• e-ISSN: 2456-8880
• Volume/Issue: Volume 7 Issue 11 May-2024

Abstract

This study investigated the relationship between cost management practices and financial literacy among micro-entrepreneurs in Sta. Cruz, Laguna. Understanding the significance of these factors in company success, the study aims to gain deeper insights into their interconnection and implications for microenterprise management. A quantitative correlational design was employed to gather data from 204 micro-enterprises in Sta. Cruz, Laguna, assessing cost management techniques and financial literacy levels using a 4-point Likert scale. The relationship between these variables was examined using the Pearson correlation coefficient and other statistical methods. The findings revealed a strong correlation between the level of financial literacy among microenterprises and various cost management techniques. However, this correlation was found to be moderately strong, implying opportunities for improvement in financial literacy and the effectiveness of cost management techniques. This study underscored the significant influence of cost management strategies and financial literacy on the success of microenterprises. Enhancing financial literacy contributes to long-term financial sustainability by empowering microbusiness owners with the information and resources needed to make informed financial decisions. While micro-entrepreneurs in Sta. Cruz and Laguna demonstrated great competence in cost management techniques, but there is still an opportunity for improvement in their understanding of finances. Micro-enterprises can enhance their ability for effective financial management and foster strong, long-term business growth by prioritizing financial education programs and actively implementing them.

Keywords

Cost Management Practices, Financial Literacy, Micro Enterprise Owners

Citations

IRE Journals:
Palero, Patricia May A. , Labita, Leah Flor P.; Gonzales, Michelle P. , Caballero, Chloe Mae R.; Gavino, Zarah A. , Bautista, Jemma Rose R.; Corcuera, Marjorie T.; De Chavez, Gillyn Y. , Garcia, Cristine Joy G.; Navarra, Aleabel Faye S.; Dr. Norayda M. Dimaculangan "The Cost Management Practices and the Financial Literacy Level of Micro Enterprise Owners in Santa Cruz, Laguna" Iconic Research And Engineering Journals Volume 7 Issue 11 2024 Page 13-25

IEEE:
Palero, Patricia May A. , Labita, Leah Flor P.; Gonzales, Michelle P. , Caballero, Chloe Mae R.; Gavino, Zarah A. , Bautista, Jemma Rose R.; Corcuera, Marjorie T.; De Chavez, Gillyn Y. , Garcia, Cristine Joy G.; Navarra, Aleabel Faye S.; Dr. Norayda M. Dimaculangan "The Cost Management Practices and the Financial Literacy Level of Micro Enterprise Owners in Santa Cruz, Laguna" Iconic Research And Engineering Journals, 7(11)