Chapter 1 3 2 1

i
NATIONAL UNIVERSITY
COLLEGE OF BUSINESS AND ACCOUNTANCY
MANILA
THE EFFECTIVENESS OF CASH FLOW MANAGEMENT PRACTICES
ON THE MANAGEMENT AND DECISION-MAKING
OF MICRO-FOOD RETAIL BUSINESSES
IN QUIAPO, MANILA
A Thesis
Presented to the Faculty of the College of Business and Accountancy
NATIONAL UNIVERSITY – MANILA
In Partial Fulfillment of the Requirements
for the Degree of Bachelor of Science in Management Accounting
Añasco, Jennilou J.
Castor, Khriestineille A.
Jimena, Wally P.
Mollaneda, Angelika P.
Sanguyo, Maelaine M.
March 2023
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ABSTRACT
The aim of this research is to assess the effectiveness of using cash flow management
practices of micro food retail businesses in Quiapo, Manila and its significance in effective
management of business and decision-making. Data are collected through a quantitative
research method from a sample of thirty (30) purposively selected micro food retail
enterprises by means of a closed-ended questionnaire survey supported using tools such as
the Frequency Count and Percentage Distribution, Weighted Mean, One-way Analysis of
Variance (ANOVA), and Ranking. The findings of the study revealed that cash flow
management practices are one of the crucial component of businesses’ daily operations and
based on the assessment of its effectiveness in micro-sized food retail businesses in Quiapo,
Manila, it is concluded that overall, Cash Flow Management (CFM) practices have a
positive impact on decision-making, particularly in terms of improving connectivity and
data repository, global cash visibility, positioning and reconciliation, and tracking and
optimization.
However, minority of these entities are still having difficulties in tracking, planning, and
forecasting their cash flow making it hard for them to compare, manage, and understand
financial documentation and records to find and prevent discrepancies leading to fraud and
errors. This is due to lack of skills and knowledge among micro-sized businesses in
adopting appropriate record-keeping practices. Likewise, only a minority of the micro
enterprise employ technological advancements or utilize the use of free accounting
software for managing their cash flow, which makes it difficult for them to accurately
monitor and manage their cash or daily business operations.
Keywords: cash flow management, micro enterprises, decision-makers, practices

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DEDICATION
This research paper is dedicated to our family, especially our parents, who have
encouraged and accompanied us in this process with much love, support, and unwavering
effort to see us realize our dreams, which are also their dreams.
We also dedicate this to our university, National University - Manila, which
instilled core values in us and continues to challenge us to pursue personal and professional
development.
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ACKNOWLEDGEMENT
A thesis paper like this would be impossible to complete without the help of several
people. We are grateful for all those who helped make it possible and want them to know
how much their words were appreciated throughout the entire process.
We would like to express our deep and sincere gratitude to Mr. Lester P. Acoba,
our thesis adviser, who has been instrumental in guiding us with this paper; he provided us
with valuable advice and essential information that was needed to complete our research.
We would also like to thank our respondents who have given their consent for full
participation in the survey we conducted, which has made the research study achieve its
smooth completion. To our statistician, Mr. Adulfo R. Arevalo, whose help is greatly
appreciated, with his knowledge and technical expertise, we were able to complete the
statistical treatment of data in our thesis paper with ease under his supervision.
Our grateful thanks are also extended to our respectable professors and panelists,
Ms. Araceli J. Angeles, Ms. Tessie C. Cua and Mr. Daryl M. Geraldo, for letting our
defense be an enjoyable moment, and providing us with brilliant suggestions and comments
for the betterment of our research study.
Finally, praises and thanks to God, the Almighty, for His showers of blessings
throughout our research and its successful completion.

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TABLE OF CONTENTS
Page
TITLE PAGE i
APPROVAL SHEET ii
CERTIFICATE OF ORIGINALITY iii
CERTIFICATE OF EDITING iv
ABSTRACT v
DEDICATION
ACKNOWLEDGEMENT vi
TABLE OF CONTENTS vii
LIST OF TABLES viii
LIST OF FIGURES x
xi
Chapter
I THE PROBLEM AND ITS BACKGROUND 1
Contextual Background 1
Theoretical Framework 4
Conceptual Framework 5
Statement of the Problem 7
Hypothesis 8
Scope of Delimitation of the Study 8
Significance of the Study 9
Operational Definition of Terms 10
II REVIEW OF RELATED LITERATURE 12

AND STUDIES AND SYNTHESIS
Industry 12
Cash Flow Management 13
Connectivity and Data Repository 14
Global Cash Visibility 16
Positioning and Reconciliation 17
Tracking and Optimization 19
Synthesis 20
III RESEARCH DESIGN AND METHODOLOGY 22

Research Design 22
Research Locale 23
Respondents of the Study 23
Sampling Design 24
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Research Instrument 24
Data Gathering Procedure 25
Data Analysis 26
Statistical Treatment of Data 27
IV RESULTS, ANALYSIS AND DISCUSSION 30

Profile of the Respondents 30
Respondent’s Assessment of the Effectiveness of Cash Flow 33
Management
Significant Difference on the Respondents Perception on the 40
Effectiveness of the Cash Flow Management when Grouped
According to Profile
Challenges Encountered by Micro-Sized Food Retail Enterprises on 51
Cash Flow Management
IV SUMMARY OF FINDINGS, CONCLUSIONS, AND 53

RECOMMENDATIONS
Summary of Results 53
Conclusions 58
Recommendations 62
REFERENCES 65
APPENDICES
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LIST OF TABLES
Table 1: Frequency and Percentage Distribution of the Respondents

According to Years of Operation 30
According to Numbers of Employees 31
According to Years Capitalization 31
According to Form of Organization 32
Table 5: Effectiveness of CFM Practices in terms of Connectivity and
Data Repository 33
Table 6: Effectiveness of CFM Practices in terms of Global Cash Visibility 34
Table 7: Effectiveness of CFM Practices in terms of Positioning
and Reconciliation 36
Table 8: Effectiveness of CFM Practices in terms of Tracking
and Optimization 38
Table 9: ANOVA Results on the Test of Difference of the Assessment
of the Effectiveness of CFM when Grouped According to
Years of Operations 40
Number of Employees 41
Capitalization 43
Table 12: BONFERRONI Post-hoc Test Results on the Test of Difference
of the Assessment of the Effectiveness of CFM 44
Table 13: Overall ANOVA Result on the Test Results on the Test of
Difference of the Assessment of the Effectiveness of CFM 50
Table 14: Ranking on the Challenges Encountered by Micro Food Enterprise
in CFM 52
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LIST OF FIGURES
Figure 1: Conceptual Framework 6
1
Chapter 1
The Problem and Its Background
This chapter provided an overview of the study, including the theoretical and
conceptual framework, statement of the problem, significance of the study, scope and
delimitation of the study, and definition of terms.
Background of the Study
Microenterprises are important sources of employment and revenue because they
create employment opportunities by utilizing limited available resources and encourage the
expansion of new jobs in a city or municipality. Based on the list of establishments of the
Philippine Statistics Authority (PSA) in 2020, there is a total of 952,969 Micro, Small, and
Medium-sized Enterprises (MSME) running in the country. Microenterprises make up
88.77% (850,127) of total MSME establishments. Most of the Micro businesses can be
found in the National Capital Region (NCR) with 201,123 (21.10%) business
establishments. In addition, majority of Microenterprises in the Philippines are engaged in
wholesale and retail businesses.
Even if the amount of Micro, Small, and Medium-sized Enterprises (MSME) is
growing, entrepreneurs still have a lot of survival difficulties. These include limited access
to capital, financial literacy, and managerial expertise regarding the cash of the business.
According to Agyapong and Muntaka (2012), many of these businesses are run intuitively,
guided by common sense and the entrepreneur’s individual experiences, rather than
following a formal business plan. As a result, they often find it difficult to compete with
larger, better resourced, and professionally managed companies. Almost none of the
businesses conduct any kind of cash budgets or forecasts, do not conduct bank
2
reconciliations, and do not monitor their cash flows on a real-time basis (Bruwer et al.,
2015).
Effective financial decisions are the outcome of accurate and reliable cash
management practices, which are essential to the survival, expansion, and profitability of
microenterprises. The capability to analyze financial statements, involvement of owner and
managers in the formulation of economic decisions, having financial and accounting
knowledge all play a significant role in whether a business succeeds or fails (Gawali &
Gadekar, 2017).
When a company fails to recognize the value of managing cash, issues with cash
management practices occur. Enterprises that do not manage their cash flow will not be
aware of any losses, presuming any existence. Upon realizing their loss and the need to
recover, the businesses then apply for a loan from the bank. If there is a cash shortage, this
may make the owner unable to manage their cash, resulting in the closure of the business
as they are unable to increase their cash to cover the losses and are unable to pay their debts
(Gilbert, Nelson, and Nicholas, 2013).
According to research done by U.S. Bank, issues about the enterprise’s cash flow
is a significant factor in small business failure. In their study, a small business fails 82% of
the time due to poor cash flow management or a lack of understanding of cash flow. It has
also been noted in a study by Asian Development Bank that over 70% of Philippine
MSMEs experienced cash flow issues, prompting owners to borrow money from friends
and family to keep their businesses afloat. Additionally, the research done by Patel (2010)
shows that cash management is crucial for business sustainability, future planning, and
profitability. The application of fundamental cash flow principles will help firms prepare
3
for unforeseen circumstances. Effective cash management not only boosts a business's
chances of survival but also helps it attract investors who can fund its expansion as
investors pay close attention to a company's cash flow, which in turn reflects its cash
management practices (Merchant Factors, 2013).
It is proved in the study conducted by Gawali & Gadekar in 2017, that financial
management knowledge and practices directly influence the success or failure of
microenterprises. Poor cash management practices and non-synchronicity of cash inflows
and outflows may result in financial difficulties and holding inadequate amounts of cash
or cash equivalent interrupt the normal flow of the business activities that may prompt them
to dissolve. Therefore, the cash flow management currently used by this enterprise has
prompted the present researchers to conduct a study to assess the effectiveness of cash flow
management practices on the decision-making of Micro Food Retail Businesses in Quiapo,
Manila. The research focused on how extensively the selected microenterprises that are
currently doing business in the city manage their cash flow. The cash management
practices of Micro, Small, and Medium-sized Enterprises (MSMEs) have been the subject
of several studies in various cities and regions both inside and outside the Philippines
(Anoos, et al., 2020; Bautista, 2020; Banupriya & Venkadesh, 2019; Jangkholam & Singh,
2021). However, many of these studies are generalized, there has not been thorough
research of Microenterprise’s cash flow management practices in the National Capital
Region (NCR), particularly in Quiapo, Manila. Given that the government in the
Philippines is supporting and strengthening MSMEs, it is crucial to thoroughly assess this
sector in terms of their cash flow management practices in order to provide feedback and
recommendations.
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Theoretical Framework
Effective cash flow management is a crucial factor in the success and financial
health of an enterprise. Positive cash flow is a key indicator of financial health and
implementing effective strategies for managing working capital can provide a competitive
advantage.
According to an article of HighRadius (2022), to achieve best-in-class cash flow
management and operate a successful and financially healthy business, enterprises should
focus on the four pillars of cash flow management. First is the connectivity and data
repository. It is important for businesses to gather and store all relevant bank transactions
and financial information in a centralized location. This allows them to easily access and
analyze the data, which can inform decision-making and help identify any potential issues.
The second pillar is global cash visibility, which requires real-time visibility into the
business’ global cash position in order to make informed strategic decisions. By reporting
on cash flow and forecasting future needs, businesses can better understand their financial
position and plan. Third is positioning and reconciliation which entails identifying cash
surplus and deficit, making investment and borrowing decisions, and reconciling
exceptions in cash flow management. By regularly reviewing and analyzing financial
records, businesses can ensure that they are making the most informed decisions about how
to allocate resources. The fourth pillar is tracking and optimization. Keeping track of all
bank account details, including signers and account balances, is essential for effective cash
flow management. Additionally, optimizing the number and structure of bank accounts can
help businesses minimize fees and maximize returns on excess cash. By adopting these
four strategies, enterprises can effectively manage their cash flow and make informed
financial decisions.
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In the study's context, the four cash flow management strategies mentioned above
can be applied by micro-sized food retail businesses. These businesses, like any other
business, need to effectively manage their cash flow to survive and thrive. Micro-sized
food retail businesses must pay attention to their cash flow, as they may have more limited
resources and financial flexibility compared to larger businesses. Cash must be properly
supervised when it comes to credit and collection, accounting systems and processes must
be designed and implemented, and decision-supporting information systems must be
available.
The synchronization of cash receipts and disbursements can be accomplished by
understanding the cash flows, as well as by utilizing a variety of strategies and methods
that are aimed at accelerating cash receipts and improve the use and optimization of cash.
By adopting effective cash flow management practices, these businesses can make the most
of their resources and better navigate the challenges of operating in a competitive
environment.
Conceptual Framework
The study was anchored to the study of Maduekwe (2015) regarding the usage of
management accounting tools and practices, understanding their purpose and effectiveness
which is crucial for businesses to survive in the marketplace. In understanding the
effectiveness of cash flow management practices on the decision-making of micro, food
retail businesses in Quiapo, Manila, a conceptual model was presented based on our
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research question and micro businesses' reviewed literature. The conceptualized research
framework is depicted in Figure 1.
INPUT PROCESS OUTPUT
•Profile of micro-
enterprises
•Years of operation
•Number of
employees
•Capitalization
•Form of Organization •Analysis of data •Effectiveness of using
through: cash flow management
• Assess the practices in micro, food
effectiveness of CFM •Micro-enterprises' retail businesses in
practices in terms of: profile data collection Quiapo, Manila and its
significance in
• Connectivity and Data •Questionnaire effective management
Repository of business and
decision-making.
• Global Cash Visibility •Statistical and
• Positioning and scientific treatment
Reconciliation
• Tracking and
Optimization
• Challenges
encountered in cash
flow management
Figure 1
Conceptual Framework
The dependent variable considered for this research study was the effectiveness of
cash flow management practices in terms of micro food retail businesses decision making.
Moderating variables are micro food retail businesses profile that includes information
about the years of the business operations, number of employees, capitalization, and form
of organization. The independent variables are how the business assesses the effectiveness
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of cash flow management in terms of connectivity and data repository, global cash
visibility, positioning and reconciliation, and tracking and optimization.
Statement of the Problem
The study aimed to ascertain the effectiveness of cash flow management practices
on the decision-making of micro-sized food retail businesses in Quiapo, Manila.
The researchers sought answers to the following questions:
1. What is the profile of Micro-sized Food Retail Enterprises in terms of:
a. Years of operation
b. Number of employees
c. Capitalization
d. Form of Organization
2. How do the respondents assess the effectiveness of CFM practices in terms of the
following aspects?
a. Connectivity and Data Repository
b. Global Cash Visibility
c. Positioning and Reconciliation
d. Tracking and Optimization
3. Is there a significant difference in how the respondents assess the effectiveness of
their Cash flow management when they are grouped according to profile?
4. What are the challenges encountered by Micro-sized Food Retail Enterprises in
cash flow management?
Hypothesis of the Study

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Based on the formulated statement of the problem, the following hypothesis was
proposed by the researchers:
H0: There is no significant difference in how the respondents assess the
effectiveness of their cash flow management when grouped according to profile.
Ha: There is a significant difference in how the respondents assess the effectiveness
of their cash flow management when grouped according to profile.
Scope and Delimitation of the Study
The study focused on the effectiveness of cash flow management practices on the
decision-making of micro food retail businesses in Quiapo, Manila. The respondents to this
study were the owners of micro food retail businesses with fewer than ten employees in
Quiapo, Manila. The study’s instrument was a validated questionnaire, which served as the
foundation for developing an effective study on the effectiveness of cash flow management
practices on the decision-making of micro, food retail businesses.
Due to the broad coverage of the retail industry, this study only focused on food
retail businesses. The researchers chose food retail because many of the businesses are in
this industry. It also concentrated on the barangays surrounding the Quiapo Church because
they believe that gathering data from many locations will take a long time if the study area
includes microenterprises from all over Metro Manila and nearby cities.
Significance of the Study
Owners/Managers/Decision-makers
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This study would help the owners/managers/decision-makers to stay afloat in the
marketplace. Deliberately adapt and embrace comprehensive, externally focused cash flow
management practices that are driven by strategies and deliver financial information to
efficiently develop and track the organization’s plan, allowing management to have
confidence in the decisions made.
Suppliers
This study would alleviate the suppliers of food retail to further invest in the
industry. It would aid in their cost-benefit analysis as to how much they would gain in this
industry.
Creditors
This research would give creditors ideas and relevant information to assess the
creditworthiness and ability of microenterprises to meet their financial obligations,
indicating that they are trustworthy and have a reputation.
Customers
This study would benefit the customers that consume food retail products as part of
their everyday life. It would help to maximize the quality of the service and products, and
at the same time meet the demands of their market.
Future Researchers
This study would help the student researchers to be aware and knowledgeable about
the cash flow management practices in the food retail industry. This study may also serve
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as a guide and reference for the students undertaking similar studies and can be used in
other industries as well.
Definition of Terms
The terms listed below are defined further, either operationally or conceptually:
Barangay Micro Business Enterprise (BMBE). According to RA 9178, BMBE refers to
any business entity or enterprise engaged in the production, processing or manufacturing
of products or commodities, including agro-processing, trading and services, whose total
assets including those arising from loans but exclusive of the land on which the business
entity’s office, plant and equipment are situated, shall not be more than three million pesos
(P3,000,000.00).
Cash flow. The net amount of cash and cash equivalents transferred into and out of a
business is called cash flow. Inflows are represented by cash received, whereas outflows
are represented by money spent (Hayes, 2022).
Cash management. As stated by Kevin Hillstrom and Laurie Collier Hillstrom in the
Encyclopedia of Small Business (2002), cash management is a broad term that refers to the
collection, concentration, and disbursement of cash. It comprises a company's level of
liquidity, cash balance management, and short-term investment strategies.
Connectivity and Data Repository. Collecting and saving transaction records and data
(High Radius, 2022).
Decision-making. Decision-making is the process by which an individual, group, or
organization decides what future actions to take given a set of objectives and available
resources (Schoemaker & Russo, 2014).

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Global Cash Visibility. Reporting of cash to fulfill strategic goals (High Radius, 2022).
Microenterprises. According to Magna Carta for Micro, Small, and Medium Enterprises
(RA 6977, as amended by RA 8289, and further amended by RA 9501), Micro Enterprises
are those enterprises with total assets of not more than P3,000,000. Micro enterprises can
be defined by their employees' size, ranging from 1 to 9 (Betonio, 2011).
Positioning and Reconciliation. Identifying when there is extra cash (surplus) or a lack
of cash (deficit), making decisions about how to use or acquire additional funds through
investments or borrowing, and reconciling any discrepancies or exceptions in the process
(High Radius, 2022).
Retail Industry. As Barbara Farfan (2019) stated, retail industry is part of the economy
where it is composed of individuals and companies engaged in selling finished goods or
services directly to its consumer.
Tracking and Optimization. Keeping track of all account information, including the
names of signers, and optimizing the way accounts are set up and organized (High Radius,
2022).
Chapter 2
Review of Related Literature and Studies
This chapter explored the literature that was relevant to the understanding of the
effectiveness of cashflow management practices and interpreting the results of this study.
Industry
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The Philippines has a thriving food retail scene that includes a diverse range of
sellers such as street vendors, wet and dry markets, sari-sari shops, grocery stores,
supermarkets, hypermarkets, etc. which have maintained sales value growth despite limited
operations in 2020 due to the COVID-19 pandemic (Statista, 2023). The face of business
in the various cities and municipalities throughout the Philippines, or commonly known as
the Public Market, broaden the availability of nutritious, and low-cost foods. And as we
can observe, some consumers are even highlighting the local culture of their communities.
A walk through a Filipino open market may have seemed difficult. However, as you begin
taking each aspect into account, you'll discover how crucial each premise is (Marpa, 2022).
Various public industries put emphasis on a wide range of product classifications, and it
includes retailers that were continuously thriving in the market. Retailers of snacks,
chocolates and candies, fresh vegetables and rice, frozen foods, as well as some kakanin
store can be seen and are all available in the public market of Quiapo, Manila.
In accordance with Bool and Macatumbas-Corpuz (2021), most micro business
enterprises in the local market are single proprietorship without any employees and all of
them are engaged in the wholesale and retail trade sector. In conformity to that, research
studies have indicated that the economic, social, and environmental sustainability of micro
business enterprises is low. Additionally, it also showed that while accounts receivable and
inventory management were highly correlated with economic and social sustainability,
cash management was significantly related to economic, social, and environmental
sustainability (Bool & Macatumbas-Corpuz 2021).
Cash Flow Management
Management accounting tools, as stated by Matambele (2014), are important in
providing sustainability information for decision-making and in understanding how such

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information influences the firm’s financial performance. In addition, the use of
Management Accounting tools offers strategies that could have an impact on decision-
making and business performance. Although it is common for enterprises to strive towards
business stability, many still fail to address the global financial crisis resulting to business
failure (Bruwer, 2010). Thus, to be able to venture and stay in the market, further reports
showed that business owners should obtain the skills to analyze and use effective cash
management.
As Abioro (2013) said, mere availability of cash without proper management does
not necessarily translate into favorable performance for companies, that is why it is crucial
to adapt effective cash management for better performance as there exists a significant
relationship between cash management and business performance.
In the study conducted by San-Jose, Iturralde, and Maseda (2008), it was concluded
that cash management is a culture that forms part of the strategy of an organization and
depends more on managers themselves than the characteristics of companies. Therefore,
with proper knowledge of managing cash inflows and outflows, the firm is more likely to
formulate strategies to effectively utilize a company’s current assets and liabilities
throughout each phase of the business operating cycle. As depicted in Almaree, et al.
(2015), it is evident that SMME managers and/or owners regard cash budgets as important
to make sound business decisions in terms of planning, monitoring, and managing a firm’s
collections, disbursement, and account balances systematically.
Keown, et. Al. (1998) emphasized that several strategies should be used in cash
flow management. Assuring the availability of sufficient amounts of cash for conducting
business operations, providing accurate accounting for cash receipts, cash disbursements,
and cash balance, forecasting the need for borrowing, and preventing excessively
14
substantial amounts of cash from sitting idle in bank accounts that produce no income.
Hence, it necessitates the formulation and implementation of practices, particularly about
the use of cash, as well as the right matching of resources with actual cash expenditure. As
part of the cash management strategy, business enterprises must build a positive
relationship with banks and other funding sources.
The Financial Management Theory of Brigham & Ehrhardt (2013), which claims
that a manager’s decisions determine the success or failure of any firm, also touched the
idea regarding effective financial decisions as an outcome of accurate and reliable cash
management practices. Success, however, can only be achieved with the use of effective
management accounting tools including cash management, budgetary control, cost-volume
profit analysis, and ratio analysis (Paramasivan & Submarinian, 2009).
Connectivity and Data Repository
Many micro enterprises still do not adhere to the general standard for effective cash
management, even though all these practices have had a significant impact on an
organization's ability to grow and expand. According to a prior study done in South Africa,
new micro businesses rarely employ financial planning and control, financial analysis, or
even investment assessment (Fatoki, 2012). Microenterprises typically kept a journal of
their financial transactions without following the correct accounting standards. Given their
financial situation and educational background, it is impossible to predict that these
business owners will produce a proper financial record in accordance with Generally
Accepted Accounting Principles (Nadzr et al., 2016). It was noticed in the study conducted
in Manipur, India, by Jangkholam & Singh (2021) that the necessity of keeping simple
financial records is still essential for the process of making wise financial decisions.
Keeping business records and practicing good record keeping techniques to maintain
15
accurate financial records of transactions is highly relevant, and many researchers and
business owners suggest it. However, from the study conducted by Myeko and Madikane
(2019), the results revealed that a substantial percentage of their respondents still failed to
establish appropriate record keeping practices and did not know about the significance and
contribution of keeping a record for their businesses.
Franco and Haase (2010) in their study on failure factors in small and medium-
sized firms, identified a lack of qualifications and experience possessed by SME founders
or managers as serious constraints on SME growth. All too frequently, bad cash
management systems have caused small business owners to liquidate or reorganize their
operations because they cannot afford to neglect the distinct value of excellent cash
management. According to Bagchi (2013), firms, particularly SMEs, often fail to meet their
operational targets due to a lack of cash flow. This is because they are continually in need
of cash and bank deposits to cover their regular running expenses. Many organizations
confuse cash management and profitability. Cash management, according to him, is the
tracking of cash flows into and out of the business. Resulted also in the study by Aren and
Sibindi (2014), no micro enterprise surveyed had comprehensive cash management
processes for managing their cash flows.
Global Cash Visibility
A widely known literature asserts that using financial performance measurements
is essential for any firm to get a better overview of the financial situation inside and outside
of the organization. Since cash is the primary form of payment for Micro Enterprises,
research studies have focused more on understanding the value of cash budgets when
making business-related decisions. This was especially true given that, at least in theory,
cash budgets allow micro business managers to plan, monitor, and control their company’s
16
cash flows. Unfortunately, it was discovered that survey participants did not effectively use
cash budgets, particularly because they did not perceive, understand, or use cash budgets
(Almaree, et al., 2015). Particularly, as stated by Gyebi and Quain (2013), implementing
proper cash management improves a company’s flexibility and competitive advantage in
handling unexpected circumstances.
According to a Ciriaco (2018) literature review, business owners believe that for
cash management practices, businesses set the minimum cash balance based on historical
data. In terms of cash inflows, they consistently use the practice of recording all
transactions to determine the business' daily cash flows and monitoring the cash daily to
check net income or sales. However, because their practices are entirely manual, recording
or tracking them takes time. Having an established budget plan, on the other hand, seemed
to have the smallest perception of cash outflows because certain respondents were unable
to execute a systematic approach for their expenditures. The study also showed that, in
terms of cash inflows and corresponding profile variables, there was no substantial
difference between the cash management practices (Arteza et al., 2019).
Positioning and Reconciliation
The primary features of modern Cash Management include establishment of
treasury single account and centralized government bank accounts, the ability to forecast
cash flows accurately, the utilization of short-term financing tools, and the ability to invest
excess capital reserves. As stated by Cangoz and Secunho (2021), establishing a sound
cash management framework with the basic features is beneficial to every business. In
addition, they also mentioned that many business entities had to deal with unanticipated
revenue declines and dramatically increased public spending due to monetary economic
stimulus and pandemic-related health costs. Therefore, having a well-structured cash

17
management system is more crucial than ever. Additionally, from a recent article by
Asokan (2022), it is important to regularly monitor the cash flow and plan of time. A
continuous cash deficit can soon cause issues for businesses and, in the worst-case
situation, lead to bankruptcy. As such, a cash shortage should always be taken more
seriously and addressed as soon as possible. Lack of cash is not the only source of problems
for a business; excessive cash may also be harmful. Having too much cash on hand might
be like raising prices without increasing the cost of the products.
It was also concluded on the study gathered by Barbosa (2021) that Micro and
Small Businesses (MSEs) frequently use financial management practices like costing and
budgeting but merely practiced the utilization of internal control, working capital
management, and long-term financing. Financial management systems were present but
were just being used for experience. It was also depicted that the management of MSEs
does not follow accepted standards on financial management and control due to the lack of
educational background and training on financial management systems and practices.
Having it all said, implementing a proper investment and borrowing decision is
crucial too. There is a great deal of opportunity for long-term returns if you invest in the
right places. The ability of the cash you invest to increase substantially over time is one of
the key advantages of making investments (Mint, 2022). The benefits of investing are
numerous and one of the advantages of investments is returns. Depending on the
investment type, returns offer a consistent income. It offers wholesome long-term profits
for investments with a significantly longer scope. In connection with it, from a theory of
entrepreneurial types, debt may be expensive too and should also be considered, especially
if it comes from cash advance businesses that have high rates of interest. By managing your
borrowing, you'll have more cash to spend on the things that are essential to business or to
18
save for the upcoming years. Having adequate knowledge about the basic but important
practices in business plays a significant role that could either make the business grow or
expand.
However, the sequence of events was also identified as a significant contributor to
how frequently enterprises fell victim to continuous financial instability, which caused the
demise of many of them, particularly in the early years of existence. Furthermore, a study
on small businesses in Cabanatuan City, Philippines, with a focus on cash and accounts
payable management found that most of them are still in the startup phase and pay their
suppliers with cash, checks, and other bank services. However, most of them lack sufficient
knowledge of cash management specifically to their accounts payable, which led to the
delayed payment of payables incurring additional costs such as interest expense.
Tracking and Optimization
An article states that cash flow management involves using a company’s working
capital in the most effective way possible by integrating with multiple data sources, such
as banks and enterprise resource planning (ERP) systems, to record and analyze expected
and actual bank transactions to prevent unexpected or false transactions. It also involves
reconciling the previous day’s cash position and having a comprehensive view of the
company’s cash positions across all departments (HighRadius, 2022). In addition, the
article also states that cash flow management involves managing intercompany balances
and notional pools and reducing excess cash on hand. It is important to accurately and
timely track cash inflows and outflows. Given the uncertain and volatile nature of markets
and cash flows, it is important for enterprises to implement cash flow management
strategies to maintain a positive cash flow.

19
From a related study by Adeoti and Asabi (2018), due to a lack of accounting
expertise and the high cost of hiring qualified accountants, it was revealed that MSEs don't
always maintain comprehensive accounting records. As a result, accounting data is not
effectively used by MSEs to support financial performance measurement. This made it
challenging for the business owners to accurately assess their earnings. The owners or
management heavily blamed a lack of competence in this area for the failure to keep proper
records. The study also showed that MSE managers and owners were very eager to learn
more about how to maintain accurate records of their company's transactions. And from
Muchira (2007), their finding revealed that record-keeping procedures have a substantial
impact on the performance of micro firms. Also, the results showed that cash daybook has
a higher beta score than either of the other micro enterprise performance practices. This
leads to the conclusion that (cash daybook, sales daybook, and purchase daybook). In
accordance with this, the study suggests that governments, non-governmental institutions,
and other stakeholders encourage microentrepreneurs to regularly participate in course
training on business record keeping in order to develop the habit of keeping a complete and
accurate business record for sound decision making.
Synthesis
Cash is the most crucial current asset for the operation of a business. It is both the
fundamental input needed to keep a business operating continuously and the final output
anticipated to be realized by selling the services or goods produced by the company. Since
cash is the lifeblood of any business, as stated by the Chartered Institute of Management
Accountant, effective cash management is essential in every corporate organization. The
objective of cash management is to maintain a healthy cash flow for efficient business
operations. It is also asserted that the significance of managing corporate cash has led to
20
the advancement of cash management. Cash deficiencies will only cause the firms’
operations to be disrupted, and cash surpluses will just sit idle with no positive impact on
the profitability of the company. But, by utilizing Management accounting practices,
owners of Micro-enterprises could prevent business failure caused by uncertainties in
implementing Cash Management. Cash management practices are necessary for business
operations to succeed in the marketplace, achieve company investment opportunities,
improve overall firm performance, and achieve their underlying goals. Furthermore, it also
helps business practitioners address the discrepancy in business operations regarding the
development and profitability for mitigating risk and effective decision-making and
management of cashflows.
Considering the descriptions and definitions gathered from reviewed research
literatures, it can be ascertained that cash management encompasses all actions and
operations required to maintain enough levels of cash to meet a company's operating
requirements. Maintaining cash flow management is essential to making sure a company
is still liquid and able to fulfill its financial responsibilities and based on the recent studies,
this is accomplished by the efficient management of cash inflows and outflows, cash
balances, and cash transfers among a sector of many businesses. Cash management is an
important aspect of management function, and its importance cannot be over-emphasized.
Businesses will succeed when they comprehend and put into practice the principle of
efficient cash management. Implementing a sound cash management system will enhance
operational effectiveness, strengthen the company's balance sheet, provide enhanced
consumer trust, and improve financial risk management. In summary, any corporate
organization's cash management system must be functional and efficient to retain liquidity
and ensure greater performance.

21
Chapter 3
Research Method
This chapter discussed research methodology, including the research design,
research locale, respondents of the study, population and sample size, samples and
sampling technique, research instrument, and data gathering procedures.
Research Design
McCombes (2021) defined research design as a strategy of answering research
questions using empirical data and determining the type of research design used in making
decisions about the overall objectives and approach of research. It helps to ensure that the
methods used match the aims and use the right kind of analysis of the data.
In this study, the researchers used a quantitative approach with a survey
questionnaire to collect and analyze data to understand the effectiveness of cashflow
management practices on decision-making. According to Bhandari (2020), quantitative
research involves collecting and analyzing data in numerical form to identify patterns,
make predictions, test relationships, and generalize results to a wider population. Survey
research is a method of collecting data from a specific group of people or items representing
a larger population. By studying a sample of the population, the results can be generalized
to the entire population. In other words, only a part of the population is studied, and the
results are used to draw conclusions about the whole group.
Descriptive method was used in this study. This method of research entails
gathering and analyzing data to describe the characteristics, behavior, or patterns of a
specific group or phenomenon. The researchers collected data on how respondents assess
22
the effectiveness of cash flow management practices and analyzed it using the descriptive
survey method to determine the effectiveness of these practices in their decision-making.
This also provided valuable insights into the challenges and opportunities that these
businesses faced, assisting in the identification of areas for improvement.
Research Locale
This study examined the effectiveness of cash flow management practices on the
decision-making of micro food retailers around Quiapo, Manila.
Quiapo is a neighborhood in Manila that is more than just a district; it is situated in
the center of the city. The researchers were able to gather and acquire sufficient data
because micro food retail businesses in Quiapo, Manila were more common, suitable, and
applicable for the study, as the researchers observed an increase in the number of food
retailers in the area.
The place has also served as a focus of commerce due to the numerous businesses
that have opened there and are owned and operated by Filipinos from all different
backgrounds. Given their limited resources, these businesses face financial viability and
success challenges.
Respondents of the Study
The study’s respondents were the owners or managers of a micro food retail
business in Quiapo, Manila, or those in charge of managing or operating their cash inflows
and outflows. A micro food retail business must have between one (1) and nine (9) active
employees. The respondents for the said study were chosen by the researchers based on
who met the criteria that the researchers provided.

23
Sampling Design
All the participants were chosen using convenience and purposive sampling. The
convenience sampling method (accidental sampling) selects participants based on their
availability at a specific time and willingness to participate in a research study. Purposive
sampling was also used to filter the respondents included in the study by the researchers.
Respondents were chosen on purpose, with the specific requirement that they be a
registered micro food business in Quiapo, Manila, with one (1) to nine (9) active
employees. It was an appropriate approach for this study because it is widely used in
quantitative research to identify and select information-rich cases in order to make the best
use of limited resources.
Research Instrument
The primary data-gathering instrument used by the researchers was a survey
questionnaire. The questionnaire was designed with the research objectives and questions
in mind. It included close-ended multiple-choice questions that were given to different
respondents in Quiapo, Manila.
In accordance with the research study's objective, the questionnaire was divided
into three sections. The first section requested demographic information from respondents.
This was done to determine the demographic or background information pertaining to the
microenterprises being surveyed and included questions such as the number of years that
the microenterprises have been in business, the number of employees appointed,
capitalization, and the form of the business. The second section elicited responses
concerning the CFM practices of the microenterprises to assess its effectiveness in terms
of connectivity and data repository, global cash visibility, positioning and reconciliation,
24
and tracking and optimization. The third section elicited responses about the most common
problems encountered by the micro food retail business throughout its operation.
The quantitative questions were interpreted using a Five Point Likert Scale and the
effectiveness of cash flow management practices was validated in the following aspects:
connectivity and data repository, global cash visibility, positioning and reconciliation, and
tracking and optimization. The respondents rated the effectiveness of CFM practices on a
scale of 1 to 5, with 5 representing "Strongly Agree" (SA) and 1 representing "Strongly
Disagree" (SD).
Adjective
Weighted Point Interval Symbol Used
Equivalent
5 4.3 - 5 Strongly Agree SA
4 3.5 - 4.2 Agree A
3 2.7 - 3.4 Neutral N
2 1.9 - 2.6 Disagree D
1 1.0 - 1.8 Strongly Disagree SD
Furthermore, quantitative questions about the challenges encountered by micro
food retail businesses in CFM were ranked from highest to lowest, with 1 being the highest
and 5 being the lowest.
Data Gathering Procedure
In the conducted survey, the owners, managers, and other employees who are
responsible for the cash management of the business provided information on the
25
effectiveness of cash flow management practices on the decision-making of micro, food
retail businesses and was elicited using a survey questionnaire.
The researchers created a survey questionnaire based on relevant questions from
related research. The purpose of the questionnaire was fully explained, and certain terms
and concepts were also clarified for those who had difficulty comprehending them. The
participants were assured that their responses would be kept confidential. Furthermore, the
format and nature of the questionnaire, as well as purpose and its expectations, and the time
frame for answering the questions, were explained.
All answers or responses were kept with their consent for encoding purposes,
resulting in accurate data. The survey questionnaire distributed by the researchers was
gathered, and the responses of the respondents were analyzed together to determine the
results regarding the effectiveness of cash flow management practices on the decision-
making of micro food retail businesses.
Data Analysis
In constructing quantitative research, many researchers argued that the concepts
of validity and reliability must be present. Researchers ensured that the research questions
were properly defined, and all questions were valid and relevant for the research topic.
The researchers gathered and compiled the results in a systematic manner using
various office tools e.g., Microsoft Forms, Microsoft Excel and Microsoft Word. The
researchers were able to clearly assess the acquired data in this manner. Moreover, the
researchers ensured that data was collected, completed, assessed, and evaluated.
This research study’s data was analyzed using descriptive analysis. Similar data
was methodically categorized and recorded before being analyzed. In general, the analysis
26
enabled the researchers to describe, illustrate, or summarize data points from the survey
questionnaire, segment the data for analysis, and utilize a coding scheme to depict the
stated phenomena.
Statistical Treatment of Data
In this study, survey-questionnaires were used to gather firsthand data from
selected respondents. The data was then organized and classified according to the research
method and the problems being studied. The data was tallied, coded, tabulated, and
analyzed statistically to ensure the accuracy of the conclusions.
The following tools were used in this study:
1. Frequency Count and Percentage Distribution. This represented the proportion
of people who responded to a specific item and was used to organize and present
the responses of participants to the recruitment and selection system evaluation,
specifically the assessment of the respondents’ demographic information in the
survey questionnaire.
Formula: P = (f/n) x 100%
Where: P = Percentage (%)
f = Frequency (Number of Response)
n = Total Number of Respondents
2. Weighted Mean. This refers to the sum of the product score multiplied by the
frequency divided by the number of cases. This was used to present the
27
respondents’ assessments of the effectiveness of CFM practices in four aspects:
connectivity and data repository, global cash visibility, positioning and
reconciliation, and tracking and optimization.
The formula is:
M = ∑X / n
Where: M = Mean
∑X = Sum of Observation
n = Number of Observation
3. One-way Analysis of Variance (ANOVA) This was used to determine the
significant difference between how the respondents assess the effectiveness of cash
flow management practices in decision making when it is grouped according to
profile.
The formula is:
𝑀𝑆𝑇
𝐹=
𝑀𝑆𝐸
∑𝑘𝑖=1(𝑇𝑖2 / 𝑛𝑖 ) − 𝐺 2 /𝑛
𝑀𝑆𝑇 =
𝑘−1
∑𝑘𝑖=1 ∑𝑛𝑗=1
𝑖
𝑌𝑖𝑗2 − ∑𝑘𝑖=1(𝑇𝑖2 /𝑛𝑖 )
𝑀𝑆𝐸 =
𝑛−𝑘
Where F is the variance ratio for the overall test, MST is the mean square
due to treatments/groups (between groups), MSE is the mean square due to error
28
(within groups, residual mean square), Yij is an observation, Ti is a group total, G
is the grand total of all observations, ni is the number in group i and n is the total
number of observations.
4. Ranking. This was used to describe the positional importance of an item. It was
the order of values or scores from highest to lowest. In this study, participants'
responses about the most common challenges encountered by micro food retail
enterprises were ranked to determine their positions.

29
Chapter 4
Results and Discussion
This section presented a comprehensive analysis of the data collected and results
from (30) thirty purposively selected micro food businesses around Quiapo, Manila.
The results of this study were presented in tabulation by the researchers.
Research Question 1 What is the profile of Micro-sized Food Retail Enterprises in terms
of:
1.1 Years of Operation
1.2 Number of Employees
1.3 Capitalization
1.4 Form of Organization
Table 1
Frequency and Percentage Distribution of the Respondents According to
Years of Operation
Years of Operation Frequency Percentage

0 – 3 years 5 17%
4 – 6 years 3 10%
7 – 9 years 7 23%
10 years upwards 15 50%
TOTAL 30 100%
In Table 1, the distribution revealed that among the 30 micro-sized food retail
businesses surveyed in Quiapo, Manila, 50% (15) have been operating for 10 years or
more. Meanwhile, 17% (5) have been operating for less than three years, 10% (3) for 4-6
years, and 23% (7) for 7-9 years. This distribution of years of operation suggests that the
area has a mix of both new and established businesses, which could have implications for
their cash flow management practices and challenges encountered. For instance, more
30
established businesses may have had more time to develop and refine their cash flow
management practices, potentially leading to a more effective approach.
Table 2
Number of Employees
Number of Employees Frequency Percentage

1-3 21 70%
4–6 7 23.3%
7-9 2 6.7%
TOTAL 30 100%
In table 2, it shows the distribution of the number of employees among micro-food
retail businesses in Quiapo, Manila. It revealed that most micro-food retail businesses in
Quiapo, Manila have a small number of employees, with 70% or out of 21 respondents
indicating a number between 1 and 3, and most of them were owners who also manage
both the business and its processes. Meanwhile, 23.3% (7) have 4-6 employees, and only
6.7% (2) have 7-9 employees. This suggests that the businesses in the area are primarily
small, with a limited number of employees.
Table 3
Frequency and Percentage Distribution of the Respondents According to Capitalization
Capitalization Frequency Percentage

Less than P1,000,000 25 83.3%
P1,000,001 – P2,000,000 3 10%
P2,000,001 – P3,000,000 2 6.7%
TOTAL 30 100%
Table 3 presented data on the capitalization of micro-sized food retail businesses in
Quiapo, Manila. Most businesses (25 out of 30, or 83.3%) reported having less than
31
P1,000,000 in capitalization. Meanwhile, only 3 businesses (10%) reported having
capitalization between P1,000,001 and P2,000,000, and two businesses (6.7%) reported
having capitalization between P2,000,001 and P3,000,000.
This data suggests that the surveyed businesses in Quiapo, Manila are primarily
small and may have limited resources to invest in their operations. Jasra et al. (2011)
emphasized that financial resources are the most important factors that affect the success
of SMEs and on which the whole business depends. This could potentially impact on their
cash flow management practices and overall financial health, as businesses with less
capitalization may face greater difficulty in managing their cash flow effectively.
Table 4
Form of Organization
Form of Organization Frequency Percentage

Sole Proprietorship 30 100%
Registered BMBE Frequency Percentage

Yes 30 100%
Table 4 presented data on the form of organization of micro-sized food retail
businesses in Quiapo, Manila. All the businesses surveyed (30) reported being organized
as sole proprietorships. Additionally, all businesses indicated that they were registered
under the Barangay Micro Business Enterprise (BMBE) program.
This data suggests that micro-sized food retail businesses in Quiapo, Manila tend
to be organized as sole proprietorships, which is a common business structure for micro
and small enterprises. The BMBE program, which provides incentives and benefits to
micro and small businesses, is also widely used in the area.

32
Research Question 2: How do the respondents assess the effectiveness of CFM

practices in terms of the following aspects?
2.1 Connectivity and Data Repository
2.2 Global Cash Visibility
2.3 Positioning and Reconciliation
2.4 Tracking and Optimization
Table 5
Effectiveness of CFM Practices in terms of Connectivity and Data Repository
Indicators WM Verbal Interpretation

The company can monitor cash flow status in real
4.37 Strongly Agree
time.
Cash flow information can be easily shared to the
relevant stakeholders (such as team members, 3.90 Agree
vendors, and financial institutions).
Information is retrieved easily and quickly on our
2.63 Disagree
cash flow history and trends
Enables accurate tracking and forecasting of the Disagree
2.57
company’s cash flow.
Impact on the accuracy and efficiency of our Strongly Agree
4.47
financial decision-making processes
Weighted Mean 3.59 Agree
Table 5 above showed the respondent’s assessment of the effectiveness of cash flow
management on the decision-making in terms of Connectivity and Data Repository. The
statement impacted on the accuracy and efficiency of their financial decision-making
processes, obtained a weighted average of 4.47. Based on the weighted mean score result
of 4.37, most respondents strongly agreed that cash flow management help their business
monitor cash flow status in real-time. On the other hand, respondents with a total weighted
score of 3.90 agreed that sharing cash flow information with the relevant stakeholders such
as team members, vendors, and financial institutions was simple. For an average weighted
mean of 2.63, most of the respondents also strongly agreed that a company’s cash flow
history and trends are readily and easily accessible information. Most of the respondents
that the researchers interviewed also strongly agreed that their cash flow management
33
practices enable accurate tracking and forecasting of the company’s cash flow with a total
weighted mean of 2.57.
According to Trovata (2022), "cash flow management enables businesses to have
greater transparency, better use of capital, quicker decision-making, and better insights into
their cash position." This aligned with the data gathered, which suggests that while there
are areas for improvement in terms of ease of retrieval and accuracy of tracking and
forecasting, the overall effectiveness of cash flow management for decision-making,
particularly in terms of gathering and storing transactions and information, is agreed upon
by the respondents with a weighted mean score of 3.59.
Table 6
Effectiveness of CFM Practices in terms of Global Cash Visibility

Enables identification of opportunities for cost
4.07 Agree
reduction and efficiency improvement.
Enables timely and effective anticipation and
response to changes in the financial performance 4.20 Agree
of the business.
Better forecasting and planning for financial needs
reduce the risk of financial difficulties such as 2.57 Disagree
liquidity shortages or overdrafts.
Allows for the development of improved
processes of implementation of more efficient 2.53 Disagree
systems to achieve strategic objectives.
Aids in identifying the risk factors to enhance and
enrich business processes and unlock potential 4.27 Agree
growth.
management on the decision-making in terms of Global Cash Visibility. The assessment's
weighted average score of 4.27 indicates that micro businesses agreed that cash flow
management aids in identifying risk factors to improve and enrich business processes and
34
unlock potential growth opportunities. In assessing the timely and effective anticipation
and response to changes in the financial performance of the business, many respondents
agreed with a total weighted mean of 4.20. With a weighted mean of 4.07, most
microenterprises agreed that effective cash flow management enables businesses to identify
opportunities for cost reduction and efficiency improvement.
However, with a weighted mean of 2.57, respondents disagreed with better
forecasting and planning for financial needs to reduce the risk of financial difficulties such
as liquidity shortages or overdrafts. Musah and Ibrahim (2014) revealed that some business
owners rely on their memory rather than keeping proper books of accounts. Also, most
SMEs do not keep complete accounting records because of lack of accounting knowledge
resulting to inefficient use of accounting information in financial performance
measurement (Maseko and Manyani, 2011).
Additionally, micro businesses disagreed that cash flow management allows for the
development of improved processes of implementation of more efficient systems to achieve
strategic objectives with a weighted mean of 2.53. As many small and medium-sized
businesses still use manual recording, it is difficult to assess the extent to which the SME
has experienced business development because financial records are not clear and accurate.
With this, it is difficult for the company to implement a more efficient system that will
assist them in attaining their objectives. (Satyawati, 2018).
Generally, global cash visibility obtained an overall weighted mean of 3.65,
indicating that cash flow management practices is effective in making informed strategic
decisions and that understanding and knowing the cash position is critical for the business.
Table 7
35
Effectiveness of CFM Practices in terms of Positioning and Reconciliation

Allows the company to identify cash surplus for
3.83 Agree
investment decision-making.
Allows the company to identify cash deficit and
4.03 Agree
use it to make borrowing decisions.
Consistent and accurate identification of cash
surpluses or deficits in the company’s financial 2.47 Disagree
statements.
Facilitates comparison of financial records to
2.63 Disagree
identify and resolve discrepancies.
Helps in understanding the company's current
financial position and making informed decisions 4.53 Strongly Agree
on allocation of resources.
management on the decision-making in terms of Positioning and Reconciliation. With a
weighted mean of 4.53, only a slight adherence was found on the standards which some of
the respondents strongly agreed that their cash flow management practice help them
understand the company's current financial position and making informed decisions on
resource allocation. The respondents, with a total weighted mean of 4.03, agreed that the
organization identify financial deficits through cash flow management and use those
deficits to make borrowing decisions. The assessment based on the first statement resulted
in a weighted average score of 3.83 indicating that some of the respondents agreed that
cash flow management enables their business to discover cash excess for investment
decision-making.
Several of the respondents disagreed that it is easy for them to compare financial
records to find and correct discrepancies, with a weighted mean of 2.63 indicative of
ineffective cashflow management. Inaccurate financial reporting carries many pitfalls,
including poor business and investment decisions, regulatory fines, and bankruptcy. The
36
owners of microenterprises, according to Smirat (2016), lack sufficient expertise in cash
flow management and control practices. Because of this, they frequently neglect to make a
cash budget, fail to keep track of their cash receipts and payments. His research also
showed that effective cash management is a crucial skill for entrepreneurs to possess to
assure greater financial performance and decision-making.
Moreover, the respondents with a weighted mean of 2.47 disagreed since their cash
flow management practice deemed to be inefficient to identify each cash surplus or deficit
consistently and accurately in the business' financial records. This is because these
microenterprises do not record frequently, and these microenterprises are unable to keep
track of their financial records. The study conducted by Bruwer et. al. (2015) revealed that
most of these entities do not prepare cash budgets or forecasts, do not conduct bank
reconciliations, and do not monitor their cash flows on a real-time basis. Many
microenterprises also take a passive approach to their cash management and only rely on
manual processes or simple accounting to manage their cash even as their businesses grow
(Enow, 2015). These enterprises eventually experience cash flow issues that result in their
closure. Thus, keeping financial records organized is a critical element of a successful
business (Wagithunu et al., 2014).
Overall, the positioning and reconciliation got a total weighted average score of
3.50 indicating that cash flow management practice is highly effective in terms of
identifying cash surplus and deficit, making investment, or borrowing decisions, and
reconcile exceptions. It is proved in the study conducted by Abimbola and Kolawole in
2017 that microenterprises’ financial performance and decision-making have a strong

37
positive relationship with cash flow management practices, which indicates that enterprises
that have more efficient cash flow management practices perform better.
Table 8
Effectiveness of CFM Practices in terms of Tracking and Optimization

It simplifies the tracking of all accounts, saves
4.40 Strongly Agree
time in managing them.
Facilitates efficient identification and resolution
4.03 Agree
of issues with business accounts.
Improves the overall transparency and
4.30 Strongly Agree
accountability of the business accounts.
Enables better understanding and management of
the financial documentation and records of the 2.63 Disagree
business.
Helps in identifying and implementing financial
2.57 Disagree
controls to prevent fraud and errors.
management on the decision-making in terms of Tracking and Optimization. A weighted
mean of 4.40 is computed for the statement, it simplifies the tracking of all accounts, saves
time in managing them. With a response rate of 4.30 weighted mean, respondents strongly
agreed that their cash flow management practices improve the transparency and
accountability of the business accounts. The second statement assessing whether the
microenterprise’s cash flow management practices facilitate efficient identification and
resolution of issues with business accounts obtained a total mean of 4.03 in which most of
the respondents agreed.
Furthermore, based on the weighted mean score result of 2.63, most respondents
disagreed that cash flow management enables better understanding and management of
the financial documentation and records of the business. While it is true, based on many
38
literatures, that cash flow management makes most businesses operate better, in this case
it is no doubt that some micro businesses were experiencing some difficulties when dealing
with the business’ cash transactions. Myeko and Madikane (2019) research had results that
revealed that most of their respondents failed to adopt appropriate record keeping practices
and were unaware of the significance and role of record keeping in their businesses. Due
to a lack of skills and knowledge, most small, micro, and medium-sized businesses do not
use proper recording practices and do not understand the critical role of notetaking in
business.
And lastly, with a total score of 2.57 in the computed weighted mean, it indicates
that some participants also disagreed about the cash flow management practices in terms
of identifying and implementing financial controls to prevent fraud and error, since it is
not easy for them. According to Lusardi (2008), financial illiteracy not only affects
decision-making but contributes to poor planning, bad borrowing behavior, and error in
controlling the cash management of the small business. In later research, Aladejebi and
Oladimeji (2019) found that SMEs have fewer anti-fraud measures and smaller resources
to prevent and recover from financial fraud. Making them more vulnerable to fraud and
error.
In summary, tracking and optimization of accounts got a total overall weighted
score of 3.59 showing how most of the respondents agreed, indicating that the cash flow
management practices are somehow highly effective in terms of tracking and optimization
of business accounts.
Research Question 3 Is there a significant difference in how the respondents assess the
effectiveness of their cash flow management when they are grouped according to
profile?
39
Table 9
ANOVA Results on the Test of Difference of the Assessment of the Effectiveness
of CFM when Grouped According to Years of Operation
Computed
Lead Variable Decision Conclusion
P-Value
Connectivity and Data Repository 0.0002 Reject H0 Significant
Global Cash Visibility 0.0001 Reject H0 Significant
Positioning and Reconciliation 0.0001 Reject H0 Significant
Tracking and Optimization 0.0001 Reject H0 Significant
The present study was conducted to determine if years of operation influence the
respondent's assessment of the effectiveness of Cash Flow Management. The respondents
were assigned into four conditions: 0 to 3 years, 4 to 6 years, 7 to 9 years, and 10 years
upward. Based on the results presented, it appears that there are significant differences in
the Connectivity and Data Repository response across the four different conditions, as
indicated by the F-value of 9.39 and p-value of 0.0002 which is lower than the 0.05 level
of significance.
A significant difference was also observed with respect to Global Cash Visibility,
the computed F value is 12.7, p = 0.0001 which is lower than the 0.05 level of significance.
Therefore, the researchers should reject the null hypothesis as there are differences among
the conditions. The result with respect to Positioning and Reconciliation, F (3,26) = 25.5,
p = 0.0001 showed that there is a significant difference in the respondent’s assessment
when they are grouped according to years of operation. Computed F value of 17.2, p =
0.0001 which is lower than the 0.05 level of significance, which suggests that to reject the
null hypothesis and conclude that there is a significant difference in the respondent's
response relating to Tracking and Optimization.
Overall, the results suggest that there are significant differences in the assessment
of micro food retail businesses regarding four distinct aspects of Cash Flow Management,
40
namely Connectivity and Data Repository, Global Cash Visibility, Positioning and
Reconciliation, and Tracking and Optimization. These results provide evidence to suggest
that years of operation are a meaningful factor in determining the effectiveness of cash
flow management among micro-sized food retail businesses in Quiapo, Manila.
Table 10
of CFM when Grouped According to Number of Employees
Computed
P-Value
Not
Global Cash Visibility 0.479 Accept H0
Significant
Based on the results presented, a significant difference was observed with respect
to Connectivity and Data Repository when they are grouped according to the number of
employees. The F value (2,27) is 10.41, p = 0.0004 which is lower than the 0.05 level of
significance, it indicates that there is significant difference between the group assessment.
The respondent’s assessment of Global Cash Visibility Resulted in a P value of 0.479, and
an F value (2,27, F = 0.75) that is lower than the critical value. The results indicate that the
researchers must accept the null hypothesis and conclude that there is no significant
difference in the respondent's assessment of CFM effectiveness in Global Cash Visibility.
Additionally, with a Computed F value (2,27) of 7.63, p = 0.002 which is lower
than the 0.05 level of significance, it suggests that to reject the null hypothesis and conclude
that there is a significant difference in the respondent's response to Positioning and
Reconciliation. The result with respect to Tracking and Optimization, computed F value
41
(2,27) is 5.82, and p = 0.008 shows that there is a significant difference in the respondent’s
assessment when they are grouped according to number of employees.
Based on the results presented, it can be concluded that there are significant
differences in the respondent's assessment of various aspects of cash flow management
practices in micro food retail businesses when they are grouped according to the number
of employees. Connectivity and Data Repository, Positioning and Reconciliation, and
Tracking and Optimization were found to have significant differences among the groups.
However, there was no significant difference observed in the respondent's
assessment of Cash Flow Management effectiveness in Global Cash Visibility. The result
indicates that the benefits of having effective cash flow management in terms of Global
Cash Visibility are not limited to larger businesses, and even small businesses can benefit
from such practice. This also suggests that the size of the business, in terms of the number
of employees, does not have a significant impact on how effective the respondents perceive
their Global Cash Visibility practices to be in managing their cash flow. The result also
suggests that it does not have a significant impact on how well the businesses can track and
monitor their cash flow across their operations.
Table 11

of CFM when Grouped According to Capitalization
Computed
P-Value
Global Cash Visibility 0.266 Accept H0 Not Significant
42
Based on the results presented, it appears that there are significant differences in
the Connectivity and Data Repository response across the three distinct groups of
Capitalization. As indicated in the table, the p-value is 0.0002 and F (2,27) = 11.69, It
suggests that the researchers should reject the null hypothesis and conclude that there is a
significant difference in the assessment among the conditions.
The table shows that there is no statistically significant difference between the
groups with respect to Global Cash Visibility. The F-value equals to 1.391 is less than the
critical F-value (2,27) of 3.354, indicating that there is not enough evidence to reject the
null hypothesis that the means of the groups are equal. Additionally, the P-value of 0.266
is greater than the conventional alpha level of 0.05, which further supports the conclusion
that there is no significant difference between the groups. Therefore, we can infer that the
independent variable (Capitalization) being tested did not have a significant effect on the
dependent variable (Global Cash Visibility).
The computed F-value (2,27) of 6.44 and p-value of 0.005 suggests that the null
hypothesis can be rejected, and there is a significant difference in the respondent's response
relating to Positioning and Reconciliation. This means that the two groups being compared
differ significantly in terms of their perceptions of these concepts. The result for Tracking
and Optimization shows that there is a significant difference in the respondent's assessment
when they are grouped according to Capitalization. The F-value (2,27) of 3.76 is greater
than the critical value, and the P-value of 0.036 is less than the alpha level of 0.05,
indicating that the null hypothesis can be rejected.

43
Overall, the results suggest that there are significant differences in the perceptions
of Connectivity and Data Repository, Positioning and Reconciliation, and Tracking and
Optimization among the three groups of businesses with various levels of capitalization.
However, no significant difference was observed in Global Cash Visibility. This
suggests that the size of the business, as measured by its capitalization, does not have a
significant impact on how well the businesses can track and monitor their cash flow across
its operations.
Table 12
BONFERRONI Post-hoc Test Results on the Test of Difference of the

Assessment of the Effectiveness of CFM
Mean
Variable Groups (i) Groups (j) Difference p value Inference
(i-j)
Years of Operation (α = 0.0083)
0 – 3 years 4 – 6 years -0.293 0.539 ns
7 – 9 years -0.503 0.116 ns
Connectivity and 10 years upward -1.200 0.003 sig
Data Repository 4 – 6 years 7–9 -0.210 0.642 ns
10 years upward -0.910 0.147 ns
7 – 9 years 10 years upward -0.697 0.005 sig
0 – 3 years 4 – 6 years -0.187 0.595 ns
7 – 9 years -1.234 0.002 sig
Global Cash 10 years upward -1.480 0.000 sig
Visibility 4 – 6 years 7–9 -1.048 0.040 ns
7 – 9 years 10 years upward -0.246 0.405 ns
0 – 3 years 4 – 6 years 0.120 0.741 ns
7 – 9 years -0.394 0.073 ns
Positioning and 10 years upward -1.400 0.000 sig
Reconciliation 4 – 6 years 7 – 9 years -0.514 0.240 ns
7 – 9 years 10 years upward -1.006 0.001 sig
Tracking and 0 – 3 years 4 – 6 years -0.067 0.881 ns
Optimization 7 – 9 years -1.057 0.004 sig
44
10 years upward -1.467 0.001 sig

4 – 6 years 7 – 9 years -0.991 0.087 ns
7 – 9 years 10 years upward -0.410 0.077 ns
Number of Employees (α =0.0167)
1 to 3 4 to 6 employees -0.771 0.001 sig
Connectivity and employees 7 to 9 employees -1.386 0.000 sig
Data Repository 4 to 6
7 to 9 employees 0.013 sig
employees -0.614
1 to 3 4 to 6 employees -0.391 0.185 ns
Global Cash employees 7 to 9 employees -0.391 0.540 ns
Visibility 4 to 6
7 to 9 employees 1.000 ns
employees 0.000
Positioning and employees 7 to 9 employees -1.091 0.083 ns
Reconciliation 4 to 6
employees -0.157
Tracking and employees 7 to 9 employees -1.076 0.000 sig
Optimization 4 to 6
employees -0.257
Capitalization (α= 0.0167)
P1,000,001-
-1.216 0.000 sig
Less than P2,000,000
Connectivity and P1,000,000 P2,000,001-
-1.216 0.000 sig
Data Repository P3,000,000
P1,000,00- P2,000,001-
0.000 1.000 ns
P2,000,000 P3,000,000
P1,000,001-
0.147 0.689 ns
Global Cash P1,000,000 P2,000,001-
-0.920 0.038 ns
Visibility P3,000,000
P1,000,00- P2,000,001-
-1.067 0.057 ns
P2,000,000 P3,000,000
P1,000,001-
-1.088 0.047 ns
Positioning and P1,000,000 P2,000,001-
-1.188 0.000 sig
Reconciliation P3,000,000
P1,000,00- P2,000,001-
-0.100 0.785 ns
P2,000,000 P3,000,000
P1,000,001-
-1.093 0.000 sig
Tracking and Less than P2,000,000
Optimization P1,000,000 P2,000,001-
-0.560 0.413 ns
P3,000,000
45
P1,000,00- P2,000,001-
0.533 0.426 ns
P2,000,000 P3,000,000
The study used the Bonferroni Post-hoc Test to compare the means of different
groups based on their assessment of four factors related to the effectiveness of cash flow
management practices. These factors include Connectivity and Data Repository, Global
Cash Visibility, Positioning and Reconciliation, and Tracking and Optimization. The aim
was to determine whether there were significant differences in the perceptions of these
factors among the different groups.
The post-hoc test showed that micro food retail businesses that have been operating
for 0 to 3 years (M=2.84) scored significantly lower in Connectivity and Data Repository
compared to those who have been operating for 10 years or more (M=4.04), p < 0.008.
Additionally, micro food retail businesses that have been operating for 7 to 9 years
(M=3.34) also scored significantly lower in Connectivity and Data Repository compared
to those that have been operating for 10 years or more (M=4.04), p < 0.008. The test also
revealed that micro food retail businesses that have been operating for 0 to 3 years
(M=2.48) scored significantly lower in Global Cash Visibility compared to those who have
been operating for 10 years or more (M=3.96), as well as those who have been operating
for 7 to 9 years (M=3.71), p < 0.008.
Furthermore, micro food retail businesses that have been operating for 0 to 3 years
(M=2.72) scored significantly lower in Positioning and Reconciliation compared to those
who have been operating for 10 years or more (M=4.12), p < 0.008. The same was true for
micro food retail businesses that have been operating for 7 to 9 years (M= 3.22) compared
to 10 years or more (M=4.12), p < 0.008. Test also revealed that micro food retail
businesses that have been operating for 0 to 3 years (M=2.60) scored significantly lower in
46
Tracking and Optimization compared to those who have been operating for 10 years or
more (M=4.07) and 7 to 9 years (M=3.66), p < 0.008.
This implies that the micro food retail businesses that have been operating for less
than 10 years, particularly those that have been operating for 0 to 3 years and 7 to 9 years,
have lower scores in various aspects of cash flow management compared to those that have
been operating for 10 years or more. These aspects include connectivity and data
repository, global cash visibility, positioning and reconciliation, and tracking and
optimization. This indicates that newer businesses are not as well equipped to handle their
cash flow effectively as more established businesses. They may lack the necessary systems
or processes to collect and store financial data, monitor their cash positions, identify cash
surpluses or deficits, make an informed investment or borrowing decisions, reconcile
exceptions, and optimize their cash flow. Which further support the study done in South
Africa that new micro businesses rarely employ financial planning and control, financial
analysis, or even investment assessment (Fatoki, 2012)
Therefore, the result suggests that the effectiveness of CFM practices is dependent
on how long micro food retail businesses are in operation. The longer a business operates,
the more they are aware and informed of the effectiveness of CFM practices. Effectively
manage and utilize it for effective decision-making, allowing it to operate for longer
periods of time.
Micro food businesses with different numbers of employees and different amounts
of capital have significantly different responses in terms of their assessment of
Connectivity and Data Repository, Positioning and Reconciliation, and Tracking and
Optimization. However, no significant difference was observed in Global cash Visibility.

47
For businesses with different numbers of employees, those with 1 to 3 employees
(M=3.31) had significantly lower assessments of Connectivity and Data Repository
compared to those with 4 to 6 employees (M=4.09) p < 0.017, while those with 7 to 9
employees (M=4.70) had the highest assessment compared to the other group, p < 0.017.
In terms of Positioning and Reconciliation, those with 4 to 6 employees (M=4.14) had
significantly higher assessments compared to those with 1 to 3 employees (M=3.21) p <
0.017, while for Tracking and Optimization, those with 1 to 3 employees (M=3.32) had
significantly lower assessments compared to both those with 4 to 6 employees (M=4.14),
p < 0.017, and those with 7 to 9 employees (M=4.40), p < 0.017. It implies that as micro
food retail businesses grow in terms of employee count, their cash management practices
tend to become more effective and efficient. Businesses with more employees tend to have
better control over their cash flow, which allows them to make more informed decisions
regarding their financial activities. According to the study of Suminah et al. (2022), an
increase in employees can affect the profitability or the income of the business. This is in
line with the results presented that the lower the number of employees that a business has
the more they overlooked the effectiveness of proper CFM practice in the profitability and
success of the business. While global cash visibility did not show a significant difference
among the different employee groups, this does not necessarily mean that it is not
important. Businesses of all sizes should prioritize having real-time visibility into their
global cash position in order to make informed strategic decisions.
For businesses with different amounts of capital, those with less than P1,000,000
capital (M=3.38) had significantly lower assessments of Connectivity and Data Repository
compared to those with P1,000,001 to P2,000,000 (M=4.60) and P2,000,001 to P3,000,000
capital (M=4.60). Additionally, for Positioning and Reconciliation, those with less than
48
P1,000,000 capital (M=3.31) had significantly lower assessments compared to those with
P2,000,001 to P3,000,000 capital (M=4.50). Similarly, for Tracking and Optimization,
those with less than P1,000,000 capital (M=3.44) had significantly lower assessments
compared to those with P1,000,001 to P2,000,000 (M=4.53). The significance level for all
comparisons was less than the Bonferroni adjusted alpha level, p < 0.017. It suggests that
businesses with less than P1,000,000 in capital face significant challenges in effectively
managing their cash flow. The data indicates that these businesses have lower assessments
of connectivity and data repository, global cash visibility, positioning and reconciliation,
and tracking and optimization compared to businesses with higher amounts of capital. This
may be due to limited resources and capabilities to invest in advanced cash flow
management systems and processes. Which further in line with the study of by Suminah et
al (2022), having greater capital used and the easier a business get capital, it will result
increased in business development
Furthermore, the findings emphasize the significance of efficient cash flow
management for businesses of all sizes, as even minute variations in capital levels can have
a significant impact on an organization's capacity to effectively manage its finances.
Businesses with lower capital levels may benefit from investing in automated accounting
systems or seeking external support from financial experts to improve cash flow
management.
Table 13
Overall ANOVA Results on the Test of Difference of the Assessment of the
Effectiveness of CFM
Grouped By df F P value Significance Result
Years of operation 3 45.45 0.001 Significant H0 Rejected
26
Number of Employees 2 7.29 0.003 Significant H0 Rejected
49
27
Capitalization 2 3.73 0.037 Significant H0 Rejected
27
Table 13 shows that there is a significant difference in the overall mean scores
across the four groups based on years of operation. The value of F-statistic (45.45) is larger
than the critical value (2.98) and the p-value of 0.001 is much smaller than the significance
level of 0.05. This suggests that we can reject the null hypothesis that there is significant
difference in the mean scores among the four groups. These results provide evidence to
suggest that years of operation are a meaningful factor in determining the effectiveness of
cash flow management among micro-sized food retail businesses in Quiapo, Manila.
A significant difference was also observed when the respondents are grouped
according to the number of employees. Since the p-value of 0.003, which is less than the
significance level of 0.05 and the F-value of 7.29 is greater than the critical F-value of 3.35,
it represents that the researchers must reject the null hypothesis.
The preceding results were somehow reasonable as micro businesses were usually
not large in numbers, having a micro-sized business means they also had a minimum
income only. And managing cash and the micro business does not necessarily need many
employees. In fact, micro businesses, in accordance also to research, must implement cost-
cutting measures such as employing fewer people, lowering employee compensation, or
adjusting staff members' status from permanent to momentary based on their needs and
sales revenue.
The results show that there is a significant difference in the means of response when
they are grouped according to the capitalization of the business, as evidenced by a
significant F-statistic (F = 3.73 p = 0.037). The F-statistic value exceeded the critical F-
50
value (F crit = 3.35), indicating that the null hypothesis can be rejected. The results of the
analysis indicate that there is a significant difference in the mean scores of the three groups
that were evaluated based on the variable being studied.
The proper control of cash or capitalization is crucial in ensuring that there are
sufficient funds to support a business' operations. The availability of cash flow allows
companies to meet their obligations on time and to pay suppliers, which can result in cash
discounts, reduced costs, and improved performance. Therefore, it is important for
businesses to effectively manage their incoming and outgoing cash. Companies that
manage their cash flow effectively tend to perform better financially. In general, making
sound business decisions often relies on understanding a company's financial situation
(Ramli and Yekini, 2022).
Research Question 4 What are the challenges encountered by Micro-sized Food Retail
Enterprises in cash flow management?
Table 14
Ranking on the Challenges Encountered by Micro Food Retail Enterprises in CFM
Indicators WM Rank
Limited cash reserves and insufficient working
3.97 5
capital.
Inability to effectively forecast and manage
2.80 3
seasonal fluctuations in sales and revenue.
Difficulty in managing and tracking inventory and
3.87 4
expenses.
Lack of financial/accounting expertise. 2.43 2
Pricing pressure to keep prices low to compete
1.90 1
with larger competitors.
Table 14 shows the challenges encountered by the respondents in their cash flow
management practices based on their actual performance where rank 1 is the most common
and rank 5 is the least. From the table presented, the most common challenge faced by the
51
respondents is pricing pressure to keep prices low to compete with larger competitors, with
a rank of 1 and a weighted mean of 1.90. The second most common challenge is the lack
of financial/accounting expertise, with a rank of 2 and a weighted mean of 2.43. The third
most common challenge is the inability to effectively forecast and manage seasonal
fluctuations in sales and revenue, with a rank of 5 and a weighted mean of 2.80.
The fourth most common challenge is difficulty in managing and tracking inventory
and expenses, with a rank of 4 and a weighted mean of 3.87. Finally, the least common
challenge is limited cash reserves and insufficient working capital, with a rank of 3 and a
weighted mean of 3.97.
These results are consistent with the results of the study of Cant and Wiid (2013)
who stated that one of the major constraints to SME business success is the wrong pricing
strategies being implemented. Small to micro and medium enterprises must learn from
large firms when developing business strategies.
Furthermore, there are also SMEs who consider manual recording more effective
because the size of the business activity is relatively small. In addition, most SMEs believe
that the business they are involved in is a small one that is only run to meet their daily
needs (Rahmawati & Puspasari, 2017). Mannan et. al. (2022), also stated that companies
used accounting knowledge for business operations, but not for systematic accounting.
They only compile it as far as they know without separating it into reports and do not make
it in the accounting that companies or large businesses do.
Overall, the challenges faced by the respondents in their cash flow management
practices suggest that they need to improve their financial and accounting expertise to
better manage their limited resources and respond to the pricing pressure imposed by larger
52
competitors. They also need to improve their inventory and expense management practices
and their ability to forecast and manage seasonal fluctuations in sales and revenue.
53
Chapter 5
SUMMARY, CONCLUSIONS, AND RECOMMENDATIONS
This chapter presents the research results summary and discusses the conclusions
drawn from the data. Additionally, the researchers will give recommendations based on the
study's outcomes that can be used to inform future research or practical applications.
Summary of Results
Results of the data analysis showed the following:
Research Problem 1: Profile of Micro-sized Food Retail Enterprises
The research focused on micro-sized food retail businesses in Quiapo, Manila, and
found that 50% of the businesses had been operating for 10 years or more, while the
majority (70%) had between 1 and 3 employees. Additionally, 87% of the surveyed
businesses reported having less than P1,000,000 in capitalization, indicating limited
resources to invest in operations. All the businesses surveyed were organized as sole
proprietorships, with registration under the Barangay Micro Business Enterprise (BMBE)
program.
Research Problem 2: Assessment of the effectiveness of CFM practices
The effectiveness of cash flow management (CFM) practices on the decision-
making in terms of the four aspects, namely connectivity and data repository, global cash
visibility, positioning and reconciliation, and cost control and forecasting, was evaluated
through the respondents' assessments.

54
In terms of connectivity and data repository, most respondents strongly agreed that
CFM helps them in monitoring their business’ cash flow status in real-time and has an
impact on the accuracy and efficiency of their financial decision-making processes.
Respondents also agreed that sharing cash flow information with relevant stakeholders was
simple. However, there is room for improvement in terms of ease of retrieval and accuracy
of tracking and forecasting.
In terms of global cash visibility, most microenterprises agreed that their CFM
practice identifies opportunities for cost reduction and efficiency. They also agreed that
timely and effective anticipation and response to changes in financial performance was
possible. Respondents agreed that CFM aids in their practice to identify risk factors to
enhance and enrich business processes and unlock potential growth opportunities.
However, micro businesses disagreed because their CFM practice does not have a better
forecasting and planning for financial needs to reduce the risk of financial difficulties and
the development of improved processes of implementation of more efficient systems to
achieve strategic objectives is not met.
Regarding positioning and reconciliation, most respondents strongly agreed that
CFM helps them understand the company's current financial position and make informed
decisions on the allocation of resources. They also agreed that their CFM practice enables
the business to discover cash excess for investment decision-making. Respondents also
agreed that the organization can identify financial deficits through CFM and use those
deficits to make borrowing decisions. However, respondents disagreed since their CFM
practice was deemed inefficient in identifying each cash surplus or deficit consistently and
55
accurately in the business's financial records. Several respondents also disagreed as it is
not easy for them to compare financial records to find and correct discrepancies.
Lastly, in the aspect of tracking and optimizing, most respondents agreed that their
cash flow management practices were effective in tracking and optimizing accounts,
improving transparency and accountability, and facilitating efficient identification and
resolution of issues. However, respondents disagreed that cash flow management practices
helped them in understanding and managing financial documentation and records and
identifying and implementing financial controls to prevent fraud and error. This is due to
lack of skills and knowledge among micro-sized businesses in adopting appropriate record-
keeping practices.
Research Problem 3: Significant difference
The study aimed to determine if the years of operation, number of employees, and
capitalization influences the effectiveness of cash flow management (CFM) in micro food
retail businesses in Quiapo, Manila.
The respondents were grouped into different conditions, and their assessments of
CFM were compared. The results showed significant differences in the assessment of CFM
in different aspects such as Connectivity and Data Repository, Global Cash Visibility,
Positioning and Reconciliation, and Tracking and Optimization, when grouped according
to years of operation, number of employees, or capitalization. A significant difference was
observed in four different aspects when grouped according to the years of operation of
micro food retail businesses. However, there is no significant difference in the response in
Global Cash Visibility when grouped according to the number of employees or
capitalization. Additionally, there is a significant difference in Connectivity and Data

56
Repository, Positioning and Reconciliation, and Tracking and Optimization response when
grouped according to number of employees and capitalization. Overall, the study provides
evidence that years of operation and capitalization or number of employees are meaningful
factors in determining the effectiveness of CFM among micro-sized food retail businesses
in Quiapo, Manila.
The researchers compared the perceptions of micro food retail businesses on four
factors related to the effectiveness of cash flow management practices: Connectivity and
Data Repository, Global Cash Visibility, Positioning and Reconciliation, and Tracking and
Optimization. The Bonferroni Post-hoc Test was used to analyze the differences among
different groups based on the duration of operation, number of employees, and amount of
capital.
The results showed that micro food retail businesses that have been operating for a
shorter duration (0 to 3 years) had significantly lower scores on Connectivity and Data
Repository, Global Cash Visibility, Positioning and Reconciliation, and Tracking and
Optimization compared to those who have been operating for a longer duration (10 years
or more). Similarly, micro food retail businesses that have been operating for 7 to 9 years
also had significantly lower scores on Connectivity and Data Repository, Positioning and
Reconciliation compared to those who have been operating for a longer duration. The
findings suggest that the effectiveness of cash flow management practices is dependent on
the duration of a business's operation. Businesses that have been operating for longer
periods of time are more likely to have developed effective cash flow management
practices, allowing them to manage their finances more efficiently and make informed
strategic decisions.
57
The study also found that businesses with different numbers of employees and
different amounts of capital significantly differ in their assessments of the four factors.
Businesses with 1 to 3 employees had significantly lower assessments of Connectivity and
Data Repository compared to those with 4 to 6 employees, while those with 7 to 9
employees had the highest assessment. Similarly, businesses with less than P1,000,000
capital had significantly lower assessments of Connectivity and Data Repository,
Positioning and Reconciliation, and Tracking and Optimization compared to those with
higher amounts of capital. It suggests that as micro food retail businesses grow in terms of
employee count, their cash management practices tend to become more effective and
efficient. Businesses with more employees tend to have better control over their cash flow,
which allows them to make more informed decisions regarding their financial activities.
Similarly, businesses with higher amounts of capital have better cash management
practices, likely due to their resources and capabilities to invest in advanced cash flow
management systems and processes. However, all businesses, regardless of size, should
prioritize having real-time visibility into their global cash position in order to make
informed strategic decisions.
The overall results indicated a significant difference in the mean scores among the
four groups based on years of operation, number of employees, and capitalization. The
researchers rejected the null hypothesis, these results provide evidence that years of
operation, number of employees, and capitalization are meaningful factors in determining
the effectiveness of cash flow management among micro-sized food retail businesses.
Research Problem 4: Challenges Encountered by Micro-sized Food Retail Enterprises

58
Respondents encounter significant challenges in their cash flow management
practices, primarily related to pricing pressure to remain competitive with larger
competitors. Additionally, limited financial and accounting expertise and insufficient cash
reserves and working capital were also major obstacles. Difficulties in managing and
tracking inventory and expenses also posed a significant challenge. Although forecasting
and managing seasonal fluctuations in sales and revenue were the least common
challenges, they still present an area of improvement.
Conclusions
This study clearly shows that cash flow management practices are a crucial
component of businesses’ daily operations and that their significance cannot be ignored.
Businesses are more likely to succeed and prolong their operation in the market when they
recognize and put into practice the idea of effective cash flow management.
Therefore, based on the foregoing results, this research concludes that:
1. The result of this study suggests that micro-sized food retail businesses in Quiapo,
Manila are primarily small, with limited capitalization and a small number of
employees. The respondents are predominantly organized as sole proprietorship
and registered under the BMBE program. These positively impact the respondents’
cash flow management practices by allowing them to save on taxes and other costs,
as well as providing access to financial assistance programs that can help them
manage their cash flow effectively. These also establish credibility and legitimacy,
which can be important for building trust with customers and suppliers.
59
The data also indicates that most of the respondents have been operating for
10 years or more, with most operating with 1-3 employees and reporting less than
P1,000,000 in capitalization. These results have implications for their cash flow
management practices and challenges encountered. More established businesses
may have had more time to develop and refine their cash flow management
practices, potentially leading to a more effective approach.
2. In the assessment of the effectiveness of cash flow management practices in micro-
sized food retail businesses in Quiapo, Manila, it is concluded that overall, cash
flow management practices have a positive impact on decision-making in these
businesses, particularly in terms of improving connectivity and data repository,
global cash visibility, positioning and reconciliation, and tracking and optimization.
a. The respondents have agreed to the effectiveness of CMP in terms of
Connectivity and Data Repository
b. The respondents have agreed to the effectiveness of CMP in terms of
Global Cash Visibility
c. The respondents have agreed to the effectiveness of CMP in terms of
Positioning and Reconciliation
d. The respondents have agreed to the effectiveness of CMP in terms of
Tracking and Optimization
3. Based on the results and Bonferroni post-hoc test, it shows that there is a significant
difference on how the respondents assess the effectiveness of their cash flow
management when they are grouped according to their profile. The groups that were
considered include the years of operation, number of employees, and capitalization
of the respondents.
60
Specifically, the study found that years of operation, number of employees,
and capitalization of the business have a significant effect on the respondents'
assessment of their cash flow management. The Bonferroni post-hoc test revealed
that there are significant differences in the means of response for the different
groups. The effectiveness of CFM practices in the Connectivity and Data
Repository is determined by the length of time micro food retail businesses are in
operation, the number of employees, and the amount of capitalization. Businesses
with lesser years of operation, fewer employees, and lower amounts of capital may
find it difficult to collect and organize data and make it available for use. It is
concluded that the longer a business has been in operation (10 years or more), the
higher the number of employees (7-9 employees), and the average to high amount
of capital (around the range of P1,000,001 – P2,000,000 and P2,000,001 –
P3,000,000) the business has, even if the employees are lacking in formal
accounting knowledge, the more efficiently and effectively they gather and store
data transactions and information, enabling them to easily access and analyze data
that helps in effective decision-making.
The effectiveness of CFM practices in terms of Global Cash Visibility is
also determined by the length of time micro food retail businesses have been in
operation. Businesses with less experience or that are newer in operation may
struggle with reporting on their cash flow, real-time cash visibility, risk mitigation,
and forecasting future needs to better understand their financial position and fulfill
strategic goals, both of which are essential to their business.
Moreover, it is concluded that the effectiveness of CFM practices in the
Positioning and Reconciliation that newer businesses or those that have been in
61
operation for a shorter period of time face difficulties in identifying when there is
a cash surplus or deficit, verifying and reconciling the amount of cash with the
balances shown in their financial records, if any, and making decisions about how
to use or acquire additional funds through investments or borrowing when
compared to micro businesses that have been operating for longer period. Also,
businesses with 4 to 6 employees and have high capital (P2,000,001 to P3,000,000)
are efficient and effective in aggregating their cash balance and transaction
information to ensure that there are enough resources to cover business needs such
as meeting obligations and that they are making the most informed decisions to get
the most out of their funds.
Furthermore, the post-hoc results of the effectiveness of CFM practices in
Tracking and Optimization revealed that the longer the business has been in
operation, the higher the number of employees, and the average amount of capital
(P1,000,001 to P2,000,000), the more likely the business is effective in tracking
business accounts and optimizing the way accounts are set up and organized.
Therefore, the results suggest that micro food retail businesses should take
into consideration their profile when managing their cash flow. For instance, those
who have been operating for a shorter period or have lower capitalization may need
to pay more attention to certain aspects of cash flow management, such as
improving their connectivity and data repository or optimizing their tracking
processes.
4. Micro-sized food retail enterprises face several challenges in managing their cash
flow effectively. The most common challenge is pricing pressure, which is likely
due to the need to compete with larger competitors. The lack of financial and
62
accounting expertise is also a significant challenge, indicating the need for training
and support in this area. Additionally, limited cash reserves and insufficient
working capital, difficulty in managing and tracking inventory and expenses, and
the inability to effectively forecast and manage seasonal fluctuations in sales and
revenue are also significant challenges.
Recommendations
Based on conclusions drawn and within the scope of the study, the researchers proposed
the following recommendations:
1. Taking into consideration that the effectiveness of cash flow management (CFM)
practices in terms of the four aspects, namely connectivity and data repository,
global cash visibility, positioning and reconciliations, tracking and optimization are
significant, the researchers recommend:
(a) Micro-sized food retail businesses should monitor and evaluate their cash flow
management practices on a weekly or monthly basis to identify areas for
improvement. This can be done through regular financial analysis and reporting, as
well as seeking feedback from employees, customers, and other stakeholders.
(b) Micro-sized food retail businesses should take advantage of technological advances
that can improve their cash flow management. This includes utilizing free
accounting software, such as the Peddlr APP, which can be downloaded to any
smartphone and even operates offline. A process like this can increase efficiency
and improve data accessibility. It can ensure the owners that the decisions they
make are fact-based and impactful.

63
(c) Micro-sized food retail businesses should carry out segregation of duties, as
applicable, for those microenterprises that have 4 to 6 and 7 to 9 employees to
ensure separation of responsibility over transactions to better manage the business’
cash flows. By assigning various tasks to different personnel, this can improve the
key internal control intended to minimize the occurrence of both erroneous and
fraudulent actions as well as to optimize their tracking processes.
2. Taking into consideration that the cash flow management (CFM) practices are
significant, the researchers recommend micro-sized food retail businesses to form
a group consisting of microenterprises around the same area and within the same
industry and consider hiring or outsourcing financial professionals who have
expertise in cash flow management. They can hire someone and share the funds to
pay with other microenterprises. By doing this, the cost will not much burden them
and the financial professionals can help them improve the accuracy and consistency
of their financial records, as well as provide valuable insights and recommendations
on how to optimize their cash flow management practices.
3. Taking into consideration that the challenges encountered by micro-sized food
retail businesses in cash flow management are significant, the researchers
recommend:
(a) Micro-sized businesses should perform a competitive pricing analysis and establish
a solid pricing process that will enable them to differentiate their pricing across
distinct market segments.
(b) Micro-sized businesses should determine the amount of cash that is most
appropriate for the level of activity and organize the timing of pertinent payments
64
and collections. Cash collections should be continuously monitored and secured
during peak season.
(c) Micro-sized businesses should implement an inventory tracking system as part of
daily operations. This will guarantee that there is always a stock of the products
available and notify employees when there is no more supply. Hence, the
enterprises may take action to sell them before they become obsolete or damaged.
(d) Micro-sized businesses should allow cash discounts for early paying customers,
they can also develop a policy which hinders debtors to purchase more goods before
previous debts are settled and avail themselves of special deals discounts from their
suppliers.
The researchers strongly recommend that the results of the current study be
validated by future researchers by comparing the result of the effectiveness of cash flow
management on the decision making of microenterprises in future studies and preferably
add more variables to further expand the scope of this topic.
This study focused on micro food retail businesses in Quiapo, Manila. The
researchers further encourage future studies that can be undertaken among the businesses
in other areas of Manila or Philippines in general.
Future research can be carried out using different methodologies, resources, and
techniques. Future research could also explore strategies to enhance the adoption and
effectiveness of cash flow management practices in micro-sized businesses, as well as the
impact of these practices on other aspects of business performance.

65
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APPENDICES
APPENDIX A
EFFECTIVENESS OF CASH FLOW MANAGEMENT PRACTICES ON THE

DECISION-MAKING OF MICRO, FOOD RETAIL BUSINESSES IN QUIAPO,
MANILA
Instruction: Please read carefully and check the corresponding boxes for your answer(s)
Section A. Demographic and Background information

I. Years of Operation
0 – 3 years
4 – 6 years
7 – 9 years
10 years upwards
II. Number of Employees

1-3
4–6
7–9
III. Capitalization
P1,000,001 – P2,000,000
P2,000,001 – P3,000,000
IV. Form of Organization

Sole Proprietorship
Partnership
A registered Barangay Micro Business Enterprise (BMBE)

Yes
No
Section B. Effectiveness of CFM practices on decision making in terms of the

following aspects (Rate the below-mentioned statements in terms of the following
determinants: 5- Strongly Agree 4- Agree 3- Neutral 2- Disagree 1- Strongly Disagree)
75
I. Connectivity and Data Repository (Gathering and storing transactions and

information.)
Statements
5 4 3 2 1
1. The company can monitor cash flow status in real-time.

(Maaaring subaybayan ng kumpanya ang kalagayan ng cash
flow sa oras.)
2. Cash flow information can be easily shared to the relevant

stakeholders (such as team members, vendors, and financial
institutions).
(Ang impormasyon ng cash flow ay madaling maibahagi sa
mga stakeholder (gaya ng mga miyembro ng team, vendor, at
institusyong pinansyal))
3. Information is retrieved easily and quickly on our cash flow

history and trends.
(Madali at mabilis na nakukuha ang impormasyon tungkol
sa cash flow history at trends.)
4. Enables an accurate tracking and forecasting of the

company’s cash flow.
(Nagbibigay-daan sa tamang pagsubaybay at pag-forecast
ng cash flow ng kumpanya.)
5. Impact on the accuracy and efficiency of our financial

decision-making processes.
(May epekto sa accuracy at efficiency ng aming proseso sa
financial decision-making.)
II. Global Cash Visibility (Reporting on cash to meet strategic needs)

Statements 5 4 3 2 1
1. Enables identification of opportunities for cost reduction

and efficiency improvement.
(Nagbibigay-daan sa pagtukoy ng mga oportunidad ukol sa
pagbabawas ng gastos at pagpapabuti pa ng takbo at
kahusayan ng negosyo.)
2. Enables timely and effective anticipation and response to

changes in the financial performance of the business.
76
(Nagbibigay-daan sa napapanahon at inaasahang

epektibong pagtugon sa mga pagbabago sa pagganap sa
pananalapi ng negosyo.)
3. Better forecasting and planning for financial needs reduce

the risk of financial difficulties such as liquidity shortages
or overdrafts.
(Ang mas mahusay na paghahanda at pagpaplano para sa
mga pangangailangan sa pera ay makakabawas sa
panganib ng mga problema sa pananalapi tulad ng mga
kakulangan sa liquidity ratios o overdraft.)
4. Allows for the development of improved processes of

implementation of more efficient systems to achieve
strategic objectives.
(Nagbibigay-daan para sa paglaganap ng mga pinahusay
na proseso ng pagpapatupad ng mas mahusay na mga
sistema upang makamit ang mga madiskarteng layunin.)
5. Aids in identifying the risk factors to enhance and enrich

business processes and unlock potential growth.
(Tumutulong sa pagtukoy sa mga posibleng panganib upang
mapahusay at mapagbuti ang mga proseso ng negosyo at
mas mabigyang halaga ang potensyal na paglag.)
III. Positioning and Reconciliation (Identify cash surplus and deficit, make
investment/borrowing decisions, and reconcile exceptions)
1. Allows the company to identify cash surplus for

investment decision-making.
(Nagbibigay-daan sa kumpanya na tukuyin ang labis na
kita para sa investment decision-making.)
2. Allows the company to identify cash deficit and use it to

make borrowing decisions.
(Nagbibigay-daan sa kumpanya na tukuyin ang
kakulangan sa pera at gamitin ito upang gumawa ng mga
desisyon tulad ng paghiram nang karagdagang pera.)
3. Consistent and accurate identification of cash surpluses

or deficits in the company’s financial statements.
77
(Magkakapareho at maayos ang pagkakakilanlan ng

mga sobra o kulang na pera sa mga financial statement
ng kumpanya.)
4. Facilitates comparison of financial records to identify

and resolve discrepancies.
(Pinapadali ang paghahambing ng mga financial
records upang matukoy at malutas ang mga kakulangan
o pagkakaiba.)
5. Helps in understanding the company's current financial

position and making informed decisions on allocation of
resources.
(Tumutulong sa pag-unawa sa kasalukuyang financial
position ng kumpanya at pagsagawa ng maalam na mga
desisyon tungkol sa paglalaan ng mga pag-aari.)
IV. Tracking and Optimization (Tracking all account details including signers
and optimizing the number and structure of accounts)
1. It simplifies the tracking of all accounts, saves time in

managing them.
(Pinapadali ang pagsubaybay sa lahat ng mga account
at nakatitipid ng oras sa pamamahala nito.)
2. Facilitates efficient identification and resolution of issues

with business accounts.
(Pinapadali ang pagtukoy at paglutas ng mga isyu sa
business accounts.)
3. Improves the overall transparency and accountability of

the business accounts.
(Pinahuhusay ang pangkalahatang transparency at
accountability ng mga business accounts.)
4. Enables better understanding and management of the

financial documentation and records of the business.
(Nagbibigay-daan sa mas mahusay na pagunawa at
pamamahala ng mga pinansyal na dokumento at talaan
ng negosyo.)
5. Helps in identifying and implementing financial controls

to prevent fraud and errors.
78
(Tumutulong sa pagtukoy at pagpapatupad ng mga

kontrol sa pinansyal upang maiwasan ang panlilinlang
at mga pagkakamali.)
What are the challenges encountered by Micro-sized Food Retail Enterprises in cash
flow management? (Rank according to the most common to least common challenges that
the business encountered; 1 being most common and 5 being the least)
Limited cash reserves and insufficient working capital.
Inability to effectively forecast and manage seasonal fluctuations in sales and
revenue.
Difficulty in managing and tracking inventory and expenses.
Lack of financial/accounting expertise.
Pricing pressure to keep prices low to compete with larger competitors.
Anong mga hamon na kinakaharap ng mga Micro-sized Food Retail Enterprises sa

pagpapamahala sa daloy ng pera? (I-rank ayon sa pinaka-karaniwan hanggang sa
pinaka-kalayuang hamon na kina-kaharap ng negosyo; 1 bilang pinaka-karaniwang
hamon at 5 bilang pinaka-kalayuang hamon)
Limitadong ipon o perang riserba at hindi sapat na capital
Hindi epektibong kakayahan upang mag-forecast at pamahalaan ang mga
pagbabago sa benta at kita.
Hirap sa pamamahala at pag-subaybay sa imbentaryo at gastos.
Kakulangan sa financial/accounting expertise.
Presyon sa presyo upang mapanatili mababa ang presyo ng prudokto at makipag
kumpitensya sa malalaking negosyo.
Jennilou J. Añasco
Phone: +63 9957166919
Email: anascojj@students.national-u.edu.ph
LinkedIn: www.linkedin.com/in/jennilou-añasco
Address: Malabon City, Philippines
EDUCATION
79
BACHELOR OF SCIENCE IN MANAGEMENT ACCOUNTING 2019 – Present

National University, Manila
ACCOUNTANCY BUSINESS AND MANAGEMENT TRACK 2017 – 2019

Arellano University, Elisa Esguerra Campus, Malabon
EXTRA-CURRICULAR ACTIVITIES
National University Junior Association of Management Accountants (NUJAMA)|

Manila
Member | 2022 – Present
National University Junior Philippine Institute of Accountants | Manila

Member | 2019 – May 2021
Supreme Student Government | Malabon

Treasurer | June 2015 – 2016
Campus Integrity Crusaders | Malabon

Vice President | Aug 2014 – 2015
AWARDS
First Honor, Dean’s Lister Nov 2022

National University Junior Philippine Institute of Accountants
Second Honor, Dean’s Lister Oct 2020

National University Junior Philippine Institute of Accountants
SKILLS
Written and Verbal Communication Bookkeeping Financial Reporting

Adaptability Microsoft Office
80
Khriestineille A. Castor
Phone: +63 9393904922
Email: castorka@students.national-u.edu.ph
LinkedIn: www.linkedin.com/in/khriestineille-castor
Address: Caloocan City, Philippines
EDUCATION


Lagro High School, Quezon City

Manila

Member | 2019 – May 2021
PROFESSIONAL EXPERIENCE
Dr. Jose N. Rodriguez Memorial Hospital | Caloocan City May 2019

Special Program for Employment of Students (SPES)
• An office clerk assigned to the Billing and Claims Department.
Department of Environment and Natural Resources | Quezon City November 2018

Student Intern
• Handled indexing of payroll and day-to-day tasks to DENR – Cashier Unit.
SKILLS
Effective Communication Skills

Strong Work Ethic Microsoft Office
Time Management Accountability and Responsibility
COURSES
NEW MODELS OF BUSINESS IN SOCIETY Aug 2020

Coursera. University of Virginia.
CREATIVE THINKING: TECHNIQUES AND TOOLS FOR SUCCESS Aug 2020

Coursera. London, United Kingdom.
Wally P. Jimena
81
Phone: +63 9079844118

Email: wallyjimena@gmail.com
LinkedIn: www.linkedin.com/in/jimenawp
Address: San Mateo, Rizal, Philippines
EDUCATION


World Citi Colleges, Quezon City
National University Junior Association of Management Accountants (NUJAMA) |

Manila
National University Junior Philippine Institute of Accountants (NUJPIA) | Manila

Member | 2019 – May 2021
Supreme Student Government Officer (SSG)

Student Representative | 2012 – 2015
• Organized school programs and ensure that the school's policies and regulations
are implemented effectively. With a strong commitment to academic excellence
and a passion for leadership, striving to inspire and motivate fellow students to
achieve their goals and contribute to the school community.
SKILLS
• Ability to Follow Instructions • Leadership

• Ability to Work Under Pressure • Microsoft Office
• Adaptability • Communication Skills
Angelika P. Mollaneda
Phone: +63 9958191709
82
Email: mollanedaap@students.national-u.edu.ph
LinkedIn: www.linkedin.com/in/amllnd
Address: Taguig City, Philippines
EDUCATION


Pasig Catholic College, Pasig

Manila
National University Commission on Audit (NUCOA)| Manila

Executive Director of Information and Publicity | August 2021 – Present
National University Student Government (NUSG) | Manila

Information and Publicity Committee | July 2019 – May 2021

Member | 2019 – May 2021

Media and Documentation Committee | July 2020 – May 2021
Phoenix Publishing House | Quezon City

Student Intern | December 2018
AWARDS
MOST OUTSTANDING DIRECTOR

Aug 2022
National University Student Government
SKILLS
Leadership Ability to work under pressure Communication Skill

Ability to Work in a Team Microsoft Office
Maelaine M. Sanguyo
Phone: +63 9759210037
Email: sanguyomm@students.national-u.edu.ph
83
LinkedIn: www.linkedin.com/in/maelaine-sanguyo
Address: Pampanga City, Philippines
EDUCATION


Marian College of Baliuag Inc., Baliuag Bulacan
Institute of Management Accountants – National University Student Chapter |

Manila
Member | September 2022 – Present

Manila
Creative Associate | August 2022 – Present

Member | 2019 – May 2021
Electroline Corporation | Baliaug, Bulacan City 2020 – 2022

Work Immersion
• Organizing and Recording financial reports and transactions within the said
corporation.
SKILLS
Ability to Work as a Team Accounting Software Microsoft Office

Communication Skills Time management skills
AWARDS
EXCELLENT AWARD FOR BEST IN RESEARCH PAPER 1 AND 2 2013 – 2017

BAHAY PARE NATIONAL HIGH SCHOOL

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i

COLLEGE OF BUSINESS AND ACCOUNTANCY

THE EFFECTIVENESS OF CASH FLOW MANAGEMENT PRACTICES

ON THE MANAGEMENT AND DECISION-MAKING

OF MICRO-FOOD RETAIL BUSINESSES

Presented to the Faculty of the College of Business and Accountancy

NATIONAL UNIVERSITY – MANILA

In Partial Fulfillment of the Requirements

for the Degree of Bachelor of Science in Management Accounting

management of business and decision-making. Data are collected through a quantitative

enterprises by means of a closed-ended questionnaire survey supported using tools such as

positive impact on decision-making, particularly in terms of improving connectivity and

adopting appropriate record-keeping practices. Likewise, only a minority of the micro

enterprise employ technological advancements or utilize the use of free accounting

monitor and manage their cash or daily business operations.

Keywords: cash flow management, micro enterprises, decision-makers, practices

We also dedicate this to our university, National University - Manila, which

for the betterment of our research study.

throughout our research and its successful completion.

II REVIEW OF RELATED LITERATURE 12

III RESEARCH DESIGN AND METHODOLOGY 22

IV RESULTS, ANALYSIS AND DISCUSSION 30

IV SUMMARY OF FINDINGS, CONCLUSIONS, AND 53

Table 1: Frequency and Percentage Distribution of the Respondents

delimitation of the study, and definition of terms.

Background of the Study

Microenterprises are important sources of employment and revenue because they

Medium-sized Enterprises (MSME) running in the country. Microenterprises make up

establishments. In addition, majority of Microenterprises in the Philippines are engaged in

wholesale and retail businesses.

Even if the amount of Micro, Small, and Medium-sized Enterprises (MSME) is

microenterprises. The capability to analyze financial statements, involvement of owner and

managers in the formulation of economic decisions, having financial and accounting

(Gilbert, Nelson, and Nicholas, 2013).

management practices (Merchant Factors, 2013).

management knowledge and practices directly influence the success or failure of

microenterprises. Poor cash management practices and non-synchronicity of cash inflows

management practices on the decision-making of Micro Food Retail Businesses in Quiapo,

research of Microenterprise’s cash flow management practices in the National Capital

Philippines is supporting and strengthening MSMEs, it is crucial to thoroughly assess this

According to an article of HighRadius (2022), to achieve best-in-class cash flow

exceptions in cash flow management. By regularly reviewing and analyzing financial

be designed and implemented, and decision-supporting information systems must be

The synchronization of cash receipts and disbursements can be accomplished by

of their resources and better navigate the challenges of operating in a competitive

which is crucial for businesses to survive in the marketplace. In understanding the

effectiveness of cash flow management practices on the decision-making of micro, food

framework is depicted in Figure 1.

INPUT PROCESS OUTPUT

visibility, positioning and reconciliation, and tracking and optimization.

Statement of the Problem

on the decision-making of micro-sized food retail businesses in Quiapo, Manila.

The researchers sought answers to the following questions:

1. What is the profile of Micro-sized Food Retail Enterprises in terms of:

a. Connectivity and Data Repository

b. Global Cash Visibility

c. Positioning and Reconciliation

d. Tracking and Optimization

3. Is there a significant difference in how the respondents assess the effectiveness of