Philippine E-Journals

Economic Stressors and the Performance of Small and Medium Enterprises in Davao City

Guillermo B. Bonghanoy

Discipline: Economics

 

Abstract:

Recognizing that Small and Medium Enterprises (SMEs) in Davao City, Philippines have the potential for employment generation and economic growth, SMEs can help provide a self-sufficient industrial foundation for the country. Utilizing the normative survey technique on 400 samples, this study determined the economic stressors that most SMEs faced during 2001-2005. It found out the significant difference in the levels of performance of SMEs (sales, profit and employment opportunity) and their coping mechanisms over the same period. A significant relationship between economic stressors (peso depreciation, high oil prices, and unemployment and inflation rate) and the SMEs performance (sales, profit and employment opportunity) was revealed. Through this study, the government may craft policies that promote and strengthen SMEs to help them become contributors to rural industrialization.