Home⇛Psychology and Education: A Multidisciplinary Journal⇛vol. 23 no. 9 (2024)

Linking Financial Inclusion on the Business Performance: The Case of Micro and Small Enterprises

Sarah Jane Orillosa | Camille George Olarte | Hana Khrystell Cariño | Christ Stephen Halog | Allea Angelica Chua | Justine Noel Dasas | Jerome Orillosa

Discipline: Finance

 

Abstract:

This study was conducted to determine the relationship and influence of financial inclusion on the business performance of micro and small enterprises (MSEs). The level of financial inclusion was investigated through access, usage, quality, and welfare. Business performance with its dimensions of sales growth, capital growth, labor increase, market growth and profit growth were also examined. Consequently, the relationship between financial inclusion and business performance, and the influence of financial inclusion on the business performance of MSEs were studied. Descriptive-correlational design was used to explore and describe connections between financial inclusion and business performance. Data were collected from the fifty (50) owners and managers of MSEs using stratified random sampling technique. Upon careful analysis of the results, it became evident that micro and small enterprises demonstrate a very high level of financial inclusion, coupled also with high results of their business performance. Further, it is found that there exists a statistically significant and positive relationship between financial inclusion and business performance. Moreover, it was revealed that financial inclusion significantly influences the business performance of MSEs. These findings underscore the critical importance of enhancing the financial inclusion initiatives for MSEs as it directly impacts and improves their overall business performance.



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