Exploring Financial Management and Performance of Small and Medium Enterprises

This study examines the financial management practices and performance of small and medium enterprises (SMEs) in Cauayan City, aiming to identify how financial strategies control business sustainability and growth. SMEs are extensively acknowledged as vital contributors to local economic development, employment generation, and innovation. However, many face persistent challenges related to financial planning, capital access, and cash flow management, which can significantly impact their performance and survival. Using a mixed-method approach, this research combines quantitative data from structured surveys with qualitative insights from in-depth interviews with SME owners and financial officers. Key areas of analysis include budgeting, financial reporting, investment decisions, debt management, and the use of digital tools for financial monitoring. The study also evaluates performance indicators such as profitability, liquidity, and operational efficiency. Findings reveal that while many SMEs in Cauayan City exhibit strong entrepreneurial drive, a lack of financial literacy and strategic planning often hinders optimal performance. Access to financing remains limited, with many enterprises relying on informal funding sources. The research underscores the need for targeted financial education programs and policy interventions to support SME development. It also highlights the potential of technology adoption in enhancing financial transparency and decision-making. Ultimately, this study provides valuable insights for local government units, financial institutions, and development agencies seeking to empower SMEs in Cauayan City through improved financial management practices, fostering sustainable economic growth in the region.